Income Tax Return: Income Tax Return 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 Form: The process of filing Income Tax Return has started. People are also filling income tax returns. On the other hand, people whose income is taxable in India are also required to file income tax returns. However, some things should be kept in mind while filing Income Tax Return. Actually, whenever income tax return is filed, different forms are used. Income tax return should be filled 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, as per the Central Board of Direct Taxes in India, only the following forms are to 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 the 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 such as pension.
- A person who earns his livelihood from the property of a house.
- A person who has no income from any other business or who has no income from the sale of any asset, i.e. capital gain.
- 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.
- The 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.
- Persons who have not earned any windfall income like lottery, horse race etc.
- Individuals who wish to club 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, which was 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.
- Such people who are also earning 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, i.e. 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 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 also applies to persons who do not earn any income from the business carried on by the firm. This form is usually filled through those taxpayers whose taxable income from the business is only in the form of salary, commission, bonus, interest, or remuneration.
ITR- 4
This type of ITR form is useful for individuals who carry on 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 gains, 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, the ITR-4S form can be used by any individual or Hindu Undivided Family (HUF) to file their income tax return. This form applies to the following persons:
- Individuals who earn income from a 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 derive 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 presumptive method of computation.
ITR-5
The ITR-5 form is used for filing income tax returns only by the following entities:
- Company
- Limited Liability Partnership (LLP)
- Body of Individuals (BOI)
- Association of Persons (AOP)
- co-operative societies
- artificial juridical person
- local authority
ITR-6
ITR-6 form is used by all companies only, 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 the use of religious property. 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 returns under the following sections are required to file their income tax return through ITR-7:
- Section 139(4A): Under this section, a return can be filed by a person who receives income from any property held in trust or legal obligation for charitable or religious purposes.
- 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) – The return under this section has to be filed through a college, university or any other institution to which income or loss has to be declared under the other provisions of this section.
- There is no need to give returns.
- 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.