There are a lot of people out there who think filing income tax returns is not mandatory and cut it off their to-do list as they find it unnecessary and time-consuming. However, filing your taxes is just not a statutory duty but also a moral and social responsibility of every citizen. So, it is important to understand which ITR you need to file before you file your taxes.
Tax return is a form that you are required to file and contains information about your income as well as tax liability thereon. You are required to file these tax return forms with the Income Tax Department. The Income Tax Act, 1961, obligates the citizens of India to file their tax returns, at the end of every Financial Year, with the I-T Department. However, it is not mandatory for every citizen. There are different types of ITR form and each form is applicable to a certain section of assessee. These forms need to be filed on a specified due date. Income Tax Department will process only those tax returns which are filed in proper forms and within the due date.
Budget 2017 has made several changes to push taxpayers to file their tax returns within time. Tax department is also doing its best to avoid any delays in tax preparation and filing. Following its path breaking trend from 2016 where CBDT has preponed the release of ITR forms to the month of March from traditional practice of releasing it in May-June, CBDT once again notified all the ITR forms for A.Y. 2017-18 in the month of March, 2017 itself.
The Finance Minister has promised to the individual tax payer that he will make tax filing simpler for them, fulfilling this promise CBDT has now introduced a simplified ITR 1 Form applicable only for individuals having income up to Rs. 50 lakh. But taxpayers having dividend income above Rs. 10 lakh or unexplained credit can’t opt for ITR-1. The ITR-2A introduced in 2016 has now been withdrawn and even the old ITR-3 is merged with ITR-2. As such all the individual taxpayers (except those who are eligible to use ITR-1 or those earning business income) would be required to file ITR-2 only.
Old ITR-4 is now replaced by ITR-3 as such the individual taxpayer earning income from business or profession are now required to use ITR-3. Till A.Y. 2016-17 taxpayer opting for presumptive taxation were required to file ITR-4S but now they are required to file ‘ITR-4 SUGAM’ for presumptive income.
ITR 1 can be used by an individual taxpayer, having income from:
Return in ITR 1 cannot be used by an individual if he:
[ Read: How to File ITR 1 ]
ITR-2 can be used by all individuals and HUFs not carrying out Proprietary business or profession.
ITR 2 cannot be used by an individual and HUF having income chargeable to tax under the head ‘Proprietary business or profession’
[ Read: How to File ITR 2 ]
ITR-3 can be filed by an Individual or HUF deriving income from proprietary business or profession.
ITR-3 can also be filed by an Individual or HUF who is a partner in a firm deriving his income by way of any interest, salary, bonus, commission or remuneration from firm.
[ Read: How to File ITR 3 ]
Return in ITR 4 can be filed by an individual or HUF or a Firm (other than a LLP-limited liability partnership firm) if his total income includes:
Return in ITR 4 cannot be filed by a person who:
[ Read: How to File ITR 4 ]
If you are an AOI, BOI, LLP, firm, artificial judicial person as per section 2(31(vii)) and 160(1(iii)(iv)), local authority, cooperative society and registered society, you must file ITR 5 with your income tax return.
If you are an individual, company, HUF or have to file ITR 7, then ITR 5 is not for you. Also for person’s who need to file u/s 139(4A),(4B),(4C) ,(4D) or (4F), then you ITR 5 is applicable to you as well.
[ Read: How to File ITR 5 ]
All companies have to file ITR 6 as part with their income tax return.
For companies that have claimed exemption U/S 11(income from property for religious/charitable purpose), do not have to file ITR 6.
[ Read: How to File ITR 6 ]
For companies who do not need to file under the above-mentioned sections, they do not need to file ITR 7.
[ Read: How to File ITR 7 ]
|TR forms for Individual and HUF|
|Nature of income||ITR 1 (Sahaj)||ITR 2||ITR 3||ITR 4|
|Income from salary/pension||✓||✓||✓||✓|
|Income from one house property (excluding losses)||✓||✓||✓||✓|
|Income or losses from more than one house property||✓||✓|
|Agricultural income exceeding Rs. 5,000||✓||✓|
|Total income exceeding Rs 50 lakhs||✓||✓||✓|
|Dividend income exceeding Rs10 lakhs taxable u/s 115BBDA||✓||✓|
|Unexplained credit or unexplained investment taxable at 60% u/s. 68, 69, 69A, etc.||✓||✓|
|Income from other sources (other than winnings from lottery and race horses or losses under this head)||✓||✓||✓||✓|
|Income from other sources (including winnings from lottery and race horses)||✓||✓|
|Share of profit of partner from a partnership firm||✓||✓|
|Income from presumptive business u/s 44AD/44ADA/44AE||✓|
|Income from business or profession (other than presumptive business)||✓|
|Income from foreign sources or foreign assets or having Signing authority in any account outside India||✓||✓|
|Claiming foreign tax relief u/s 90, 90A or 91||✓||✓|
|Other Assessees||ITR 5||ITR 6||ITR 7|
|Firm (including limited liability partnership firm)||✓|
|Association of Persons (AOP)||✓|
|Body of Individuals (BOI)||✓|
|Companies other than companies claiming exemption under Sec. 11||✓|
|Persons including companies required to furnish return under:|
(1) Section 139(4A);
(2) Section 139(4B);
(3) Section 139(4C); and
(4) Section 139(4D)
[ Read: Guides on ITR Forms 1 to 7 ]
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