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07 Jun Types of ITR forms for filing income tax returns

Posted at 14:49h in Income Tax by

There are currently seven different ITR forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. Each taxpayer must file their ITR every year before the due date, which is July 31st. The specific form a taxpayer needs to use depends on their income sources, total earnings, and classification (such as individual, Hindu Undivided Family (HUF), or company). Let's take a closer look at these forms:

1) ITR-1 OR SAHAJ

This IT return  form is to be used by  a resident individual whose total income for the year includes:

  1. Income from Salary or Pension
  2. Income from One House Property (excluding cases where a loss is carried forward from previous years)
  3. Income from other Sources (excluding winnings from lottery and income from race horses)
  4. Agricultural income up to Rs 5000

Who cannot file ITR-1 ?

  1. Total income exceeding Rs 50 lakh
  2. Agricultural income exceeding Rs 5000
  3. Taxable capital gains
  4. Income from business or profession
  5. Income from more than one house property
  6. Directorship in a company
  7. Investments in unlisted equity shares at any time during the financial year
  8. Ownership of assets (including financial interest in any entity) outside India, including signing authority in any account located outside India
  9. Resident not ordinarily resident (RNOR) or non-resident status
  10. Any foreign income
  11. Tax deducted under Section 194N
  12. Deferred payment or deduction of tax on ESOP
  13. Brought forward loss or loss to be carried forward under any income head

2) ITR-2 | who can File?

This IT return form  is to be use by an individual or a Hindu Undivided Family (HUF) whose total income for the year includes:

  1. Income from Salary or Pension
  2. Income from One House Property (excluding cases where a loss is carried forward from previous years)
  3. Income from Other Sources (excluding winnings from lottery and income from race horses)
  4. Agricultural income up to Rs 5000

Who cannot file ITR - 2 ?

This Return Form is not applicable for individuals whose total income for the year includes Income from Business or Profession. For reporting such income, you may need to utilize either ITR-3 or ITR-4.

3) ITR-3 | Who can file?

ITR-3 Form is intended to be used by those individuals or Hindu Undivided Families who are having income from a proprietary business or who engaged in a profession. Individuals falling under the below mentioned categories are eligible to file ITR-3:

  1. Those engaged in a business or profession required to maintain books of accounts and/or undergo auditing   
  2. Individuals serving as Directors in a company.
  3. Individuals who have made investments in unlisted equity shares at any point during the financial year.
  4. The return may encompass income from House property, Salary/Pension, and Income from other sources.
  5. Income derived from a person’s partnership in a firm.

4) ITR 4 or Sugam | Who can file?

The current ITR-4 form is applicable to individuals, Hindu Undivided Families (HUFs), and Partnership firms (excluding LLPs), who are residents and whose total income includes:

  1. Business income under the presumptive income scheme as per sections 44AD or 44AE
  2. Professional income under the presumptive income scheme as per section 44ADA
  3. Salary or pension income up to Rs 50 lakh
  4. Income from one house property, not exceeding Rs 50 lakh (excluding any brought forward loss or loss to be carried forward)
  5. Income from other sources, with income not exceeding Rs 50 lakh (excluding income from lottery and race horses)

It’s important to note that individuals earning income from the above mentioned sources as freelancers can also choose the presumptive scheme if their gross receipts are not more than Rs 50 lakhs.The presumptive income scheme under sections 44AD, 44AE, and 44ADA is when an individual or entity opts to calculate its income based on a presumed minimum rate, typically a percentage of gross receipts or turnover in case of 44AD.44ADA, or based on the ownership of commercial vehicles in case of 44AE. However, if the business turnover exceeds Rs 2 crore, the taxpayer must file ITR-3.

Who can not file?

  1. If your total income exceeds Rs 50 lakh,
  2. If you receive income from more than one house property,
  3. If you possess any foreign assets,
  4. If you hold signing authority in any account located outside India,
  5. If you earn income from any source outside India,
  6. If you serve as a Director in a company,
  7. If you have invested in unlisted equity shares at any time during the financial year,
  8. If you are a resident not ordinarily resident (RNOR) or non-resident,
  9. If you have foreign income, If you are assessable for the income of another person for which tax is deducted at the source in the hands of that person,
  10. If tax payment or deduction has been deferred on Employee Stock Ownership Plans (ESOP),
  11. If you have any brought forward loss or loss that needs to be carried forward under any income head.

 

5) ITR-5

ITR-5 is meant to be filed by the entities such as firms, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Persons (AJPs), Estates of deceased individuals, Estates of insolvent individuals, Business trusts, and investment funds.

6) ITR-6

For companies other than those claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return must be filed electronically only.

7) ITR-7

For individuals and entities, including companies, required to submit returns under section 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F):

  1. Return under section 139(4A) must be filed by any person receiving income derived from property held under trust or other legal obligation, wholly or partly for charitable or religious purposes.
  2. Return under section 139(4B) must be filed by a political party if its total income exceeds the maximum amount not chargeable to income tax, without considering the provisions of section 139A.
  3. Return under section 139(4C) must be filed by:
    • Scientific research associations
    • News agencies
    • Associations or institutions referred to in section 10(23A)
    • Institutions referred to in section 10(23B)
    • Funds, institutions, universities, educational institutions, hospitals, or medical institutions.
  4. Return under section 139(4D) must be filed by universities, colleges, or other institutions not required to submit returns of income or loss under any other provision.
  5. Return under section 139(4E) must be filed by every business trust not mandated to furnish a return of income or loss under any other provision.

Return under section 139(4F) must be filed by any investment fund referred to in section 115UB, not obliged to furnish a return of income or loss under any other provision

Key Points to take way

  • Due Date: All taxpayers must file their ITR before July 31st each year.
  • Form Selection: The correct form depends on the taxpayer’s sources of income, total income, and classification (individual, HUF, company, etc.).

To file your ITR for FY 2023-24!

Call 9819078444
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