Types of ITR Forms & Eligibility - Which ITR Form to File?

Income Tax Returns , or ITR, is a form that taxpayers must submit to tax authorities, detailing their revenue, deductions, and taxes due or refundable for a specific fiscal year. Taxpayers who miss the deadline are imposed with a penalty. Filing tax returns is a social obligation and provides several benefits, such as establishing one's revenue graph for loan applications, serving as evidence of revenue, and requesting a refund of the Tax Deducted at Source (TDS). Every individual, business, or other entity in India is required to file an ITR if their income exceeds the outlined threshold limit.

Taxpayers can quickly determine their tax liability , request refunds for overpaid taxes, and plan tax payments with the aid of an income tax form. Depending on the category and source of income of the taxpayer, there are various kinds of income tax return forms.Before selecting a tax return form to submit, one should proceed with caution. There are 7 types of ITR forms, we can see them in detail below to know more about them:

• Section 139 (4A): Individuals who receive income from assets that are subject to trusts or other legal obligations and who use that income exclusively for religious or charitable purposes are required to submit returns.
• Section 139(4B): If the overall income generated by a political party exceeds the maximum amount, returns are required to be submitted under this section.
• Section 139(4C): Scientific Research Association, Medical institutions, hospitals, universities, funds, other educational institutions, News agencies, andInstitutions that come under Section 10(23B) are among those required to submit returns under this section.
• Section 139(4D): Any college, university, or other institution that is exempt from having to report income or losses must submit returns in accordance with this section.
• Section 139(4E): Business trusts that are exempt from disclosing their revenue or losses are required to submit their returns in accordance with this section.
• Section 139(4F): Investment funds that are recognised under Section 115UB but are not required to report income or losses are still required to submit returns in accordance with this section.

• ITR 1 This is also known as the Sahaj form. People who live in India and earn up to Rs 50 lakh annually are qualified for this.Anyone who receives income from a job, a single house property, or other sources such as horse races, lotteries, etc is eligible to submit an ITR1. However, NRIs are not eligible to submit ITR1. Those who were required to pay more than Rs. 25,000 in TDS (Tax Deducted at Source) in the prior year may also submit ITR 1
• ITR 2 Individuals and HUF who receive income from sources other than their business or line of work.The individual’s annual income must exceed Rs. 50 lakhs and income from agriculture must exceed Rs. 5000.ITR2 can be filed by individuals and NRIs who make money from a job, a home, capital gains, or other means.Those who receive their income from the sale of assets or properties are qualified to file ITR 2.Salaried people who have benefited from stock purchases and sales or suffered losses may submit an ITR2 too.
• ITR 3 Individuals and HUFs that derive their revenue from a profession or a sole proprietorship must select this form.A person must disclose any income they receive from a business or job.ITR3 must be filed by salaried individuals who make money through dealing in futures and options or intraday stock exchange.ITR3 can be used by individuals to track income from employment, real estate, capital gains , businesses, or trades (including presumed income), among other sources.
• ITR 4 It is also known by the name Sugam. ITR 4 designates that this form may be used to submit IT returns by people who own a business and receive income from it as well as from other occupations.When a business has a turnover of up to Rs 2 crore and is liable to section 44AD taxation, its revenue is reported using the ITR-4 form.Additionally, ITR-4 is for income from a profession that is liable to section 44ADA taxation and has a turnover of up to Rs 50 lakh.Moreover, a freelancer who performs work in a notified occupation may submit an ITR-4.This form can also be used to submit an ITR for taxpayers who work as physicians, business owners, designers, retailers, agents, contractors, etc.Limited Liability Partnerships (LLPs) cannot choose this form, though.
• ITR 5 The ITR-5 form must be optedfor by Investment Funds, Business Trusts,Estate of the deceased and insolvent, Cooperative societies,Local authorities,Artificial Judicial Persons (AJPs), Bodies of Individuals (BOIs), Associations of Persons (AOPs), Limited Liability Partnerships (LLPs), and firms.In order to disclose profits from their businesses and professions as well as some other sources of revenue, these alliance companies submit ITR-5s.
• ITR 6 All companies may choose ITR 6, with the exception of those seeking Section 11 exemption.Housing property rental revenue, business income, and Multiple sources of income must be disclosed on ITR 6. Companies are only permitted to file returns online under this section.
• ITR 7 The ITR 7 form must be used to submit income tax returns for people or businesses that have furnished returns underSection 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E), or Section 139(4F).The specifics of the returns that must be submitted under each part are listed below:

• Form 16 A Form 16 TDS certificate is provided by the employer to the individual. Form 16 lists an employee’s gross pay along with exemptions such as House Rent Allowance(HRA) and Leave Travel Allowance (LTA).This form also contains details about the employee's net taxable income, any other income or loss that was recorded, tax deductions, and salary TDS.
• Form16A If TDS is applied to payments other than salaries, such as income from fixed accounts or recurring deposits, over the allowed thresholds, Form 16A must be completed.
• Form 16B If you've sold a home, Form 16B from the buyer, which details the TDS deducted from the payment made to you, is required.
• Form 16C Obtaining a Form16C from your tenant in order to provide information about any TDS that was applied to the rent that you received.
• Form 26AS Form 26AS provides information about the tax deducted at source (TDS) on various types of income, including wages, debt, and the sale of immovable property.It is a crucial document that details the amount of tax deducted at source from payments and investments made by people, employees, and independent contractors. As a result, the filers are able to request refunds for any extra taxes or past-due tax payments.It contains all the details regarding the taxes paid in relation to your PAN, including any advance taxes you have paid, self-assessment taxes you have paid, tax savings investment documentation, and documentation for section 80D to 80U exemptions (health insurance premium for self and family, interest on education loan) among others.
• Form 15G and Form 15H An individual presents Form 15G and Form 15H to the bank as self-declaration forms, asking that TDS not be withheld from their income because their income is below the basicexemption limit.You may submit Form 15G if you are under the age of 60 and your gross taxable income is below the basic exemption limit.You must submit Form 15H if you are a senior citizen and have no tax due on your net pay.You must submit Form 15G or Form 15H to the person who is responsible for paying your taxes. A PAN card is mandatory in order to submit these forms.

Also Read - 7 Different Types of ITR Forms

The appropriate form must be selected based on the sort of income, the category the taxpayer belongs to, and the amount of income the taxpayer earns.