Choose, Which Income Tax Return Form Suits You

Various types of income tax return forms have been issued by the government. These forms are for a better income tax payment experience.

For an easier understanding of which category the assesses falls under, the Central Government has come up with income tax return forms. These forms have been divided into categories that suit different types of assesses that have to follow different rules.

Types of Income Tax Return Forms

The income tax return forms have been divided under the following categories:

1. ITR-1/Sahaj: The individual whose only incomes are from

·         Salary/pension;

·         One House Property (excluding brought forward losses), and;

·         Other Sources

It is to be noted that the above Other Sources income does not include Winnings from Lottery and Income from Race Horses.

Who Cannot File Income Tax Return-1?

Any Resident having any asset located outside India or signing authority in any account located outside India cannot use ITR-1 to file his return. These foreign assets include financial interest in any entity.

If the amount of exempt income of an assessee exceeds Rs. 5,000, in such a case too ITR-1 cannot be filed.

2. ITR-2A:

This return can be filed by taxpayers who:

·         have Salary income, House Property Income from more than one house and no Capital Gains;

·         have Long Term Capital Gains from transaction on which Securities Transaction Tax is paid;

·         are NRIs, if applicable, however residents having a foreign asset or a foreign income cannot file ITR-2A

Who Cannot File ITR-2A?

ITR-2A cannot be filed by an assessee who has:

·         Income from Capital Gains

·         Income from Business and Profession

·         Any claim of deduction under section 90, 90A or 91

·         Any asset located outside India, including financial interest in an entity

3. ITR-2:

An assessee who is an Individual/HUF, with the following incomes, can file ITR-2:

·         Income from Salary/pension;

·         Income from Capital Gains;

·         Income from House Property;

·         Income from Other Sources.

The Income from Other Sources does not include Winnings from Lottery and Income from Race Horses. Furthermore, in the cases of clubbing, ITR-2 can be filed.

Who Cannot File ITR-2?

Assessees having an income under Business and Profession or who is a partner receiving remuneration in a partnership firm/LLP cannot file this return.

4. ITR-3: This return is to be filed by assessees having the following income from a Partnership firm/LLP under the head Business and Profession:

·         Interest

·         Salary

·         Bonus

·         Commission or remuneration

In a case where the only income from a partnership firm is the exempt share of profit, ITR-3 shall be filed.

Who Cannot File ITR-3?

If the assessee has any income from proprietorship under Income from Business and Profession, he cannot file this return.

5. ITR-4S/Sugam: Sugam can be filed by the assessees having:

·         Presumptive business income

·         Salary/Pension

·         One House Property

·         Income from Other Sources

Who Cannot File ITR-4S?

A taxpayer cannot file ITR-4S is he has:

·         More than one house property

·         Speculative income

·         Winning from Lotteries/Income from Horse Races

·         Agriculture income exceeding Rs. 5,000

·         Capital Gains

·         Losses to be carried forward

6. ITR-4: This return is to be filed by individuals having income from a proprietary business or profession. The assessee can be an Individual or an HUF.

7. ITR-5: 

This return is to be filed by:

·         Firms

·         LLPs

·         AoPs (Association of Persons)

·         BoIs (Body of Individuals)

8. ITR-6:

This return is to be filed by companies.

Who Cannot File ITR-6?

Companies claiming exemption under section 11 of the Income Tax ACt, 1961 cannot file this return.

This return is to be filed electronically only.

9. ITR-7:

This return is the be filed by persons required to file return under the following sections of the Income Tax Act, 1961:

·         Section 139(4A) - for every income received for charitable purposes;

·         Section 139 (4B) - for every political party exceeding the threshold limit;

·         Section 139 (4C) - for institutions referred to under section 10;

·       Section 139 (4D) - for educational institutes under the guidelines of filing income tax returns

ITR-7 is to be paper filed.

All in all, filing returns has been made super easy by the government. Even for the common man with minimum taxation knowledge, figuring out which Income Tax Return Form Suits him isn't much of a task.