 Various types of ITR Forms. Which one should you choose?  What are ITR forms? An ITR form is a prescribed form through which you communicate the details of your income earned, deductions claimed and taxes paid in a financial year to the Income Tax Department. It also enables you to carry forward the losses and claim a refund from the Income Tax Department. Know which ITR form is applicable for your e-filing of ITR There are different ITR forms prescribed for different categories of taxpayers. The selection will depend upon your taxpayer status, nature of income and residential status in India etc. ITR-1/ SAHAJ This form is for a resident individual whose total income includes the following: >Income earned from salary or Pension. >Income from other sources excluding income from winning a lottery or income from owning and maintaining race horses, income taxable under section >115BBDA or section 115E. >Income from One House Property, however, in this form, the loss brought forward from previous years or carry forward of losses are not eligible. >Income from agriculture activities up to? 5000Total income of the individual should not exceed 50 Lakhs. ITR – 2 This form is for a resident individual whose total income includes the following: >All from ITR-1 >Persons who had investments in unlisted equity shares at any time during the entire financial year. >Individual who is a director in a company. >Individual who is a Resident (ROR/RNOR) or non-resident. >Income earned from capital gains >Income from foreign assets/ other foreign income. >Agricultural income more than Rs. 5,000/- >Incomes where clubbing provisions are applicable >Total income can exceed 50 lakhs in this ITR Form.  Watch this video to know more about Types of Income and Taxation. ITR – 3 The following persons are eligible to fill this form: >Individual or a Hindu Undivided Family who are carrying on profession or a business. >The residential status can be either Non-resident or Resident(ROR/RNOR) >If a person is the director of the company. >Persons who had investments in unlisted equity shares at any time during the entire financial year. >Income from other sources >Income of a person who is a partner in a firm. >Income from salary or Pension Income from House Property(one or more) >Total income can exceed 50 lakhs in this case. Income earned from capital gains or foreign assets/foreign income. >Who is having income under the head – profits or gains of business or profession and who is not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam). ITR – 4 This form is for both the resident individuals and HUFs whose income includes the following: >Other than LLPs all partnership firms which are residents and have an income which is either professional or from the business. >Those persons who have opted for a presumptive income scheme according to Section 44AD, Section 44AE and Section 44ADA of the Income Tax Act. >If the person’s business turnover exceeds Rs. 2 crores, then he is required to file ITR-3 with the Audit report, and not ITR 4. >The total income for ITR 4 should not exceed Rs. 50 lakhs. >Income from One House Property(loss brought forward from previous years or carry forward of losses are not eligible in this ITR Form ). >Income from Salary or Pension. >Income from other sources. (excluding income from winning a lottery or income from owning and maintaining race horses, income taxable under section 115BBDA or 115BE). ITR – 5 The following persons are eligible to fill this form: >Investment funds >Business trusts >Estate of insolvent >Artificial Juridical Person (AJP) >Body of Individuals (BOIs) >LLPs Associations of Persons (AOPs) and Firms ITR – 6 This form can be used by companies which are not claiming any exemptions under Section 11 and by a company other than a company which is required to file return in Form ITR-7. Who cannot file ITR 6? >Section 11 companies being companies formed with a charitable or religious purpose. >Companies on which Form ITR-7 is applicable ITR – 7 Persons including companies that are required to file returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D) should choose ITR-7 form. Section 139(4A): The return to be filed in respect of Income from a property, of which the true owner is a trust or such property is held under any other legal obligation. In this case the income generated should be used only for charitable or religious purposes. Section 139(4B): The return to be filed in respect of total Income derived by a Political party Section 139(4C): The below mentioned entities should file returns under this section: i.) Scientific Research association. ii.) Educational institutions, hospitals and other medical institutions. iii.)Associations and institutions covered under section 10(23A) and Section 10(23B). iv.) News agencies. v.) Others as may be prescribed. Section 139(4D): The returns by colleges, universities or any other institutions which are not required to furnish return of income or loss under any other section need to be filed under this section. Bonus: We have made a detailed video on Section 80C to avail Income Tax Deductions to save money. Click here to watch the video. |
