Every year, Income tax return (ITR) forms are notified based on certain factors like nature of income, quantum of income, residential status and type of assessee.
Old income tax return forms (ITR) notified for earlier financial years can’t be used for the recent financial year as new forms incorporate changes brought out in recent amendments to the finance act.
While filing, these Income Tax Return forms will contain information about your income as well as tax liability thereon in addition to certain general data.
You need to choose the right Income tax return form (ITR) that best suits you as wrong selection can make your tax return defective and later gets rejected by the department.
In this article, we will discuss various income tax return forms applicable to an individual, partnership firm, private limited companies and others persons liable to file tax returns in India.
We have 7 different types of income tax return forms prescribed by the tax department for the financial year 2023-24.
Let’s discuss the applicability of these income tax return forms and how to choose your income tax return form for filing.
ITR-1 – Income tax return form for Salaried individuals
ITR-1 can be used by an individual who is an Indian resident other than an ordinary resident and whose total income for the financial year includes salary, house property and income from other sources.
This income tax return form is popularly known as sahaj.
In case of clubbing, ITR-1 can be used where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee falls into the above income categories.
However, if he has brought forward house property loss or loss to be carried forward from previous year and/or income from winning from lottery and from Race Horses, taxable under section 115BBDA or of the nature referred to in section 115BBE, then ITR-1 can’t be used.
ITR-1 should not be used by an individual whose total income for the financial year 2022-23 exceeds Rs. 50,00,000 or include following;
- short-term capital gains or long-term capital gains from sale of house, plot, shares etc; or
- Agricultural income in excess of Rs 5,000; or
- Profit or gains from Business or Profession; or
- Person claiming relief under section 90 and/or 91; or
- Income to be apportioned in accordance with provisions of Section 5A (i.e. apportionment under the Portuguese Civil Code)
A resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or a resident having income from any source outside India can’t use ITR-1.
ITR-2: Income tax return form when ITR-1 is not for you
ITR-2 can be used by an individual or a HUF who is not eligible to file ITR-1 and who is not having any income under the heading “Profits or gains of business or profession”.
This means, if an individual is having income from short-term or long-term capital gains from sale of house, plot, shares and/or agricultural activities then ITR-2 is to be used.
However, in addition to these if he has income under the head Profits or gains of business or profession, then ITR-3 or ITR-4, as applicable, has to be used.
ITR-3 and ITR-4 – Income Tax Return Form for individuals with income from PGBP
ITR-3 is to be used by an individual or a Hindu Undivided Family who is having income under the head “profits or gains of business or profession” and who is not eligible to file ITR-4 (popularly known as Sugam).
To understand better, we need to see who is eligible to file ITR-4.
As per the Indian tax law, ITR-4 is to be used by an individual or HUF or Partnership firm whose total income for the financial year 2023-24 includes business income computed in accordance with section 44AD, 44AE or 44ADA.
This means, ITR-4 is applicable when income from business or profession is calculated on presumptive basis under section 44AD, 44AE or 44ADA. However, this tax return form can’t be used in following cases where income is from;
- more than one house property or where there is brought forward loss or loss to be carried forward under this head; or
- Winnings from lottery or Race horses; or
- Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or
- Agricultural activities in excess of Rs. 5000; or
- speculative Business and other special incomes; or
- agency business or commission or brokerage; or
- section 115BBDA or 115BBE
ITR-4 will also not be applicable if a person is claiming relief of foreign tax paid under section 90, 90A or 91 or having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
ITR-4 can be used by professionals like doctors, engineers, chartered accounts, cost accountants, lawyers and architects who opted for presumptive income under section 44ADA.
ITR-3 can’t be used by companies and partnership firms having income from business or profession as it’s specifically applicable to individuals or HUF.
To a salaried individual, income tax return form (ITR) ITR-5, ITR-6 and ITR-7 is not applicable. Most of the time individuals with only salary income will be filing income tax return form ITR-1.
ITR-5 – Income tax return form for partnership firm and LLP
Income tax return form ITR-5 can be used by a person being a partnership firm, LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii),persons referred to in section 160(1)(iii) or (iv) , cooperative society , registered societies and local authority.
However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F) shall not use this form.
ITR-6 – Income tax return form for companies
ITR-6 can be used by a private and public limited company other than a company claiming exemption under section 11. This means it can also be used by a One Person Company or OPC.
Companies claiming exemption under Section 11 should file ITR-7.
ITR-7: Who can use
This income tax return form can be used by persons including companies who are 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).
While filing your income tax return, we suggest you check and download the latest version of excel or java utility, or else, it will show you errors while uploading.You can find these tax return forms at the tax department’s website under the option of Income Tax Return Preparation Utilities online.
Here’s a breakdown of the types of income tax returns:
| Income Tax Returns (ITR Forms) | Who Can File | Eligible Income Sources | Not Eligible |
| ITR-1 (Sahaj) | Individuals with an income up to ₹50 lakh. | Salary, one house property, other sources (like interest), and agricultural income (up to ₹5,000). | Individuals with income from business or profession, more than one house property, or capital gains. |
| ITR-2 | Individuals and Hindu Undivided Families (HUFs) with income exceeding ₹50 lakh. | Income from salary, house property, capital gains, and other sources. | Those who have income from business or profession. |
| ITR-3 | Individuals and HUFs who are partners in a firm. | Income from salary, house property, capital gains, and profits from business or profession. | – |
| ITR-4 (Sugam) | Individuals, HUFs, and firms (other than LLP) with presumptive income. | Income from business and profession (under Section 44AD/44AE) with a total income up to ₹50 lakh. | Taxpayers with income exceeding ₹50 lakh or income from other sources. |
| ITR-5 | Partnerships, LLPs, and Association of Persons (AOPs) or Body of Individuals (BOIs). | Any income type (business, profession, salary, etc.). | – |
| ITR-6 | Companies other than those claiming exemption under Section 11 (charitable/religious). | Income from any source, including business and profession. | – |
| ITR-7 | Persons including companies who are required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D). | Charitable trusts, political parties, or institutions. | – |
Filing Tips for Income Tax Returns
- Choose the Right ITR Form: Ensure you select the appropriate form based on your income sources and eligibility. Filing the wrong form can lead to compliance issues.
- File Online: Most returns can be conveniently filed online through the Income Tax Department’s e-filing portal, which streamlines the process and offers quicker processing times.
- Understand Deadlines: The due date for individual taxpayers is generally July 31 of the assessment year. Be aware of any extensions that may apply.
- Maintain Accurate Records: Keep thorough records of all income sources, deductions, and relevant documentation to facilitate accurate filing and to respond to any queries from the tax department.
- Consult a Tax Professional: If your tax situation is complex, consider consulting with a tax professional to ensure compliance and maximize your deductions.
By understanding the types of income tax return forms available, their eligibility requirements, and following these filing tips, you can navigate the income tax filing process in India effectively and ensure compliance with tax regulations.
