By Priyanka Sambhav
The first step towards filing your IT return is selecting the appropriate IT return form. There are 7 ITR forms notified by the Income Tax department. Your source of income and nature of earning whether its salary, business or interest income determines your return form. Know the difference between the 7 ITR forms and select the right one.
ITR-1
ITR-1 is also known as SAHAJ form. This return will be filled by those whose income is less than Rs 50 lakh and an agricultural income not more than Rs 5000. Type of income could be salary, income from one house property and other sources like earning from interest. A taxpayer can’t be a director of a company or have investments in unlisted equity shares.
ITR-2
Apart from the income that has been mentioned in ITR-1 if you have capital gains, owner of more than one house property, have foreign income or hold some foreign asset then ITR 2 is your form. If you are a director in a company or have an investment in unlisted equity share then too this is the form for you.
ITR-3
If you earn your income from business or profession or a partner in any firm then ITR-3 will be the appropriate form to file your IT return. This return form will include income from salary/pension, house property and interest income too.
ITR-4
Also called SUGAM, this is for those taxpayers who want to use the presumptive tax method which fixes the tax percentage in relation to your income. If you want to go for this then do remember there is one condition your total professional income should be less than or equal to Rs 50 lakh.
ITR-5
ITR-5 is applicable to firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons) and BOIs (Body of Individuals).
ITR-6
This form is for those companies who are not claiming exemption under section 11.Companies claiming exemption under section 11 are those whose income is from the property held for charitable or religious purposes. If there has been an audit under section 44AB the details of the same has to be provided.
ITR-7
This form will be used by person or companies who are earning income from a trust, has a political party, scientific research association, news agency, education and health institution.
