Before you start filing your taxes, you need to know the correct Income Tax Return – ITR form to file. Income tax department issues the ITR forms based on:
- The Type of Taxpayer,
- Source of Income earned by the taxpayer.
These ITR Forms will be applicable for a particular financial year. Hence one needs to select correct ITR before filing it.
What are the different ITR Forms?
Although the Income Tax Department (ITD) has prescribed 7 different ITR forms, 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 (SAHAJ) | The most basic ITR form for individuals having income up to Rs. 50,00,000 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. |
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 other than compaA freelancer can file ITR-4 or ITR-3 depending on turnover and profit from business/ profession. nies claiming an exemption under section 11 (such as a charitable or religious trust). |
| ITR-7 | For trusts, political parties, scientific research organisations, colleges and universities. |
Know Which ITR Form you are Required to File
| 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
You need to file ITR-1 if you have only earned salary income during the year. However, if the salary earned during the year is more than Rs. 50 lacs then you need to file ITR-2.
ITR-2 form is applicable if the taxpayer has rental income from 2 properties and interest income.
Even though agriculture income is an exempt income. You need to file ITR-2. Since ITR-1 cannot be filed if agriculture income exceeds Rs. 5,000.
A freelancer can file ITR-4 or ITR-3 depending on turnover and profit from business/ profession.
Stock Market trader can file ITR-3 or ITR-4 depending on type of trading, turnover and profit from trading activities.
