CBDT has already released new ITR Forms. One can file the ITR now. While, Individuals are due to file their ITR by 31st July. Corporate entities are to file by 30th September.

The big question is which form should one use according to their status, income level, sources of income etc. Here, we discuss about all the forms to let taxpayers use the correct form to file.

These ITR Forms are related for assessment year 2019-20 only i.e. it is only related to the income earned during the financial year 2018-19.

I. ITR-1 (Sahaj)

Who can use this form?

Any person who is a resident having total income up to Rs 50 lakhs and has income under the following heads:

can file ITR under this form.

Who cannot use this form?

This form cannot be used by an individual who has income from any of the following:

  • Business income
  • Capital gains
  • Rental income
  • Income from other sources under-
  • Winning from lottery
  • Owing and maintaining race horse
  • Income taxable u/s 115 BBDA and 115BBE
  • Agricultural income exceeding Rs. 5000

Further, this form cannot be used by the following Individuals who:

  • Is director in a company
  • Owns unlisted equity shares during previous year
  • Has any asset (including financial interest in a company) outside India
  • Has a signing authority in any account outside India
  • Has income from any source outside India

Also, an individual who has claim of loss/deduction/relief/tax credit of following nature cannot use the Sahaj form:

  • Brought forward or to be carried forward loss under income from house property
  • Claim of loss under head income from other sources
  • Any claim u/s 90 or Section 91
  • Deduction u/s 57 with exception to deduction claimed relating to family pension
  • A claim of TDS in hand of any other person.

II. ITR-2

Who can use this form?

The form can be used by any Individual or HUF who is not eligible to file ITR-1 (Sahaj) and does not have any income under the head Profits and gains from business or profession.

Who cannot use this form?

This form cannot be used by any person who has an income under head Profits and gains from business or profession.

III. ITR-4 (Sugam)

Who can use this form?

The return form can be used by resident individual or HUF or a firm excluding LLP, whose total income is not more than Rs. 50 lakh and who has income under the following heads:

  • Income u/s 44AD i.e. presumptive income, where gross turnover is up to Rs. 2 crore or Section 44AE
  • Income u/s 44ADA i.e. presumptive income, where gross receipts do not exceed Rs. 50 lakhs
  • Income from Salary/ Pension
  • Income from one House Property
  • Income from other sources.

Who cannot use this form?

This form cannot be used by a person who has income from any of the following:

  • Profits and gains from business or profession not eligible to be computed u/s 44AD, 44ADA or 44AE such as income from speculative business, agency business, commission or brokerage income etc.
  • Capital gains
  • Income from more than one House property
  • Income from other sources under-
  • Winning from lottery
  • Owing and maintaining race horse
  • Income taxable u/s 115BBDA and 115BBE
  • Agricultural income exceeding Rs. 5000

Further, this form cannot be used by persons who:

  • Is director in a company
  • Owns unlisted equity shares during previous year
  • Has any asset (including financial interest in a company) outside India
  • Has a signing authority in any account outside India
  • Has income from any source outside India

Also, an individual who has claim of ­loss/deduction/relief/tax credit of following nature cannot use the Sahaj form:

  • Brought forward or to be carried forward loss under income from house property
  • Claim of loss under head income from other sources
  • Any claim u/s 90 or Section 91
  • Deduction u/s 57 with exception to deduction claimed relating to family pension
  • A claim of TDS in hand of any other person.

IV. ITR-3

Who can use this form?

This form can be used by an individual or HUF who has income under head Profits and gains of business or profession and who is not eligible to file form ITR-1 (Sahaj), ITR-2, ITR-4 (Sugam)

 V. ITR-6

This form can be filed by companies other than companies claiming exemption u/s 11

 VI. ITR-7

This form can be used by any person-

1. Who is in receipt of income from property held under trust or any charitable or religious purpose.

2. Which is a political party if the total income exceeds the maximum amount which is not chargeable to tax

  • Who is required to file u/s 139(4C) i.e. is a-

1. Scientific Research Association

2. News agency

3. Association or institution u/s 10(23A) or 10(23B)

4. Any find or educational/ medical institution.

VII. ITR-5

This form can be filed by any person other than-

1. Individual

2. HUF

3. Company

4. Person filing Form ITR-7

A summary table for better understanding-

Name of form Who can use For income
ITR-1 (Sahaj) Resident individual having income up to Rs. 50 lakhs Salary/pension One house property Other sources
ITR-2 Resident individual of HUF not eligible to file ITR-1 Salary/Pension One House property Other sources Capital gains
ITR-3 Resident individual or HUF not eligible to file ITR-1, ITR-2, ITR-4 Salary/Pension One house property Other sources
ITR-4 (Sugam) Resident individual or HUF, Resident firm excluding LLP having income up to Rs. 50 lakhs Presumptive income Salary/Pension One house property Other sources
ITR-5 Any person other than individual, HUF, company, person filing form ITR-7 All incomes
ITR-6 Companies except those claiming exemption u/s 11 All incomes
ITR-7 Person eligible to file return u/s 139(4A), 139(4B), 139(4C) and 139(4D) Charitable property Political party Scientific research association News agency Educational/medical institution

Disclaimer: The above post is only for the purpose of academic discussion and should not be construed as any legal opinion in any matter whatsoever.

(The author is a CA in practice at Delhi and can be contacted at: E-mail: abhinandansethia90@gmail.com, Mobile: +91-9811741451)

Author Bio

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