Know, Which ITR Form Should You Choose To File Your Income Tax Return in India?
Filing the correct Income Tax Return (ITR) form is crucial for ensuring compliance with Indian tax laws. Here’s a guide on which ITR form to fill based on your income sources and taxpayer status:
ITR Forms in India
- ITR-1 (Sahaj)
– Who Should File:
– Resident individuals having total income up to ₹50 lakh.
– Income from salary/pension.
– Income from one house property (excluding cases where there is a brought forward loss or loss to be carried forward).
– Income from other sources (excluding winning from lottery and income from race horses).
– Who Should Not File:
– Individuals who are either Director in a company or have invested in unlisted equity shares.
– Those with agricultural income exceeding ₹5,000.
– Income from business or profession.
- ITR-2
– Who Should File:
– Individuals and Hindu Undivided Families (HUFs) not having income from business or profession.
– Income from salary/pension.
– Income from house property (more than one house property is allowed).
– Income from capital gains.
– Income from other sources (including winnings from lottery and income from race horses).
– Foreign income/foreign assets.
– Who Should Not File:
– Individuals having income from business or profession.
- ITR-3
– Who Should File:
– Individuals and HUFs having income from business or profession.
– Income from salary/pension.
– Income from house property.
– Income from capital gains.
– Income from other sources.
– Who Should Not File:
– Individuals who do not have income from business or profession.
- ITR-4 (Sugam)
– Who Should File:
– Individuals, HUFs, and Firms (other than LLP) who are residents having total income up to ₹50 lakh.
– Income from business and profession computed under sections 44AD, 44ADA, or 44AE (Presumptive taxation scheme).
– Income from salary/pension.
– Income from one house property.
– Income from other sources (excluding winning from lottery and income from race horses).
– Who Should Not File:
– Individuals who are either Director in a company or have invested in unlisted equity shares.
– Income exceeding ₹50 lakh.
– Income from more than one house property.
- ITR-5
– Who Should File:
– Firms, LLPs, AOPs (Association of Persons), BOIs (Body of Individuals), artificial juridical persons, cooperative societies, and local authorities.
– Who Should Not File:
– Individual taxpayers.
- ITR-6
– Who Should File:
– Companies, other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes).
– Who Should Not File:
– Individuals, HUFs, and firms.
- ITR-7
– Who Should File:
– Persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) (entities such as trusts, political parties, institutions, etc. claiming exemption under sections like 11, 12, 10, etc.).
Choosing the Right ITR Form
Selecting the correct ITR form depends on your income sources, taxpayer category, and other specific conditions. Here are a few scenarios:
- Salaried Individual with Income from One House Property and Other Sources: ITR-1
- Individual with Capital Gains or Multiple House Properties: ITR-2
- Professional or Business Owner: ITR-3 or ITR-4 (if opting for presumptive taxation)
- Firm or LLP: ITR-5
- Company: ITR-6
- Trust or NGO: ITR-7
Using the correct ITR form ensures your return is processed smoothly without delays or issues. For detailed assistance and to avoid any mistakes, it is advisable to consult a tax professional.