Financial Planning
What is ITR?
Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1st April and ending on 31st March of the next year.
Income can be of various forms such as :
- Income from salary
- Profits and gains from business and profession
- Income from house property
- Income from capital gains
- Income from other sources such as dividend, interest on deposits, royalty income, winning on lottery, etc.
Types of ITR Forms
The Income Tax Department has prescribed 7 types of ITR forms – ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and applicability of the form will depend on the nature and amount of income and the type of taxpayer.
|
Particulars |
Applicability |
To be filed by resident individuals having total income upto ₹ 50 lacs from following sources :
|
ITR-1 (also called as Sahaj) |
To be filed by resident individuals having total income upto ₹ 50 lacs from following sources : |
|
ITR-2 |
To be filed by Individuals and HUFs who are not eligible to file form ITR-1 and don’t have income from profits and gains from business or profession |
|
ITR-3 |
To be filed by Individuals and HUFs having income from profits and gains from business or profession |
|
ITR-4 (also called as Sugam) |
To be filed by resident individuals, HUFs and firms (other than LLP) who are residents having total income upto ₹ 50 lacs and having income from business or profession computed under section 44AD, 44ADA or 44AE |
- ITR-5
- Firm
- Limited Liability Partnership (LLP)
- Association of Persons (AOP)
- Body of Individuals (BOI)
- An artificial juridical individual directed to in section 2(31)(vii)
- Estate of deceased
- Estate of insolvent
- Business trust and investment fund
- Cooperative society
- Local authority
However, individuals who are required to file the return of income under sections 139(4A), 139(4B), 139(4C), or 139(4D) should refrain from using this form. If you need help deciding which ITR form to use, you can refer to our guide for assistance.
ITR-6 is an Income Tax Return form specifically designed for companies that are not claiming exemption under section 11 of the Income Tax Act.
ITR-7 should be filed by an individuals and companies:
- Income of religious and charitable trusts that comes under Section 139 (4A)
- Income of Political Parties under Section 139 (4B)
- Earning of Scientific research institutions as per Section 139 (4C)
- Income of education institutions such as university, college, or other institutions that comes under Section 139 (4D)
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