Types of ITR Forms

Choosing the right ITR form is the first and most important step in filing your taxes accurately. Each form caters to specific income types and taxpayer categories. Filing the wrong form can make your return invalid. Let’s break down each form:

ITR-1: For Salaried Individuals

ITR-1 (Sahaj) is the simplest ITR form designed for resident individuals earning:

• Salary or pension income,
• One house property income,
• Other sources (like interest, dividends) where total income is under ₹50 lakhs.

If you meet these criteria, ITR-1 is your best choice. It’s quick, easy, and perfect for straightforward incomes.

ITR-2: For Capital Gains and House Property

ITR-2 is for individuals and Hindu Undivided Families (HUFs) with:

• Income from capital gains,
• More than one house property,
• Foreign income/assets,
• Total income exceeding ₹50 lakhs.

Salaried individuals with significant investments or rental properties should use ITR-2 to disclose capital gains and comply with tax rules.

ITR-3: For Business or Profession

ITR-3 is meant for:

• Individuals/HUFs with income from proprietary business or profession,
• Partners in firms,
• Those earning commissions or income exceeding ₹50 lakhs.

It’s best suited for professionals like doctors, lawyers, freelancers, and entrepreneurs with more complex financial transactions.

ITR-4: For Small Businesses & Professionals

ITR-4 (Sugam) is a simplified return for:

• Residents, HUFs, and firms (other than LLPs),
• Businesses/professions opting for presumptive income scheme (sections 44AD, 44ADA, 44AE),
• Annual income up to ₹50 lakhs.

ITR-4 saves time by allowing taxpayers to declare income at a fixed percentage of turnover, avoiding the need to maintain detailed books.

ITR-5: For Firms & LLPs

ITR-5 is designed for:

• Partnerships,
• Limited liability partnerships (LLPs),
• Association of persons (AOPs),
• Body of individuals (BOIs).

It accommodates complex income and expenses structures unique to firms and partnerships, ensuring accurate tax liability calculations.

ITR-6: For Companies

ITR-6 is mandatory for companies registered under the Companies Act that do not claim exemption under Section 11 (income from property held for charitable or religious purposes). This form is filed electronically and requires detailed disclosures of:

• Income,
• Expenditure,
• Tax computation,
• Balance sheet,
• Profit and loss statements,
• Audit reports (if applicable).

Businesses with high turnovers or those needing statutory audits must use ITR-6. Filing errors can attract intense scrutiny from tax authorities, so it’s wise to get professional help like what we offer at SSJ GST Suvidha Kendra.

ITR-7: For Trusts & Institutions

ITR-7 is for entities required to file returns under sections 139(4A) to 139(4F) of the Income Tax Act, including:

• Charitable/religious trusts,
• Political parties,
• Scientific research institutions,
• Universities or colleges.

These organizations must provide extensive details on income, expenditures, donations received, and application of funds. Compliance mistakes can jeopardize tax exemptions, so expert support is essential.

ITR-U: For Updated Returns

ITR-U is a recent addition allowing taxpayers to update or correct ITRs for previously filed years within 24 months of the end of the relevant assessment year. It’s meant for individuals or HUFs who missed disclosing income or made errors in earlier returns. It promotes voluntary compliance and helps avoid prosecution. Filing an ITR-U correctly can reduce penalties and interest liabilities. Our experts can help you file ITR-U seamlessly, ensuring all discrepancies are fixed.

ITR फॉर्म के प्रकार

हर करदाता को अपनी आय और स्थिति के अनुसार सही ITR फॉर्म चुनना होता है। गलत फॉर्म भरने से रिटर्न अमान्य हो सकता है।

• ITR-1 (सहज): वेतनभोगी और पेंशनभोगी व्यक्तियों के लिए (आय ₹50 लाख तक)।

• ITR-2: पूंजीगत लाभ, एक से अधिक मकान, या विदेशी संपत्ति रखने वालों के लिए।

• ITR-3: व्यवसाय या प्रोफेशन से आय वाले व्यक्तियों/हिंदू अविभाजित परिवार (HUF) के लिए।

• ITR-4 (सुगरम): छोटे व्यवसायों और प्रोफेशनल्स के लिए, जिन्होंने अनुमानित कराधान (Presumptive Taxation) चुना है।

• ITR-5: साझेदारी फर्मों और LLP के लिए।

• ITR-6: कंपनियों के लिए (धारा 11 के अंतर्गत छूट वाली कंपनियों को छोड़कर)।

• ITR-7: ट्रस्ट, राजनीतिक पार्टियाँ, शोध संस्थान, विश्वविद्यालय आदि के लिए।

• ITR-U: पहले दाखिल रिटर्न को सुधारने या अपडेट करने के लिए।