Tax

Know Which ITR To File

All the taxpayers who file their income tax return need to determine the type of income tax return (ITR) form before they actually file their returns. The type of form that the taxpayer needs to choose entirely depends on the income of the taxpayer which can either earned within the country or tax charged on the income earned outside the country.

Enlisted below are various types of ITR forms for you to pick from when it comes to filing your income tax return. There are 9 types of income return forms, and as a taxpayer you need to fit into either of the category as per Central Board of Direct Tax. Let us review which form category you fit into.

ITR-1 “Sahej Form”

  • Individuals who earn their income through their salary or through pension
  • Individuals who earn their income from a single residential property
  • Individuals who do not have any income through other business or those who do not have income from the sale of any assets i.e. through capital gains
  • Individuals who are not the owners of any property or asset in any country other than India
  • Individuals who do not earn income from any country outside India
  • Individuals who have their income through agriculture and their income is below Rs.5,000/-
  • Individuals who have their earnings through various investments or sources such as Shares, Fixed-Deposits, Investments, etc.
  • Individuals who have not earned their income from activities such as lotteries or horse racing, etc.
  • Individuals who wish to club the their spouse’s income or underage child’s income along with their income, as long as the income that is clubbed is clubbed in accordance with the criteria stated above

ITR-2A:

Form ITR 2A was introduced in the year 2015-2016 which is used by Hindu Undivided Family (HUF) or an individual tax payer. This form is applicable on the following:

  • Individuals who earn their income through their salary or through pension
  • Individuals who earn their income from a single residential property
  • Individuals who do not have any income through other business or those who do not have income from the sale of any assets i.e. through capital gains
  • Individuals who are not the owners of any property or asset in any country other than India
  • Individuals who do not earn income from any country outside India
  • Individuals who have their income through agriculture and their income is below Rs.5,000/-
  • Individuals who have their earnings through various investments or sources such as Shares, Fixed-Deposits, Investments, etc.
  • Individuals who have not earned their income from activities such as lotteries or horse racing, etc.

ITR-2:

The ITR-2 Form is generally used by individuals who have accrued income through the sale of assets or property as well as individuals who earn income from countries outside India. Individuals or Hindu Undivided Families (HUF) can avail of this form to file their returns. This form is applicable for the following:

  • Individuals who earn their income through their salary or through pension
  • Individuals who earn their income from a single residential property
  • Individuals who do not have any income through other business or those who do not have income from the sale of any assets i.e. through capital gains
  • Individuals who are not the owners of any property or asset in any country other than India
  • Individuals who do not earn income from any country outside India
  • Individuals who have their income through agriculture and their income is below Rs.5,000/-
  • Individuals who have their earnings through various investments or sources such as Shares, Fixed-Deposits, Investments, etc.
  • Individuals who have not earned their income from activities such as lotteries or horse racing, etc.

ITR-3:

Form ITR- 3 is a form that is used by a tax payer from Hindu Undivided Family or an individual who alone operates as a partner in the firm but does not conduct any business under the firm nor earns any income from the business conducted by the firm. The taxpayers whose taxable income is earned in form of following:

  • Commission
  • Salary
  • Interest
  • Bonus
  • Remuneration

ITR-4:

ITR 4 is used by the individuals who conduct business or who earn their income through profession of any kind. ITR-4 is applicable to any type of business, or undertaking or a profession without any limit on the income that is earned through the business. The taxpayers can club any income that is earned through speculations, windfalls, salaries, housing properties, lotteries etc. along with their business income. Any professional falling under the professional tag such as shop-owners, doctors, retailers, agents, designers, contractors etc. are eligible to file income tax returns through this form.

ITR-4S “Sugam Form”

ITR -4 S also known as Sugam Form is a form that can be utilized by any Hindu Undivided Family or an individual tax payer for the purpose of filing their income tax returns. ITR 4 S is applicable for following:

  • Individuals who earn their income through their salary or through pension
  • Individuals who earn their income from a single residential property
  • Individuals who do not have any income through other business or those who do not have income from the sale of any assets i.e. through capital gains
  • Individuals who are not the owners of any property or asset in any country other than India
  • Individuals who do not earn income from any country outside India

ITR 4 S form is used in special cases where the income earned is based on presumptive method of calculation.

Following INCOME TAX RETURN FORMS are applicable for COMPANIES & FIRMS:

ITR-5:

The ITR-5 form is used only by following entities for the purpose of filing income tax returns:

  • Firms
  • Co-operative Societies
  • Limited Liability Partnerships (LLPs)
  • Body of Individuals (BOIs)
  • Association of Persons (AOPs)
  • Artificial Judicial Persons
  • Local Authorities

ITR-6:

ITR – 6 is a form that is used only by the companies and organization that claim an exemption under the Section 11 of the Income Tax Act where the income earned through such business organization is used for the religious or charity purposes. This form can only be filed only.

ITR-7:

The ITR-7 form is the form that is filed by individuals or companies that submit their returns under the following sections:

  • Section 139(4A) - Under this section of the Income Tax Act, the returns are filed by those individuals who receive an income from property that is solely held for the religious or charity purposes in form of any trust or legal obligation
  • Section 139(4B) - Under this section of the Income Tax Act, the returns are filed by the political parties if their total income earned has crossed the non-taxable limit
  • Section 139(4C) - Under this section of the Income Tax Act, the returns are filed by following entities:
  • Any institution or association as mentioned under Section 10(23A) of Income Tax Act
    Any association that is involved with scientific study
    Any news agency
    Any organization as mentioned in Section 10(23B) of the Income Tax Act
    Any fund, educational institution or medical institution

  • Section 139(4D) - Under this section of the Income Tax Act, the returns are to be filed by the entities such as universities, colleges or any such institution where the income returns or loss are not required to be provided as per the provisions outlined in this section.