Answer By law4u team
In India, the Income Tax Department has prescribed different Income Tax Return (ITR) forms for individuals, businesses, and other entities to file their returns. The form you choose depends on the type of income you earn, your residential status, and the nature of your business or profession. Here are the main types of ITR forms: 1. ITR-1 (Sahaj): Eligible for: Resident individuals with income up to ₹50 lakh. Income Sources: Salary/pension Income from one house property Other sources (e.g., interest, dividends) Exclusions: Income from business/profession Capital gains Income from more than one house property 2. ITR-2: Eligible for: Individuals and Hindu Undivided Families (HUFs) who don't have income from business or profession. Income Sources: Salary/pension Income from more than one house property Capital gains (long-term or short-term) Income from other sources (e.g., interest, foreign income) Exclusions: Business or professional income 3. ITR-3: Eligible for: Individuals and HUFs who have income from business or profession. Income Sources: Income from business or profession Salary/pension Income from house property Capital gains Other sources of income (e.g., interest, dividends) Exclusions: None for business income holders 4. ITR-4 (Sugam): Eligible for: Individuals, HUFs, and firms (other than LLPs) who have income from a business or profession under the presumptive taxation scheme (Section 44AD, 44ADA, 44AE). Income Sources: Business income under presumptive taxation Salary/pension Income from other sources Exclusions: Income from capital gains 5. ITR-5: Eligible for: Firms, LLPs, Association of Persons (AOP), Body of Individuals (BOI), and other similar entities (other than individuals, HUFs, and companies). Income Sources: Business or professional income Income from other sources Exclusions: None for applicable entities. 6. ITR-6: Eligible for: Companies (other than companies claiming exemption under Section 11). Income Sources: Business or professional income Income from other sources Exclusions: Not applicable for companies with exempt income under Section 11 (trusts or charitable organizations). 7. ITR-7: Eligible for: Individuals, HUFs, companies, and other entities who are required to file under section 139(4A), 139(4B), 139(4C), or 139(4D). Income Sources: Income from property held under trust or for charitable purposes Income from political parties or other specific categories Exclusions: Not applicable for regular business income taxpayers 8. ITR-V: Used for: Verification of the Income Tax Return. This form is not for filing income but rather used to verify electronically filed ITRs if no digital signature is used. 9. ITR-11: Eligible for: Returns filed by non-resident Indians (NRIs) who earn income from sources outside India or have income that falls under specific categories that other forms don’t accommodate. Each form has specific eligibility criteria, and it’s important to file the correct form based on your source of income and tax obligations. Filing the wrong ITR can lead to penalties or rejection of your return, so it's crucial to choose the correct one.
