Types of ITR Forms You Should Know About

An individual who earns a certain amount of money must file an income tax return. The Income Tax Department of India has established income tax slabs that specify the percentage of an individual's income that must be paid as tax. The Government of India has made the filing of an ITR easy and convenient. First and foremost, you need to know which type of ITR form you need to fill out and submit to the Income Tax Department. Read on to learn about different ITR forms in detail! 

Different Types of ITR Forms 

Among the numerous types of ITR forms available, some are specifically available for individuals, and others are allocated for companies. Here’s the list of ITR forms available to taxpayers. 

• Form ITR-1 or SAHAJ 

SAHAJ form is available for Indian residents who fulfill the below-mentioned conditions: 

Who Is Eligible?

1. Income earned through salary or pension.
2. Income received from the single-house assets. However, exclusions are allowed if the previous year's losses are carried forward. 
3. Agricultural income not exceeding Rs. 5,000. 
4. Maximum income earned should be up to Rs. 50 lakh. 
5. Income received from other sources like the lottery or winning horse races. 

Who Is Not Eligible?

1. Total Income earned exceeds Rs. 50,000
2. Individuals earning foreign income or foreign assets.
3. Income created through foreign property 
4. If the director of a company is paying tax
5. Any investments made in unlisted equity bonds during the fiscal year
6. Agricultural income exceeding Rs. 5,000
7. Wealth is created from more than one house's assets. 
8. Income earned through profession or business
9. NRI (Non-Resident India) and RNOR (Resident Not Ordinary Resident)

• Form ITR-2 

Individuals and Hindu Undivided Families (HUFs) who satisfy the below conditions are eligible for the ITR-2 form. 

Who Is Eligible?

1. Earnings from capital gain
2. Agricultural income of more than Rs.50,000
3. If the taxpayer is the director of the company
4. Earnings made from other income sources such as lottery or horse race
5. Wealth created from house property
6. Income earned from a salary or pension
7. Individuals with income exceeding Rs. 50 lakh 
8. Unlisted equity bond investments during the financial year
9. Income is created through foreign assets and foreign income

Who Is Not Eligible? 

Taxpayers earning money through any professional service or from a business are not eligible for the ITR-2 form. 

• Form ITR-3 

Individuals earning income from a profession or from owing a business. The eligibility criteria for this form are: 

Who Is Eligible?

• Profit earned from business or profession

1. Investments made in unlisted equity shares 
2. If the taxpayer is a partner or director in the company
3. Income created from salary or a pension, house property or any other income source

Who Is Not Eligible? 

An Individual or HUF who is creating wealth as a partner of a partnership firm which is engaged in a business/profession.

• Form ITR-4 

Here are the eligibility criteria for the ITR-4 form. 

Who Is Eligible?

1. Indian residents who are individuals, HUFs, and partnership firms creating money through business or profession.
2. Taxpayers who have chosen the presumptive income scheme under Section 44ADA, Section 44AD, and Section 44AE of the Income Tax Act, 1961. 

Who Is Not Eligible? 

1. Gross income earned is higher than Rs. 50 lakh 
2. If previous losses are carried forward 
3. If a taxpayer has signing authority in a country other than India. 
4. Investments made in unlisted equity bonds at any time 
5. Income generated from foreign income or foreign assets
6. Income created from more than one house property
7. Taxpayer is the director of a company
8. Taxpayer is an NRI or an RNOR

• Form ITR-5

Listed below are those eligible for the ITR-5 form. 

1. Artificial Juridicial Person
2. Business Trusts
3. Insolvent Estates
4. Deceased Estates
5. Associations of Persons 
6. Body of Individuals
7. LLPs and Companies 

• Form ITR-6 

Any company that does not claim exemptions under Section 11 of the Income Tax of 1961 must file form ITR-6. Under this section, firms can file their income tax returns electronically. 

• Form ITR-7 

Individuals and firms that fall under Section 139(4A), Section 139(4B), Section 138(4C), Section 139(4C), Section 139(4D), Section 139(4E), and Section 139(4F) must select the ITR-7 form. Here is information regarding the section-wise income tax return that should be filled out. 

1. Section 139(4A): Individuals who earn income from a charitable property or other legal obligations must submit ITR forms. 
2. Section 139(4B): In case gross income exceeds the maximum sum, then ITR must be filed under this section. 
3. Section 139(4C): Any scientific research association, hospitals, medical institutions, universities, funds, news agencies, and other educational institutions are liable to file income tax returns. 
4. Section 139(AD): Any educational institution that does not have furnished income or loss must fill ITR form. 
5. Section 139(4E): Business trusts that do not require to bear any loss of income. 
6. Section 139(4F): Under Section 115UB if any investment funds do not furnish any income or loss must also pay income tax return. 

How To Download Income Tax Return Forms Online? 

Any individual who wants to file an income tax return can download the ITR forms from the official website of the Income Tax Department of India. You can download the form in PDF format and complete the form. Depending on your income and its type, an individual can choose the suitable form to file an income tax return. 

Conclusion 

In conclusion, there are 7 types of ITR forms available for taxpayers. You must need to choose a suitable form on the basis of your total income and its source. Filing an ITR is mandatory and you can either pay it yourself through the online web portal of the Income Tax Department or you can hire any consultant or accountant for e-filing an income tax return. 

Also Read: 

Income Tax Filing For Freelancers