An Income Tax Return (ITR) is a process through which taxpayers submit their income and tax payment details to the IRS. A taxpayer must file their ITR by the specified deadline.
Before submitting an ITR, taxpayers can calculate their tax obligations and make necessary payments. For example, if there are carryforward losses, an ITR can be filed. You can check Form 26AS for TDS and other taxes like FD interest while filing your ITR. To fill in income and tax-saving deductions, simply use Form 16.
Various ITR forms are available for different situations. Below are the details of these forms.
Types of ITR
The following are the different types of ITR:
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ITR 1
ITR-1 is available for individuals residing in India with total income up to Rs 50 lakh. It is applicable for individuals earning from salary, property, or other sources. NRIs are not eligible to file ITR-1. Salaried taxpayers can use Form 16 for filing.
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ITR 2
ITR-2 is applicable for individuals and HUFs earning from sources other than business or profession. It can be filed by individuals and NRIs earning from salary, property, capital gains, or other sources.
Salaried individuals who have made profits or losses from stock trading can also file ITR-2.
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ITR 3
ITR-3 is required for individuals earning from business or profession. Salaried taxpayers who earn through intraday trading or futures and options should file ITR-3.
This form is used for reporting income from salary, property, capital gains, business or profession (including presumptive income), and other sources.
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ITR 4
ITR-4 is designed for individuals, HUFs, and partnership firms following the presumptive taxation scheme. It is used to report income from a business with a turnover of up to Rs 2 crore under section 44AD taxation.
ITR-4 is also applicable for income from professions with a turnover of up to Rs 50 lakh under section 44ADA taxation. Freelancers in notified professions may file ITR-4.
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ITR 5
ITR-5 is used by LLPs, AOPs, and BOIs to report income from their businesses and professions, as well as other sources of income.
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ITR 6
It is an income tax return form used by businesses to report revenue from industry or occupation, as well as all other forms of income.
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ITR 7
It is the federal tax return for businesses, partnerships, and trusts that continue to be excluded from paying income tax.
Forms Required to File ITR
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Form 16
Employees receive Form 16 from their employer, which lists their gross salary, exemptions like HRA and LTA, and other relevant income details.
This form also contains information about taxable income, tax-saving deductions, and TDS on salary.
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Form 26AS
The tax deducted at source (TDS) on different earnings, such as wages, debt, and the selling of immovable property, is detailed on Form 26AS. Details of self-assessment tax, advance tax paid by an individual, and listed financial transactions are also included on the form.
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Form 15G and Form 15H
Form 15G and Form 15H help in earning income without TDS. If your taxable income is below the exemption limit, you can file Form 15G.
If you are a senior citizen and the tax owed on your net salary is zero, you will file Form 15H. To the individual who pays your taxes, you must apply Form 15G or Form 15H.
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Which ITR Form to File and Who is Eligible?
Below is an overview of various ITR forms, including eligibility details for each one:
| ITR | Eligible Individuals | Ineligible Individuals |
| ITR 1 | Individuals who qualify as Ordinarily Resident and have a gross income up to Rs 50 lakh.
Income from sources like salaries, a single-family property, and other income up to Rs 5,000; This form is typically used for single individuals, such as a partner or minor, with combined income reported. |
Income from foreign sources and property situated abroad |
| ITR 2 | Non-residents / Residents but Not Ordinarily Residents / Ordinarily Residents; Non-residents / Residents but Not Ordinarily Residents / Ordinarily Residents / Ordinarily Residents /
Hindu Undivided Families; Gross income exceeding Rs 50 lakh; Directors of companies; Investing in unlisted shares; Income from various sources, including salary, multiple properties, capital gains, and other income; Income from foreign sources and property located outside India |
Individuals / HUFs with income from a company or profession |
| ITR 3 | Individuals and HUFs earning business or professional income, including partners in a partnership. | Individuals or HUFs without business or professional income. |
| ITR 4 | Individuals, HUFs, and firms (excluding LLPs) with presumed business or professional income. | Directors of a company or individuals with unlisted equity shares. |
| ITR 5 | Any entity other than an individual, HUF, or a company filing ITR 7 (e.g., LLP). | Individuals, HUFs, or companies filing ITR 7. |
| ITR 6 | All businesses, except those explicitly excluded. | Companies seeking exemption from tax on charitable or religious trust income. |
| ITR 7 | Charitable/religious trusts, political parties, scientific research organizations, news agencies, hospitals, trade unions, universities, colleges, and NGOs. | No other type of taxpayer. |