Types of ITR and When to file

“Discover the types of Income Tax Returns (ITR) and their eligibility criteria, including ITR-1 (SAHAJ), ITR-2, ITR-3, ITR-4 (Sugam), ITR-5, ITR-6, and ITR-7. Understand when and how to file ITR, importance of Form 16, Form 26AS, Form 15G, and Form 15H. Learn about tax return deadlines and avoid penalties.”

Meaning of ITR

A document known as an income tax return (ITR) is used to provide the Income Tax Department with data regarding your earnings and taxes.

Law requires all individuals and businesses with any revenue during a fiscal year to submit an income tax return each year. A salary, business earnings, real estate income, dividends, capital gains, interest, or other types of income might all contribute to the revenue.

Any taxpayer can assess their tax burden and make payments before filing an ITR. You can file an ITR in the case of a failed carryforward and setoff of brought-over losses. While filing your ITR, observe form 26AS for details on TDS and additional taxes, such as FD interest. Simply fill out your Form 16 with the specifics of your income and tax-saving deduction statements.

Tax returns must be filed by a specific deadline by both individuals and corporations. A penalty is due from a taxpayer who misses the deadline.

♦ Types of ITR

ITR-1 (SAHAJ)

Individuals who fulfill the requirements for ordinarily resident status and have an annual gross income of up to Rs.

1. Salary / Pension

2. One House Property

3. Other sources (Interest, Family Pension, Dividend etc.)

4. Agricultural Income up to ₹ 5,000

Exception: –

• Director in a company
• has held any unlisted equity shares
• has any asset located outside India?
• is a person from whose tax has been withheld under Section 194N?
• who has any carried over losses or losses that need to be carried forward from any source of income?
• Hindu Undivided Family (HUF)
• An NRI

ITR2: -Individual and HUF

Who is not eligible for filing ITR-1?

Non-residents, Residents but Not Ordinarily Residents, Ordinarily Residents, and an Undivided Hindu Family

With a net revenue of more than 50 lakh rupees

Salaried individuals who have profited or suffered losses as a result of stock purchases and trades.

and Other Source.

Having Revenue from outside of India and Property outside of India.

Exception: –

• Has income listed under the category of “Profits and Gains from Business or Profession”?

ITR3: -Individual and HUF

• who is not qualified to file an ITR-1, 2 or 4?
• Individuals have to disclose their earnings from a business or occupation.
• Salaried individuals who earn money from intraday stock exchange trading or futures and options trading must file Form ITR-3.
• Individuals may use ITR-3 for recording income from jobs, real estate, capital gains, business or trade (including presumptive income), and other sources.

ITR4:-(Sugam)

• Resident or Firm (other than LLP) Individual & HUF
• Residents with income from a business or profession that is presumed to be earned (U/s 44AD/44ADA/44AE)
• Total Income up to ₹50 lakhs
• A freelancer who works in a notified occupation may file an ITR-4.

Exception: –

• Director in a company
• has ever owned unlisted equity shares throughout the past year.
• has any asset located outside India?
• has any sources of income outside of India

ITR: -5

1. Firm

2. Limited Liability Partnership (LLP)

3. Association of Persons (AOP)

4. Body of Individuals (BOI)

5. Artificial Juridical Person (AJP)

6. Local Authority

7. Representative assesses

8. Cooperative Society

9. 1860 Societies Registration Act society registered

10. Estate of Deceased Person 139(4E)

11. Investments Fund

Profits from businesses and professions, as well as some other sources of income, must be disclosed on ITR-5.

Exception: –ITR 7 is filed by a person, a HUF

ITR6: –

• Applicable for Companies
• Indian Company
• Body Corporate
• Any organization, group, or entity that the Board declares to be a company, etc., whether or not it is incorporated and whether it is Indian or not.

ITR: -7

• Income obtained from Property Held Under Trust Used Wholly or Partially for Charitable or Religious Purposes.
• Applicable to Persons and Companies Required to File Return Under Section 139(4A).
• Each political party’s chief executive officer Different organizations like a research association or news agency
• University, College
• Other organization such as an NGO
• Trade Union
• Hospital
• When to file ITR return

♦ Types of Forms to File ITR

Form 16

A Form 16 TDS certificate is given to an employee by their boss. Form 16 includes the gross payment as well as deductions such as HRA and LTA. The form also provides information on the employee’s net taxable pay, all other reported revenue or loss tax-saving deductions, and salary TDS.

Form 26AS

Form 26AS shows the tax deducted at source (TDS) for various earnings, such as wages, debt, and the sale of immovable property. The form also includes information about self-assessment tax, advance tax paid by an individual, and documented financial activities.

Form 15G and Form 15H

Using Forms 15G and 15H, you will make earnings without paying TDS. You can submit a Form 15G if you are under the age of 60 and your gross taxable income is less than the basic exemption ceiling. If you are a senior citizen and your net wage is $0, you must file Form 15H. Form 15G or Form 15H must be sent to the person who pays your taxes.

The above article has been written by Mr. Sachin Vishwakarma (CA Aspirant) and reviewed by Mr. Suyash Tripathi (Chartered Accountant) and they can be reached at [email protected] and [email protected].