Wondering Which Income Tax Return is Applicable For You?

 

Are you an individual taxpayer? Do you belong to Hindu Unified Family? Did your income come through the sale of property? All these questions can make you wonder which Income Tax Return (ITR) form is applicable for you. Knowing which ITR form to select before filing income tax return helps.

Else, a Simple Process of Income Tax Return Filing could become tedious and repetitive. Worry not, this comprehensive blog post will help you chose the right ITR.

Different Type of Income Tax Return Forms

Central Board of Direct Taxes has designed a total of 9 ITR forms. 6 of these are applicable to individual taxpayers. Three are for the companies and firms. This blog will cover the first six which are for the use by the individuals.

Form ITR-1:

This form is also known as Sahaj form. This should be used by an individual taxpayer:

·         Who is a salaried individual or a pensioner

·         Who earns income through a single housing property

·         Who does not have any assets or property outside India

·         Who has income below Rs 5000/- from Agriculture

·         Who has earned income through the investment in fixed deposits, shares, investments, etc

·         Who has earned income but not through activities such as lotteries and horse racing etc

·         Who wants to club his own income with his spouse’s income, or the income of his/her underage child

 

Form ITR-2:

This should be used only by individuals who have earned income through assets or property sales. This can also be used by an individual who earns income from countries outside India. Individuals or Hindu Undivided Families (HUF) can also use this form to file their returns. In these categories, this is applicable to:

 

·         A salaried individual or a pensioner

·         A person who earns income through sales of assets and property in India (Capital Gains)

·         A person who earns income through more multiple properties

·         A person who does not earn income through business

·         A person who earns income from outside India

·         A person who earn income below Rs 5000/- from Agriculture

·         A person who has earned income through activities such as lotteries and horse racing etc

 

Form ITR-2A:

This is a new form introduced in FY 2015-16 for the use by persons from Hindu Unified Families.  This applies to:

 

·         A salaried individual or a pensioner

·         A person who earns income from multiple properties.

·         A person who does not earn income through sales of assets and property in India (Capital Gains)

·         A person who earns from various investments such as Fixed Deposits and shares etc

·         A person who does not earn income from outside India

·         A person who earns income below Rs 5000/- from Agriculture

·         A person who has not earned income through activities such as lotteries and horse racing etc

 

Form ITR-3:

This is to be used by a taxpayer who is an individual or a member of HUF who only acts as a partner in the firm but does not earn from the business conducted by the firm.  If such person earns income in the form the following, he/she will use this form to file the returns;

·         Salary

·         Bonus

·         Interest

·         Commission

·         Remuneration

Form ITR-4:

This is for professional. In other words, this is for a person who conducts business or gets his income through professions.

Form ITR-4S:

This is also known as Sugam. This can be used by:

·         A person earning income through business

·         A person earning income from a single housing property

·         A person who earns income below Rs 5000/- from Agriculture

·         A person who does not earn income from outside India

·         A person who does not possess any asset or property outside India

·         A person who does not earn income through sales of assets and property in India (Capital Gains)