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As July 31, 2017 is near, many taxpayers are going online to file their Income Tax Returns (ITR). Before the taxpayer can actually file their Income Tax Returns, they need to ascertain the type of Income Tax Returns form they need to fill as there have been a few changes introduced recently by the Ministry of Finance and Central Board of Direct Taxes. The kind of form required to be filled while e-filing your Income Tax Return on is subject to the taxpayer's income earned in India or any other country or the assets he holds in any other country apart from India amongst several other considerations.

According to the Central Board of Direct Taxes (CBDT), in total there are 7 different types of forms that we need to file for Income Tax Returns. However, ITR-1, ITR-2 and ITR-3 are relevant to an Individual or HUF(proprietary) for filing Income Tax Returns online:

Let's understand these Income Tax Return Forms one by one:


Also known as Sahaj Form, it applies only to Individuals and is applicable to be used by the following individuals:

- Are salaried person
- Earn an income by means of pension or various investments such as Fixed Deposits, Short Term investments, Shares, etc.
- Earn income from single housing property
- Earn income from agriculture (lower than Rs 5000)
- Don't earn income from any country except India
- Does not own any assets in any country except India
- Earn no income from any other business or sale of assets (capital gains)
- Have earned no income by windfall like lotteries, unforeseen inheritance, horse racing etc.
- Income earned by above means is upto Rs 50 Lakh only
- Want the clubbing of the income of their entire family i.e. clubbing of the income of a man with his wife and minor child however all incomes must have been earned according to the above mentioned means.


Form ITR-2 is the single umbrella form in which the previous ITR 2 - 2A - 3 have been merged. It is applicable for Hindu Undivided Family (HUF) or individual tax payers if their income is above Rs 50 Lakh. This form can be used by individuals or Hindu Undivided Family to file their returns if they earn their income by means of sale of assets (Capital Gains) or property or earn their income from any country other than India. This form applies to the following:

- Earn income by means of salary or pension (above Rs 50 Lakh)
- Earn income by means of more than one housing property
- Income from sale of assets or property within India or those who earn income or have assets in any country other than India
- Earn income from Partnership Firm in the form of Salary , Interest, Bonus, Commission, etc.
- Who want to bring forward loss from House Property/ or loss under the head - Income from other sources
- Earn income from agriculture exceeding Rs 5000
- Earn income from any windfall like lotteries, horse racing, etc.
- Want to claim relief under Section 90 - 91


This form is meant for an individual or Hindu Undivided Family who earns taxable income from a proprietary Business or Profession and has earned Income/Loss from proprietary Business or Profession. It includes all means of income categorized under ITR-1 and ITR-2 Form.

It is crucial to link your Aadhaar Card with PAN for e-filing your Income Tax Returns. Also, you need to furnish details of cash deposited above Rs 2 Lakh during the government's demonetization drive from November 9th 2016 to December 30th 2016, last year.


Published by

Ashiwini Ballodia
(Managing Partner at TAXounting)
Category Income Tax   Report

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