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Types of ITR Forms

Save Tax Now
  • 28th Nov 2019
  • 9,378
Types of ITR Forms

An income tax return form is a document that is filed with the tax authorities. It comprises your earnings, expenditures, and other tax-related details. Income tax returns (ITRs) simplify you to determine your tax liability, pay your taxes, and claim refunds in case you have paid excess tax. There are different types of ITR forms and it is important to know that you need which form to file ITR. The form depends on your income and in certain instances, whether you hold assets in other foreign countries or have international earnings.

What are ITR Forms?

An ITR form is a form that taxpayers use to file information about their income earned and the tax that applies to the income tax department. The department mandates different tax return forms for different types of taxpayers based on factors like:
· Total income
· Taxpayer category
· Income source
There are seven categories of tax return forms, from ITR1 to ITR7.

Here are the various types of forms:

ITR Form 1

This type of ITR form is also known as ‘Sahaj’. It is filed if you are an individual taxpayer. It is applicable if you:

  • Earn income through salary or pension
  • Earn income from one housing property
  • Do not earn capital gains
  • Do not hold a property abroad
  • Earn only domestic income
  • Earn agriculture income less than INR 5,000
  • Earn income through investments such as fixed deposits
  • Do not earn any windfall income through horse racing or lotteries

ITR Form 2

This type of ITR form is filed if you have earned an income by selling a property or other assets. Moreover, if you earn international income, you need to file ITR 2. The form is also used for Hindu Undivided Family (HUF) taxpayers.

ITR Form 3

ITR 3 applies to an individual as well as HUF taxpayers. If you earn income under the gains or profits from profession or business category, you may use this form to file your ITR.

ITR Form 4

ITR 4 is used by individuals, HUFs, or partnership firms whose income includes the following:

  • Business earnings as per provisions of section 44AD and 44AE
  • Professional income under special provisions of section 44ADA
  • Pension or salary
  • Earnings from a single house property except where loss is carried forward
  • Income from other sources excluding lottery or horse race winnings

ITR Form 5

Firms, local authorities, artificial judicial persons, Body of Individuals (BOIs),Co-operative Societies, Limited Liability Partnerships (LLPs), and Association of Persons (AOPs) use ITR 5 to file returns.

ITR Form 6

Every company, except those that claim exemptions under Section 11 of the Income Tax Act, 1961 needs to file returns using Form ITR 6. Organizations that receive income from property used for religious or charitable purposes are eligible to claim exemptions under section 11. ITR 6 must be filed online.

ITR Form 7

Individuals or companies as described below must file returns using Form ITR 7:

  • Section 139(4A): Individuals earning income from property held for religious or charitable purpose as a trust
  • Section 139(4B): Political parties whose income exceeds non-taxable limits
  • Section 139(4C): An institution or association under section 10(23A), medical or educational institution, scientific research association,news agency, an institution under section 10(23B)
  • Section 139(4D): Institutions, such as universities or colleges whose income returns or losses are not needed as per the provision of this section must file returns using Form ITR 7.
  • Section 139(4E):Must be filed by every business trust that is not required to provide a return of income or loss under other provisions of this section
  • Section 139(4F): Investment funds as per section 115UB must file returns under this section

Now that you have understood the various ITR form types, ensure that you use the correct form to file your returns.

How to file an Income Tax Return?

Depending on the income type, income amount and taxpayer category, you will have to fill the relevant form. Once you have figured out the form you have to fill, you can follow these steps:

· Download and check Form 26AS. This form is a tax passbook that will include all tax details deducted from your income during the financial year.
· Check Form 26AS for errors and rectify them.
· Calculate total income for the financial year.
· Calculate tax liability after applying tax rates.

FAQs

1. What is an income tax return?

Income Tax Return is a form that an individual has to submit to India’s Income Tax Department. It includes information about an individual’s income and the taxes paid in a specific year. The information contained in ITR forms should be for a particular financial year (FY), i.e., from the 1st of April of the current year to 31st of March of the next year.

2. Why should an individual file ITR?

It is mandatory by the law that you file your income tax returns. You will have to file ITR if:

· Your gross income falls under the tax bracket.
· You have more than one source of income.
· You want to claim a tax refund.
· You have earned from or invested in foreign assets.
· You apply for a visa or a loan.
· If the taxpayer is a company, firm, etc.

3. Which ITR Form to File when filing an Income Tax Return?

There are 7 ITR forms which are meant for:

· individuals earning income from property, salary, business or other sources having income exemption
· members of HUF earning income from property, salary, business or other sources having income exemption
· partners in a firm, firms, partnership firms, limited liability partnership, companies and trusts earning income from property, business and other sources having income exemption

While this is a general classification, there are, however, other criteria that need to be met while specifically selecting these forms.

4. Where can individuals download the various forms?

You can download the different forms by visiting the income tax official website. You must have a clear understanding of which form you wish to download before going to the website.

5. Is it necessary to attach any document when submitting an income tax return?

No, income tax returns do not require any documents or proofs. The Income Tax Act specifies getting certificates and proofs for claiming deductions.

6. What are the online platforms where I file my income tax return?

Log in to the IT Department portal for filing the returns online. You can register by using your Permanent Account Number (PAN) which will function as the user ID. Go to download and e-filing, and then under the relevant assessment year, select the appropriate ITR form.

7. Is it possible to reach out to someone in case I need to resolve any queries when e-filing my return?

Yes, you can reach out to the IT Department on their website. You will need to fill up a form with your queries which they will review and answer.

8. How many types of income tax returns forms are available for individuals?

Form ITR 1/Sahaj, ITR 2, ITR 3 and ITR 4 are available for salaried individuals who may also be earning income from a business, house property and other sources.

9. What are the income tax return forms that can be used by firms and companies?

The ITR-3, ITR- 4, ITR- 5 forms are meant for firms, and the ITR-6 form is meant for companies.

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