Know About All The Different Income Tax Return Forms

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When filing your income tax returns, it is very important to do so in the right form that is applicable for your profile. You should Know About All The Different Income Tax Return Forms because The Income Tax Department has different tax returns for different categories of tax assesses. Filing all your returns meticulously but in the wrong form can undo all your hard work as it will make your returns defective. When choosing the form, several parameters have to be taken into consideration, such as your type of income, the income amount, and even your residential status, among other factors. New income return forms were released in 2018 that are in line with the Finance Act 2017. If you are confused about which form to use to file your income tax returns, you don’t need to be anymore. This article will give you all the information you need to ensure your returns are filed in the right form without any mistakes.

Types of income tax return forms

There are basically 7 types of ITR forms. These are called simply ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. Let’s take a more in-depth look at what each of these forms are used for.

Different Income Tax Return Forms
Different Income Tax Return Forms

Tax Return Form ITR-1

ITR-1 or ITR-1 Sahaj form is for those whose income is less than Rs.50 lakh per annum. This income could come from a variety of different sources, such as salary, pension, property that is not more than one house, or other sources (race horses, lottery, etc.). This is for Resident and Ordinarily Resident (ROR). A breakup of the components of the salary has to be furnished with this. Details of all the tax exemptions that have been claimed should also be furnished alongside. This will be easier to furnish if all the details have been listed in the Form 16 that is issued by the employer.

Tax Return Form ITR-2

ITR-2 is for income that exceeds Rs.50 lakh per year and includes all the sources of income from ITR-1. Other than income sources included in ITR-1, ITR-2 also includes income from capital gains, income as a partner of any firm, foreign income, or agricultural income that exceeds Rs.5,000. ITR-2 is applicable for both individuals and Hindu Undivided Families (HUF). This is applicable for those who are Non Residents (NR). Also, if a spouse or child is also having an income, it should be clubbed along with this if it falls in the categories given.

Tax Return Form ITR-3

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This includes all the income sources from ITR-2 as well as from any profession or proprietary business. It is applicable to both, individuals and Hindu Undivided Families. Companies or partnership firms are not eligible to use this form.

Tax Return Form ITR-4

ITR-4 is also called Sugam. It is for presumptive business income that comes under Section 44AD, Section 44ADA, and Section 44AE. It is applicable for Hindu Undivided Families, individuals, as well as partnership firms that have income from a presumptive basis. Additional details have to be provided for this, which include the Goods and Services Tax Return Number (GSTR), and gross receipts or turnover according to the Goods and Services Tax (GST) returns that were filed. Other financial details to be included are advances, fixed assets, unsecured and secured loans, capitals of the members or partners, etc. Sources of income to be included in this are foreign-sourced income, foreign asset reporting, any claims for relief of foreign taxes paid, brokerage, commission, or income from an agency business, speculative business income, agricultural income that exceeds Rs.5,000, cash credits or investments that are not explained, dividend income from domestic companies that exceeds Rs.10 lakh, as well as all the sources of income that are included under the ITR-1 and ITR-2. Also income from more than one property (house) or if there is a loss that is brought forward or carried forward from the previous year has to be included.

Tax Return Form ITR-5

ITR-5 is for any firms, Body of Individuals (BoI), Association of Persons (AoP), and Limited Liability Partnerships (LLPs).

Tax Return Form ITR-6

This is for any company other than those claiming exemption under Section 11 (which is for income from any property that is held for religious or charitable purposes). This return can only be filed electronically.

Tax Return Form ITR-7

This is for any individual or company that should file returns under Section 139 (4A) (4B) (4C) or (4D).

Section 139 (4A) is for income from properties that are held under a trust or a religious or charitable purpose. Section 139 (4B) is for political parties. Section 139 (4C) is for news agencies, scientific research associations, funds, institutions, universities, educational institutions, medical institutions, or hospitals, as well as associations or institutions that are referred to under Section 10 (23 A) and 23 (B). Once you are clear about which income tax return is to be filed, all that remains is to gather all the required details and documents and file them on time. E-filing of income tax returns make this easy, quick, and uncomplicated. There are a number of online resources that show you exactly how to file your ITR in few simple steps and what documents are required for each ITR form. Once you understand which form to use for your specific situation, then the rest is easy. 

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