IT department has prescribed pertinent format of ITR form which a tax payer should use to file his/her income tax return.  So it is better to know what the exact form to be used instead getting confused.

Choose Right OneITR 1  or SAHAJ : This Return Form is to be used by an individual whose total income for the assessment year includes;

  1. Income from Salary/ Pension; or
  2. Income from One House Property (excluding cases where loss is brought forward from previous years); or
  3. Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Who cannot use this Return Form

This Return Form cannot be used by any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India. Also this form can not be used if the resident has exempt income which is more than Rs. 5,000.

ITR–2 : This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year includes;

  1. Income from Salary/Pension; or
  2. Income from House Property; or
  3. Income from Capital Gains; or
  4. Income from Other Sources (including Winnings from Lottery and Income from Race Horses).

Further, in a case where the income of another person like one’s spouse, child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

Who cannot use this Return Form

This Return Form should not be used by an individual whose total income for the financial year includes Income from Business or Profession or if you receive remuneration as a Partner in a Partnership Firm or LLP. For declaring these types of Income, ITR-3 or ITR-4 or ITR-4S can be used.

ITR 3 : ITR 3 can also be used by an individual or a HUF. But it can only be used if such individual or HUF is a partner in a partnership firm or LLP. Such individual or HUF should not have any income under the head profits and gains of business or profession except interest, salary, bonus, commission or remuneration due to or received from firm.

In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, he shall use this form only and not Form ITR-2. But If you are a self-employed person and has income from your business then this form is not for you. You have to choose between ITR 4 and ITR 4S.

ITR 4 : If you are carrying your business or profession as an individual or HUF in India then this form is for you. However in certain cases where businesses like transportation and others are taxed on presumptive basis, ITR 4S has to be filled.

In addition to your business income, if you are employed and getting salary or having income from other sources like house property or other incomes then you can include those incomes in addition to your business income in ITR 4 form.

ITR–4S OR SUGAM : Here Income tax Return to be filed by individuals, HUF and small business taxpayers having:

  1. Presumptive Business Income
  2. Salary / Pension
  3. One house property
  4. Income from other sources.

This form cannot be used if, taxpayer

  1. Has more than one house property
  2. Speculative income
  3. Agriculture income more than Rs 5000
  4. Winning from lotteries/races
  5. Capital gains
  6. Losses to be carried forward

ITR 5 : This income tax return form is not applicable to an individual or HUF. It has to be used only by a firm, AOP, BOI, artificial judicial person, cooperative society and local authority to file their income with IT department.

ITR 6 : This Income Tax Return form will be used only by companies except those companies claiming exemption under section 11. Other than these companies no one can use this form. Companies under tax audits are required to file tax audit reports in addition to filling this form.

ITR 7 : ITR 7 can only be used by trust, political parties, universities, colleges and institutions, news agencies and others who are required to file income tax return under section 139 (4A), 4B, 4C and 4D. This return has to be paper filed.

  1. Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
  2. Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.
  3. Return under section 139(4C) is required to be filed by every;
    1. scientific research association;
    2. news agency
    3. association or institution referred to in section 10(23A);
    4. institution referred to in section 10(23B);
    5. fund or institution or university or other educational institution or any hospital or other medical institution
  4. Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.
Know which ITR Form is applicable for you to file returns; Avoid Mistakes

6 thoughts on “Know which ITR Form is applicable for you to file returns; Avoid Mistakes

  • August 30, 2014 at 4:13 PM
    Permalink

    I’m having INCOME FROM HOUSE PROPERTY & AGRICULTURAL INCOME
    Then which ITR I should File
    Please reply me

    Reply
    • September 7, 2014 at 6:40 PM
      Permalink

      Hi Prabhakar,

      Use ITR2!

      Reply
  • June 22, 2015 at 3:53 PM
    Permalink

    Income from websites will come under which ITR form.

    Reply
    • June 22, 2015 at 5:03 PM
      Permalink

      Hi Srp,

      It can be shown under ITR 1 as income from other sources, but depending on flow of transactions it can be put in ITR 4 or ITR4S as well.

      Reply
  • August 28, 2015 at 10:37 AM
    Permalink

    I have presumptive income and capital gains. Can I show 8 per cent income in ITR 4?

    Reply
    • August 28, 2015 at 9:04 PM
      Permalink

      Hi Cam,

      Yes, you can use ITR 4 for this purpose.

      Reply

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