Income Tax Forms Explained
Income Tax Department has notified six Income Tax Return Forms applicable for various kinds of assesses. In this article we have tried to explain each form, who should file using the mentioned form, who should not be using this form, and the details to be provided in the various ITRs.
ITR 1 SAHAJ
The ITR 1 SAHAJ as its name implies was introduced to simplify the procedure of tax filing for common people through an integrated single page form approach.An Individual being an ordinary resident who is having a total income up to INR 50 lakhs can file his return using this form.
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ITR 2
ITR 2 form is for Individuals or Hindu Undivided Families not having Income under the head Income from Profits & Gains from Business and profession. There is no restriction as of total income or residential status under this form unlike ITR 1 SAHAJ. Which means Ordinary residents, non-residents or not ordinary residents can also file returns using this form. This form also supports filing of returns for individuals holding directorship in companies or holding equity shares in unlisted companies.
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ITR 3
ITR 3 Income Tax Return form is for Individuals and Hindu Undivided Families which have income from business and profession.ITR 3 also supports income from other heads of income such as Salary/pension, House Property, Other Sources and Income from Capital Gains. This is an exhaustive form and covers individuals who are residents, nonresidents or not ordinary residents.
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ITR 4 SUGAM
ITR 4 SUGAM Income Tax Return Form is for Individuals, HUFs and Firms (Other than Limited Liability Partnerships) being a resident having total income up to a maximum of INR 50 Lakhs and having Income from business and profession computed under section 44AD or 44ADA or 44AE of Income Tax Act. One thing to be noted is that this form can only be filed by a resident individual who is not holding directorship in any company or has invested in equity shares if any unlisted company.
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ITR 5
ITR 5 Income Tax Return Form mentions that it is applicable for persons other than Individuals, HUFs, Companies and Persons filing ITR 7. Which means ITR 5 is applicable for Firms, Limited Liability Partnerships, Body Of Individuals (BOI) and Association Of Persons (AOP) etc.
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ITR 6
ITR 6 Income tax form is to be used by companies other than those claiming exemption under section 11.
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ITR 7
ITR 7 Income tax form is to be used by persons including companies who are required to furnish return under the following sections of Income tax act:
- 139 (4A): Filing of Income Tax Returns for Religious & Charitable Trust
- 139 (4B): Filing of Income Tax Returns for Political Parties
- 139 (4C) & 139 (4D): Filing of Income Tax Returns for Colleges & Universities carrying on scientific research.
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