Which Income Tax Return form Should you Opt For Filing An ITR

Income Tax Return

As Income Tax department has been making ITR forms live on their website one after another, individuals who are filing the Income Tax Return for the first time are finding it challenging to access as to which form should they file. This is the most common confusion that we come across at least once in our career because there is a first time for everything and so is it for the filing of ITR.

Let us understand the different types of ITR forms and who should file them. For an Individual, these are the Income Tax Return forms to be filed: –

  • ITR-1
  • ITR -2
  • ITR -2A
  • ITR -3
  • ITR- 4
  • ITR – 4S

ITR -1 Form – Also known as Sehej form, it is filed by an individual taxpayer. Following are the type of individuals who should fill ITR-1

  • Income through salary or through means such as Pension
  • Income from Single Housing Property
  • No asset outside India
  • No Income from outside India
  • No Income from any other business or who from the sale of any assets
  • Income from agriculture is below Rs 5000
  • Earn Income from Various Investments such as FD, shares etc
  • No Income from Lottery and windfalls

Individuals who want to club the income of their spouse or underage child with their own and the income to be clubbed is earned from one of the sources mentioned above.

ITR -2 –Following type of Taxpayers are eligible for Income Tax Return 2

  • Earn Income through salary or through means such as Pension
  • Earn Capital Gains
  • Do not have income from any business venture
  • Earn income from more than one housing property
  • Have Asset outside India
  • Earn Income from outside India
  • Agriculture Income is over 5000
  • Earn income through windfall gains and lotteries.

ITR -3

An Individual or a HUF who operates the business as a partner in a firm but does not conduct any business under the firm. Also, he does not earn any income from the business conducted by the firm. These taxpayers receive income as following:

  • Salary
  • Commission
  • Bonus
  • Interest
  • Remuneration

ITR – 4

The form should be filled by those Individuals who conduct a business or earn income through their profession. The form can be filled by any type of business, professions or undertaking. Those who earn income from the speculation, salaries, lotteries, housing properties etc. should also opt for this form. Any profession ranging from designers, doctors, retailers, contractors, agents can fill this form.

ITR – 4S – Also known as Sugam form, it can be used by an Individual or HUF for filing their tax return. Applicability of this form is to the following:

  • Income from any business
  • Income from a single housing property
  • No Capital Gains
  • Income from agriculture is below 5000
  • No property or asset outside India
  • No Income from outside India

Note : The ITR form is used in the special circumstances and for the businesses where any income earned is based on a presumptive method of calculation.

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