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Income tax returns are forms in which taxpayers file information regarding their earned income and the respective tax applicable to the Income Tax Department. With the help of an income tax form, taxpayers can easily calculate their tax liability, apply for refunds in case of tax overpayment and schedule tax payments.
There are different types of income tax return forms depending on the taxpayer's category and income type. Such forms are: ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. However, one should be cautious before choosing a tax return form to file. Therefore, to reduce the chances of mistakes, we present this piece describing the various income tax forms and who are eligible for a particular form.
Let's begin!
It is vital to note that an ITR form for individuals or an ITR form for a salaried person is different from that of companies. Given below are some forms eligible for an individual and a company to file for tax returns.
Indian residents and Hindu Undivided Families (HUF) can file ITR forms 1 and 2 for income tax returns. Individuals must be salaried with a house property, and other sources of income to choose these forms. An individual must file for an ITR if his income is more than the limit mentioned in the given table.
|
Details |
Income |
|
Individuals < 60 years |
Rs.2 lakhs |
|
Individuals > 60 years but < 80 years |
Rs.3 lakhs |
|
Individuals > 80 years |
Rs.5 lakhs |
Limited Liability Partnerships (LLPs), trusts and companies must file ITR forms- 5, 6, and 7 while filing income tax returns. Companies and firms with business income, house property, and other income sources are eligible to select these forms. However, incomes from capital gains will not fall under these categories.
Now, let us get into the details of each ITR form!
This form is also known as the Sahaj form. Individual taxpayers should go for ITR 1 filing. Any other taxpayer is not eligible to choose this form for ITR returns.
The following individuals can apply for this form:
Someone who deposited over Rs. 1 crore in a current account.
A person engaged in a profession which allowed him/her to get over Rs. 10 lakh in gross receipts.
A businessman whose total sales/turnover was over Rs. 60 lakh last financial year.
Individuals who had to pay over Rs. 25,000 in TDS (Tax Deducted at Source) in the previous year.
Anyone who paid over Rs. 1 lakh in electricity bills last year.
Any other assessee belonging to the following category is not eligible to file ITR 1 for tax returns.
ITR 2 income tax is eligible for those individuals who have their income by selling assets or properties. Individuals having incomes from outside of India can also use this form. Furthermore, HUFs can also apply for ITR 2 form to file income tax returns.
Individuals belonging to the following categories can apply for ITR 2 forms:
Those whose total income exceeds Rs. 50 lakhs
If they gain from salary, pension, house properties and other resources like horse race and lottery
If they are holding unlisted equity shares or ESOPs
If they are a director of a company
Not all taxpayers should avail of this form for income tax returns. We have categorised such people in the following section for your better understanding.
Individual taxpayers or HUFs operating as partners in a firm without conducting any business under the firm are eligible to apply for ITR 3. Taxpayers looking in search of the meaning of ITR 3 should be thorough with the eligibility criteria of the said form.
Applicants having the following income sources are eligible to file ITR 3.
Taxpayers eligible for ITR 1 and ITR 2 belong to a certain category. Similarly, some taxpayers should not file this form for IT returns. Given below are some of the individuals who are not eligible for this form.
Also known by the name Sugam, ITR 4 means that individuals who run a business and accrue income from it or other professions can file for IT returns by using this form. With this income, they can club the earning from any windfall and apply for this form. Additionally, taxpayers from professions like doctors, shopkeepers, designers, retailers, agents, contractors, etc., can file their ITR using this form.
ITR 4 meaning is simple for those who are accustomed to the eligibility. Here are some of the eligibility criteria.
HUFs, individuals or partnership firms are eligible for ITR-4S Forms
If a person’s annual income from salary or pension is up to Rs 50 lakhs
Some individuals do not qualify for an application of the ITR-4S form to file tax returns. Such categories are mentioned below.
Business trusts, firms, etc., must opt for this form to file ITR. ITR 5 means forms that are eligible for partnership firms or LLPs. To understand the meaning of ITR 5 in detail, one should know in-depth about the taxpayers eligible under this form and those who are not.
The following bodies can file IT returns using this form.
Here is a list of persons not eligible to file ITR 5.
ITR 6 means an income tax return form eligible for companies to file tax returns. Companies can file income tax by this form only electronically.
Given below are the bodies and the income sources eligible for this form.
In the following section, we enlisted a few organisations and income sources not eligible to file IT returns using ITR 6 form.
Individuals or companies required to furnish returns under Section 139(4A) or 139(4C) or 139(4D) or 139(4E) or 139(4F) must utilise ITR 7 form to file income tax returns.
As mentioned above, the companies furnishing returns under the said sections can file ITR 7. Given below is an explanation of each section to understand the eligibility criteria.
Starting from ITR 1 to 7, one must go for the ITR form for which he or she qualifies. In the same way, there are some individuals and organisations who cannot opt for ITR 7. Some of them are mentioned below:
Furthermore, as per the finance ministry, the last date of filing ITR for FY 2022-23 is 31st July 2023. Therefore, taxpayers looking forward to filing tax returns must have clarity regarding the forms ITR 1 to 7. This will help them to choose an appropriate form and avoid the hassle of going through the filing process again.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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