Income-Tax-Return-Forms

Types of Income Tax Return Forms

Types of Income Tax Return Forms

Filing of income tax return is mandatory for all persons who have taxable income in India. Not filing an income tax return could lead to penalty and prosecution. In this article, we look at the different types of income tax return forms and their applicability.

Form ITR-1 SAHAJ

The individuals who may use this form are mentioned below:

  • Salaried individuals.
  • Individuals in receipt of a pension.
  • Income from one house property (excluding loss brought forward from a preceding financial year).
  • Income from other sources.
  • Individuals whose total income is within 50,00,000.

Now, to the individuals who are not permitted to use this form:

  • Income from more than one house property.
  • Income from lottery or racehorses.
  • Profits/Losses under the head “Capital Gains”.
  • Income from agriculture/ exempt income in excess of Rs. 5000.
  • Income from business or profession.
  • Income received which is taxable.
  • Income taxable under Section 115BBDA; which states that any income of the assessee exceeding 10 lakh rupees, earned through dividends, paid or distributed by any domestic company, the income-tax payable shall be the aggregate of:
      • a) The amount of income-tax calculated on the income by way of such dividends aggregating Rs 10,00,000, at the rate of 10%; and
      • b) The amount of income tax that would be chargeable on the assessee if his/her total income was reduced by the amount of income by way of dividends.
      • To be concise, the income mentioned in the above lines cannot be filed in Form ITR-1.
  • Income which is referred to in Section 115BBE, which taxes certain unexplained items deemed as income at the flat rate of 30%, irrespective of the slab of income.
  • Person claiming relief of foreign tax paid under Section 90, 90A or 91.
  • Any resident who owns an asset or financial interest outside India.
  • Holds the authority to sign any account located outside India.

Know more about ITR-1 Sahaj Form.

Form ITR-2

This form may be used by an individual or a Hindu Undivided Family whose total income is not inclusive of income derived from a proprietary business or profession, or income derived from a partnership firm. ITR-2 cannot be filed by a company, LLP, or any other legal entity. Form ITR-2 must be filed by an individual or HUF by the 31st of July every year, and the 30th of September on occasions of audit under Section 44AB.

Know more about ITR-2 Form.

Form ITR-3

Form ITR-3 is to be used by a person who is ineligible to file returns on Form ITR-01, whereby income under the heads ‘Profits and gains of businesses or profession’ from a proprietary firm shall be ignored. Moreover, individuals below the age of 60 with an income of more than Rs 2.5 lakhs; the individuals aged between 60 and 80 with an income of more than 3,00,000 and individuals above 80 years whose income was more than 5,00,000 during the year 2016-17 may also file returns in Form ITR-3.

Regarding the time-limit for filing Form ITR-3, Form ITR-3 must be filed by an individual or HUF by the 31st of July every year, and the 30th of September on occasions of audit under Section 44AB.

Know more about ITR-3 Form.

Form ITR-04

ITR-4 is for those taxpayers who have opted for the income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act, and whose turnover doesn’t exceed 2 crores. If the turnover exceeds the suggested limit, the assessee would have to file returns under Form ITR-3.

If the taxpayer has any of the following incomes, Form ITR-4 should not be filed.

  • Income from more than one house property.
  • Income from lottery or racehorses.
  • Income under the head “Capital Gains”.
  • Agricultural income in excess of rs 5000.
  • Income taxable under Section 115BBDA.
  • Income which is referred to in Section 115BBE.
  • Income from speculative business and other special incomes.
  • A person claiming relief of foreign tax paid under Section 90, 90A or 91.
  • Any resident owning an asset or having a financial interest outside India.
  • Any resident receiving income from any other sources outside India.

Form ITR-5

Form ITR-5 may be used by a firm, LLP, a co-operative bank, other co-operative societies, other AOP/BOI, or an artificial judicial person. It is not meant for the use of the following persons:

  • Individuals.
  • Hindu Undivided Families.
  • Companies.
  • People who file returns on Form ITR-7.

Form ITR-6

Form ITR-6 may be used by those who don’t claim an exemption under Section 11 of the Income Tax Act, which deals with exemptions permitted to charitable trusts and institutions, which implies that this form can be used by a private limited company, one person company and limited company.

Form ITR-7

Contrary to ITR-6, Form ITR-7 may be filed by the companies who claim an exemption under Section 11 of the Income Tax Act, which deals with exemptions permitted to charitable trusts and institutions. Moreover, the following returns of income, which is also inclusive of charitable trusts and institutions, shall be filed in Form ITR-07:

  • Charitable and Religious Trusts.
  • Section-8 Company
  • Political parties.
  • Incomes of persons claiming return under Section 10.
  • Trade union association referred to in sub-clause (a) or (b) of Section 24.
  • Body/authority/board/trust/commission referred to in Clause(46) of Section 10.
  • Infrastructure debt fund referred to in Clause(47) of Section 10.
  • Any educational Institution.
  • Business trust.
  • Investment fund.

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