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Learn about which Income Tax Return to file? - Types of ITR and their applicability
ITR stands for Income Tax Return. The Income Tax Act, 1961 governs all the ITR forms and procedures to be followed. This article gives an in-depth understanding of the ITR definition and types of ITR forms.
Income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable to the income tax department.
The department has notified 7 various forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every taxpayer should file his ITR on or before the specified due date . The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category of the taxpayer like individuals, HUF, company, etc.
It is mandatory to file income tax returns (ITR) in India if any of the conditions mentioned below are applicable to you:
1. If your gross annual income is more than the basic exemption limit as specified below-
|For individuals below 60 years||Rs 2.5 lakh|
|For individuals above 60 years but below 80 years||Rs 3.0 lakh|
|For individuals above 80 years||Rs 5.0 lakh|
2. If you want to claim an income tax refund from the department.
3. If you have earned from or have invested in foreign assets during the FY.
4. If you wish to apply for a visa or a loan
5. If the taxpayer is a company or a firm, irrespective of profit or loss.
Also, you are mandatorily required to file ITR even if your income is below the basic exemption limit but you meet one of the following conditions:
The following infographic will help you find out which type of income tax return is applicable to you for FY 2021-22.
Once you figure out which ITR you need, click on the links below to learn more about them.
This Return Form is for a resident individual whose total income for the AY 2022-23 includes:
Still, do you have any doubts about ITR-1 in your mind?.
Read our comprehensive guide on ITR-1 to get answers to all your questions.
ITR-2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2022-23 includes:
Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
The total income can be more than Rs 50 Lakhs.
This Return Form should not be used by an individual whose total income for the AY 2022-23 includes Income from Business or Profession. For declaring these types of Income , you may have to use ITR-3 or ITR-4. Go through our comprehensive guide on ITR-2 to know how to fill out the ITR-2 form.
The current ITR-3 Form is to be used by an individual or a Hindu Undivided Family who have income from a proprietary business or is carrying on a profession. The persons having income from the following sources are eligible to file ITR-3:
In short, individuals or HUFs who are not eligible to file ITR-1, ITR-2, and ITR-4, should file ITR-3
Click here to read our comprehensive guide to the ITR-3
The current ITR-4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are residents and whose total income includes:
Please note that any individual earning income from the above-mentioned sources as a freelancer can also opt for a presumptive scheme if their gross receipts are not more than Rs 50 lakhs.
A presumptive income scheme under sections 44AD, 44AE and 44ADA is when an individual or an entity opts to derive its income on a presumptive basis, i.e. when the income is presumed at a minimum rate based on a percentage of gross receipts / gross turnover or based on ownership of commercial vehicles. However, if the business turnover exceeds Rs 2 crore, the taxpayer will have to file ITR-3.
Click here to read our comprehensive guide to the ITR-4
ITR-5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.
Click here to read our comprehensive guide to the ITR-5
For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return has to be filed electronically only.
Click here to read our comprehensive guide to the ITR-6
For persons including companies required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).
|ITR Form||Applicable to||Salary||House Property||Business Income||Capital Gains||Other Sources||Exempt Income||Lottery Income||Foreign Assets/Foreign Income||Carry Forward Loss|
|ITR-1 / Sahaj||Individual, HUF (Residents)||Yes||Yes(One House Property)||No||No||Yes||Yes (Agricultural Income less than Rs 5,000)||No||No||No|
|ITR-3||Individual or HUF, partner in a Firm||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|ITR-4||Individual, HUF, Firm||Yes||Yes(One House Property)||Presumptive Business Income||No||Yes||Yes (Agricultural Income less than Rs 5,000)||No||No||No|
|ITR-5||Partnership Firm/ LLP||No||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
Want to know more about the ITR-7 Form? Why not read our comprehensive guide to the ITR-7 Form?
Get answers to all your questions about how to fill the ITR-7 Form.