MM TAX CLUB

Choosing ITR form is very crucial while you file your income tax return, as every form is designed to specific categories of person and income group.

If you choose a wrong ITR it may lead to furnishing incomplete information to the department or unnecessary filling up extra forms, furnishing wrong or incomplete information may lead to future litigation with the department.

So, it’s very important to choose correct ITR Forms.

Income Tax Department releases 7 ITR forms every year based on different category of person and income group, below are the details of the all ITR Forms

ITR-1

This Form can be filed by individuals being a resident (other than not ordinarily resident) having total income upto Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income upto Rs.5 thousand.

ITR-2

This Form can be filed by Individuals and HUFs not having income from profits and gains of business or profession.

If any individual not satisfy condition of ITR-1, and not having business Income can file ITR-2, Let say if an individual have more than 50 lakh salary income, or have income from more than one house property can file ITR-2.

ITR-3

This Form can be filed by individuals and HUFs having income from profits and gains of business or profession.

If business income computed on presumptive basis, then ITR-4 will be applicable.

ITR-4

This Form can be filed by Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE and agricultural income upto Rs.5 thousand.

ITR-5

This Form can be filed by persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7

ITR-5 Generally applicable to the partnership firms having tax audit and not computing income on presumptive basis. If income computed on presumptive basis ITR-4 will apply.

ITR-6

This Form can be filed by Companies other than companies claiming exemption under section 11

ITR-7

This Form can be filed by persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.

This Form require to be file by charitable and religious institutions, Political parties, colleges and universities, scientific research association and other institutions.