Income Tax Return Form: The process of filing Income Tax Return has started. People are also filing their income tax returns. On the other hand, people whose income is taxable in India are also required to file income tax return.
However, while filing income tax return, some things should be kept in mind. Actually, whenever income tax return is filed, different forms are used. Income tax return should be filed according to these forms. Let’s know about them…
In total there are around 9 types of ITR forms available for a taxpayer to file his tax. However, according to the Central Board of Direct Taxes in India, only the following forms should be taken care of by individuals while filing returns-
ITR-1
ITR 2
ITR-2A
ITR 3
ITR 4
ITR 4S
The following income tax return forms are applicable only for companies and firms:
ITR-5
ITR-6
ITR-7
ITR-1
Also known as Sahaj Form, this income tax return form is filed by an individual taxpayer only. Any other assessee liable to pay tax is not eligible to avail this form for filing his return. This form is applicable for the following people-
– A person who earns his income through salary or other means like pension.
A person who earns his livelihood from a single house property.
-A person who does not have any income from any other business or who does not have any income from the sale of any asset, i.e. capital gains
– Individuals who do not have any property or assets in countries other than India.
– A person who does not have any source of income from any country outside India.
– A person whose income from agriculture is less than Rs.5000.
– A person whose source of income is from various investments or sources like investments, schemes or fixed deposits etc.
– Individuals who have not earned income from any windfall income like lottery, horse race etc.
Individuals who wish to pool the income of their spouse or minor child with their own, as long as the income is to be clubbed as per the criteria mentioned above.
ITR-2A
Form ITR-2A is a new income tax return form introduced in the assessment year 2015-16. This form can be used by a Hindu Undivided Family (HUF) or an individual taxpayer. ITR-2A form is applicable for the following people:
– People whose source of income is through means like salary or pension.
– People who are also earning income from more than one housing property.
– A person who has no income from any other business or who has no income from the sale of any asset, ie capital gain.
– People who earn income from various investments or sources like fixed deposits, investments, shares etc.
– A person who does not have any property or assets in countries other than India.
– A person who does not have any source of income from any country outside India.
A person whose income from agriculture is less than Rs.5,000.
– Individuals who have not earned income from windfall gains such as lotteries or horse races.
ITR 2
ITR-2 form is a type of ITR form which is generally used by individuals who have earned income through sale of property or assets. Also, this form is useful for individuals who earn income from countries outside India. In most cases, individuals or Hindu Undivided Families (HUFs) can avail this form for filing their IT returns.
ITR 3
The ITR-3 form is useful for an individual taxpayer or a Hindu Undivided Family, who work solely as partners in a firm, but who do not carry on any business under the firm. It is also applicable to persons who do not earn any income from the business carried on by the firm. This form is usually filed through those taxpayers whose taxable income earned from business is only in the form of Salary, Commission, Bonus, Interest, Remuneration.
ITR 4
This type of ITR form is useful for individuals who do business or who earn income through any profession. This form is applicable to all types of business, undertaking or profession, without any limit on the income earned. Taxpayers can club any income from windfall profits, speculation, salary, lottery, residential properties, etc. with the income earned from their business. Individuals with any profession ranging from shopkeepers, doctors or designers to agents, retailers and contractors are eligible to file their ITR using this form.
ITR 4S
Also known as the Sugam form, ITR-4S form can be used by any individual or Hindu Undivided Family (HUF) to file their income tax return. This form is applicable to the following persons:
– Those persons who earn income from any business.
Individuals earning income from single house property.
– Individuals who do not earn income by way of sale of property or assets in India: Capital gains.
– Individuals whose income from agriculture is less than Rs.5,000.
Individuals who do not have any property or assets in countries other than India.
Individuals who do not earn income from any country outside India.
This form is useful in special circumstances and is applicable to businesses where the income earned is based on the estimated method of computation.
ITR-5
The ITR-5 form is used for filing income tax return only by the following entities:
-Firms
-Limited Liability Partnership (LLP)
-Body of Individuals (BOI)
-Association of Persons (AOP)
-Cooperative Societies
-Artificial Juridical Persons
-Local Authorities
ITR-6
ITR-6 form is used by all companies except those companies or organizations that claim tax exemption as per section 11. Organizations that can claim tax exemption as per section 11 are those organizations in which the income derived is accumulated from property used for religious or charitable purposes. This special income tax return form is available for online filing only.
ITR-7
Individuals or companies who are required to submit their return under the following sections are required to file their income tax return through ITR-7:
– Section 139(4A): Under this section, return can be filed by a person who receives income from any property held in the form of a trust or legal obligation for charitable or religious purposes Is.
– Section 139(4B): Under this section, returns are to be filed by political parties, provided their total income exceeds the non-taxable limit.
– Section 139(4D)- Under this section, the return is to be filed through a college, university or any other such institution which is not required to provide return of income or loss in accordance with the other provisions mentioned in this section.
Section 139(4C): Under this section, returns are to be filed by the following entities:
Any institution or association specified under section 10(23A).
Any association engaged in scientific research.
Any institution referred to in section 10(23B).
Any news agency.
Any fund, medical institution or educational institution.
