Income tax returns (ITR) filing season is going on and the question often arises in the minds of taxpayers which ITR form will be right for them. Whether you are a salary person, freelancer, businessman or pensioner-different forms are fixed for every category. In such a situation, choosing the right form not only makes your tax process easier, but also protects against future problems. In this report, we will tell you from ITR-1 to ITR-7, which form should be filled.
For whom is the correct form right
ITR-1 (spontaneous)
According to the official website of the Income Tax Department, the ITR-1 (spontaneous) form is for those who are residents (living) in India (but not generally not residents), whose total income is up to ₹ 50 lakh and whose sources of income are:
- Pay/pension
- Income from a house property
- Other sources (eg interest etc.)
- Long -term capital benefits under section 112A, maximum ₹ 1.25 lakh
ITR-2
This form is for individuals and Hindu undivided families (HUFS) whose income does not include profit and loss from business or profession.
ITR-3
This form is for individuals and HUFS whose income involves profit and loss from business or profession.
ITR-4 (Sugam)
This form is for those individuals, HUFS and firms (except LLP) who are residents in India, whose total income is up to ₹ 50 lakh and whose income comes under the following categories:
- Business or profession
- Also, there should be long -term capital benefits under Section 112A
ITR-5
This form is for units that are not included in the following:
- Individual
- Huff
- Company
- Individuals who file ITR-7
ITR-6
It is for the form companies that are not claiming exemption under Section 11 (such as charitable institutions).
ITR-7
This form is for individuals or companies who are mandatory for filing income tax returns under Section 139 (4A), 139 (4B), 139 (4C) or 139 (4D). It mainly includes religious/charitable institutions, political parties, trusts etc.
ITR-U
This form is for those individuals who want to update their income within 48 months of the end of a previous year (assessment year).
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