Filed Your Income Tax Return? Here’s The Right Form For You

The Income Tax Department provides seven different forms for assessees to report their income in a financial year. These forms enable taxpayers to share information about their income to the tax authorities, and claim any benefits such as deduction from taxable income and rebate on income tax, and receive a refund in case of payment of excess tax accordingly. For filing income tax returns (ITRs), the Income Tax Department has designed seven forms: ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR

7. Income tax assessees must have a sound understanding of these income tax forms to report their income accurately and effectively.

Here’s a lowdown on when to use these forms while filing your income tax return:

Form ITR 1

Also known as ‘Sahaj’, the form ITR 1 is meant for resident individuals with income up to ₹ 50 lakh from salary, one house properly or other sources. Income from other sources excludes income such as that earned from winning of a lottery and income through a horse race, according to the I-T department.

Form ITR-1 or Sahaj is largely used by the salaried class of taxpayers with income up to ₹ 50 lakh from salary, one house property only and additional income such as interest earned from fixed deposits and recurring deposits.

ITR 2

This form is meant for the individuals and Hindu Undivided Families (HUFs) not having income from profits and gains of a business or profession. The form is meant for an individual or an HUF “who is not eligible to file Sahaj (ITR-1) and who is not having any income under the head ‘Profits or gains of business or profession’,” according to the Income Tax Department website. That means individuals whose total income for assessment year 2018-19 includes income earned from a business cannot use this form.

ITR 3

Also known as ITR 3, this form is meant for individuals and HUFs having income from profits and gains of business or profession. Such entities – individuals or HUFs – should not be eligible for the next ITR form, known as ‘Sugam’, to be able to use ITR 3, according to the Income Tax Department.

ITR 4

Also known as ‘Sugam’, form ITR 4 is meant for those with presumptive income from a business or profession. This includes income from a business which is computed in accordance with special provisions referred to in Sections 44AD and 44AE of the Income Tax Act, income from a profession where it is computed in accordance with special provisions referred to in Section 44ADA of the Income Tax Act and income from salary or pension.

ITR 5

This form can be used by entities such as firm, limited liability partnership (LLP), association of persons (AOP), body of individuals (BOI), artificial juridical person and cooperative society and registered societies.

ITR 6

This form is meant for the companies other than those claiming exemption under Section 11 of the Income Tax Act. Exemption under Section 11 can be claimed by a charitable/religious trust, according to the taxman.

ITR 7

This form is meant for assessees including companies required to furnish return under Sections 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E) or 139 (4F), according to the I-T department. These include trusts, political parties, institutions, colleges and investment funds.

In addition to these seven forms, which are used for filing income earned in a given period, the Income Tax Department also provides a separate form – ITR-V – for verifying a filed income tax return.

Earlier, assessees used to get their ITR submissions verified by sending a signed ITR-V form to the Centralized Processing Centre (CPC), Bengaluru. Now, this process can also be done in a paperless form.

 

Source:- ndtv

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