ITR stands for Income Tax Return, which falls under the Income Tax Act 1961. It is the form that needs to be filled out by the taxpayers on their income. The tax department has released various forms, such as ITR 1, ITR 2, ITR 3, ITR 4, ITR 6 and ITR 7 to be completed before the deadline. The form has its variation based on the taxpayer income and the categories like individuals, HUF and company.
TYPES OF ITR:
ITR-1 SAHAJ
Residents have a total income of up to Rs.50 lakh. The incomes include salaried individuals, one house property, other sources and an agricultural income of up to Rs 5 thousand. There is one summary section that needs to be reviewed for tax computation and 5 sections which are required to be filled in before the submission of the ITR.
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- Personal Information
- Gross Total Income
- Total Deductions
- Tax Paid
- Total Tax Liability
ITR-2
The Form for ITR-2 can be filed by individuals who are not eligible to file ITR-1. Persons who do not have an income from profit and gain of business or profession in the nature of interest, salary, bonus and commission or remuneration can file ITR-2. The ones who have the income of another person like a spouse, or minor child need to be clubbed along with their income.
ITR-3
This is the form for individuals and HUFs to have income from profits and gains of business or profession. The form will be difficult for a layman to fill in. Therefore, proper minute details should be kept in mind for filling out the form without committing mistakes.
ITR-4 SUGAM
The ITR-4 can be filed by individuals, HUFs and Firms other than LLP who are the residents a total income of Rs 50 lakh.
Section 44AD, 44ADA or 44 AE is calculated under this form with people having income from various businesses and professions.
Even the income of an individual receiving salary, pension, one house property, agricultural income up to Rs 5000.
The other categories in which ITR-4 can be filed are as follows:
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- Interest from Savings Account
- Interest from Deposit (Bank / Post Office / Cooperative Society)
- Interest from Income Tax Refund
- Family Pension
- Interest received on enhanced compensation
- Any other Interest Income (e.g., Interest Income from unsecured loan)
ITR-5
The form can be filled by persons other than individuals, HUF, companies and the person filing form ITR-7. It is filed by the Association of Persons, Limited Liability Partnerships, Body of Individuals, Estates of the deceased, Artificial judicial person, business trust, estates of the insolvent, business trust, and investment fund.
ITR-6
The return form comes under section 2(17) of the income tax act. This section has certain means
- Indian Company (Domestic Company)
- Body corporate incorporated by or under the laws of a country outside India.
- Any institution, association or body, whether incorporated or not & whether Indian or NonIndian, which is declared by general or special order of the board to be a company, etc.
Individuals can file this form via the income tax portal and verify it through digital signature.
ITR-7
ITR-7 can be filed by individuals, including companies that need to furnish returns under section 139(4A) or 139(4B)or 139(4C) or 139(4D).
