Income Tax Return- Which ITR should I file?

Under the Income-tax, there are 5 different types of Income for which a taxpayer files its Income Tax Return (ITR). For different incomes, there are different forms issued by the Income Tax Department through which an Income Tax return is filed. Here in this post, we are going to discuss different types of ITR forms through which you can understand which ITR should I file?

Types of ITR Forms

The Income Tax Act, 1961 governs all the ITR forms and procedures to be followed. There are a total of 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 that are used to file income tax returns. Every taxpayer should file his ITR on or before the specified due dates.

  • ITR 1
  • ITR 2
  • ITR 3
  • ITR 4
  • ITR 5
  • ITR 6
  • ITR 7

Which ITR should I file ?

The applicability of ITR forms varies and depending on the sources of income of the taxpayers, the amount of the income earned, and the category the taxpayers like individuals, HUF, and companies, etc. Here are the complete details for Which ITR should I file-

ITR Form 1 or SAHAJ

This form is used by an individual taxpayer to file the return and this form is applicable for the individual to have the following Incomes.

  • Income from salary or pension.
  • Income from only one house property.
  • Do not earn any capital gain.
  • Do not have property abroad and earn only domestic income.
  • Earn agriculture income less than Rs. 5,000
  • Earn income from other sources (except income from a lottery and from horse races.)
  • The total income generated can be below Rs. 50 Lakhs.

Must-Know- Know the Benefits of filing Income Tax Return

ITR Form 2

This form is used by an individual or a Hindu undivided family (HUF) whose total income includes the following incomes.

  • Income from salary or pension.
  • Income from house property.
  • Income from other sources (It also includes winning from lotteries and income from horse races.)

Note- Total income from above 3 should be more than Rs. 50 Lakhs

  • An Individual is a director in a company.
  • Have investments in unlisted equity shares at any time during the year.
  • Being a resident, not an ordinary resident and non-resident.
  • Earn income from capital gain.
  • Have foreign assets and foreign income.
  • Earn agriculture of Rs. 5,000 or more.

ITR Form 3

This form is used by an individual or a Hindu undivided family (HUF) whose total income includes income from business or profession and the person has income from the following sources.

  • Income from business or profession.
  • An Individual is a director in a company or a partner in a firm or both.
  • Have investments in unlisted equity shares at any time during the year.
  • The return may also include Income from house property, salary/pension, or other sources.

Also Read-

ITR Form 4 or Saral

This form is used by an individual/HUF or partnership firm whose income includes the following.

  • Have income from Business u/s 44AD or 44AE.
  • Have income from Profession u/s 44ADA.
  • Have income from salary or pension, Income from house property, or income from other sources (except income from a lottery and from horse races.) up to Rs. 50 Lakhs.

Note- If you have any b/f losses or loss to be c/f under any head of income you can’t use ITR form 4.

ITR Form 5

This form of ITR can be used by a person being a partnership firm including LLP, AOP, BOI, any Artificial Judicial Person, Estate of deceased, Estate of insolvent, Business Trusts, and Investment fund.

ITR Form 6

This form is used by companies except registered u/s 11 of the Income Tax ACT 1961. This type of form is only filed electronically.

ITR Form 7

This type of ITR form is only used by companies, who are required to file their return under the following sections.

  • Section 139 (4A)
  • Section 139 (4B)
  • Section 139 (4C)
  • Section 139 (4D)
  • Section 139 (4E)
  • Section 139 (4F)

After reading the above post, anyone can get an idea about the types of ITR forms and which ITR should I file?

Types of ITR Forms PDF Download

Some FAQs in relation to Which ITR should I file!

  1. What is the difference between ITR 1 and ITR 4?

    ITR 1

    This form is used by an individual taxpayer to file the return and this form is applicable for the individual to have the following Incomes.
    Income from salary or pension.
    Income from only one house property.
    Do not earn any capital gain.
    Do not have property abroad and earn only domestic income.
    Earn agriculture income less than Rs. 5,000
    Earn income from other sources (except income from a lottery and from horse races.)
    The total income generated can be below Rs. 50 Lakhs.

    ITR 4

    This form is used by an individual/HUF or partnership firm whose income includes the following.
    Have income from Business u/s 44AD or 44AE.
    Have income from Profession u/s 44ADA.
    Have income from salary or pension, Income from house property, or income from other sources (except income from a lottery and from horse races.) up to Rs. 50 Lakhs.

    Note- If you have any b/f losses or loss to be c/f under any head of income you can’t use ITR form 4.

  2. What is the difference between ITR 3 and ITR 4?

    ITR 3

    This form is used by an individual or a Hindu undivided family (HUF) whose total income includes income from business or profession and the person has income from the following sources.

    Income from business or profession.
    An Individual is a director in a company or a partner in a firm or both.
    Have investments in unlisted equity shares at any time during the year.
    The return may also include Income from house property, salary/pension, or other sources.

    ITR 4

    This form is used by an individual/HUF or partnership firm whose income includes the following.
    Have income from Business u/s 44AD or 44AE.
    Have income from Profession u/s 44ADA.
    Have income from salary or pension, Income from house property, or income from other sources (except income from a lottery and from horse races.) up to Rs. 50 Lakhs.

    Note- If you have any b/f losses or loss to be c/f under any head of income you can’t use ITR form 4.

  3. Do I need to file ITR 2?

    This form is used by an individual or a Hindu undivided family (HUF) whose total income includes the following incomes.
    Income from salary or pension.
    Income from house property.
    Income from other sources (It also includes winning from lotteries and income from horse races.)

  4. Which ITR do I need to file?

    Which ITR should I file- The applicability of ITR forms varies and depending on the sources of income of the taxpayers, the amount of the income earned, and the category the taxpayers like individuals, HUF, and companies, etc.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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