The ITR or Income Tax Return is a form which an individual or a taxpayer must submit to the Income Tax Department of India to disclose their income and tax payments. The Income Tax Act 1961 releases required forms and specifies necessary procedures to file ITR.
The ITR mechanism requires the taxpayer to register the ITR before the deadline for a particular fiscal year. It is imperative to note that Section 10 exemptions are subject to certain conditions and limits. The taxpayer should comply with these conditions to claim an exemption. This article will focus on the types of ITR and which ITR you should file.
Did You Know? Every person and entity with taxable income in India must file an income tax return (ITR).
Conditions Before Filing an ITR
Taxpayers can assess individual tax liability before making tax payments and filing the ITR. If there is a carryforward failure and a loss setoff, the ITR can be filed. You can refer to form 26AS to learn more about TDS and related taxes, including FD interest, during ITR filing. Use Form 16 and fill in the required information about your earnings and tax-saving deduction statements.
Also Read: Income tax Calculator - Calculate Your Taxes For FY 2023-24 Use Tax Calculator Online
Types of ITR
ITRs can be of different types depending on the source of income, residential status and other details of the taxpayer. Here are the different types of ITR in India.
1. ITR 1
Individuals living in India with a gross income of up to ₹50 lakhs can file this ITR. Individuals earning money from home, a job and other sources can file this ITR for individuals. While NRIs cannot file this ITR, other salaried taxpayers can file using Form 16.
2. ITR 2
Individuals and HUF (Hindu Undivided Families) who earn revenue from varied sources, excluding their occupation and business, and NRIs who earn revenue from home, a job, capital gains and the like are eligible to file ITR-2. Salaried people who have incurred losses or profits from sales and stock purchases can also file ITR-2.
3. ITR 3
To disclose income from an occupation or company, individuals must file this ITR. If a salaried person earns revenues from the intraday stock exchange and opts for trading, they must file this ITR form for a salaried person. Revenues from real estate, jobs, trades, capital gains or companies can be recorded via ITR-3.
4. ITR 4
HUFs (Hindu Undivided Families), individuals and partnership companies fall under the presumptive income tax system. ITR-4 can be filed if a company has a turnover of up to ₹3 crores which fall under section 44AD of taxation. Individuals earning a turnover of up to ₹75 lakhs from the occupation are also subject to section 44ADA of the taxation system. Freelancers working in a notified occupation can also file ITR-4.
5. ITR 5
Alliance companies like AOPs, LLPs, BOIs and partnership companies can disclose their revenue from professions, businesses, and other sources by filing ITR form number 5.
6. ITR 6
A business must report its profits from its occupation or industry by filing ITR-6. This is an ITR form for business income.
7. ITR 7
Partnerships, businesses and trusts not required to pay income taxes must file ITR-7 for federal tax returns.
Also Read: Income Tax in India: Basics, Slabs and E-filing Process
Types of Forms for Filing an Income Tax Return
Now that we know ITR for companies and ITR for salaried individuals, here are the filing types for ITR. We also have the types of forms to understand which ITR form to fill out for a salaried person.
1. Form 16
A company issues employees with a Form 16 TDS certificate. This includes gross pay and exemptions, including HRA, LTA, and net taxable pay. This form also refers to employee profit or loss, tax-saving deductions and salary TDS.
2. Form 26AS
Includes TDS or the tax deducted at source due to different income, including debt, wages and revenue from immovable property sales. This is included in Form 26AS. Information regarding advance tax, self-assessment tax and financial transactions are recorded in this form.
3. Form 15G and Form 15H
Form 15G can be submitted by individuals below the age of 60 and with no tax liability for the financial year. On the other hand, Form 15H can be submitted by individuals who are above the age of 60 and have no tax liability for the financial year.
Also Read: Income Tax Allowance: Allowed Deductions For Salaried Individuals
ITR Form and Eligibility Criteria
Here is a detailed guideline on which ITR form to fill out and who is eligible for which ITR form.
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ITR |
Who is Eligible? |
Who is not Eligible? |
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ITR-1 |
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ITR-2 |
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ITR-3 |
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ITR-4 |
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ITR-5 |
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ITR-6 |
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ITR-7 |
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Conclusion
Tax evasion is a crime. Therefore, it is necessary to understand the types of ITR, which ITR form to choose, which ITR form to file for a salaried person, company ITR form etc., to avoid any unlawful misconduct by accident. The tax is determined by the type of income, overall income and the class of taxpayer, which includes HUFs, individuals, corporations and the like. Hopefully, this article guided you about the particular form you should choose while filing ITR.
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