Before you start filing your Income Tax Return – ITR, you need to know Which ITR form to fill. 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 the correct ITR Form 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 1||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, 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|
|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||✓||✓|
|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 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.