With every individual having different sources of income, the Income Tax Department wanted to simplify the procedure of filing ITR.

Hence, there are different types of Income Tax Return (ITR) forms for different categories of taxpayers.

This blog will give a brief account of which ITR you can file based on the category you fall into.

Categories of taxpayers

The first category comprises individuals, firms, and HUFs (Hindu Undivided Families). ITR-1, ITR-2, ITR-3, and ITR-4 are the ITR forms available for this category based on the sources of income.

The second category comprises LLPs/Partnership firms, Companies, and Trusts which are supposed to file ITR-5, ITR-6, and ITR-7 respectively.

ITR-1 or SAHAJ

ITR-1 form can be filed by an individual having an annual income of less than Rs. 50 lakhs.

Such income should be earned from salary or pension or other sources.

Such individuals should not have more than one house property.

ITR-2

An individual earning an annual income of more than Rs. 50 lakhs from one or more of the following sources has to file ITR-2:

i) Salary,

ii) Pension,

iii) Capital gains,

iv) More than one house property,

v) Directorship in a company,

vi) Unlisted equity shares, and

vii) Foreign assets.  

ITR-3

An individual or HUF carrying on a proprietary business or practising a profession, earning annual income from the sources of the ITR-2 can file the ITR-3 form.

ITR-4

ITR-4 is to be filed by individuals and HUFs whose annual income includes:

i) Business income or professional income according to the presumptive income scheme,

ii) Salary or pension up to Rs. 50 lakhs,

iii) Income from house property, up to Rs. 50 lakhs, and

iv) Income from other sources up to Rs. 50 lakhs.

ITR-5

ITR-5 is to be filed by the following persons:

i) Firms,

ii) LLPs,

iii) Association of Persons,

iv) Body of Individuals,

ITR-6

Companies that do not claim an exemption under section 11 of the Income Tax Act, 1961 i.e. Income from property held for charitable or religious purposes, are supposed to file ITR-6.

ITR-7

The following categories of taxpayers are supposed to file ITR-7:

i) Individuals earning income for charity or religion in form of a trust or legal obligation,

ii) Political parties earning income more than the non-taxable limit,

iii) Institutions or associations under section 10,

iv) Scientific research institutions,

v) News agency, and so on.

Conclusion

The Income Tax Department has released different ITR forms for different categories of taxpayers. It is a tedious task to understand which form you are supposed to file as there are seven types of ITR forms.

To relieve yourself of the stress to know the right ITR form and file the ITR for you, contact us at bestlegalservices.in