While paying income tax returns taxpayers often find it hard to decide which income tax return (ITR) form they need to file as there is a good number of forms. Selecting a form depends on the income a taxpayers earns. If a taxpayers holds assets in a country other than India or if he earns income from a country other than India, then these factors too also play a vital role in deciding the type of income tax return (ITR) form to be used.
There are nine types of ITR form be filed but for the individuals only six types of forms are applicable as per the Central Board of Direct Taxes. Rest of the forms are for the use of companies and forms.
The forms for the individuals are as follows:
The forms for the companies and firms as follows:
ITR-1 is popularly called as Sahaj form. The form is meant for an individual taxpayer. The form is not applicable for other kinds of assesses liable to pay tax.
Who Can Use ITR-1 Form or Sahaj:
Who Can’t Use ITR-1 Form or Sahaj:
ITR-2A form is meant for individuals and Hindu Undivided Family (HUF). Here we give a details of assesses who can or can’t file ITR-2A.
Who Can Use ITR-2A Form:
Who Can’t Use ITR-2A Form:
The ITR-2 Form is applicable for the individuals who have earned income through the sale of assets or property. The form is also applicable to individuals who have income sources outside India. Here is a detailed list of who can use this form and who can’t.
Note: ITR-2A form has been discontinued and merged with ITR-2 form
Who Can Use ITR-2 Form:
Who Can’t File ITR-2 Form:
The ITR 3 Form was applicable to individual and Hindu Undivided Family (HUF) who earned income from proprietary business or are carrying on profession. Those earning income from business or profession were eligible to file this form. Those earning presumptive business Income where Turnover/Gross Receipts exceeds Rs. 2 crore were also eligible.
Note: This form has now been discontinued and merged with ITR-2.
The ITR-4 form is applicable to individuals who earn income through a business or through a profession. All kinds of businesses, undertakings or professions with no limit on the income earned are eligible to file this form. Apart from the income earned from business, income earned from windfalls, speculation, salaries, lotteries and housing properties can also be clubbed together with income from business. Professionals including shopkeepers, doctors, designers, agents, retailers and contractors among others are eligible to file their income tax returns through ITR-4 form.
The ITR-4S form was used by any individual or Hindu Undivided Family (HUF) for filing their tax returns.
Note: This form has now been discontinued FY 2016-17 (AY 2017-18) and merged with ITR-4.
The ITR-5 form is used by certain entities to file income tax returns. These entities are as follows:
ITR-6 form is applicable to companies except those companies or organisations that claim tax exemption as per Section 11. The companies or organisations claiming exemptions under Section 11 are organisations wherein the income accrued from the property is used for the cause of religion or charity. The ITR-6 can be filed online only.
The ITR-7 form is applicable for the individuals or the companies that fall under the Section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).
Section 139(4A) - Under this section, persons who get income from any property that is held for the charity or religion are required to file returns.
Section 139(4B) – If a political party has income above the non-taxable limit then that particular political party is required to file return under this section.
Section 139(4C) - This section is applicable for filing returns by the following entities:
Section 139(4D) – This section is about mandatory filing of income tax return by colleges and universities. As per this, an institution mentioned in section 35(1) (ii) or (iii) is required to file their income tax.