Types of Income tax return forms

Everyone has heard about ITR or Income Tax Returns. However, not everyone completely understands what this entails and why it is needed. The Income Tax Act oversees the entire process of ITR filing and everything that follows.

See also: How to file ITR offline?

 

What is ITR?

Standing for Income Tax Return, ITR is a form filed by taxpayers to file information related to their income and applicable tax to the income tax department. It is used to report expenses, income, and other relevant tax-related information. ITR makes it easy for taxpayers to figure out their tax liability, request refunds for overpayment, and plan their tax payments. All taxpayers are required to file their ITR prior to the specified due date.

 

Who has to file ITR?

Filing income tax returns (ITR) has been made mandatory by the Indian government for taxpayers who meet the following conditions.

• People below the age of 60 with a gross annual income of over Rs 2.5 lakh
• People between the ages of 60 and 80 years with a gross annual income of over Rs 3 lakh
• People over the age of 80 with a gross annual income of 5 lakh
• Those earning from multiple sources, such as house property or capital gains
• Those who have earned from or invested in foreign assets
• Those who want to claim an income tax refund
• A company or a firm, regardless of loss or profit
• People who want to apply for a loan or a visa

 

Even if you don’t meet any of the above-mentioned conditions, you’ll still have to file ITR if:

• You have deposited an aggregate sum of over Rs 2 crore in one or multiple current bank accounts.
• You have spent an aggregate amount of over Rs 2 lakh on foreign travel, either for yourself or for someone else.
• You have spent an aggregate sum of over Rs 1 lakh on electricity consumption.
• Your TDS or TCS exceeds Rs 25,000. In the case of those over the age of 60, this limit is Rs 50,000.
• You are a businessman with your total turnover, sales, or gross receipt exceeding Rs 60 lakh.
• You are engaged in a profession with your gross receipts exceeding Rs 10 lakh.

 

Who doesn’t have to file ITR? 

The central government has the authority to exempt certain categories of individuals from filing income tax returns, beyond those already exempt, such as individuals with income below the basic exemption limit and non-residents without income generated in India. However, as of now, no specific exemptions have been officially notified by the government.

 

ITR Filing: Documents Required

For filing ITR online, you’ll need the following documents:

• Proof of tax-saving investments
• PAN card
• Salary slips
• Form 16A/16B/16C
• Bank statements
• Interest certificates
• TDS certificates
• Form 26AS

 

Income tax return form: Types

There are 7 different types of ITR forms. The type of income tax form you need to fill out depends on the source of your income, the amount of income you’ve earned, and the category of taxpayers you fall under. Read on to learn more about each type of ITR form.

 

ITR 1 (Sahaj): Who can and can’t file this ITR form?

Also referred to as Sahaj, ITR 1 is a type of income tax return form that can only be filed by individuals whose income is not taxable. It is applicable only under the following conditions:

• For individuals who make an income through pension or salary
• For individuals who make an income through a single house property (except when the loss is carried forward from the previous year)
• When income is earned through agriculture
• When individuals make an income from other sources like interest, dividends, etc.

 

ITR 1 is not applicable under the following circumstances:

• An individual has multiple house properties
• The total income of an individual includes loss/profit from capital gains
• An individual earning income through profession or business
• When an individual’s income includes winnings from horse racing and lottery
• When individuals earn income from a foreign country
• When an individual’s agricultural income exceeds Rs 5000
• When an individual claims Double Taxation Relief under the Income Tax Act’s Section 90/90A/91
• When a resident has any assets or signing authority in any account located in a foreign country
• When an individual is a company director
• When an individual has investments in unlisted equity shares

 

ITR 2: Who can and can’t file this ITR form?

ITR 2 is a type of income tax return form that can be filed by individuals and Hindu Undivided Families (HUFs) covered under the following categories:

• When an individual or HUF makes income from house property
• When the income is made from pension/salary
• When the total income includes income earned from capital gains
• When the tax assessee is a company’s Individual Director
• When the total income includes income earned from other sources like from winning horse races and lottery winnings
• When an individual has investments in unlisted equity shares
• When an individual has any foreign income
• When a tax assessee is a non-resident or a resident not ordinarily resident (RNOR)
• When the total agricultural income exceeds Rs 5,000
• When there has been a tax deduction under Section 194N
• When an individual owns assets or signing authority in an account located outside the country
• When any loss has been carried forward from the previous year
• When tax deduction or payment has been deferred on ESOP

 

ITR 2 is not applicable under the following circumstances:

Individuals with income from business or profession cannot use the ITR-2 form for AY 2024-25. Instead, they must file ITR-3 or ITR-4, depending on their income type. Refer to our detailed guide on ITR-2 for step-by-step instructions on filling out the form.

 

ITR 3: Who can and can’t file this ITR form?

ITR 2 is a type of income tax return form that can be filed by individuals and Hindu Undivided Families (HUFs) who earn their income from a proprietorship business or a profession. It is applicable only under the following conditions:

• When the income is earned through business or a profession
• When an individual has had investments in unlisted equity shares
• When an individual is a partner in a firm
• When an individual is a company’s director
• When the business turnover exceeds Rs 2 crore
• When the income is earned from salary, pension, house property, or any other source

 

All in all, HUFs or individuals who are not eligible for filing ITR 1, ITR 2, and ITR 4 should go for this form.

 

ITR 4 (Sugam): Who can and can’t file this ITR form?

ITR 4 is a type of income tax return form that applies to HUFs, individuals, and partnership firms (except LLPs). To be eligible for this ITR form, the tax assessee should be a resident, and their total income should include the following:

• Professional income as per presumptive income scheme under section 44ADA
• Business income as per presumptive income scheme under section 44AE or 44AD
• Income from pension or salary not exceeding Rs 50 lakh
• Income from a single house property up to Rs 50 lakh, minus the amount of loss carried forward
• Income made from other sources, not more than Rs 50 lakh (excluding that from horse races and lottery)

 

It’s worth noting that individuals making income from the sources mentioned above as a freelancer can also go for a presumptive scheme if the gross receipts do not exceed Rs 50 lakh.

A presumptive income scheme under sections 44AE, 44ADA, and 44AD is when an entity or individual opts to derive the income on a presumptive basis, which means that the income is presumed at the minimum rate depending on the percentage of gross turnover/gross receipts or ownership of commercial vehicles. A taxpayer with a business turnover exceeding Rs 2 crore will be required to file ITR 3.

 

ITR 4 is not applicable under the following circumstances:

• When an individual’s total income is over Rs 50 lakh
• When the income is made from multiple house properties
• When a tax assessee owns a foreign asset
• When the income is from a foreign country
• When an individual has the signing authority for an account located in a foreign country
• When an individual is a company’s director
• When the tax assessee is a non-resident or a resident not ordinarily resident (RNOR)
• When an individual has had investments in unlisted equity shares
• When tax deduction or payment has been deferred on ESOP
• When any loss has been carried forward from the previous year

 

ITR 5: Who can and can’t file this ITR form?

ITR 5 is a type of income tax return form that can be filed by those falling under the following categories:

• Business trusts
• Artificial Juridical Person (AJP)
• Estate of insolvent
• Associations of Persons (AOPs)
• Estate of deceased
• Body of Individuals (BOIs)
• Investment funds
• LLPs and companies

 

ITR 6: Who can and can’t file this ITR form?

ITR 6 is a type of income tax return form that can be filed by any company not claiming exemptions associated with section 11 of the Income Tax Act, which refers to income from property held for religious or charitable purposes. Firms filing ITR under this section can only file it electronically.

 

ITR 7: Who can and can’t file this ITR form?

ITR 7 is a type of income tax return form that can be filed by firms and individuals that have furnished returns related to Section 139(4B), Section 139(4A), Section 139(4C), Section 139(4E), Section 139(4D), and Section 139(4F).

Here are some basic details of the returns to be filed under each section.

• Section 139(4A): An ITR form under this section should be filed by individuals who make an income through a property belonging to a trust/charity or other legal obligations, and the earned income is used only for religious or charitable purposes.

• Section 139(4B): An ITR form under this section should be filed by a political party in case its gross income exceeds the maximum sum.

• Section 139(4C): An ITR form under this section should be filed by hospitals, scientific research associations, universities, medical institutions, funds, news agencies, and education institutions.

• Section 139(4D): An ITR form under this section should be filed by an educational institution like a university or college that is not required to furnish a loss or income.

• Section 139(4E): An ITR form under this section should be filed by a business trust that is not required to furnish a loss or an income.

• Section 139(4F): An ITR form under this section should be filed by an investment fund that falls under Section 115UB and isn’t required to furnish any losses or income.

 

Which income tax return form to file?

Refer to the table below for a quick understanding of how to choose the right ITR form for yourself.

Form	Applicability	Salary	Exempt Income	Capital Gains	House Property	Business Income	Other Sources
ITR 1	Individual Indian residents and HUFs	Yes	Yes. (The income from agriculture has to be under Rs 5,000)	No	Yes (It can be only for a single house property)	No	Yes
ITR 2	Individuals and HUFs	Yes	Yes	No	Yes	No	Yes
ITR 3	Individuals, HUFs, and partners in a firm	Yes	Yes	No	Yes	Yes	Yes
ITR 4	Firm, HUFs, and individual	Yes	Yes (The income from agriculture has to be under Rs 5,000)	Yes	Yes (It can be only for a single house property)	Only for presumptive business income	Yes
ITR 5	Partnership Firms and LLPs	No	Yes	No	Yes	Yes	Yes
ITR 6	Companies	No	Yes	No	Yes	Yes	Yes
ITR 7	Trusts	No	Yes	No	Yes	Yes	Yes

 

Income tax return form: How to download?

To download the ITR form, follow the steps given below:

• Visit the official website of the Income Tax department.

 

 

• Click on the ‘Downloads’ option.

• On the new page that appears, select ‘Income Tax Returns’.

• Based on your financial profile, select the form that meets your needs and download it.

 

ITR e-filing: How to file ITR online?

To file ITR online, you can follow the steps given below:

• Visit the Income Tax Department’s e-filing website.

 

 

• Click on ‘Login’.

• Enter your User ID and other required details to log in.

• Once you’re logged in, select the ‘Income Tax Return’ option available under the ‘e-file’ menu.

• On the new page that appears, select the assessment year in which you are filing the return. Also, select the ITR form type and submission mode before clicking on ‘Continue’.

• Next, verify the Income Tax Return by selecting the authentication type from three options- EVC using Pre-validated bank details, Aadhaar OTP, or sending signed ITR-V through speed or normal post. Once done, click on ‘Continue’.

• Fill in all the required details after carefully going through the instructions before clicking on ‘Submit’ to file your ITR.

 

Housing.com POV

The different types of Income Tax Return (ITR) forms cater to various taxpayer categories based on income sources, business activities, and other financial factors. Selecting the right ITR form is crucial for accurate tax filing and compliance with the Income Tax Act. Whether you are a salaried individual, a business owner, or a company, understanding these forms ensures a smooth and hassle-free tax filing experience. Filing the appropriate ITR form on time not only helps in tax planning but also enables taxpayers to claim refunds, avail benefits, and maintain a clean financial record. 

 

FAQs

Is there a penalty for not filing ITR?

Yes, there is. Based on the number of days that have passed since the due date for ITR filing and the income tax rate applicable, the penalty for not filing ITR can range anywhere from Rs 1,000 to Rs 10,000 for those with an annual income of up to Rs 5 lakh. The penalty ranges from Rs 5,000 to Rs 10,000 for those who have an annual income of more than Rs 5 lakh.

Can I edit my ITR forms once they have been submitted?

Yes, you can file revised returns in the e-filing portal if any mistakes were committed while filling the first time.