Types of ITR & Which ITR Should File? Updated

Types of ITR, There are different types of returns that need to be filed on or before the due date as per different types of taxpayers and sources of Income. For ITR, you have to calculate your income as per taxpayer type, gender, residential status, and sources of income which includes Salary income, House Property Income, Capital gain, profit & gain from business and profession, and income from other sources.

What do you mean by ITR?

ITR stands for Income Tax Return. Income Tax Return is a form in which the taxpayers need to file information about their income earned through different types of sources and tax applicable there on to the income tax department yearly.

Who is eligible for an Income tax return?

A Person is eligible for an income tax return (ITR) if any of the conditions mentioned below are applicable to him/her-

  1. If your gross annual income is more than the basic exemption limit as specified below-
    1. For individuals below 60 years Rs 2.5 Lakh
    2. For individuals above 60 years but below 80 years Rs 3.0 Lakh
    3. And for individuals above 80 years Rs 5.0 Lakh
  1. If you have earned from or have invested in foreign assets during the Financial Year.
  2. And If you wish to apply for a visa or a loan
  3. If you want to claim an income tax refund from the department.
  4. If the taxpayer is a company or a firm, irrespective of profit or loss.
  5. And if you have deposited an aggregate amount of more than Rs.1 crore in one or more current bank accounts; or
  6. Have incurred an aggregate expenditure of more than Rs 2 lakh on foreign travel for self or any other person; or
  7. Have incurred an expenditure aggregate of more than Rs.1 lakh towards electricity consumption.

Which ITR should you file?

As we know there are many types of ITR forms available to file to the income tax Department. That’s why you need to know which ITR should file. And It is possible to know when you will understand the types of ITR. So read about the types of ITR below which will help you find out which type of income tax return is applicable to you for AY 22-23 and AY 23-24.

What are the types of ITR?

There are seven types of ITR at present which are as follow-

  1. ITR-1
  2. ITR-2
  3. ITR-3
  4. ITR-4
  5. ITR-5
  6. ITR-6
  7. ITR-7
TYPES OF ITR FormApplicable toSalaryHouse PropertyBusiness IncomeCapital GainsOther SourcesExempt IncomeLottery IncomeForeign Assets/Foreign IncomeCarry Forward Loss
ITR 1 / SahajIndividual, HUF (Residents)YesYes(One House Property)NoNoYesYes (Agricultural Income less than Rs 5,000)NoNoNo
ITR 2Individual, HUFYesYesNoYesYesYesYesYesYes
ITR 3Individual or HUF, a partner in a FirmYesYesYesYesYesYesYesYesYes
ITR 4Individual, HUF, FirmYesYes(One House Property)Presumptive Business IncomeNoYesYes (Agricultural Income less than Rs 5,000)NoNoNo
ITR 5Partnership Firm/ LLPNoYesYesYesYesYesYesYesYes
ITR 6CompanyNoYesYesYesYesYesYesYesYes
ITR 7TrustNoYesYesYesYesYesYesYesYes

ITR-1 OR SAHAJ

For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs.5 thousand.

Who can file ITR-1

1. Total income up to Rs. 50 lakh
2. Income from Salary/ Pension
3. Income from One House Property (excluding cases where loss is brought forward from previous years)
4. Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
5. Agricultural income up to Rs.5000.

ITR-2

For Individuals and HUFs not having income from profits and gains of business or profession

Who can file ITR-2?

1-Income from Salary/Pension; or
2-Income from House Property; or
3-Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
(Total income from the above should be more than Rs 50 Lakhs)
4-If you are an Individual Director in a company
5-If you have had investments in unlisted equity shares at any time during the financial year
6-Being a resident not ordinarily resident (RNOR) and non-resident
7-Income from Capital Gains; or
8-Foreign Assets/Foreign income
9-Agricultural income of more than Rs 5,000
Further, in a case where the income of another person like one’s spouse, child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

ITR-3

For individuals and HUFs having income from profits and gains of business or profession

Who can file ITR-3?

1-Carrying on a business or profession
2-If you are an Individual Director in a company
3-If you have had investments in unlisted equity shares at any time during the financial year
4-A return may include income from House property, Salary/Pension, and Income from other sources
Income of a person as a partner in the firm

ITR-4 or Sugam

For Individuals, HUFs, and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA, or 44AE and agricultural income up to Rs.5 thousand.

Who can file ITR-4?

1-Business income according to the presumptive income scheme under section 44AD or 44AE.
2-Professional income according to presumptive income scheme under section 44ADA.
3-Income from salary or pension up to Rs.50 lakh.
4-Income from one house property, not more than Rs.50 lakh (excluding the amount of brought forward loss or loss to be carried forward).
5-And Income from other sources having income not more than Rs.50 Lakh (excluding income from lottery and race-horses ).
6-Please note that any individual earning income from the above-mentioned sources as a freelancer can also opt for a presumptive scheme if their gross receipts are not more than Rs.50 lakhs.

7-A presumptive income scheme under sections 44AD, 44AE, and 44ADA is when an individual or an entity opts to derive its income on a presumptive basis, i.e. when the income is presumed at a minimum rate based on a percentage of gross receipts / gross turnover or based on ownership of commercial vehicles. However, if the business turnover exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

ITR-5

For persons other than- (i) individual, (ii) HUF, (iii) company, and (iv) person filing Form ITR-7

Who can file ITR-5?

This form can be used a person being a firm, LLPs, AOP, BOI, an artificial juridical person referred to in section 2(31)(vii), the estate of deceased, the estate of insolvent, business trust and investment fund, cooperative society, and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form. Not sure which ITR form you need to use? Read our guide for help.

ITR-6

For Companies other than companies claiming exemption under section 11

ITR-7

For persons including companies required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only

Who can file ITR-7?

1-Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
2-Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income tax. And Return under section 139(4C) is required to be filed by every –
Scientific research association;
News agency ;
Association or institution referred to in section 10(23A);
Institution referred to in section 10(23B);
3-Fund or institution or university or other educational institution or any hospital or other medical institution.
4-And Return under section 139(4D) is required to be filed by every university, college, or other institution, which is not required to furnish a return of income or loss under any other provision of this section.
5-Return under section 139(4E) must be filed by every business trust which is not required to furnish a return of income or loss under any other provisions of this section.
6-Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish a return of income or loss under any other provisions of this section.

Who can file Income tax returns online easily?

A person can file ITR-1 AND ITR-4 online.

ITR 1– For individuals having income from salaries, one house property, other sources income and having total income up to 50 lac.

ITR 4– For Individuals, HUFs, and Firms (other than LLP) being a residents having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA, or 44AE and agricultural income up to Rs.5 thousand.

How to file ITR online?

Yes, you can file ITR-1 and 4 yourself online within an hour by using simple steps :

  • Firstly analyze your yearly income that is above the limit or not.
  • If above the limit of 2.5 lac then you should file your income tax returns whether tax is payable or not.
  • If liable then search in google ITR online then you will see the first link of the website –https://www.incometax.gov.in/iec/foportal
Incometax.gov.in-types of ITR
  • And further now you are to register yourself if you are a new taxpayer or log in if you are already registered with your PAN.
  • Further, you are to log in with your PAN NO as user id or password as you choose for that.
  • Then after login, You will reach your dashboard
  • And if you are the first user then update your profile with all detail then just follow these steps
  • So now go to the menu and click the e-file option >Income tax returns>file income tax returns
  • And then choose the Assessment year 2022-23, select the ITR form as ITR-1, 2, or ITR-4, and type of applicants such as individual, HUF, and other
  • After selecting of ITR form, then read all instructions and need to enter your income and tax details into the form after making your income computation.
  • Then check all entered details carefully and analyze your income.
  • After rechecking submit your return with OTP or digital signature as applicable.

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