The income tax department every year releases ITR forms for a particular Assessment Year. Taxpayers decide which ITR form to file based on their residential status and sources of income. Furthermore, the income tax return is a comprehensive document wherein the taxpayer declares various types of income earned in India and settles any applicable tax liabilities.
These ITR Forms will be applicable for a particular financial year. Hence one needs to select the correct ITR Form before filing it.
What are the different ITR Forms?
Although the Income Tax Department (ITD) has prescribed 7 different ITR form numbers, taxpayers have to choose the one that applies to them.
The following ITR Forms are prescribed for Individuals (Non-corporate assesses):
| ITR FORM | Description |
| ITR 1 | The most basic ITR form for individuals having income up to INR 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 | 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 INR 50,00,000. |
Corporate assessees are required to use the prescribed ITR forms listed below:
| 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 File
Understanding the correct Income Tax Return (ITR) form is essential for individuals to fulfill their tax obligations accurately. To ensure compliance with tax regulations, it is crucial to identify the specific ITR form that aligns with one’s financial circumstances and sources of income
| 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 a salary income during the year. However, if the salary earned during the year is more than INR 50 lakhs then you need to file ITR 2.
ITR 2 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 INR 5,000.
A freelancer can file ITR-4 or ITR-3 depending on turnover and profit from business/ profession.
For individuals who are both salaried employees and engage in F&O trading in the stock market, the appropriate ITR form to file is ITR-3.
Which ITR needs to be filled when the source of income is only capital gains?
Hi @SAAD625
ITR 2 is to be filed for only reporting Income from capital gains.
You can read about Which ITR Form Number to Fill? - Learn by Quicko.
Hope this helps.
Hi
I have salary income of 1.25 lakhs and f&o loss of 10k. Can I file presumptive ITR-4 with profits declared @ 6% ?
Hi @Neeraj_Choudhary
Based on the information provided, you are eligible to file your income tax return under the presumptive taxation scheme. To proceed with this, you would need to file ITR-4, which is the applicable form for individuals opting for presumptive taxation.
Read more about Section 44AD - Presumptive Taxation for Business - Learn by Quicko.
Hi
I have a salary income of 1.2 lacs and f&o loss of 10k.
Is it compulsory for me to file ITR 3 or can I go for ITR 4?
Hi @Neeraj_Choudhary
Based on the type of income you receive, you will need to choose the appropriate ITR Form.
In your case, since you have a non-speculative income derived from your business, considering a business income, you are required to file ITR 3. However, if you decide to opt for the presumptive taxation scheme, then you would need to file ITR 4.
I lost my job in 2022 and started freelancing. For that purpose, I bought a laptop. Registered on freelance platforms, by giving PAN and other relevant details. The income I get from these platforms deduct TDS. However, I don’t have any freelance income till 31st March, 2023. Can I claim my laptop as a deduction? Which ITR should I file?
My only income for FY22-23 is salary till the day I lost my job in 2022.
Hi @Lokesh
If you do not have any business/profession/freelance income in FY 2022-23 then you will not be able to claim the depreciation on the laptop as an expense.
However, for FY 2022-23/AY 2023-24 if you have only salary income up to ₹50, lakhs then you should file ITR 1.
Here’s a read on Which ITR Form Number to Fill? - Learn by Quicko for your reference.
Hi @MAHESH_M
If you’re an LIC agent, and you receive commission income and also have capital gains, you are required to file ITR 3.