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If you’re a taxpayer, you must learn about these nine types of ITR Forms

Types of ITR Forms that every taxpayer should know about

Since there are different kinds of taxpayers, there are different types of ITR forms. In all, there are nine types of Income Tax Return (ITR) forms that a taxpayer can use. 

 

These forms can be broadly classified into two categories: 

  1. Forms applicable to individuals - ITR 1, ITR 2, ITR 2A, ITR 3, ITR 4, and ITR 4S 

  1. Forms applicable to companies and firms - ITR 5, ITR 6, and ITR 7 

Read on to dig deeper into each type and find out which form you should be using.  

 

  1. ITR-1 

ITR 1

 

 

This form is not applicable in the following cases: 

  • If they own multiple properties in countries other than India 

  • If they earn from other businesses or from the sale of assets 

  • If they earn from any country other than India 

  • If their agricultural income is more than Rs 5000. 

  • If they earn from lotteries or other such windfall income 

  • If they are claiming double taxation relief under Section 90/90A/91 of IT Act 

Income of spouses or underage children can be clubbed with the income of an individual, as long as the income to be clubbed meets the abovementioned criteria. 

 

2. ITR-2: This form can be used by individuals or Hindu undivided families (HUFs) in any of the following cases: 

  • If they earn a salary 

  • If they receive a pension 

  • If they earn from lotteries or other such windfall income 

  • If their agricultural income is more than Rs 5000 

  • If they earn income from more than one housing property 

  • If they have earnings in any country other than India 

  • If they own assets in countries other than India  

 

Using this form is not applicable in the following cases: 

  • If they earn from other businesses 

3. ITR-2A: This form is comparatively new and was introduced in the assessment year 2015-16. It may be used by individuals or HUFs in any of the following cases: 

  • If they earn a salary 

  • If they receive a pension 

  • If they receive interest or dividends of any kind 

  • If they earn income from multiple housing properties (more than one) 

 

Using this form is not applicable in the following cases: 

  • If they own any assets in countries other than India 

  • If they earn from other businesses or from the sale of assets 

  • If they have earnings in any country other than India 

  • If their agricultural income is more than Rs 5,000. 

  • If they earn from lotteries or other such windfall income 

  • If they are claiming double taxation relief under Section 90/90A/91 of IT Act 

 

4. ITR-3: This form can be used by either individuals or HUFs who earn an income by carrying out a business or profession. It can also include income from house property, salary or pension, and income from other sources.

 Such as taxpayers whose taxable income is earned from the following, as a partner: 

  • If they earn a salary 

  • If they earn commission 

  • If they earn bonuses 

  • If they receive interest or dividends of any kind 

  • If they get professional fees or remuneration 

 

5. ITR-4: This form can be used by individuals who run businesses or who earn income through various professions – doctors, actors, architects, interior decorators etc. Any professional consultant who charges for their services may use this form. Under section 44AD of presumptive income, even a small businessman who has a turnover of less than Rs 2 crore can fill this form. 

So what’s the difference between ITR-3 and ITR-4 forms? Well, ITR-3 is applicable only if the individuals or HUFs have no income from proprietary businesses or professions. If they do, ITR-4 is applicable. 

 

6. ITR-4S: This form is also known as SUGAM form. As per section 44AD and 44AE of The Income Tax Act, 1961, the ITR-4S form can be used by individuals/HUFs whose total income also involves any income from business or profession. However, this type of income is considered on a presumptive basis. This form may be used in any of the following cases: 

  • If they earn a salary 

  • If they receive a pension 

  • If they earn income from a single housing property 

  • If they earn income from other sources (windfall income excluded) 

  • If they earn from any kind of business 

 

The form is not applicable in the following cases: 

  • If they earn income from multiple housing properties (more than one) 

  • If they own any assets in countries other than India 

  • If they earn from the sale of assets 

  • If they have earnings in any country other than India 

  • If their agricultural income is more than Rs 5000 

  • If they earn from lotteries or other such windfall income 

 

7. ITR-5: 

ITR 5

8. ITR-6: This form is applicable only to companies. Any company that doesn’t claim exemption as per Section 11 needs to use this form. Any company eligible to file ITR-6 Form is mandatorily required to do so online by using a digital signature. 

 

9. ITR-7: This is to be filed by individuals or companies that are required to submit their returns under the following sections: 

  • Section 139(4A) – Under this section, returns can be filed by those individuals who earn from any property that is held for the purpose of charity or religion in the form of a trust or legal obligation 

  • Section 139(4B) – Under this section, returns are to be filed by political parties, provided their total income earned is above the non-taxable limit 

  • Section 139(4C) – Under this section, returns are to be filed by the following entities: 

  • Any institution or association referred under Section 10 (23A) 

  • Any association involved with research referred under Section 10 (21) 

  • Any institution referred to in Section 10 (23B) 

  • Any news agency referred to in Section 10 (22B) 

  • Any fund, medical institution or educational institution referred under Section 10 (23C) 

  • Mutual Fund referred to in Section 10 (23D) 

  • Securitisation trust referred to in Section 10 (23DA) 

  • Venture Capital company or Venture Capital fund referred to in Section 10 (23FB) 

  • Trade union or association referred to in Section 10 (24)(a) or Section 10 (23)(b) 

  • Body or authority or Board or Trust or Commission (by whatever name called) referred to in section 10 (46) 

  • Infrastructure debt fund referred to in section 10 (47) 

  • Section 139(4D) – Under this section, returns are to be filed by entities such as colleges, universities, or any other such institution wherein income returns or loss is not required to be provided in accordance with other provisions outlined in this section 

  • Section 139(4E) – Under this section, returns are to be filed by every business trust wherein income returns or loss is not required to be provided in accordance with other provisions outlined in this section 

  • Section 139(4F) – Under this section, every investment fund referred to in Section 115UB wherein income returns or loss is not required to be provided in accordance with other provisions outlined in this section 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.