In this article, we will discuss everything about various ITR forms and their respective users. We will also discuss who can or who can not use specific ITC Form.
It must be noted that filing wrong ITR form would be considered as Defective Return.
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ITR-1 (SAHAJ): Applicable to Individual
This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh
Salary / Pension
One House Property
Other sources (Interest, Family Pension, Dividend etc.)
Agricultural Income up to ₹ 5,000
ITR-1 can not be filed by following persons who:
(a) is a Director in a companyÂ
(b) has held any unlisted equity shares at any time during the previous yearÂ
(c) has any asset (including financial interest in any entity) located outside IndiaÂ
(d) has signing authority in any account located outside IndiaÂ
(e) has income from any source outside IndiaÂ
(f) is a person in whose case tax has been deducted u/s 194NÂ (TDS on Cash Withdrawal)
(g) is a person in whose case payment or deduction of tax has been deferred on ESOP
(h) has any brought forward loss or loss to be carried forward under any head of incomeÂ
(i)Â has total income exceeding Rs. 50 lakhs.Â
ITR-2 - Applicable for Individual and HUF
This return is applicable for Individual who is not eligible for ITR-1 and Hindu Undivided Family (HUF) except one who is having Income from Business & Profession.
ITR-3- Applicable for Individual and HUF
This return is applicable for Individual and Hindu Undivided Family (HUF) Having Income under the head Profits and Gains of Business or Profession and who is not eligible for filing ITR-1, ITR-2 or ITR-4.
ITR-4 (SUGAM) – Applicable for Individual, HUF and Firm (other than LLP)
This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:
Salary / Pension
One House Property
Other sources (Interest, Family Pension, Dividend etc.)
Agricultural Income up to ₹ 5,000
This Return is simple return like ITR-01 which is for Salaried Class, similarly for Business class who are declaring Business income on Presumptive Basis and have income not more than Rs. 50 Lakhs.
ITR-1 can not be filed by following persons who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous yearÂ
(c) has any asset (including financial interest in any entity) located outside IndiaÂ
(d) has signing authority in any account located outside IndiaÂ
(e) has income from any source outside IndiaÂ
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP
(g)Â who has any brought forward loss or loss to be carried forward under any head of incomeÂ
(h)has total income exceeding Rs. 50 lakhs.
Note: Please note that ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.
ITR-5
This form can be used by a Person being a:
Firm
Limited Liability Partnership (LLP)
Association of Persons (AOP)
Body of Individuals (BOI)
Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
Local Authority referred to in clause (vi) of Section 2(31)
Representative Assessee referred to in Section 160(1)(iii) or (iv)
Cooperative SocietyÂ
Society registered under Societies Registration Act, 1860 or under any other law of any State
Trust other than Trusts eligible to file Form ITR-7
Estate of Deceased Person
Estate of an Insolvent
Business Trust referred to in Section 139(4E)Â
Investments Fund referred to in Section 139(4F)
However, a person who is required to file the Return of Income u/s 139(4A) or 139(4B) or 139(4D) shall not use this form. (They will file ITR-07 as discussed in subsequent section).
ITR-6
Applicable for Companies other than those claiming exemption u/s 11 (Charitable Trusts/ Societies which will file ITR-07)
Company Includes
Indian Company
Body corporate incorporated by or under the laws of country outside IndiaÂ
Any institution, association or body, whether incorporated or not and whether Indian or Non-Indian which is declared by general or special order of the Board, to be Company, etc.
ITR-07
Applicable for Persons including Companies who are required to furnish return u/s 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D).
139(4A)
Income derived from Property held under Trust wholly / in part for charitable or religious purposes.
139(4B)
Chief Executive Officer of every Political Party
139(4C)
Various entities like Research Association, News Agency, etc. mentioned in Section 10
139(4D)
University, College or other Institution referred in Section 35
Note:Â The category of persons whose income is unconditionally exempt under various clauses of Section 10, and who are not mandatorily required to furnish their Return of Income under the provisions of Section 139, may use this form (ITR-07) for filing return (for instance - Local Authority).
For Income Tax Calculator (Old & New Regime Both) for FY 2023-24 (AY 2024-25), please refer Income Tax Calculator
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Disclaimer: We have taken due care to the best of our knowledge while explaining the provisions surrounding the issue purely for informational/academic purpose. It should not be considered as professional advice or consultancy to be relied upon. While due care has been taken by Fab Gyan in preparing this article, certain mistakes and omissions may creep in. The Fab Gyan or its Author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.