Types of ITR Forms in India
Filing Income Tax Returns (ITR) is mandatory for all eligible taxpayers in India, and the Income Tax Department has designated several forms to cater to different types of taxpayers and income sources. Knowing which form applies to you helps streamline the filing process, minimizes errors, and ensures compliance with tax regulations. Here’s a detailed overview of each ITR form, its applicability, and the type of taxpayers it serves.
1. ITR-1 (Sahaj)
For: Resident individuals with income up to ₹50 lakhs.
Applicable for:
- Income from salary or pension.
- Income from a single house property (except losses carried forward).
- Other sources (interest, etc.).
Not Applicable for: Those with foreign assets, capital gains, agricultural income over ₹5,000, or income from business/profession.
Ideal For: Salaried individuals with simple income sources.
2. ITR-2
For: Individuals and Hindu Undivided Families (HUFs) without business or professional income.
Applicable for:
- Income from salary/pension.
- Multiple house properties.
- Capital gains, foreign assets, agricultural income exceeding ₹5,000.
Not Applicable for: Individuals with income from business or profession.
Ideal For: Those with capital gains, foreign income, or multiple properties.
3. ITR-3
For: Individuals and HUFs earning income from business or profession.
Applicable for:
- Business/professional income.
- Income from salary/pension, house property, capital gains.
Ideal For: Self-employed individuals, professionals, and business owners.
4. ITR-4 (Sugam)
For: Individuals, HUFs, and firms (excluding LLPs) using presumptive taxation under Sections 44AD, 44ADA, or 44AE with an income cap of ₹50 lakhs.
Applicable for:
- Presumptive income from business or profession.
- Income from salary/pension, single house property.
Not Applicable for: Taxpayers with capital gains, foreign assets, or complex income sources.
Ideal For: Small business owners and professionals under presumptive taxation.
5. ITR-5
For: Partnerships (including LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), and other organizations.
Applicable for: All income types relevant to these entities.
Ideal For: Partnerships and associations.
6. ITR-6
For: Companies (excluding those claiming exemptions under Section 11, such as charitable organizations).
Applicable for: Income from various sources applicable to companies.
Ideal For: Registered businesses and corporations not exempt under Section 11.
7. ITR-7
For: Trusts, political parties, research institutions, and entities filing returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D).
Applicable for: Entities with income under specific exempted sections, such as charitable trusts.
Ideal For: Charitable institutions, research entities, political parties.
FAQs on Income Tax Refunds
1. Which ITR form should salaried individuals use?
Salaried individuals with income up to ₹50 lakhs can use ITR-1 (Sahaj). Those with multiple properties or capital gains should use ITR-2.
2. What form should business owners file?
Individuals with business income or professionals must file ITR-3. Small business owners under presumptive taxation can use ITR-4 (Sugam).
3. What form applies to companies?
Companies, except charitable ones, use ITR-6; charitable or exempt organizations use ITR-7.
4. Can I file ITR-4 with foreign income?
No, individuals with foreign income or assets must use ITR-2 or ITR-3, depending on other income sources.
5. What ITR form do partnerships and LLPs use?
Partnerships, LLPs, and AOPs should use ITR-5 for filing returns.
