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Which ITR to File?

Every financial year, all individuals (salaried or self-employed) are required to file their taxes respectively. Even if your income does not come under the tax slab, you are required to file an Income Tax Return as it keeps a good track record of your financial history.

An ITR can only be filed with the correct application form. Did you know that there are different ITR forms for different individuals based on their income. Read on to find out more...

Different Types of ITR Forms

ITR-1 or SAHAJ

ITR 1 or SAHAJ is applicable to an individual whose total income for the financial year includes:

  1. Salary/Pension
  2. Income from House Property (Single House)
  3. Other sources of income (excluding lottery ticket winnings or race horse earnings)

You cannot use ITR 1 or SAHAJ if:

  1. Total income exceeds ₹50 lakhs.
  2. Hold foreign assets.
  3. Hold agricultural income more than ₹5,000/-
  4. Have taxable capital gains.
  5. Hold income from Business/Profession.
  6. Income from more than one property.

ITR-2

ITR 2 is applicable to an individual/HUF whose total income includes:

  1. Salary/Pension
  2. Income from House Property (Single House)
  3. Other sources of income (including winnings from lottery tickets or race horse earnings)
  4. Income from Capital Gains.
  5. Income for being a partner in a firm.
  6. Income from Foreign Assets.
  7. Agricultural income more than ₹5,000/-

Note: Total income should be more than ₹50 lakhs.

You cannot use ITR 2 if:

  1. Hold/earn/derive income from a Business or Profession.

ITR-3

Any person (individual or Hindu Undivided Family) who earns income from proprietary business or profession have to use ITR 3 form. People who are applicable include those who earn:

  • Income from Business/Profession.
  • Incomes from house, salary, pension and other sources.

ITR-4 or Sugam

All individuals (single or HUF) who have income from business or profession and have opted for the presumptive income scheme as per Sec 44AD, Sec 44ADA and Sec 44AE of the Income Tax Act, 1961.

Note: If the turnover from the business exceeds ₹2 crores, you will be required to fill ITR-3.

ITR-5

This application form is to be used by the following bodies while filing taxes.

  1. LLPs - Limited Liability Partnerships
  2. Firms
  3. AOPs - Association of Persons
  4. BOIs- Body of Individuals
  5. Co-operative Societies
  6. Local Authority
  7. Artificial Judicial Persons

ITR-6

This application form is for companies except for those companies claiming exemption under Sec 11. Companies which claim exemption under Sec 11 are those companies whose income is received from the property used for the purpose of charity or religion.

Note: This form can only be submitted electronically online.

ITR-7

This application form is for individuals and companies who are required to furnish returns under Sec 139(4A) or Sec 139(4B) or 139(4C) or Sec 139(4D).

  • Sec 139(4A): Required to be filed in case of income derived from property held under trust or other legal obligation wholly for religious or charitable purposes.
  • Sec 139(4B): Required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable/added to income-tax.
  • Sec 139(4C): Required to be filed by every Scientific Research Association, News Agency, Association/Institution under Sec 10(23A), Institution referred under Sec 10(23B) like Fund | Institution | University | Educational Institution | hospital | Medical Institution.
  • Sec 139(4D): Required to be filed by every university, college or other institution which are not required to furnish return of income or loss under any other provision of this section.

Which ITR should I file?

The ITR application form depends on the amount and source of income you earn over a financial year. Once you have determined the various sources and amount of income, you can automatically select the right form and file your taxes online.

FAQs

Is Aadhaar card mandatory for filing ITR?

Yes, the Income Tax Department has made it mandatory to link Aadhaar card with PAN on the Income Tax Department’s website.

Do I have to provide information on all of my bank accounts in the ITR?

Yes, you are required to disclose all savings and current accounts held by you during previous/current years including dormant accounts.

Do I need to report exemption received in LTCG in my ITR?

Yes, you are required to report exempt LTCG in your ITR as per Sec 10(38).

Is dividend from mutual fund exempt?

Yes, dividend is exempt under Sec 10(35) depending upon the type of fund.

What is exempted income?

Exempt income is income which is not subject to any form of income tax.

When is the last date to file ITR?

The last date to file an ITR is July 31st 2018. The extended date was 31st Aug 2018. For FY 2018-2019, the dates are yet to be declared.

When is PAN of landlord required to be furnished?

When the rent exceeds more than ₹8,333.33 per month or over ₹1 lakh in a financial year, you are required to furnish the PAN details of your landlord.

What is agricultural income?

Income derived from the sale of agricultural goods/produce including cash crops is deemed as agricultural income.

When is form 60 required?

Form 60 is required by an individual who does not have a permanent account number.

What is presumptive taxation?

Presumptive tax was introduced for small taxpayers in order to provide them some tax relief under Sec 44AD of the Income Tax Act, 1961.

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