INCOME TAX RETURN
Income Tax Return (ITR) is a form which a person is
supposed to submit to the Income Tax Department of India. It
contains information about the person's income and the taxes
to be paid on it during the year. Information filed in ITR should
pertain to a particular financial year, i.e. starting on 1st April
and ending on 31st March of the next year.
Income can be of various forms such as :
Income from salary
Profits and gains from business and profession
Income from house property
Income from capital gains
Income from other sources such as dividend, interest on deposits,
royalty income, winning on lottery, etc.
The Income Tax Department has prescribed 7 types of ITR forms - ITR-
1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and applicability of the form
will depend on the nature and amount of income and the type of
taxpayer.
Below is the list of ITR forms which are most commonly applicable:
Particular Applicability
This Return Form is for a resident individual whose
ITR-1 total income for the AY 2023-24 includes:
(also called as Sahaj)
Income from Salary/ Pension; or
Income from One House Property (excluding cases
where loss is brought forward from previous years);
or
Income from Other Sources (excluding Winning
from Lottery and Income from Race Horses)
Agricultural income up to Rs 5000.
ITR-2 ITR-2 is for the use of an individual or a Hindu
Undivided Family (HUF) whose total income for the
AY 2023-24 includes:
Income from Salary/Pension
Income from House Property
Income from Other Sources (including Winnings
from Lottery and Income from Race Horses)
If you are an Individual Director in a company
If you have had investments in unlisted equity
shares at any time during the financial year
Being a resident not ordinarily resident (RNOR) and
non-resident
Income from Capital Gains
Having any foreign income
Agricultural income more than Rs 5,000
Owning assets (including financial interest in any
entity) outside India, including signing authority in
any account located outside India
If tax has been deducted under Section 194N
If in case payment or deduction of tax has been
deferred on ESOP
If you have any brought forward loss or loss needs
to be carried forward under any income head
Further, in a case where the income of another
person like one’s spouse, child etc. is to be clubbed
with the income of the assessee, this Return Form
can be used where such income falls in any of the
above categories.
The total income can be more than Rs 50 Lakhs.
ITR-3 The current ITR-3 Form is to be used by an
individual or a Hindu Undivided Family who have
income from a proprietary business or is carrying
on a profession. The persons having income from
the following sources are eligible to file ITR-3:
Carrying on a business or profession
If you are an Individual Director in a company
If you have had investments in unlisted equity
shares at any time during the financial year
The return may include income from House
property, Salary/Pension and Income from other
sources
Income of a person as a partner in the firm
In short, individuals or HUFs who are not eligible to
file ITR-1, ITR-2, and ITR-4, should file ITR-3
ITR-4 (also called as Sugam) The current ITR-4 applies to individuals and HUFs,
Partnership firms (other than LLPs), which are
residents and whose total income includes:
Business income according to the presumptive
income scheme under section 44AD or 44AE
Professional income according to presumptive
income scheme under section 44ADA
Income from salary or pension up to Rs 50 lakh
Income from one house property, not more than Rs
50 lakh (excluding the amount of brought forward
loss or loss to be carried forward)
Income from other sources having income not more
than Rs 50 Lakh (excluding income from lottery and
race-horses )
Please note that any individual earning income from
the above-mentioned sources as a freelancer can
also opt for a presumptive scheme if their gross
receipts are not more than Rs 50 lakhs.
A presumptive income scheme under sections
44AD, 44AE and 44ADA is when an individual or an
entity opts to derive its income on a presumptive
basis, i.e. when the income is presumed at a
minimum rate based on a percentage of gross
receipts / gross turnover or based on ownership of
commercial vehicles. However, if the business
turnover exceeds Rs 2 crore, the taxpayer will have
to file ITR-3.
ITR-5 ITR-5 is for firms, LLPs (Limited Liability
Partnership), AOPs (Association of Persons), BOIs
(Body of Individuals), Artificial Juridical Person
(AJP), Estate of deceased, Estate of insolvent,
Business trust and investment fund.
ITR-6 For Companies other than companies claiming
exemption under section 11 (Income from property
held for charitable or religious purposes), this return
has to be filed electronically only.
ITR-7 For persons including companies required to
furnish returns under section 139(4A) or section
139(4B) or section 139(4C) or section 139(4D) or
section 139(4E) or section 139(4F).
Return under section 139(4A) is required to be filed
by every person in receipt of income derived from
property held under trust or other legal obligation
wholly for charitable or religious purposes or in part
only for such purposes.
Return under section 139(4B) is required to be filed
by a political party if the total income without giving
effect to the provisions of section 139A exceeds the
maximum amount, not chargeable to income-tax.
Return under section 139(4C) is required to be filed
by every –
Scientific research association;
News agency ;
Association or institution referred to in section
10(23A);
Institution referred to in section 10(23B);
Fund or institution or university or other educational
institution or any hospital or other medical
institution.
Return under section 139(4D) is required to be filed
by every university, college or other institution,
which is not required to furnish a return of income
or loss under any other provision of this section.
Return under section 139(4E) must be filed by
every business trust which is not required to furnish
a return of income or loss under any other
provisions of this section.
Return under section 139(4F) must be filed by any
investment fund referred to in section 115UB. It is
not required to furnish a return of income or loss
under any other provisions of this section.
Individuals have to compulsorily file ITR through online mode.
Following is the due date for filing of ITR:
PARTICULAR DUE DATE
Person (other than company) not 31ST JULY
covered under tax audits
Person covered under tax audits 30TH SEPTEMBER
Person who has undertaken 30TH NOVEMBER
international transactions and is
liable to report under 92E
ITR Applicable Salary House Business Capital Other Exempt Income Lottery Foreign Carry
Form to Property Income Gains Sources Income Assets/ Forward
Income Loss
ITR-1 / Individual, Yes Yes(One No No Yes Yes (Agricultural No No No
Sahaj HUF House Income less than
(Residents) Property) Rs 5,000)
ITR-2 Individual, Yes Yes No Yes Yes Yes Yes Yes Yes
HUF
ITR-3 Individual or Yes Yes Yes Yes Yes Yes Yes Yes Yes
HUF, partner
in a Firm
ITR-4 Individual, Yes Yes( Presumptiv No Yes Yes (Agricultural No No No
HUF, Firm One e Business Income less than
House Income Rs 5,000)
Property)
ITR-5 Partnership No Yes Yes Yes Yes Yes Yes Yes Yes
Firm/ LLP
ITR-6 Company No Yes Yes Yes Yes Yes Yes Yes Yes
ITR-7 Trust No Yes Yes Yes Yes Yes Yes Yes Yes
