What is Income Tax?

Income Tax is a tax on income collected by the government to fund infrastructure development, pay salaries, etc. Income Tax is a direct tax like capital gains tax and securities transaction tax etc. Tax Deducted at Source (TDS) is means through which the government generates steady revenues by levying taxes at sources such as salary or other payments. Additionally, Income Tax is to be paid by every Individual, HUF, AOP, BOI, Firms, and Companies.

Income Tax in India

In India, a direct tax is governed as per Income Tax Act, 1961 along with Income Tax Rules, 1962, Notifications and Circulars issued by Central Board of Direct Taxes. Moreover, Income Tax is levied based on the different types of incomes and taxpayers. Furthermore, there are different categories of taxpayers under the Income Tax Act.

  • Individual residents aged below 60 years
  • Senior citizen aged between 60 to 80 years
  • Super senior citizen aged above 80 years
  • Non-residents (NRI)
  • Hindu Undivided Family (HUF)
  • Firms / AOP / BOI / Local Authorities / Co-operative Societies
  • Company

Income Tax for Resident Individuals

An individual’s income is divided under different income heads such as salary, house property, capital gains, business or profession, and other sources. Income is taxed at slab rates except for a few special rate incomes.

  • The majority of individuals have income from salary, house property, and interest which makes them eligible to file ITR-1 (SAHAJ).
  • In the case of income from multiple house properties, ITR-2 can be filed.
  • Those with income from capital gains (say by way of casual stock trading or sale of the property) can file ITR-3.
  • Individuals having income from proprietary business or profession can file ITR-4 (SUGAM) or ITR-3.
  • Any Individuals who are partners in a firm and earn income by way of salary, remuneration, interest or profits sharing, can file ITR-3
  • Individuals whose turnover from proprietary Business exceed Rs. 2 crores have to get the books of account audited and file ITR-3.
  • Similarly, professionals’ gross professional receipts exceed Rs 50 Lakhs have to get the books of accounts audited and file ITR-3.
  • For a Resident Indian, global income will be taxable in India i.e income earned in India as well as outside India will be taxable in India. A tax credit will be available if such income is already taxed in a foreign country and India has a treaty with such a foreign country to avoid double taxation.
Residential Status Calculator
Residential Status Calculator for Income Tax. Taxability in India depends on residential status. Know your residential status from Resident, NRI, Resident but Not Ordinarily Resident(RNOR)
Explore
Residential Status Calculator
Residential Status Calculator for Income Tax. Taxability in India depends on residential status. Know your residential status from Resident, NRI, Resident but Not Ordinarily Resident(RNOR)
Explore

Income Tax for NRI

A Non-Resident Indian (NRI) has to file an income tax return in India only if he has earned any income in India. He does not have to disclose his foreign income from the country of residence while filing the tax return.

The type of return forms will be the same as applicable to resident India. While filing the return, NRI can claim the credit if the income earned in India is also taxed in the country of his residence. The basic principle here is that a single income should not be taxed twice. So if income earned in India is taxed in a foreign country as well, then NRI can claim the credit of the taxed paid in a foreign country while filing return in India. Credit will be allowed only if India has an agreement to avoid double taxation with a foreign country.

Income Tax for HUF (Hindu Undivided Family)

Income Tax Act recognizes Hindu Undivided Family (HUF) as a separate legal entity from its members. It has a unique PAN which if different from its Karta and members. HUF also enjoys a basic exemption limit of Rs. 2,50,000 just like the individuals.

  • HUFs have to file their Income Tax Return separately
  • Incomes earned out of assets in the common pool of HUF or any business activities run in the name of HUF are to be included in a tax return.
  • HUF can have income from all sources, except for salary.
  • Income will be taxed at slab rates applicable to individuals
  • HUF can file a return in ITR-2, ITR-3, and ITR-4
  • Just like individuals, if HUF is carrying business and turnover exceeds Rs. 2 crores then books of account have to be audited and ITR-4 is to be filed.

Income Tax for Partnership Firms

Partnership firm / LLP is a separate legal entity, independent from its partners. It has its own PAN.

  • Partnership firms / LLPs have to file an income tax return in ITR-5
  • Income from business or profession, house property, capital gains and other sources can be filed in ITR-5
  • The tax will be applied at a flat rate of 30% on a firm’s income.
  • The firm’s profits (after payment of tax) which are distributed amongst partners are tax-free in the hands of the partners.
  • However, any salary, remuneration or interest paid to partners will be taxable in the hands of the partner. And a firm can claim the same as an expense from its income.

Income Tax for Companies

Companies have a separate legal identity and a unique PAN. In India, there are Domestic Companies and Foreign Companies.

  • Companies have to file an income tax return in ITR-6
  • It is mandatory for companies to file an income tax return and provide details of the Statutory Audit in the return.
  • If turnover from business exceeds Rs. 2 crores, then companies have to carry of Tax Audit as per Income Tax Act and provide the details of the same in Income Tax Return.
  • Companies can have income from the business, house property, capital gains and other sources.
  • However, companies claiming an exemption under section 11 of the income tax act will be called trusts and they have to file return in ITR-7
  • The income of Domestic company is taxed at a flat rate of 30% whereas the income of Foreign company is taxed at a flat rate of 40%

FAQs

What is Income Tax Return (ITR)?

An income tax return is a form used to report income and file taxes with tax authorities such as the Income Tax Department (ITD) in India. Commonly known as ITR, tax return allows the taxpayer to calculate his/her tax liability and pay dues or request refunds. There are different prescribed ITR forms in India depending on one’s income situation.

How to calculate Income Tax?

Income Tax can be calculated by applying slab rates on taxable income, which is the addition of all the gross incomes such as salary, rent, business or profession, minus Chapter VI A deductions such as Provident Fund, Life Insurance Premium, ELSS, NSC, Medical Insurance Premium, etc.

Who can file Income Tax Return (ITR)?

It is mandatory to file the Income Tax Returns (ITR) online for all the registered taxpayers whose taxable income. However, paper returns can be filed by those who are above 80 years of age and do not have any income from regular business or profession.

Section 80G : Deduction for Donation to Charitable Organizations

What is Deduction under section 80G?

Section 80G of the Income Tax Act allows a deduction for any contribution made to certain relief funds and charitable institutions. This deduction can be claimed by individuals, HUFs, and businesses. However, not all donations are eligible for deductions under section 80G. Only donations made to prescribed funds by the government of India qualify as a deduction.

Deduction under section 80G is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime
Tip
Deduction under section 80G is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime

How to Claim Deduction Under Section 80G?

Section 80G is available to all types of taxpayers. Even the mode of payment is an important thing while considering deductions. The deductions can only be claimed when the mode of payment is Cheque or Draft or Cash. However, donations made in cash that are exceeding INR 2000 will not be deductible. Similarly, other materials such as food, clothes, or medicines are not eligible for deductions under Section 80G.

In order to claim the deduction under Section 80G for a contribution, one needs to submit the following details:

  • Name of Donee
  • PAN of Donee
  • Address of Donee
  • Amount Donated

Eligibility for Deduction Under Section 80G

Tax Deduction on Donation

List of Funds Eligible for Deduction Under Section 80G

Donations with 100% Income Tax Deduction without any qualifying limit:

  • National Defense Fund set up by the Central Government
  • Prime Minister’s National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National Eminence
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a State Government for the medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or to any State Blood Transfusion Council
  • Fund for Technology Development and Application
  • National Sports Fund
  • National Cultural Fund
  • The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
  • National Children’s Fund
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
  • The Maharashtra Chief Minister’s Relief Fund during October 1, 1993, and October 6, 1993
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
  • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made during January 26, 2001, and September 30, 2001) or
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions — India) Fund
  • Swachh Bharat Kosh (applicable from the financial year 2014-15)
  • Clean Ganga Fund (applicable from the financial year 2014-15)
  • National Fund for Control of Drug Abuse (applicable from the financial year 2015-16)

Donations with 50% Income Tax Deduction without any qualifying limit:

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation

Donations with 100% Income Tax Deduction subject to qualifying limit of 10% of adjusted gross total income:

  • Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
  • Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India
ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
[Rated 4.8 stars by customers like you]
ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
[Rated 4.8 stars by customers like you]

Donations with 50% Income Tax Deduction subject to qualifying limit of 10% of adjusted gross total income

  • Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
  • Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning
  • Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
  • Any corporation referred in Section 10(26BB) for promoting the interest of minority community
  • For repairs or renovation of any notified temple, Mosque, Gurudwara, Church, or another place
Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore
Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore

What is Adjusted Gross Total Income under 80G?

The taxpayer needs to calculate Adjusted Gross Total Income for donation made to charity/Trust which is subject to the qualifying limit. For calculating “Adjusted Gross Total Income” one needs to first calculate the gross total income earned from all the sources, and subtract the following from it:

  • All the Chapter VI-A Deductions except 80G,
  • Exempt Income,
  • Short Term Capital Gains taxed @15% u/s 111A,
  • All Long Term Capital Gains,
  • Income referred to in Sections 115A, 115AB, 115AC, 115AD relating to non-residents and foreign companies.

ITR Form Applicable for Section 80G

The taxpayer can claim deductions u/s 80G while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80G in any of the ITR forms, i.e, ITR 1ITR 2ITR 3, and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.

Supporting Documents

Apart from the usual documents such as PAN and Form 16, we need to file the Income Tax Returns, you will require the following documents:

  • Stamped Receipt: A stamped receipt for the donations made. Whenever a donation is made towards a fund or a trust, they must give a receipt. Keep it safe, and submit it while filing tax to get an exemption for the amount. The receipts should contain the stamp of the organization, name, date, and PAN
  • Form 58: For donations made towards funds with 100% exemptions, a Form 58 from the organization is also necessary

FAQs

Can I claim deduction for a donation made in cash for Rs. 25,000

As per the Income Tax Act, any contribution made by cash in excess of Rs. 10,000 will not be allowed as deduction u/s 80G. So you can claim a maximum deduction of Rs. 10,000 for cash donations.

What is the limit for deductions allowed u/s 80G?

There is no upper limit set under section 80G for claiming a deduction for donations made to charitable organizations. As long as you have taxable income to claim a deduction from, there is no limit on the amount of deduction to be claimed u/s 80G.

Can I claim a deduction for a donation made through cheque worth Rs. 50,000?

Yes, you can. There are no limits for contributions made through cheques.

Income Tax Return (ITR) Form for AY 2016-17 (FY 2015-16)

Every taxpayer is required to declare incomes earned and taxes paid, to the Income Tax Department in prescribed income tax return forms called ITR Forms. Different ITR Forms are prescribed for AY 2016-17 based on different types of incomes and taxpayers. So every taxpayer has to first determine which ITR should be filed before he can start filing.

Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore
Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore

What are the different ITR Forms?

Although the Income Tax Department has prescribed 9 different ITR forms for AY 2016-17, taxpayers have to choose the one which is applicable to them.

Following ITR Forms are prescribed for Individuals (Non corporate assessees):

ITR-1 (SAHAJ) The most basic ITR form for individuals having income from salary/pension, one house property and interest
ITR-2A For individuals/HUF having income from salary/pension, multiple house property and interest
ITR-2 For individuals/HUF having income from salary/pension, multiple house property, capital gains and interest
ITR-3 Form individuals/HUF who are partner in a firm and not carrying any business or profession under proprietorship
ITR-4S (SUGAM) For individuals/HUF/Partnership firms having income from presumptive business or profession
ITR-4 For individuals/HUF having income from proprietary business or profession

Following ITR Forms are prescribed for corporate assessees:

ITR-5 For firms, association of persons (AOP), Body of Individuals (BOI), co-operative societies and local authorities
ITR-6 For companies other than companies claiming exemption under section 11 (such as charitable or religious trust)
ITR-7 For trusts, political parties, scientific research organisations, colleges and universities

Know Your ITR

Sources of Income Individual Individual/ HUF
ITR-1 (SAHAJ) ITR-2A ITR-2 ITR-3 ITR-4S ITR-4
Income From Salary/Pension
Self-Occupied House Property Income
Income from multiple House Property    
Agricultural Income exceeding Rs. 5,000/-    
Income from Other Sources
Winnings from lottery and racehorses      
Capital Gains      
Profit from a Partnership Firm        
Income from Proprietary Business/ Profession          
Income from Presumptive Business/ Profession          
Foreign Assets Income      
Tax Relief under sections 90, 90A or 91      

FAQs

Should NRI file return?

It is not mandatory for NRI to file an income tax return in India. However, there are three conditions in which NRI must file the return.
1. Their income in India exceeds the basic exemption limit
2. If excess taxes were deducted and they wish to claim the refund
3. If they wish to carry forward capital losses

Do I need to file return if my income is not taxable?

No, you are not required to file income tax return if your income is not taxable (i.e below basic exemption limit for given assessment year). However if you incurred any losses (Business or Capital), you must file income tax return to carry forward such losses.

Do I need to file return if I have already paid taxes?

It is very common for salaried individuals to have all their taxes deducted by their employer. Still, you must file income tax return to claim any refund and/or carry forward any losses.

What happens if I do not file a return?

If you do not file income tax return, I-T Department will send you a notice telling you to file your return. If you have an outstanding tax liability then you will incur interest penalty u/s 234A, 234B and 234C. If you have refund and you do not file returns then you will not be able to claim refund. Hence, it is always advisable to file income tax return.

Are there any benefits of filing return?

It is always beneficial to file income tax return. Here are few benefits
1. You can only claim refund if you file return
2. You can avoid interest penalty and/or default
3. IT return is a documentary evidence of your incomes
4. Banks, Consulates, other Financial Institutions demand IT return

Can a minor file income tax return?

Any person under the age of 18 is considered a minor. Although income earned by minor is taxable just like any other, minor can not file their independent tax return baring few exceptions. Minor’s income is clubbed with his/her parents income under section 64(1A). However in following instances, a minor can file Income Tax Return
1. None of the parents are alive
2. When minor earns income using special skills or knowledge

AY 2021-22 ITR 1 SAHAJ Form – Salaried Individuals

What is ITR 1?

ITR 1 is the simplest one-page Income Tax Return Form for individuals having income from Salary / Pension, One House Property, and income from other sources. It is the basic ITR Form.

ITR 1 Form for AY 2021-22
Download the latest ITR 1 form for AY 2021-22
Download
ITR 1 Form for AY 2021-22
Download the latest ITR 1 form for AY 2021-22
Download

Up to FY 2018-19 (AY 2019-20), it was not mandatory to file Income Tax Return if the total income was less than the basic exemption limit. However, Budget 2019 inserted the seventh proviso to Section 139(1). As per this new provision, if a taxpayer has entered into high-value transactions, it is mandatory to file the ITR even if the total income does not exceed the basic exemption limit. The high-value transactions can be either of the following:

  1. If the taxpayer has deposited more than INR 1 Cr in a current account
  2. If the taxpayer has incurred foreign travel expense of more than INR 2 lacs
  3. Or, if the taxpayer has incurred electricity expense of more than INR 1 lac
Upload Form 16
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Upload Form 16

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Who can file ITR 1 Form?

Any individual whose total income does not exceed INR 50 lakh and includes:

  • Salary / Pension Income.
  • Income from one House Property (If there is a brought forward loss from previous years, ITR-1 cannot be filed).
  • Income from Other Sources (excluding winning from Lottery and Income from racehorses).

In case the income of a spouse or minor child is clubbed with the taxpayer’s income then they can file it only if their clubbed incomes include the above categories.

Earned Salary Income during the year?
Let our experts file ITR for you.
[Rated 4.8 stars by customers like you]
Earned Salary Income during the year?
Let our experts file ITR for you.
[Rated 4.8 stars by customers like you]

Who can not file ITR 1 Form?

It should not be used by Non-Resident of India (NRI) and the individuals whose total income includes:

  • Income from multiple House Property
  • Income from winnings from lottery or income from racehorses
  • Capital Gains Income (short term and long term Capital Gains from the sale of house, plot, shares, etc.)
  • Agricultural income exceeding INR 5000/-
  • Income from Business and Profession
  • Resident individual having
    • Any asset (including financial interest in any entity) located outside India or
    • Signing authority in any account located outside India
  • Individuals claiming relief of Foreign Tax paid or Double Taxation Relief under section 90/90A/91.
Ask an Expert (Income Tax)
Talk to an expert via call, whatsapp or messages. Ask questions about tax returns, applicability & compliance etc.
[Rated 4.8 stars by customers like you]
Ask an Expert (Income Tax)
Talk to an expert via call, whatsapp or messages. Ask questions about tax returns, applicability & compliance etc.
[Rated 4.8 stars by customers like you]

List of Documents Required to File ITR 1

Before you start working on your ITR, you should have the following documents handy:

Essential documents

Additional Documents

  • Salary Income
    • Form-16 or Salary slips received from your employer and
    • Pension statement/passbook.
  • House/Property Income
    • Address of the property,
    • Co­owner details in case the property is co­owned,
    • In case of house/property loan Interest certificates/repayment certificate from a bank,
    • In case of let out property ­Rent agreement
  • Other sources
    • Savings/current account statements/Passbook
    • Interest certificates for deposits/bonds/NSC
    • PPF account statement/Passbook
    • Dividend warrants/counterfoils
    • Rent agreement in case of let out machinery
    • Details about receipts of any other incomes

Income Tax Return Form – ITR 1

Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore
Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore

Major Changes in ITR 1 for AY 2021-22

  • Taxpayers are given the option to choose between the old tax regime and the new tax regime
  • Dividend Income has to be added with a quarterly breakdown for accurate calculation of Interest under Section 234C

Major Changes in ITR 1 for AY 2020-21

  • The individual taxpayers who meet the following criteria:
    • Make cash deposits above INR 1 Crore with a bank,
    • Incur expenses above INR 2 Lakh on foreign travel or,
    • Spend above INR 1 Lakh on electricity should also file ITR 1
  • Condition of the individual having income from salaries, one house property, other income, and having total income up to INR 50 Lakh continues
  • Resident individuals owning a single property in joint ownership can also file ITR 1 where the total income is up to INR 50 Lakh
  • Taxpayers should separately disclose the amount of the investment or deposits or payments towards tax saving made from 1 April 2020 until 30th June 2020
Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
Explore
Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
Explore

Major Changes in ITR 1 for AY 2019-20

  1. The Income Tax Return form for FY 2018-19 is not applicable to an individual who is either a director of a company or has invested in unlisted equity shares
  2. Under Part A, there is an introduction of ‘Pensioners’ checkbox under the ‘Nature of employment’ section.
  3. The Return filed under section has been segregated between normal filing and filed in response to notices.
  4. Segregation of Deductions under salary will into standard deduction, entertainment allowance, and professional tax.
  5. The taxpayers will have to provide income-wise detailed information under the ‘Income from other sources’.
  6. Introduction of a separate column under ‘Income from other sources’ for deduction u/s 57(iia) – in case of family pension income.
  7. Deemed to be let out property’ option now available under ‘Income from house property
  8. Inclusion of Section 80TTB column for senior citizens.

FAQs

Can Non-Resident of India (NRI) file ITR 1?

No. NRI can file any other ITR form depending upon the source of income earned by them in India. ITR 1 can only be filed by an Ordinary Resident of India.

Do I need to submit supporting documents along with ITR 1?

It is an annexure less form. Hence no need to send any supporting documents to the IT Department.

Can I file ITR 1 if I have multiple Form 16?

Yes. Any resident individual who has earned income from salary during the financial year can file ITR 1. Change in employment does not affect the ITR form type.

Can I file ITR 1 without Form 16?

Yes. A taxpayer can file ITR 1 without Form 16. However, he needs to calculate his taxable salary income for a financial year while filing ITR.

Is it mandatory to provide bank account details in Income Tax Return?

Yes. It is mandatory to provide active bank account details. You are also required to select one account as your primary account. Since your refund will be directly issued to your Bank Account vis ECS.

Can I file a return after the Due Date?

Yes. You can file a ‘Belated Return’ after the due date. You can file a belated return before the end of Assessment Year or before the completion of the assessment whichever is earlier. Late filing fees as per section 234F will also be levied.

Can I file exempt income in ITR-1?

Yes, you can file exempt income in ITR 1. However, if agriculture income exceeds INR 5000 then you will have to file ITR 2.

Do we have to report exempt LTCG in ITR 1?

Yes, you need to report exempt LTCG in ITR 1 provided it is exempt u/s 10(38). In case you have any taxable LTCG, you can use the other income tax return forms that are applicable. Additionally, it is necessary to e file tax returns if LTCG exceeds INR 2.5L even if your income is below taxable limit.

Is it necessary to add dividend income from mutual funds?

Yes. Dividend income from mutual funds is exempt u/s 10(35). It is shown in the Part D under the head Exempt Income (others).

I have no due refund. Do I still have to enter my account details in the return?

Yes, it is mandatory to fill in your bank account details, whether you have refund due or not. This is because it has been noticed that many taxpayers end up paying more than their required tax liability. In such cases, it is important for the Income Tax Department to send refunds within a certain amount of time.

How many returns can I file using the same mobile number and e-Mail address?

You can only file 10 returns using the same e-Mail ID and mobile number.

Which ITR Form Number to fill?

Before you start filing your Income Tax Return – ITR, you need to know Which ITR form number to fill. Income tax department issues the ITR forms based on:

  1. The Type of Taxpayer,
  2. Source of Income earned by the taxpayer.

These ITR Forms will be applicable for a particular financial year. Hence one needs to select the correct ITR Form before filing it.

Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore
Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore

What are the different ITR Forms?

Although the Income Tax Department (ITD) has prescribed 7 different ITR form number, taxpayers have to choose the one which is applicable to them.

Following ITR Forms are prescribed for Individuals (Non-corporate assessees):

ITR Form Description
ITR 1 The most basic ITR form for individuals having income up to Rs. 50,00,000 from or income from salary/pension, one house property, and interest.
ITR 2 For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and partner’s income from the partnership firm.
ITR 3 For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and income from proprietary business or profession.
ITR 4 For individuals/HUF/Partnership firms having income from presumptive business or profession, salary/pension, one house property, and interest up to Rs. 50,00,000. 

Following ITR Forms are prescribed for corporate assesses:

ITR-5 For firms, an association of persons (AOP), Body of Individuals (BOI), co-operative societies, and local authorities.
ITR-6 For companies claim that do not claim an exemption under section 11 (such as a charitable or religious trust).
ITR-7 For trusts, political parties, scientific research organizations, colleges, and universities.

Know Which ITR Form you are Required to Fill

Sources of Income Individual Individual/ HUF
ITR-1 (SAHAJ) ITR-2 ITR-3 ITR-4 (SUGAM)
Salary/Pension income

Income From One House Property
Income From Multiple House Property     
Agricultural income exceeding Rs. 5,000/-    
Income from Other Sources
Winnings from lottery and racehorses    
Capital Gains    
Profit from a Partnership Firm      
Proprietary Business/ Profession income      
Income from Presumptive Business/ Profession      
Income From Foreign Assets     
Tax Relief under sections 90, 90A or 91    

FAQs

Which ITR should I fill if I have earned salary income during the year?

You need to file ITR-1 if you have only earned a salary income during the year. However, if the salary earned during the year is more than INR 50 lacs then you need to file Income Tax Return Form 2.

I have earned rental income from 2 properties and interest income during the year, which ITR form is applicable to me?

Income Tax Return 2 form is applicable if the taxpayer has rental income from 2 properties and interest income.

I have earned an agriculture income of INR 3,50,000 during the year, which ITR needs to be filed?

Even though agriculture income is an exempt income. You need to file Income Tax Return 2. Since ITR-1 cannot be filed if agriculture income exceeds INR 5,000.

I am freelancer which ITR should I file?

A freelancer can file ITR-4 or ITR-3 depending on turnover and profit from business/ profession.

I am Stock Market Trader, which ITR should I file?

Stock Market trader can file ITR-3 or ITR-4 depending on type of trading, turnover and profit from trading activities.