The Income Tax Act mandates separate Tax return forms for different types of taxpayers based on the following factors –
  1. Source of Income
  2. Total Income
  3. Category of Taxpayer (Company, HUF, Individual, Trust, etc.)
There are seven types of return forms, starting from ITR 1 up to ITR 7. Let us decode the basic details of each type of ITR form.

Different types of ITR forms

ITR-1

ITR-1 or Sahaj can be used by below category of resident Indians:
  • Income earned from other sources such as lottery, horse race etc.
  • Agricultural income less than Rs 5000
  • Salary/pension income
  • Payment received for a single house property with certain exclusions.
There are limitations to who can and cannot opt for this form. For example, individuals with income from foreign assets cannot file ITR 1 form.

ITR-2

Individuals and HUF with below criteria can file ITR 2 form:
  • Income greater than Rs 50 lakh
  • Income received through salary/pension/house property/lottery/horse race/capital gains/foreign assets/foreign income
  • If an individual is the director of a company
  • Agricultural income of more than Rs 5000
  • Individuals who do not earn money from business ventures.

ITR-3

Individuals or HUF with income from below sources can file ITR 3 form
  • A business or profession
  • If you are an individual director in a company
  • Income received as a partner in a firm
  • Investments in unlisted equity shares
  • Income from salary/pension/house property/other sources

ITR-4

Individuals, HUFs, Partnership firms having income from business and profession can opt for ITR 4 form. Moreover, those who have chosen for presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act can also file using ITR 4 form.
Turnover exceeding Rs 2 crore will have to be filed under ITR 3 form.

ITR-5

ITR 5 form is to be filed by Firms, Body of Individuals, Co-operative societies, LLPs (Limited Liability Partnerships), Association of Persons, Local authorities, Artificial Judicial Persons, Estate of Insolvent, Estate of Deceased, Investment Fund, and Business Trust.

ITR-6

ITR 6 form can only be filed electronically by companies, excluding companies claiming an exemption under Section 11, which is income from a religious or charitable property.

ITR-7

Companies filing the return under below sections of Income Tax Act can file using ITR-7:

Section 139(4A): Individuals holding a property for charitable or religious purposes
Section 139(4B): Political parties
Section 139(4C): Institutions or associations mentioned under section 10(23A),10(23B), medical institutions, news agencies, educational institutions, agencies involved in scientific research
Section 139(4D): Under this section, colleges and universities or any such institution where revenue and losses are not required to be reported as per the rules laid under this section of the Act.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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