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ITR filing: Know which form to choose to file tax returns this year

Republished By Plato
Republished By Plato

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ITR forms

For representational purpose.

The last date to file the Income Tax Return (ITR) for the financial year 2022-23 (assessment year 2023-24) is July 31. The income tax (I-T) department provides seven different types of forms such as ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. It is important to note here that not all ITRs suit everyone, which is why one should know which of these forms apply to them.

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms. A large number of small and medium taxpayers use these forms to file their tax returns.

A resident individual having income up to Rs 50 lakh and who receives income from salary, one house property, other sources (interest) and agricultural income up to Rs 5,000 can use the Sahaj form.

Sugam is for individuals, Hindu Undivided Families (HUFs) and companies (other than Limited Liability Partnerships (LLPs)) being a resident having total income up to Rs 50 lakh and income from business and profession.

Also Read: ITR filing: Know who can and can’t file income tax returns using ITR this year

Different types of ITR filing forms

ITR-1 (Sahaj)

Salaried individual and pensioners mostly use ITR-1 to file their tax returns. This form is valid if you have income from salary, one house property, and other sources including interest income and agricultural income up to Rs 5,000.

ITR-2

ITR-2 form is applicable for individuals and HUF with a total income of more than Rs 50 lakh which is not collected from profits of business or profession.

It is valid if you have income from more than one house property, capital gains, foreign assets or income, and agricultural income exceeding Rs 5,000. Further, this form is also suitable if you have income from any source outside India or if you are a director in a company.

Also Read: Filing income tax return (ITR) for the first time? Here is how to get started

ITR-3

For individuals and HUFs having income from a proprietary business or profession. It is valid if you are a partner in a partnership firm and have income from the firm and who are not eligible to file Form ITR‐1, ITR‐2 or ITR‐4.

Tax experts say this form is not valid to the proprietors of the firm as it is applicable for the professionals but in a partnership profession.

ITR 4

For small and medium taxpayers who have chosen for the presumptive income scheme under Section 44AD, Section 44ADA, and Section 44AE of the I-T Act. This form is applicable if you receive income from a business or profession and no international transactions or foreign assets.

ITR 5

For limited liability partnership (LLPs), businesses, AOPs (Association of persons) and BOIs (Body of Individuals), Artificial Juridical Person (AJP), and co-operative society choose form 5. This form does not apply to individuals or HUFs.

Also Read: ITR filing: Know how to file income tax returns without Form 16 in simple steps

ITR-6

It is suitable for firms other than those claiming exemption under Section 11 (income from property held for charitable or religious purposes). It is applicable to companies that are required to provide the return under Section 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D).

ITR-7

For taxpayers who file returns under specific sections of the I-T Act, including trusts, political parties, educational institutions, research associations, and entities with income from property held for charitable or religious purposes.

It cannot be used by a tax assesses who is not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C)or Section 139 (4D).

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