Income Tax Returns (ITR) in India are filed by individuals and entities to report their income and tax liabilities to the Income Tax Department. The type of ITR you need to file depends on your income sources, the nature of your income, and your eligibility. Following are some common types of ITR forms in India:
- ITR-1 (Sahaj):
- This form is for individuals with income from salary, one house property, other sources (interest, etc.), and total income of up to ₹50 lakh. It’s the most straightforward ITR form and can be used by most salaried individuals.
- ITR-2:
- This form is for individuals and Hindu Undivided Families (HUFs) having income from sources other than business or profession. It includes income from capital gains, more than one house property, foreign income, and so on.
- ITR-3:
- ITR-3 is for individuals and HUFs having income from a proprietary business or profession. It’s applicable to those who have income from their own business or are partners in a partnership firm.
- ITR-4 (Sugam):
- Individuals, HUFs, and firms (other than LLPs) with a presumptive business income can use this form. It is typically used by small businesses and professionals with a turnover of up to ₹2 crore.
- ITR-5:
- This form is for firms, LLPs, Association of Persons (AOPs), Body of Individuals (BOIs), and artificial juridical persons.
- ITR-6:
- ITR-6 is for companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes).
- ITR-7:
- ITR-7 is for persons, including companies, who are required to furnish return under sections 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act. It includes trusts, political parties, charitable institutions, etc.
- ITR-V (Verification Form):
- This is not an ITR form but a verification form. After filing the relevant ITR form electronically, taxpayers are required to verify it using this form. It’s then sent to the Income Tax Department to complete the filing process.