ITR stands for Income Tax Return. ITR forms are the forms that taxpayers in India use to file their annual income tax returns with the Income Tax Department. There are several types of ITR forms available, depending on the taxpayer’s income sources, income amount, and other factors.
The different ITR forms include ITR-1 (SAHAJ), ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. Each form has a specific purpose, and taxpayers must choose the appropriate form based on their individual circumstances.
ITR forms require taxpayers to provide details about their income from various sources, including salaries, business income, capital gains, and more. They also require taxpayers to provide information about their tax deductions, investments, and other financial details.
Once the taxpayer has filled out the appropriate ITR form and submitted it to the Income Tax Department, the department will process the return and calculate the amount of tax owed or any refund due.
ITR-1 (Sahaj)
ITR-1 (Sahaj) is the simplest form among all the ITR forms and can be filled by individuals who have income from salary, pension, or income from one house property, and have total income up to Rs. 50 lakh. The following are eligible to file ITR-1 (Sahaj):
- Individuals who have income from salary or pension.
- Individuals who have income from one house property.
- Individuals who have income from other sources, such as interest income, family pension income, etc., provided the total income does not exceed Rs. 50 lakh.
- Individuals who are residents of India.
However, individuals who have income from capital gains, business or profession, or who have more than one house property, are not eligible to file ITR-1 (Sahaj) and must use other ITR forms.
ITR-2
ITR-2 form is applicable to individuals and Hindu Undivided Families (HUFs) who have income from sources other than business or profession. The following are eligible to file ITR-2:
- Individuals and HUFs who have income from salary or pension.
- Individuals and HUFs who have income from house property.
- Individuals and HUFs who have income from capital gains.
- Individuals and HUFs who have income from other sources such as interest income, family pension, etc.
- Individuals and HUFs who are not eligible to file ITR-1 (Sahaj).
- Individuals and HUFs who are not eligible to file ITR-4 (Sugam).
- Non-resident individuals or HUFs.
It is important to note that individuals and HUFs who have income from business or profession are not eligible to file ITR-2 and must use other ITR forms such as ITR-3 or ITR-4.
ITR-3
ITR-3 form is applicable to individuals and HUFs who have income from profits and gains of business or profession. The following are eligible to file ITR-3:
- Individuals and HUFs who have income from profits and gains of business or profession.
- Individuals and HUFs who have income from salary or pension.
- Individuals and HUFs who have income from house property.
- Individuals and HUFs who have income from capital gains.
- Individuals and HUFs who have income from other sources such as interest income, family pension, etc.
- Individuals and HUFs who are not eligible to file ITR-1 (Sahaj).
- Individuals and HUFs who are not eligible to file ITR-2.
- Non-resident individuals or HUFs who have income from profits and gains of business or profession.
It is important to note that individuals and HUFs who have income only from salary, house property, capital gains, or other sources, and do not have income from business or profession, are not eligible to file ITR-3 and must use other ITR forms such as ITR-1, ITR-2, or ITR-4.
ITR-4
ITR-4, also known as Sugam, is applicable to individuals, HUFs and firms (other than Limited Liability Partnership) who have presumptive income from business or profession. The following are eligible to file ITR-4:
- Individuals, HUFs, and firms (other than LLPs) who have presumptive income from business or profession.
- Individuals and HUFs who have income from salary or pension.
- Individuals and HUFs who have income from house property.
- Individuals and HUFs who have income from other sources such as interest income, family pension, etc., provided the total income does not exceed Rs. 50 lakh.
- Individuals and HUFs who are not eligible to file ITR-1 (Sahaj).
- Individuals and HUFs who are not eligible to file ITR-2.
It is important to note that if an individual or HUF has income from business or profession exceeding the presumptive income limit, they are not eligible to file ITR-4 and must use other ITR forms such as ITR-3. Also, LLPs and companies are not eligible to file ITR-4 and must use other ITR forms such as ITR-5 or ITR-6, as applicable.
ITR-5
ITR-5 is applicable to the following entities:
- Firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Persons (AJPs), and Cooperative Societies.
- Persons other than individuals, HUFs, and companies.
ITR-5 form is not applicable to individuals, HUFs, and companies. If an individual or HUF is a partner in a partnership firm or a member of an AOP/BOI, then the partnership firm or AOP/BOI can file ITR-5 on their behalf.
ITR-5 is a comprehensive form that requires taxpayers to provide detailed information about their income, deductions, and other financial details. The form is used by various types of entities to file their income tax returns with the Income Tax Department.
ITR-6
ITR-6 is applicable to companies that are not claiming exemption under Section 11 of the Income Tax Act, 1961. This includes the following entities:
- Companies registered under the Companies Act, 2013 or Companies Act, 1956.
- Companies that are not claiming exemption under Section 11 of the Income Tax Act, 1961.
- Companies that are not engaged in charitable or religious activities.
- Companies that are not engaged in scientific research.
- Companies that are not engaged in any other income-generating activity except business or profession.
ITR-6 form is not applicable to companies claiming exemption under Section 11 of the Income Tax Act, 1961, or to companies engaged in charitable or religious activities, or scientific research. Such companies must use other ITR forms as applicable.
ITR-6 requires companies to provide detailed information about their income, expenses, taxes paid, and other financial details. The form must be filed electronically with the Income Tax Department.
ITR-7
ITR-7 is applicable to entities that are required to furnish a return of income under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) of the Income Tax Act, 1961. This includes the following entities:
- Persons including companies who are required to furnish return under Section 139(4A) such as trustees of a charitable trust or religious trust, political parties, or news agencies.
- Persons including companies who are required to furnish return under Section 139(4B) such as universities, colleges, or other educational institutions.
- Persons including companies who are required to furnish return under Section 139(4C) such as scientific research associations, news agencies, or institutions referred to in Section 10(23A) or Section 10(23B).
- Persons including companies who are required to furnish return under Section 139(4D) such as entities referred to in Section 139(4D) like investment funds.
ITR-7 requires entities to provide detailed information about their income, expenses, taxes paid, and other financial details. The form must be filed electronically with the Income Tax Department.
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