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Which ITR Should I File?AY 2024-25 Types of ALL ITR Forms for FY 2023-24

Filing your income tax return (ITR) in India is crucial to ensure compliance with the law and avoid any penalties. Here's a simplified guide to help you understand which ITR form suits your needs:


1. ITR-1 or Sahaj

  • Designed for:

  • Salary and pension earners

  • Income from other sources (excluding lottery or horse racing winnings)

  • Agricultural income below Rs. 5,000

  • Income from a single house property (with certain exemptions)

2. ITR-2

  • Suitable for:

  • Individuals and Hindu United Families (HUFs)

  • Income exceeding Rs. 50 lakh

  • Income from salary, pensions, capital gains, and other sources

  • Income from foreign assets

  • Agricultural income exceeding Rs. 5,000

3. ITR-3

  • Intended for:

  • Individuals and HUFs with income from business or profession

  • Income from being a partner in a firm

  • Income from salary, pension, capital gains, and other sources

  • Investments in unlisted equity shares

  • Individual directors in a company

4. ITR-4 or Sugam

  • Suitable for:

  • Individuals, HUFs, and firms with income up to Rs. 50 lakh from business or profession

  • Those under the presumptive income scheme (Section 44AD, 44ADA, and 44AE)

5. ITR-5

  • Meant for:

  • Firms

  • Body of Individuals

  • Co-operative societies

  • Limited Liability Partnerships (LLPs)

  • Associations of Persons

  • Local authorities

  • Artificial Judicial Persons

  • Estates of insolvent or deceased individuals

  • Business trusts (excluding individual citizens)

6. ITR-6

  • To be filed electronically by:

  • Companies (except those claiming exemption under Section 11 for income from religious or charitable property)

7. ITR-7

  • Applicable for companies filing returns under specific sections:

  • Section 139(4A): Individuals holding property for charitable or religious purposes

  • Section 139(4B): Political parties and affiliates

  • Section 139(4C): Institutions or associations like medical institutions, news agencies, educational institutions, etc.

  • Section 139(4D): Colleges, universities, or institutions not required to report revenue and losses.


Comparison Table

ITR Form

ITR-1Ineligibility

ITR-2

ITR-3

ITR-4

ITR-5

ITR-6

ITR-7

Eligible Entities/Individuals

Individuals

Individuals and HUFs

Individuals and HUFs

Individuals, HUFs, and firms

Firms, HUFs, Co-operative societies, LLPs, etc.

Companies (except those claiming exemption under Section 11)

Companies filing under specific sections

Income Criteria

- Income from salary and pension - Income from other sources (excluding lottery or horse racing winnings) - Agricultural income below Rs. 5,000

- Income exceeding Rs. 50 lakh - Income from salary, pensions, capital gains, and other sources - Income from foreign assets - Agricultural income exceeding Rs. 5,000

- Income from business or profession - Income from being a partner in a firm - Income from salary, pension, capital gains, and other sources - Investments in unlisted equity shares - Individual directors in a company

- Income up to Rs. 50 lakh from business or profession - Those under presumptive income scheme (Section 44AD, 44ADA, and 44AE)

- No specific income criteria

- No specific income criteria

- No specific income criteria

Key Features

Designed for small business owners and professionals opting for presumptive taxation

Applicable to a wide range of non-individual entities, including firms, associations, and trusts

Suited for professionals, business owners, and directors with complex income structures

Designed for small business owners and professionals opting for presumptive taxation

Applicable to a wide range of non-individual entities, including firms, associations, and trusts

Electronic filing is required for companies, excluding those eligible for exemption under Section 11

For companies filing under special provisions like charitable or religious institutions, political parties, educational institutions, etc.

Ineligibility

  • Non-resident individuals

  • Hindu Undivided Families (HUFs) with income exceeding Rs. 50 lakh

  • Individuals holding stakes in unlisted entities Individuals carrying forward losses under the head 'Income from House Property'

  • Directors of companies

  • Individuals with revenue sources outside India or real estate situated outside India

  • Individuals and HUFs without income from a profession or business

  • Individuals not receiving commission, salary, bonus, or interest from a partnership firm

Individuals and HUFs without commercial or professional income

  • Individuals not serving as directors of a corporation or holding unlisted stocks

  • Individuals with income below Rs. 50 lakh

  • Individuals with agricultural income below Rs. 5,000

  • Individuals, HUFs, and firms not filing ITR 7

  • Entities not required to file returns under specific sections of the Income Tax Act

Businesses not seeking exemption from taxation on revenue generated by charitable or religious trusts

All other types of assessments as no alternative form exists


Understanding the right ITR form is crucial, especially for aspiring home loan borrowers, as lenders often require the submission of income tax returns as proof of income. By selecting the appropriate ITR form, borrowers can establish their income sources and enhance their creditworthiness



 

The information provided in this article about Income Tax Return (ITR) forms is for educational purposes only. It is not intended for legal actions. Readers are advised to seek professional advice for their specific tax needs.



Which Income Tax Return (ITR) form best matches your tax-filing vibe?

  • ITR-1: "Sahaj" - Simple and stress-free!

  • ITR-2: "Business Boss" - Diving into diverse incomes!

  • ITR-3: "Hustler's Choice" - Handling business like a pro!

  • ITR-4: "Sugam Saver" - Keeping it easy for small businesses!



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