Under the Income-tax Law, different ITR forms (Income Tax Return Forms) are prescribed for different classes of taxpayers. CBDT already notified ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 for A.y. 2018-19. In this article we have discussed which ITR is applicable for a Particular Assessee for Assessment Year 2018-19 i.e. for Financial Year 2017-18.
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1. Form ITR – 1 (SAHAJ)
a. Who can use ITR – 1 (SAHAJ)
Return Form ITR – 1 (SAHAJ) can be used by an individual whose total income does not exceeds Rs 50 Lacs and includes:
(1) Income from salary/pension; or
(2) Income from one house property (excluding cases where loss is brought forward from previous years); or
(3) Income from other sources (excluding winnings from lottery and income from race horses).
Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used only when such income falls in any of the above categories.
b. Who cannot use ITR – 1 (SAHAJ)?
Return Form ITR – 1 (SAHAJ) cannot be used by an individual:
- Whose total income for the year includes income from more than one house property.
- Whose total income for the year includes income from winnings from lottery or income from race horses.
- Whose total income for the year includes income chargeable to tax under the head “Capital Gains”.
- Whose total income for the year includes agricultural income of more than Rs. 5,000.
- Whose total income for the year includes income from business or profession.
- Whose total income for the year includes loss under the head “Income from other sources”.
- Who has claimed relief under section 90 and/or section 91.
- Who is having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.
- Any resident having income from any source outside India.
2. Form ITR – 2
a. Who can use ITR – 2?
Return Form ITR – 2 can be used by an individual or a Hindu Undivided Family whose total income for the year includes:
- Income from Salary / Pension; or
- Income from House Property; or
- Income from Capital Gains; or
- Income from Other Sources (including winnings from lottery and income from race horses).
Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this Return Form can be used if income to be clubbed falls in any of the above categories.
b. Who cannot use ITR – 2?
Return Form ITR – 2 cannot be used by an individual whose total income for the year includes income from proprietary Business or Profession.
3. Form ITR – 3
a. Who can use ITR – 3?
Return Form ITR – 3 can be used by an individual or a Hindu Undivided Family who is a partner in a firm and income chargeable to income-tax in his/its hand under the head “Profits or gains of business or profession” does not include any other income, except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm.
In case a partner of the firm does not have any income from the firm by way of interest, salary, etc., and has only exempt income by way of share in the profit of the firm, he shall use Form ITR – 3 only and not Form ITR-2.
b. Who cannot use ITR – 3?
Form ITR – 3 cannot be used by any person other than an individual or a HUF. Further, an individual or a HUF not having income from business or profession cannot use ITR – 3.
4. Form ITR – 4
a. Who can use ITR – 4?
ITR – 4 SUGAM can be used by individuals or Hindu Undivided Family or partnership firm (other than limited liability partnership firm) who have opted for the presumptive taxation scheme of section 44AD/ 44ADA/44AE
b. Who cannot use ITR – 4?
Form ITR – 4 (SUGAM) cannot be used by an individual/HUF:
- Whose total income for the year includes income from more than one house property.
- Whose total income for the year includes income from winnings from lottery or income from race horses.
- Whose total income for the year includes income chargeable to tax under the head “Capital Gains”.
- Whose total Income for the year includes income taxable under section 115BBDA.
- Whose total income for the year includes income of the nature referred to in section 115BBE.
- Any resident having income from any source outside India.
- Whose total income for the year includes agricultural income of more than Rs. 5,000.
- Whose total income for the year includes income from speculative business and other special incomes.
- Whose total income for the year includes income from agency business or income in the nature of commission or brokerage.
- Who claims relief under section 90, 90Aand/or section 91
- Who is a resident and ordinarily resident and has any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.
In case of a taxpayer who is engaged in any business eligible for the presumptive taxation scheme of section 44AD or section 44AE or section 44ADA but he does not opt for the presumptive taxation scheme, then such a taxpayer has to maintain the books of account of the business as per the provisions of section 44AA and has to get these accounts audited. In such a case he cannot use ITR 4.
5. Form ITR-5
a. Who can use ITR – 5?
Form ITR – 5 can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person , cooperative society and local authority.
b. Who cannot use ITR – 5?
Form ITR – 5 cannot be used by 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 section 139(4E) or section 139(4F) (i.e., trusts, political party, institutions, colleges, etc.).
6. Form ITR-6
a. Who can use ITR – 6?
Form ITR – 6 can be used by a company, other than a company claiming exemption under section 11 (charitable/religious trust can claim exemption under section 11).
b. Who cannot use ITR – 6?
Form ITR – 6 cannot be used by a company claiming exemption under section 11 (charitable/religious trust can claim exemption under section 11).
7. Form ITR-7
a. Who can use ITR – 7?
Form ITR – 7 can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4f) (i.e., trusts, political party, institutions, colleges, etc.).
b. Who cannot use ITR – 7?
Form ITR – 7 cannot be used by a person who is not required to furnish return under s section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4f) (i.e., trusts, political party, institutions, colleges, etc.).
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