Types Of ITR Forms - Which ITR Form to File Tax Returns?

July 31^st is fast approaching. It’s the season to file your income tax returns (ITR). Now there’s a problem. There are different ITR forms to file returns. How do you choose the right ITR form?

If you file returns using the wrong ITR form, you will have to file revised returns. This can be done if you file ITR within the due date. But, it’s an unnecessary headache. Why not choose the right ITR form and then file ITR?

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Which Form To Use When Filing ITR?

Just paying taxes is not enough. You must also file income tax returns. Filing late Income Tax Returns could mean penalties. If you file ITR after July 31^st but before December 31^st of the relevant assessment year, there’s a penalty of Rs 5,000. If you file ITR after December 31^st, there’s a penalty of Rs 10,000.

1. When to file ITR Form 1 (Sahaj)?

If you are a resident Indian, you must file ITR Form 1 (Sahaj), if your total income for the assessment year 2018-19 (FY 2017-18) includes these:

• You have income from salary or a pension.
• Income from One House Property.
• Income from other sources. (This does not include winning from lotteries, horse races and so on).

You cannot file ITR Form 1 if the total income for the FY 2017-18 (AY 2018-19), is more than Rs 50 Lakhs. If you have foreign assets, agricultural income which exceeds Rs 5,000, taxable capital gains, income from business/profession or income from more than one house property, you cannot file ITR Form 1.

2. When to file ITR Form 2?

Individuals and HUFs who are not eligible to file ITR Form 1 (Sahaj), can file ITR 2.

• You have income from salary or a pension.
• Income from One House Property.
• Income from other sources. (This includes winning from lotteries, horse races and so on).

Your total income for FY 2017-18 (AY 2018-19), should be more than Rs 50 Lakhs.

You can file income tax returns using ITR Form 2 if:

• You enjoy income from capital gains.
• You own foreign assets or have foreign income.
• You have agricultural income more than Rs 5,000.
• Income or loss from more than one house property.
• Dividend income which exceeds Rs 10 Lakhs and taxable under Section 115BBDA.

3. When to file ITR Form 3?

If you are an individual or a HUF who has income from a proprietary business or a profession, you can file ITR Form 3. If you have income from the following sources like:

• Income from a business or a profession.
• You are a partner in a firm.       

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4. When to file ITR Form 4 (Sugam)?

Individuals, HUFs or Partnership Firms whose total income for the financial year 2017-18 (AY 2018-19), includes:

• You have income from salary or pension.
• You earn business income and this income is computed in line with the special provisions under Section 44AD and Section 44AE (Presumptive Taxation).
• You have income from profession where this income is computed in line with special provisions under Section 44ADA.
• You have income from one house property.
• You have income from other sources. (This does not include winning from lotteries, horse races and so on).

5. When to file ITR Form 5?

A person being a Firm, LLP, BOI, Artificial juridical person, co-operative society, registered society and local authority are eligible to file ITR Form 5.

6. When to file ITR Form 6?

The ITR Form 6 can be used only by Companies other than those Companies who are already claiming exemptions under Section 11. The Companies who claim exemptions under Section 11 are usually religious and Section 11.

7. When to file ITR Form 7?

Returns under Section 139(4A) are filed by people who receive income from a property held as a trust or any other legal obligations mainly for religious or charitable purposes. Returns under Section 139(4B) are filed by a political party if total income is more than the maximum amount which is not chargeable to income tax.

You have to file returns under Section 139(4C) if:

• You are a news agency
• You are a scientific research association
• Association/Institution referred under the Section 10(23A)
• You are a fund/Institution/University/Educational Institute/Hospital/ Medical Institute.

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