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Income Tax Return Filing: Whether you are employed or have your own business, as an individual taxpayer, you need to file your Income Tax Return (ITR) by July 31. The Income Tax Department has now made filing an income tax return very easy. If you want to file it yourself, you can do so easily. It’s important to understand the form related to the income tax return. Knowing which ITR form is appropriate for you will simplify the process.
Check types of forms and know its uses
Form ITR 1 is for resident individuals whose total income does not exceed Rs 50 lakh during the financial year. This form is suitable for those whose income includes salary, one house property, other sources (such as interest), and agricultural income up to Rs 5,000. Specifically, income from other sources includes interest from savings accounts, deposits (bank/post office/co-operative society), income tax refunds, enhanced compensation, any other interest income, and family pension.
Form ITR 2 is for individuals and HUFs who do not have income from profits and gains of business or profession. This means if their income is not derived from business or professional activities, they should use Form ITR 2. Essentially, those who are not eligible to file ITR-1 will need to file Form ITR 2.
Form ITR 3 in Income Tax Returns is for those individuals and HUFs whose income is from profits and gains from business or profession.
According to the official website of the Income Tax Department, Form ITR 4 is required for individuals, HUFs and firms (except LLPs) who are residents and whose total income is up to Rs 50 lakh and whose income from business and profession is calculated under section 44AD, 44ADA or 44AE and whose agricultural income is up to Rs 5,000.
In the income tax return, Form ITR 5 has to be filed by individuals, HUFs, companies and persons other than the person filing Form ITR-7.
According to the official website, Form ITR 6 has to be filed for companies other than companies claiming exemption under section 11.
Persons including companies who are required to furnish returns only under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) are required to file Form ITR 7.
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