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ITR Forms: A Comprehensive Overview

CA Anoop Kumar Sharma , Last updated: 03 June 2024  
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The financial year 2023–24 has ended. Now that taxpayers want to file their ITR, the income tax portal gives them access to file their ITR, but before filing, they must see AIS as shown on the Income Tax website. Before we file the ITR,, ensure we gather the following documents: Form 16, bank statements, investment proofs, income from other sources, any medical bills, and details of deductions. As we know about income tax returns for individuals, FY 2023–24 and AY 2024–25 Due date: July 31, 2024. Every taxpayer should file his ITR on or before the specific due date. The applicability of the ITR form depends on the sources of income or nature of the income of the assessee, the amount of the income earned, and the category of the taxpayer, like individuals, HUFs, companies, etc. There are notified 7 types of ITRs, i.e., ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. To date, we have discussed all ITRs one by one and compiled all the details regarding them in this article.

ITR Forms: A Comprehensive Overview

ITR-1 OR SAHAJ

This return form is also for a resident individual whose total income for FY 2023–24 includes the following:

S.No.

Particulars

1

Income from a salary, pension, or

2

Income from One House Property (excluding cases where loss is brought forward from the previous year or loss is to be C/F) or

3

Income from Other Sources (excluding Winning from Lottery and Income from Wining Horse Races)

4

Agricultural income up to INR 5,000

Kindly Note: Further, in a case where the income of another person, like a spouse or minor child, is to be clubbed with the income of the assessee, this return form can be used only if the income being clubbed falls into the above income categories.

Points regarding ITR-1 are not allowed

As per the situation mentioned below, having income from salary or IFOS only, even though not allowed for file ITR-1

S.No.

Particulars

1

Total income exceeding INR 50 lakh

2

Who has any of the following incomes?

2A

Income from business or profession

2B

Capital Gains

2C

Income taxable under the heading "other sources, "which is taxable at a special rate

2D

Dividend income exceeding INR 10 lakhs and taxable under 115BBDA

2E

unexplained Income

2F

Agricultural income exceeding INR 5000

2G

Income from any source outside of India

3

Having income from more than one house property

4

Director of a company

5

Who claims deduction u/s 80QQB or 80RRB in respect of royalty from patents or books?

6

Assessable in respect of the income of another person, in respect of which tax is deducted in the hands of the other person

7

If tax has been deducted under Section 194N,

8

Who has held unlisted equity shares at any time during the previous year?

9

Have any brought-forward losses or losses that need to be carried forward under any income?

10

Owning assets (which also include financial interest in any entity) outside India, including signing authority in any account located outside India

11

In the case of NR & NOR assessee

12

Who wants to claim relief under U.S. 90 or 91?

13

Who claims deduction under 10AA?

FORM ITR-2

ITR-2 is for the use of an individual or HUF whose earnings not received from the head of "PGBP" for FY 2023–24 include:

This return form is to be used by an individual or HUF who is not eligible to file form ITR-1 (Sahaj) and who does not have any income under the head "PGBP."In other words, we can say, as above in "Special Point regarding ITR-1 not allowed," that all income here filed through ITR-2 relates to only individual or HUF income, except business income.

Points regarding ITR-2 are not allowed

When an individual or HUF's income for the year includes income from "PGBP or he wants to claim a deduction under 10AA,.

ITR-3

The ITR-3 Form is to be used by an individual or a HUF who has earnings from business or profession. Persons having income from the following sources are entitled to file ITR-3:

S.No.

Particulars

1

Carrying on a business or profession

2

investments in unlisted equity shares at any time during the financial year

3

The return may include income from house property, salary or pension, and income from other sources.

4

Income of a person as a partner in the firm

5

Last, individuals or HUF who are not eligible to file ITR-1, ITR-2, and ITR-4 should file ITR-3.

Points regarding ITR-3 are not allowed

Form ITR-3 cannot be used by any person other than an individual or HUF; further, an individual or HUF cannot have earnings from "PGBP."

ITR 4 or Sugam

The present ITR-4 applies to individuals, HUFs, and partnership firms (other than LLPs), which are residents and whose total income includes, as per below:

S.No.

Particulars

1

Business income according to the presumptive income scheme under Section 44AD or 44AE

2

Professional income according to the presumptive income scheme under Section 44ADA or

3

Income from a salary or pension up to INR 50 lakh or

4

Income from one house property, not more than INR 50 lakh (excluding the amount of brought forward loss or loss to be carried forward)

5

Income from other sources having income not more than INR 50 lakh (excluding income from lottery and winning from horse race)

Kindly Note: Further, in a case where the income of another person, like a spouse or minor child, is to be clubbed with the income of the assessee, this return form can be used only if the income being clubbed falls into the above income categories.

Points regarding ITR-4 are not allowed.

S.No.

Particulars

1

If total income exceeds INR 50 lakh

2

If income from house property is more than one

3

Owning any foreign asset

4

Having signing authority in any account located outside India

5

Having income from any source outside India

6

If he is a director of a company

7

Who has held unlisted shares at any time during the financial year?

8

Who is an NR or NOR?

9

Having foreign income

10

If you are assessable in respect of the income of another person in respect of which tax is deducted in the hands of the other person

11

Who claims deduction U/s 80QQB or 80RRB in respect of royalty from patents or books?

12

If you have any brought-forward loss, that loss needs to be carried forward under any income head.

13

Who has a claim deduction under 10AA?

Kindly Note: Further, in a case where the assessee keeps and maintains all books of accounts and other documents referred to in 44AA and also gets his accounts audited as per 44AB, other regular return forms (ITR-3 or ITR-5) should be used.

 

ITR-5

Form ITR-5 can be used by a person as a firm, LLP (Limited Liability Partnership), AOP (Association of Persons), BOI (Body of Individuals), or artificial judicial person (AJP).

Points regarding ITR-5 are not allowed

Where a person is required to file the return of income under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) of trusts, political parties, institutions, colleges, etc.

ITR-6

This return form can be used by a company under Section 2(17) of the Income Tax Act. As per Section 2(17) of the Income Tax Act, a company means:

S.No.

Particulars

1

Indian company (domestic company)

2

A body corporate incorporated by or under the laws of a country outside India

3

Any institution, association, or body, whether incorporated or not, whether Indian or non-Indian, that is declared by the general or special order of the board to be a company

A special point regarding ITR-6 is not allowed.

For companies other than companies that are claiming exemption under Section 11 (income from property held for charitable or religious purposes),

 

ITR-7

This return form can be used by persons, including companies, required to furnish returns under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D).

S.No.

Particulars

1

A return under Section 139(4A) must be filed by any person receiving income from property held in trust or under a legal obligation, either entirely or partially, for charitable or religious purposes.

2

A political party must file a return under Section 139(4B) if its total income, before considering the provisions of Section 139A, exceeds the maximum amount not subject to income tax.

3

A return under Section 139(4C) is required to be filed by every scientific research association.

4

Return under Section 139(4D) as per notification in the official gazette prescribed.

Conclusion

Income Tax Return (ITR) filing is not just a legal obligation but a very important aspect of financial management. It ensures compliance with tax regulations, facilitates refunds, and facilitates efficient tax planning. Understanding the details of ITR forms, eligibility criteria, and tax planning strategies empowers taxpayers to optimize their financial affairs and follow the map regarding taxation effectively. By adhering to ITR filing requirements and adopting prudent tax planning measures, individuals and entities can enhance their financial wellbeing and ensure regulatory compliance. This article is only for informational and educational purposes; however, it is advisable to consult with a tax professional for specific issues and challenges.

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Published by

CA Anoop Kumar Sharma
(Accounts Manager)
Category Income Tax   Report

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