ITR Forms and Their Applicability

The Income Tax department has notified 7 types of Income Tax Return (ITR) forms. Knowing about the various ITR forms is important to pay your tax dues accurately and without any delays. If you do not file the return on time or file it incorrectly, you may have to pay a penalty and refile.

To save yourself from this, you must know which ITR form is for individuals, HUFs, and other entities. With this information, you can determine which form applies to you and file your taxes on time.

The following are details about each of these various ITR forms: 

ITR 1

ITR 1 or SAHAJ is the ITR form for individuals who are a resident of the country. Here are some of the conditions that you must know before filing this form:

• You must have taxable income of up to ₹50 Lakhs can file this form

• Your income must come from salary, pension, rent on house property, or other sources 

• You must have an agricultural income of up to ₹5,000

ITR 2

ITR 2 forms are applicable to individuals and Hindu Undivided Families (HUFs) subject to any of the following conditions:

• You must have a total taxable income of more than ₹50 Lakhs

• Your income must come from salary, rent on more than one house property, income from capital gains, and other sources

• You must have income from other sources, such as lotteries, horse races, etc.

• You must have owned unlisted equity shares at any point in the financial year

• You must own foreign assets or earn an income in addition to signing authority for accounts held outside India

• You must be a Resident Not Ordinarily Resident (RNOR) and non-resident

• You must have an agricultural income of more than ₹5,000

• You must be an individuals or HUFs who has paid tax under Section 194N of the Income Tax Act 

ITR 3

Individuals and HUFs, who cannot file ITR 1, ITR 2, and ITR 4, are required to file ITR 3.  This ITR form is for salaried employees as well. Here are the applicable conditions to file it:

• You must have a total taxable income of more than ₹50 Lakhs

• You must receive a pension or earn income from house property

• You must have income from capital gains or foreign assets or income

• You must have a business or profession 

• You must be a director of a company

• You must earn an income as a partner in a firm

• You must have had unlisted equity shares in the previous financial year

ITR 4

ITR 4, also called SUGAM, applies to individuals, HUFs, and partnership firms. You must meet some of the below conditions to file ITR 4: 

• You must receive a pension or salary of more than ₹50 Lakhs

• You must have income from rent from house property and other sources not exceeding ₹50 Lakhs

• You must receive business and professional income under the presumptive income scheme under sections 44AD or 44E, and Section 44ADA

• You must be a freelancer with income not exceeding ₹50 Lakhs 

ITR 5

The following categories are required to file ITR 5 form: 

• Firms

• Limited Liability Partnerships (LLPs) 

• Body of Individuals (BOIs) 

• Association of Persons (AOPs) 

• Artificial Juridical Person (AJP)

• Business trust and investment fund

• Estate of deceased

• Estate of insolvent

ITR 6

Any company that does not claim an exemption under Section 11 of the Income Tax Act can file this return. Section 11 includes income from property held for charitable or religious purposes. Note that this form can be filed electronically only.

ITR 7

This form is applicable to persons who are required to file returns under sections 139(4A) to 139(4F). Here is an overview of these sections:

• Section 139(4A): Income from property held under trust or other legal obligation partly or wholly for religious or charitable purposes

• Section 139(4B): Applicable to political parties if total income exceeds the maximum amount not chargeable to income tax

• Section 139(4C): Needed for:

  • News agency

  • Association or institution under Section 10(23A)

  • Institution under Section 10(23B)

  • Scientific Research Association

  • Fund, institution, university, educational institution, hospital, or medical institution

• Section 139(4D): Required for universities, colleges, or institutions not required to file returns under any other provision of this section

• Section 139(4E): Applicable to business trusts not required to file returns under any other provision of this section

• Section 139(4F): Needed for investment funds referred to in Section 115UB; Not required to file returns under any other provision of this section

As per the income tax rules, all taxpayers must mandatorily file an ITR form if any of these conditions is applicable:

• If your total taxable income exceeds the basic exemption limit, which varies depending on your age and tax regime

• Basic exemption limit is ₹2.5 Lakhs for taxpayers below 60 years of age 

• Limit extends to ₹3 Lakhs for senior citizens aged between 60 and 80 years and ₹5 Lakhs for those above 80 years

• Basic exemption limit is increased to ₹3 Lakhs if you are filing returns under the new tax regime

• If you have invested or earned from foreign assets 

• If you want to apply for a visa or a loan

• If you wish to file a refund from the income tax authorities

• Any firm or company, irrespective of the profit or loss

Here are the due dates for filing ITR forms for FY 2023-24 (AY 2024-25):

• The due date is 31st July of the financial year for books of accounts that do not need to be audited 

• The due date is 31st October of the financial year for businesses that need to be audited  

• The due date to file a revised or belated return is 31st December of the financial year

 

Note that the Income Tax Department may extend the dates if required. You can check the updated dates on the official website.