Types income tax return forms

ITR-1 Form

This form is also known as the Sahaj form. Individual taxpayers should go for ITR 1 filing. Any other taxpayer is not eligible to choose this form for ITR returns.

Applicable for:

The following individuals can apply for this form:

• An individual who draws income from salary or pension.
• An individual whose income is solely dependent on single housing property.
• A person without any income from capital gains and other business.
• An individual who is not an owner of any foreign asset or does not have any foreign source of income.
• An individual whose agricultural income is up to Rs. 5000.
• A person with additional sources of income likes other investments, fixed deposits, etc.
• Any individual without having any income from winning lotteries, horse racing, and other windfalls.
• Individuals who want to club their spouses’ or underage children’s income with theirs.

Not eligible:

Any other assessee belonging to the following category is not eligible to file ITR 1 for tax returns.

• One whose income exceeds Rs.50 lakhs.
• Individuals having agricultural income above Rs.5000.
• Applicants with income from capital gains and businesses.
• In case a person is having income from many house properties.
• If an individual is a director in a company, he cannot apply for ITR 1.
• One investing in unlisted equity shares at any point of time during the fiscal year is not eligible to choose this form.
• Owners of foreign assets being a resident and having income from foreign sources.
• Individuals who are non-residents and RNOR (residents not ordinarily residents).
• A person who is assessable for another person’s income cannot file IT returns using this form. In such a case, tax deduction takes place in terms of the other person.

ITR-2 Form

ITR 2 income tax is eligible for those individuals who have their income by selling assets or properties. Individuals having incomes from outside of India can also use this form. Furthermore, HUFs can also apply for ITR 2 form to file income tax returns.

Eligibility criteria to file tax returns by using ITR 2 form

Individuals belonging to the following categories can apply for ITR 2 forms:

• Individuals who accrue income by means of salary or pension.
• One whose income source depends on capital gains, that is, from the sale of an asset or property.
• In case a person’s income is possibly coming from more than one house property.
• Owner of foreign assets and one whose income source is outside India.
• A person whose agricultural income is more than Rs.5000.
• People with incomes from winning a lottery etc.
• If an individual is a director in a company.
• Non-residents and RNOR.

Categories not eligible to apply for this form:

Not all taxpayers should avail of this form for income tax returns. We have categorised such people in the following section for your better understanding.

• Individuals whose total income is inclusive of any profits or gains of a business venture or other profession cannot opt for this form.
• Ones with total income lower than Rs.50 lakhs.

ITR-3 Form

Individual taxpayers or HUFs operating as partners in a firm without conducting any business under the firm are eligible to apply for ITR 3. Taxpayers looking in search of the meaning of ITR 3 should be thorough with the eligibility criteria of the said form.

Applicable for:

Applicants having the following income sources are eligible to file ITR 3.

• Incomes from investments on unlisted equity shares.
• Individuals continuing a business or profession are eligible.
• Company director.
• Incomes coming from house property, pension, salary, or other sources.
• A person having income by being a partner in a firm.

Not Applicable for:

Taxpayers eligible for ITR 1 and ITR 2 belong to a certain category. Similarly, some taxpayers should not file this form for IT returns. Given below are some of the individuals who are not eligible for this form.

• Any individual with a business turnover below Rs.2 crores.
• The ones who do not earn income from a business conducted by a firm cannot apply for ITR 3.
• Taxpayers can file ITR 3 if the taxable income from the business comes in the form of salary, bonus, commission, remuneration and interest. Other than this, any other source of income from the business is not eligible.

ITR-4S Form

Also known by the name Sugam, ITR 4 means that individuals who run a business and accrue income from it or other professions can file for IT returns by using this form. With this income, they can club the earning from any windfall and apply for this form. Additionally, taxpayers from professions like doctors, shopkeepers, designers, retailers, agents, contractors, etc., can file their ITR using this form.

Applicable for:

ITR 4 meaning is simple for those who are accustomed to the eligibility. Here are some of the eligibility criteria.

• Individuals earning income from businesses.
• One who has a single house property and earns income through it.
• Taxpayers not having income via capital gains or selling of assets.
• If the agricultural income of a person is below Rs. 5000, he can file ITR 4.
• Individuals not owning properties or assets outside India.
• An applicant whose source of income is within India.
• This form is also applicable to businesses where the income earned depends on a presumptive scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.

Not Applicable for:

Some individuals do not qualify for an application of the ITR-4S form to file tax returns. Such categories are mentioned below.

• Owners of a foreign asset.
• Company directors.
• A person with a foreign source of income.
• Total income of a taxpayer exceeding Rs. 50 lakhs.
• If an applicant carries forward loss under any income head, he cannot utilise this form.
• Investors of unlisted equity shares.
• A non-resident and a resident not ordinarily resident.
• Individuals generating income from more than one housing property.
• Having a signing authority in any account outside India.
• If a taxpayer is an assessee with respect to another person’s income where tax deduction takes place in the hands of another person.
• Limited Liability Partnerships (LLPs) cannot avail of this form.

ITR-5 Form

Business trusts, firms, etc., must opt for this form to file ITR. ITR 5 means forms that are eligible for partnership firms or LLPs. To understand the meaning of ITR 5 in detail, one should know in-depth about the taxpayers eligible under this form and those who are not.

Eligible taxpayers:

The following bodies can file IT returns using this form.

• LLPs (Limited Liability Partnerships).
• Co-operative societies.
• Local authorities.
• BOIs (Body of Individuals).
• Artificial judicial persons.
• AOPs (Association of Persons).
• Estate of the deceased and insolvent.
• Investment funds.
• Business trusts.

Not Eligible taxpayers:

Here is a list of persons not eligible to file ITR 5.

• Any individual filing for ITR 1.
• Hindu Undivided Families (HUFs).
• Any company.
• The ones filing for ITR 7 cannot file for this form.
• Applicants with income from capital gains.

ITR-6 Form

ITR 6 means an income tax return form eligible for companies to file tax returns. Companies can file income tax by this form only electronically.

Eligible for:

Given below are the bodies and the income sources eligible for this form.

• All companies except the ones claiming exemption under Section 11.
• Incomes earned from housing property.
• Business incomes.
• Incomes from multiple sources.

Not Eligible for:

In the following section, we enlisted a few organisations and income sources not eligible to file IT returns using ITR 6 form.

• Organisations under Section 11 can claim tax exemptions because the income accrued from these bodies is used for religious or charitable purposes.
• Incomes coming from capital gains.
• Any individual or HUFs.

ITR 7 Form

Individuals and firms that have furnished returns related to Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E) and Section 139(4F) must choose this ITR form.

Listed below are the details of the returns that should be filed section-wise:

 Section 139(4A): The ITR forms must be submitted by individuals who gain an income from a property that belongs to a charity/trust or other legal obligations and the income that is produced is solely used for charitable or religious purposes

Section 139(4B): ITR forms must be filed under this section by a political party if the gross income that has been generated is more than the maximum sum

Section 139(4C): ITR forms must be submitted under this section if it is a Scientific Research association, hospitals, medical institutions, universities, funds, News agencies and other educational institutions

Section 139(4D): Any educational institution such as a college or university that are not required to furnish any income or loss must submit ITR forms under this section

Section 139(4E): Business trusts that do not need to furnish any kind of income or loss must file ITR forms under this section

Section 139(4F): Investment funds present under Section 115UB and do not need to furnish any income or losses must also submit ITR forms under this section