In India, the income tax return (ITR) filing process is tailored to accommodate different types of taxpayers based on their sources of income, residency status, and other factors. The Income Tax Department has designated specific ITR forms for these varied categories. Here's a brief overview of the ITR forms applicable for individual taxpayers and entities as of my last update in April 2023:
For Individuals and HUFs (Hindu Undivided Families)
1. ITR-1 (SAHAJ)
For Indian residents whose total income includes:
Income from salary/pension
Income from one house property (except cases where loss is brought forward from previous years)
Income from other sources (excluding winning from lottery and income from race horses, income taxable under section 115BBDA or Income of the nature referred to in section 115BBE)
Total income up to INR 50 lakh
2. ITR-2
For individuals and HUFs not having income from profits and gains of business or profession
Includes income from capital gains, foreign income/assets
3. ITR-3
For individuals and HUFs having income from profits and gains of business or profession
4. ITR-4 (SUGAM)
For individuals, HUFs, and firms (other than LLP) being a resident having total income up to INR 50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE (not for an individual who is either Director in a company or has invested in unlisted equity shares)
For Businesses and Other Entities
5. ITR-5
For persons other than:
Individual
HUF
Company
Person filing Form ITR-7
This includes firms, LLPs (Limited Liability Partnerships), AOPs (Associations of Persons), BOIs (Bodies of Individuals), etc.
6. ITR-6
For companies other than those claiming exemption under section 11 (Income from property held for charitable or religious purposes)
This form has to be filed electronically with a digital signature
7. ITR-7
For persons including companies required to furnish return under sections:
139(4A) (Income from property held for charitable or religious purposes)
139(4B) (Political party)
139(4C) (Various associations and institutions)
139(4D) (Institutions referred to in section 35(1)(ii)/(iii), 35(1)(ii)/(iiia)/(iiiab))
Special Cases
ITR-V: It's the acknowledgment form received when you file your ITR electronically without a digital signature.
It's crucial to choose the correct ITR form based on your income sources, residency status, and other applicable criteria. The tax laws and forms are subject to change, so it's recommended to refer to the official Income Tax Department's website or consult with a tax advisor for the most current information and guidance tailored to your situation.
Remember, filing an incorrect form can lead to your return being deemed invalid, so it’s important to ensure you’re using the right one for your circumstances.