Which ITR Form should I choose?

Which ITR Form should I choose?

Everyone says that they want to file their own or their company’s Income Tax Return (ITR) but do you guys actually know which ITR form is applicable to you? Or what are the types of ITR forms? Or how to understand in which category of ITR forms you fall?

Dear people, no need to worry TAXOFILE is just here to give answer to your all queries. In total, there are 7 types of ITR forms; and among these seven you have to decide under which form you have to file your return as per your income, profession, whether you are individual or company or HUF, etc.

Various types of ITR are as follows:

The Income Tax Department has introduced 7 ITR forms till date. To simplified the tax procedure and compliance, the income tax department has categorized taxpayers as per their status of being individual or HUF or company, income and its sources. One need to examine in which category of ITR he falls before filing returns.

Basically these forms are divided into two parts shown as below:

Check out the birds eye view of entire summary of all 7 ITR forms in below image:

ITR-1 or SAHAJ

ITR 1 is a simple one-page form which is also called as SAHAJ.

Applicable to,

Resident Individual other than Non-Ordinary Resident whose income is not exceeding Rs. 50 lakhs can file their return via Form ITR 1.

Check it out the following list to understand who can file ITR 1;

● Income from Salary or Pension

● Income from single House Property, other than cases where loss has been brought forward from previous years

● Income from Other Sources, other than income earned via winning from lottery and horse races.

● Having an agriculture income upto Rs. 5000

● Income is earned only in India

● Not holding any property in abroad

● Not having any income from the head Income from Capital and Gains

● Not holding designation as Director in any company

● Not having any income from business and profession

ITR-2

ITR 2 is for Individuals and HUF’s NOT having income from profits and gains of business and profession.

● Income from salary/ Pension

● Income from House Property (The house property can be more than one)

● Share of profits or loss partner from a partnership firm

● Capital gain/loss on sale of any investment or property

● Income from other sources

(It include the income from lottery, winning and horse races)

● Exempt income such as EPF, PPF, insurance, and agriculture income. In this form, you can report the agriculture income if its more than ₹5,000.

● Clubbed income of family member. The income of the family member should be any of the above categories

● Any Foreign Income/Foreign Asset acquired

ITR-3

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

●  Carrying on a business or profession

●  If you are 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

The current ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also includes those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds Rs. 2 crore, the taxpayer will have to file ITR-3.

ITR-5

The ITR-5 form is used only by the following bodies to file income tax status.

●  Firms

●  Limited Liability Partnership

●  Body of Individual

●  Association of Persons

●  Co-operative Societies

●  Artificial Judicial Persons

●  Local Authorities

ITR-6

This Form is used by companies.  Organisations that can claim tax exemptions as per Section 11 are organisations in which the income received is accumulated from the property used for the purpose of religion or charity. This particular income tax return form is only available to be filed online.

ITR – 7

Section139(4A) Returns to be filled by the individuals who receive income from any charity or religion in the form of a trust or legal obligation.

●  Section 139(4B) Returns are to be filed by political parties

●  Section 139(4C)

-Any institution or association mentioned under Section 10(23A)

-Any institution mentioned in Section 10(23B)

-Any news agency

-Any fund, medical institution or educational institution

●  Section 139(4D) Returns are to be filled by colleges, universities or any other such institution

-Any institution or association mentioned under Section 10(23A)

-Any institution mentioned in Section 10(23B)

-Any news agency

-Any fund, medical institution or educational institution

●  Section 139(4D) Returns are to be filled by colleges, universities or any other such institution

CONCLUSION

It is mandatory for particular persons to file Income Tax Returns within specified due date as prescribed by Income Tax Department. To file an ITR is always quite hectic job to all the taxpayers but now TAXOFILE is just call away from you to file your ITR and to solve your all queries.

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