ITR Filing: Now only a few days are left for the new financial year to start. With this, the new season of filing Income Tax Return will start soon. While filing Income Tax Return (ITR), people often have a problem regarding which form to fill, because it becomes important to choose the right form for filing ITR.
If you fill the wrong form, the Income Tax Department can declare your return as defective. Let us tell you that there are a total of 06 types of forms for income tax return. Which form you have to choose depends on your income, which category of taxpayer you are etc. Let us know which form you have to choose while filling ITR…
ITR-1: This form is for Indian citizens whose annual income is up to Rs 50 lakh. This income should be from salary, family pension, a residential property etc. Income from lottery or race course does not come under this category. On the other hand, ITR-1 is the correct form even if the income from agriculture is up to Rs 5,000. However, if you are a director in a company or have shares in an unlisted company, then you cannot fill this form.
ITR-2: This form is for individuals and Hindu Undivided Families whose annual income is more than Rs 50 lakh and they are not earning profits from any business. In this, information has to be given about more than one residential property, capital gain or loss on investment, dividend income of more than Rs 10 lakh and income from agriculture more than Rs 5000. If the provident fund is earning as interest, then also this form has to be filled.
ITR-3: This form is for individuals and Hindu Undivided Families who are earning from the profits of a business. In this, information about all the income categories given in ITR-1 and ITR-2 has to be given. If a person is a partner in a firm, then he has to fill a separate ITR form. The same form has to be filled even if there is capital gain from sale of shares or property or income from interest or dividend.
ITR-4 i.e. Sugam: This form is for individuals, Hindu Undivided Families and companies other than LLPs, whose total income is more than Rs 50 lakh and they are earning from sources like section 44AD, 44ADA or 44AE come within the purview of. This form is not applicable for those people who are directors in any company or have investment in equity shares or earning more than Rs.5000 from agriculture.
ITR-5: This form for filing income tax return is for LLP companies, association of persons, body of individuals, artificial juridical person, co-operative society and local authority.
ITR-6: This form is for those companies who have not claimed exemption under section 11. Under section 11, such income is exempt from tax, which is being derived from the property kept with the trust for any charitable or charitable work.
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