Which Tax Regime to choose?
Calculate your Tax Liability and compare Old & New Tax Regime
Hiral Vakil
2019-03-07 06:41:59Before 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:
These ITR Forms will be applicable for a particular financial year. Hence one needs to select the correct ITR Form before filing it.
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. |
| 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 | ✓ | ✓ | ||
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.
Income Tax Return 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 Income Tax Return 2. Since ITR-1 cannot be filed if agriculture income exceeds INR 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.
