Which ITR should I file?

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Various types of ITR forms

ITR-1 or SAHAJ

ITR -1 must be used by resident Indians who comes under the categories mentioned below

  • Income is generated from a pension/ salary.
  • Income is generated from a single house property. (excluding cases where loss is brought forward from previous years);
  • income generated from agriculture.( not more than Rs.5,000 )
  • The total generated income not exceeding Rs.50 lakh.
  • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Who cannot opt for this form?

Individuals who comes under the below mentioned categories for those ‘ITR-1’ is not applicable.

  • In case the total income that has been generated is more than Rs.50 lakh
  • In case individuals have taxable capital gains that.
  • In case income is generated from more than one house property.
  • If any investments were present in unlisted equity shares, during this financial year.
  • If you are a Non-Resident Indian (NRI) and Resident Not Ordinary Resident (RNOR).
  • In case income that is generated from agriculture is more than Rs.5,000.
  • In case income is generated from profession or business.
  • In case the individual is the director of a company.
  • In case any income is generated from a property that is located outside India.
  • In case an individual has foreign assets or foreign income.

ITR-2

ITR-2 form must be used by individuals and Hindu Undivided Families (HUFs) who comes under the below-mentioned categories:

  • Income of the individual is more than Rs.50 lakh.
  • Income can be generated via a pension or from salary.
  • Income that is generated from house property.
  • Income that is generated from winning a lottery or horse races.
  • In case the individual is the Director of a company.
  • Agricultural income of the individual is more than Rs.5,000.
  • Income has been generated from capital gains.
  • In case any investments were present in equity shares that were unlisted during the financial year.
  • Income is generated from foreign income and foreign assets.
  • Who cannot opt for this form?
  • Individuals who make an income from profession and business can opt for the form.

ITR-3

The Current ITR3 Form is to be used by an individual or a Hindu Undivided Family(HUF) who have income from proprietary business or are carrying on profession. The persons having income from under mentioned sources are eligible to file ITR 3 :

  • Carrying on a business or profession
  • An Individual Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Return may include income from House property, Salary/Pension and Income from other sources
  • Income of a person as a partner in the firm

ITR-4 or Sugam

In case HUFs, Partnership Firms, and individuals who are Indian residents generate an income from a profession or business, ITR-4 is applicable for them, Not in the case of Limited Liability Partnerships (LLPs). Individuals who have also chosen the presumptive income scheme according to Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act 1961, can also opt for this form.

Who cannot opt for this form?

Under-mentioned individuals and HUFs are not allowed to choose ITR-4:

  • In case the total income is more than Rs.50 lakh.
  • In case any losses have been brought forward from previous years.
  • In case the individual has a signing authority at a place outside of India.
  • In case any investments are present in equity shares that are unlisted at any time during the financial year.
  • In case individuals have foreign assets or have generated a foreign income.
  • In case the income has been generated from more than one house property.
  • In case the individual is a Director of a company.
  • In case the individual is a non-resident or a Resident but Not Ordinarily Resident(RNOR).

ITR-5

Investment funds, Business trusts, Estate of insolvent, Estate of deceased, Artificial Juridical Person (AJP), Body of Individuals (BOIs), Associations of Persons (AOPs), LLPs, and firms must opt for ITR-5 form.

ITR-6

ITR-6, For any companies that are not claiming exemptions under Section 11(Income from property held for charitable or religious purposes), this form must be chosen. Companies that are filing returns under this section can only do it electronically.

ITR-7

Individuals and firms that have furnished returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E), or Section 139(4F) must opt for this form. The details of the returns that must be filed under each section are mentioned under:

Section 139(4A): The returns must be filed by person who receive an income from a property that belongs to a trust or other legal obligations and the income that is generated is solely used for religious or charitable purposes.

Section 139(4B): Returns must be filed by a political party under this section if the total income that has been generated is more than the maximum amount.

  • Section 139(4C): Returns must be filed under this section by the below-mentioned entities:
  • Scientific Research association
  • Institutions or associations that come under Section 10(23A)
  • Medical institutions, hospitals, universities, funds, and other educational institutions.
  • News agencies
  • Institutions that come under Section 10(23B)
  • Section 139(4D): Any college, university, or other institutions that are not required to furnish any income or loss must file returns under this section.
  • Section 139(4E): Business trusts that are not required to furnish their income or loss must file their returns under this section.
  • Section 139(4F): Investment funds that are present under Section 115UB and are not required to furnish any income or losses must file returns under this section.

Depending on the type of income that individuals make, they can either opt for ITR-1, ITR-2, ITR-3, ITR-4, and ITR-7. The Income Tax Returns can be file on the official website of Income Tax Department (https://www.incometaxindiaefiling.gov.in/home) and the process to file the returns is simple

Individuals will be able to download the various ITR forms on the official website of the Income Tax Department https://www.incometaxindia.gov.in/pages/downloads/income-tax-return.aspx). The forms will be available in the PDF format and the instructions to fill the form will also be available on the same website.

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3 responses to “Which ITR should I file?”

  1. […] Click here to know different types of ITR formsMode of income tax return filingTwo modes of income tax return filing- Online and offline.The online mode from individual’s login is available only for ITR 1 and ITR 4; not available for forms of other categories of individual taxpayers. The offline mode is available for all types of income tax forms.Offline ITR filing:Download ITR utility from Income Tax Portal.Visit the site income tax e-filing portal and click on ‘IT Return Preparation Software’ option on the right menu. Choose the assessment year and download the offline utility software, i.e. Microsoft Excel or Java utility based on your choice.Fill in your details in the Downloaded FileFill in the relevant details of your income, and check the tax payable or the refundable as per the calculations of the utility upon downloading the offline utility. The details of income tax challan can be filled in the downloaded form.Validate the ‘data entered’.There are a few buttons on the right-hand side of the downloaded form. Click on the ‘Validate’ button to ensure all the required data is filled.Convert the file to XML FormatAfter successfully validating, to convert the file into XML file format, click on the ‘Generate XML’ button.Now, log in to the income tax web portal  click on the ‘e-File’ tab and select the ‘Income Tax Return’ option. Provide the details such as PAN, assessment year, ITR form number, and the submission mode.Remember to choose the option ‘Upload XML’ from the ‘Submission Mode’ drop down.Now attach XML file and click on the ‘Submit’ button. Choose verification mode—Aadhaar OTP, electronic verification code (EVC), or sending manually signed copy of ITR-V to CPC, Bengaluru. […]

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