Taxpayers can furnish information about their income and tax payable to Income Tax Department by filing Income Tax Returns (ITR).
CBDT has notified 7 ITR forms. The applicability of forms depends upon the status of the taxpayer, source of income and amount of income.
Let us understand the applicability of each ITR form in detail with respect to the financial year 2021-22:
ITR-1 (SAHAJ)
This return can be filed by a resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh:
- Income from Salary/ Pension; or
- Income from One House Property; or
- Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
- Agricultural income up to ₹ 5,000.
Who cannot file this return?
A person who:
- is a Director in a company
- has held any unlisted equity shares at any time during the previous year
- has any asset (including financial interest in any entity) located outside India
- has signing authority in any account located outside India
- has income from any source outside India
- is a person in whose case tax has been deducted u/s 194N
- is a person in whose case payment or deduction of tax has been deferred on ESOP
- has any brought forward loss or loss to be carried forward under any head of income
ITR-2
This return can be filed by an Individual or Hindu Undivided Family (HUF) who is:
- not having Income under the head Profits and Gains of Business or Profession
- who is not eligible for filing ITR-1
- where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
Who cannot file this return?
An Individual whose total income includes Income from Business or Profession.
ITR-3
This return can be filed by an individual or a Hindu Undivided Family who has income from a proprietary business or is carrying on a profession. The person who is-
- Carrying on a business or profession
- having Income of a person as a partner in the firm
The return may include income from House property, Salary/Pension and Income from other sources.
ITR-4 (SUGAM)
This return can be filed by an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having:
- Business income according to the presumptive income scheme under section 44AD or 44AE
- Professional income according to presumptive income scheme under section 44ADA
- Income from salary or pension
- Income from one house property
- Income from other sources (excluding income from lottery and race horses)
Who cannot file this return?
A person who:
- is a Director in a company
- has held any unlisted equity shares at any time during the previous year
- has any asset (including financial interest in any entity) located outside India
- has signing authority in any account located outside India
- has income from any source outside India
- is a person in whose case payment or deduction of tax has been deferred on ESOP
- who has any brought forward loss or loss to be carried forward under any head of income
ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on a presumptive basis u/s 44AD, 44ADA or 44AE.
ITR-5
This return can be filed by a person being a:
- Firm
- Limited Liability Partnership (LLP)
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
- Local Authority referred to in clause (vi) of Section 2(31)
- Representative Assessee referred to in Section 160(1)(iii) or (iv)
- Cooperative Society
- Society Registered under Societies Registration Act, 1860 or under any other law of any State
- Trust other than Trusts eligible to file Form ITR-7
- Estate of Deceased Person
- Estate of an Insolvent
- Business Trust referred to in Section 139(4E) and Investment Fund referred to in Section 139(4F)
A person who is required to file the Return of Income u/s 139(4A) or 139(4B) or 139(4D) shall not use this form.
ITR-6
This return can be filed by companies other than those claiming exemption u/s 11 (Income from property held for charitable or religious purposes). Company includes-
- Indian Company
- Body corporate incorporated by or under the laws of country outside India
- Any institution, association or body, whether incorporated or not and whether Indian or Non-Indian which is declared by general or special order of the Board, to be Company, etc.
ITR-7
This return can be filed by persons including companies who are required to furnish returns u/s 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D).
139(4A) – Income derived from Property held under Trust wholly / in part for charitable or religious purposes.
139(4B) – Chief Executive Officer of every Political Party.
139(4C) – Various entities like Research Association, News Agency, etc. mentioned in Section 10.
139(4D) – University, College or other Institution referred in Section 35.
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Hemanth Uppala
CA Finalist
Content Writer | TAX DESTINATION
