Which ITR should i file ? Types of ITR forms and eligibility ?
The Income Tax Return (ITR) forms you should file depends on your sources of income, the nature of your income, and other specific circumstances. Here’s a brief overview of the types of ITR forms and their eligibility:
1. ITR-1 (Sahaj):
– Eligibility:
Individuals with income from salary, one house property, other sources (excluding lottery and horse racing), and total income up to ₹50 lakh.
– Ineligibility:
Not for individuals with income from business or profession.
2. ITR-2:
– Eligibility:
Individuals and Hindu Undivided Families (HUFs) with income from all sources, including salary, house property, capital gains, business, and profession.
– Ineligibility:
Not for individuals with presumptive income from business or profession.
3. ITR-3:
– Eligibility:
Individuals and HUFs having income from profits and gains of business or profession. Suitable for partners in a firm.
– Ineligibility:
Not for individuals with presumptive income from business.
4. ITR-4 (Sugam):
– Eligibility:
For individuals, HUFs, and firms (other than LLP) with income from business or profession computed on a presumptive basis.
– Ineligibility:
Not for individuals with income from capital gains or speculative income.
5. ITR-5:
– Eligibility:
For firms, LLPs, Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Persons (AJP), and cooperative societies.
– Ineligibility:
Not for individuals or HUFs.
6. ITR-6:
– Eligibility:
For companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes).
– Ineligibility:
Not for companies claiming section 11 exemption.
7. ITR-7:
– Eligibility:
For persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), and 139(4D). This includes entities like trusts, political parties, research associations, and more.
– Ineligibility:
Typically not for individuals or regular companies.
8. ITR-V (Verification Form):
– Used to verify e-filed returns. After e-filing, you may need to send a signed copy of ITR-V to the Income Tax Department.
The eligibility criteria can be subject to change, so it’s essential to review the latest guidelines provided by the Income Tax Department or consult a tax professional to determine which ITR form is suitable for your specific circumstances. Filing the correct ITR form is crucial to ensure compliance with tax regulations and to avoid potential issues with the tax authorities.