What are the different types of ITR forms ?

Tax payers in India are required to declare to the Income Tax Department of Govt of India a summary of income and tax paid during the year (April to March of next year). There are several ITR forms such as ITR-1 (Sahaj) ,ITR-2 ,ITR 2A, ITR-3, ITR-4 and ITR-4S( Sugam), ITR-5 and ITR-6. These forms are released every year by Income Tax Department.  To file Income tax returns one needs to fill the appropriate Income Tax return form.

The Finance Ministry recently announced new ITR2 varieties dropping the controversial obligatory disclosure of overseas journeys and dormant financial accounts. The new types of ITR forms – ITR 2 and ITR 2A have three pages and different particulars in schedules. ITR2A has been introduced by the ministry and filled by a person or HUF who doesn’t have capital goods, revenue from enterprise/ career or overseas revenue / asset. At current people/HUFs having revenue from multiple home property and capital positive aspects are required to file Form ITR-2. The final date of submitting returns has now been extended to August 31.

The form to fill income tax returns is based on the types of income earned. Income Tax Department classifies income into different types as given below:

  • Income from Salary: Income is charged under this if there is or was an employer-employee relationship between the payer and payee. Pensions also are included under this head.
  • Income from Profits and Gains of Business or Profession: Income earned through business or profession (ex-professional working as freelancer) is charged under this category. This is taxed taking into account deductions such as depreciation of assets, rent, expenses and travelling.
  • Income from House Property: Any residential or commercial property that you own will be taxed. Rental income is taxed subject to some exemptions for example on Home Loan.
  • Income from Capital Gains: Any profit or gain arising from transfer of capital asset – it could be property or gold, held as investments are chargeable to tax under the head capital gains.
  • Income from other Sources:  Any income that does not fall under any of the four heads of income above is taxed under the head income from other sources. This includes income from fixed deposits, winning a game show etc.

A tabulated representation on what form can one use for ITR filing based on your income sources:

Form

Category

Details

ITR-1 SAHAJ

Individual

1. Income from salary/pension: or
2. Income from one house property
3. Income from other sources( excluding winnings from lottery and income from races horses)

ITR-2

Individual/HUF

1. Income from salary/pension
2. Income from house property
3. Income from other sources (excluding winnings from lottery and income from races horses)
4.Income from Capital Gains.
5. Income from foreign assets.

They should not have Income from Business or Profession.

ITR-3

Individual/HUF

Being partners in firms and not carrying out business or profession under any proprietorship.

ITR-4S SUGAM

Individual/HUF

It is applicable for small businessmen and professionals from business or profession and gross receipts upto Rs. 60 lacs a year

ITR-4

Individual/HUF

Having income from business or profession (such as insurance agent, doctor, CA, lawyer etc.) with gross receipts of more than RS. 60 lacs a year

ITR-Forms                                          Source file  : http://www.bemoneyaware.com/blog/which-itr-form-to-fill/

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