INDEX
- Income Tax Return (ITR)
- ITR 1 – Sahaj
- ITR 2
- ITR 3
- ITR 4 – Sugam
- ITR 5
- ITR 6
- ITR 7
Decoding The Various Types Of ITR Forms
Income Tax Return (ITR)
An Income Tax Return (ITR) is a mandatory tax filing form that every taxpayer in India must submit at the end of each financial year. It serves as a detailed record of an individual’s income and the taxes paid to the government. The requirement for filing ITR was introduced under the Indian Income Tax Act of 1961.
Filing your ITR on time is essential, as it serves multiple purposes. For example, it is useful when applying for loans, visas, claiming tax rebates, or investing in foreign assets. A completed ITR form can simplify these processes and ensure smooth transactions.
Currently, seven different types of ITR forms exist, each designed for a specific category of taxpayers. The form you need to file depends on various factors, such as:
- Source of income
- Total income
- Category of taxpayer (e.g., individual, company, etc.)
Here’s a simplified version of the ITR forms and their eligibility criteria in the following table:
ITR Forms and Eligibility Criteria
| ITR Form | Eligibility Criteria | Sources of Income | Additional Notes |
|---|---|---|---|
| ITR 1 – Sahaj | For individuals with total income up to ₹50 lakhs | 1. Income from salary/pension 2. Income from one house property (excluding loss brought forward) 3. Income from other sources (excluding lottery and race house winnings) 4. Agricultural income not exceeding ₹5,000 | Suitable for individuals with simple income sources. |
| ITR 2 | For individuals or Hindu Undivided Families (HUF) with income exceeding ₹50 lakhs | 1. Income from salary/pension 2. Income from one house property 3. Income from other sources 4. Capital gains 5. Income from foreign assets or foreign income 6. Agricultural income exceeding ₹5,000 | Not applicable for individuals earning income from business or profession. |
| ITR 3 | For individuals or HUF with income from business or profession | 1. Income from business or profession 2. Salary/pension 3. Income from house property 4. Income from other sources 5. Income as a director in a company 6. Income from unlisted equity shares 7. Income as a partner in a firm | Suitable for individuals with mixed income sources, including business and salary. |
| ITR 4 – Sugam | For individuals, HUFs, and partnership firms (excluding LLPs) | 1. Income under presumptive scheme (Section 44AD/44AE for business, Section 44ADA for professionals) 2. Salary/pension not exceeding ₹50 lakhs 3. Income from one house property not exceeding ₹50 lakhs 4. Income from other sources not exceeding ₹50 lakhs | Freelancers eligible if total income from the mentioned sources does not exceed ₹50 lakhs. |
| ITR 5 | For firms, LLPs, AOPs, BOIs, AJP, estate of deceased or insolvent, business trusts, investment funds | Income from business, partnership, or other specified entities | Suitable for entities other than individuals and Hindu Undivided Families. |
| ITR 6 | For companies claiming tax exemption under Section 11 (income from charitable/religious trusts) | Income from property held for charitable/religious trusts | Can be filed electronically only. |
| ITR 7 | For individuals and companies required to file returns under specific sections | Income earned under Section 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), and 139(4F) | Applicable for trusts, political parties, and other specified entities. |
Key Insights
This table summarizes the eligibility criteria, sources of income, and special notes for each ITR form under the Income Tax Act. As tax filing rules continue to evolve, understanding the requirements of each form can help ensure timely and accurate submissions.