What are the Different Types of Income Tax Forms by Sini @LexCliq

There can be no such thing as ‘fairness in taxation’. Taxation is nothing but an organized theft, and the concept of ‘fair tax’ is absurd with that as ‘fair theft’. –  Murray Roth

Income Tax return: 5% more I-T returns filed this year - The Financial  Express

In a world where nothing can be certain, we forget about two things – death and taxes. If you are lucky enough, you can still be able to get away from death, but when it comes to taxes, there seems to be no chance, you have to pay it even on your deathbed. This shouldn’t surprise you, if I tell you this, it’s not just the younger generation who thinks like that, but also the great thinkers of the world didn’t find income tax much of a  great deal to begin with.

Types of income tax forms

For every benefit, you receive a tax is levied but you still need to know which category you fall in to file your income tax returns. The income tax department has set out various categories of taxpayers depending upon the type of your income. In India, there are 7 different types of IT forms:

ITR-1: Also known as SAHAJ is applicable to Indian resident individuals as well as HUFs whose income is either generated through salary or pension. Apart from that:

  1. Income from other sources excluding income from winning a lottery or income from owning and maintaining race horses, income taxable under section 115BBDA or section 115E.
  2. Income from One House Property, however, loss brought forward from previous years or carry forward of losses are not eligible in this form.
  3. Income from agriculture activities upto INR 5000.
  4. The total income of the individual should not exceed INR 50 Lakhs.

ITR-2: This form is applicable for individuals or a HUF (Hindu Undivided Family) whose income includes:

  1. Income from salary or Pension.
  2. Income from House Property (one or more).
  3. Income from other sources, including income from winning a lottery or income from owning and maintaining a race horse or income taxable at special rates.
  4. Persons who had investments in unlisted equity shares at any time during the entire financial year.
  5. An individual who is a director of a company.
  6. An individual who is a Resident (ROR/RNOR) or non-resident.
  7. Income earned from capital gains.
  8. Income from foreign assets/ other foreign income.
  9. Agricultural income more than INR 5,000/-.
  10. Incomes where clubbing provisions are applicable.

This is to note that total income can exceed INR 50 lakhs in this form.

ITR-3: This form is applicable for individuals and HUFs who make an income from a profession or from a proprietorship business. Apart from that, this form is applicable in cases where:

  1. Any investments were present in equity shares that were unlisted at any time during the financial year.
  2. The individual is a partner in a firm.
  3. Individuals are generating an income from a profession or business.
  4. The individual is a Director of a company.
  5. If income is generated from a pension or salary, house property, or any other source of income.
  6. Turnover of the business exceeds INR 2 crore.

ITR-4: Also known as SUGAM, is applicable to both resident individuals as well as HUFs where:

  1. They have opted for a presumptive income scheme, according to Sec. 44 AD, Section 44AE and Section 44ADA of the Income Tax Act.
  2. If the person’s business turnover exceeds INR 2 crores, then they are required to file ITR-3 with Audit report, and not ITR 4.
  3. The total income for ITR 4 should not exceed INR 50 lakhs.
  4. Income from One House Property (loss brought forward from previous years or carry forward of losses are not eligible in this ITR Form).
  5. The source of income is Salary or Pension.
  6. Income from other sources (excluding the income from winning a lottery or income from owning and maintaining race horses, income taxable under section 115 BBDA or 115 BE).
  7. Other than LLPs all partnership firms which are residents and have an income which is either professional or from business.

ITR-5: This form is applicable to:

  1. LLPs
  2. Business trusts
  3. Estate of insolvent
  4. Artificial Juridical Person (AJP)
  5. Body of individuals (BOIs)
  6. Associations of Persons (AOPs) and Firms

ITR-6: This form is applicable for companies which are not claiming any exemptions under Section 11 and by a company other than a company which is required to file a return in Form ITR-7. This can be e-filed.

ITR-7: This form is applicable for companies that are required to file returns under Section 139 (4A), Section 139 (4B), Section 139 (4C), Section 139 (4D). They should choose the ITR-7 form. I have noted down bit of details for each section for you:

  1. Section 139 (4A): The return is to be filed in respect of Income from a property, of which the true owner is a trustee or such property is held under any other legal obligation. In this case, the income generated should be used only for charitable or religious purposes.
  2. Section 139 (4B): The return to be filed in respect of total Income derived by a Political party.
  3. Section 139 (4C): The below-mentioned entities should file returns under this section:
    ) Scientific Research Association.
    ii.) Educational institutions, hospitals and other medical institutions.
    iii.) Associations and institutions covered under section 10 (23A) and Section 10 (23B).
    iv.) News agencies.
    v.) Others as may be prescribed.
  4. Section 139 (4D): The returns by colleges, universities or any other institutions which are not required to furnish return of income or loss under any other section need to be filed under this section.

However, one common thing between all these forms is that all these people must have generated their income from other sources as well like the lottery, horse racing etc.

To make things, ITR can be filed online at https://www.incometaxindiaefiling.gov.in/home, which is an official GOI site, giving you all the insights about the taxation and also providing you a window for e-filing along with various other things to know about tax. Since filing ITR is a way of letting your government know about the total income you earned in that you have managed to earn in a particular financial year and taxes paid for that, let’s check out who needs to file ITR forms.

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