ITR – Which ITR Should I File? Types of ITR, How to FIle ITR – Income Tax Returns e-filing – ITR forms for FY 2020-21, AY 2021-22

ITR stands for Income Tax Return. The Income Tax Act, 1961 regulates all ITR forms and procedures to be followed. This article provides an in-depth understanding of the meaning of the ITR and the types of ITR forms.

Latest Updates

CBDT has notified all Income Tax Return Return Forms (ITR Forms) AY 2021-22 with minor changes in ITR Form 1 to ITR Form 7. The IT department has launched the JSON service and is releasing an Excel and Java version of the services from AY 2021-22.

Updated on:  
15

1. What is ITR?

Income Tax Return (ITR) is a form in which taxpayers file information about income and tax revenue applicable to the tax department.

The department has introduced 7 different forms namely ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 to date. Every taxpayer must complete his / her ITR on or before the fixed date. The effectiveness of ITR forms varies depending on the taxpayer's income sources, the amount of income earned and the category of taxpayer as an individual, HUF , company, etc.

2. Why should you file ITR?

It is mandatory to file income tax return (ITR) in India if any of the conditions listed below apply to you:

1. If your gross annual income exceeds the basic release limit as described below-

Particulars Amount
For individuals below 60 years Rs 2.5 Lakh
For individuals above 60 years but below 80 years Rs 3.0 Lakh
For individuals above 80 years Rs 5.0 Lakh

2. If you want to apply for a tax refund from the department.

3. If you acquired or invested in foreign assets during FY.

4. If you wish to apply for a visa or loan

5. If the taxpayer is a company or company, regardless of profit or loss.

Also, you are required to complete the ITR even if your income is below the basic release limit but you meet one of the following conditions:

  1. You have deposited a combined amount in excess of Rs.1 crore into one or more bank accounts; or
  2. You have incurred a combined cost of more than Rs 2 lakh on a foreign trip on your own or by someone else; or
  3. You have a total cost of more than Rs.1 lakh per electricity consumption.

3. Which ITR to file?

The following infographic will help you find out which type of income tax return applies to you at FY 2020-21 and last year FY 2019-20. Once you have located the ITR you need, click the links below to learn more about it.

4. ITR-1 OR SAHAJ

This Return Form is for a resident individual whose total income for the AY 2021-22 includes:

  • Income from Income / Pension ; or
  • Revenue from Single Household (except in cases where the loss is brought forward in previous years) ; or
  • Revenue from Other Sources (other than Lottery Winning and Revenue from Racing Horse)
  • Agricultural Income Up to Rs.5000.

Who cannot use ITR 1 Form?

  • Income in excess of Rs.50 lakh
  • Agricultural income in excess of Rs 5000
  • If you have a large tax return
  • If If you have an income from a business or profession
  • Having an income from more than one home
  • If you are a Director of a company
  • If you have invested in unlisted shares at any time during the financial year < / li>
  • Owning property (including financial interest in any organization) outside India) if you are a citizen, which includes the right to sign on any account outside India
  • If you are a non-resident citizen (RNOR ) and non-citizen
  • Own foreign assets or foreign income
  • If you are assessed in relation to another person's income in respect of which tax is deducted from another person's hands.

Anyway, do you have any doubts about ITR-1 in your mind? Read our complete guide to ITR-1 for answers to all your questions.

5. ITR-2

ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2021-22 includes:

  • Income from Revenue / Pension; or
  • Income from Part of the House; or
  • Revenue from Other Sources (including Lottery Winning and Revenue from Race Horses).

(Total income from the above should be more than Rs 50 Lakhs)

  • If You Are the Only Director in the Company
  • If you have invested in unlisted shares at any time during the financial year
  • Citizenship is usually resident (RNOR) and non-resident
  • Foreign / Foreign Income
  • Agricultural Income Over 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.

Who cannot use this Return Form

This Refund Form should not be used by a person with full AY 2021-22 salary which includes Business or Professional Income. To declare these Revenue types , you may need to use ITR-3 or ITR-4. -ITR. -2 know how to complete the ITR-2 form.

6. ITR-3

The current ITR3 Form should be used by an individual or an Individual Hindu Family who has an income from a patented business or occupation. People with income from the following sources are eligible to submit ITR 3:

  • Continuing Business or Professional
  • If You Are the Only Director in the Company
  • If you have invested in unlisted shares at any time during the financial year
  • Refund may include Household Income, Income / Pension and Income from Other Sources
  • Personal Income Corporate Partners

Click here to read our comprehensive guide to the ITR-3

7. ITR-4 or Sugam

The current ITR 4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are residents and whose total income include:

  • Business income in terms of the estimated income under section 44AD or 44AE
  • Professional income in terms of the estimated income plan under section 44ADA
  • Revenue from income or pension until up to Rs.50 lakh
  • Income from one house area, not more than Rs.50 lakh (excluding the amount of forward losses or losses that should be continued)
  • Revenue from other sources sources of revenue of more than Rs.50 Lakh (excluding lottery revenue and race horses)
  • Please note that any person earning from the above sources as an individual may also choose the consideration scheme if his or her total receipts do not exceed Rs.50 lakhs.

    Estimated earnings plan under sections 44AD, 44AE and 44ADA is where a person or business presumptuously obtains revenue, that is, when revenue is estimated at a lower value based on percentage of total receipts / total profit. or based on ownership of commercial vehicles. However, if the business profit exceeds Rs 2 crore, the taxpayer will need to complete ITR-3.

    Who cannot use ITR 4 Form?

    • If your total income exceeds Rs 50 lakh
    • Having an income from more than one house
    • If there is a loss or loss that should be continued under any heading salary
    • Owning foreign goods
    • If you are authorized to sign up for any account outside of India
    • Having income from any source outside of India
    • >
    • If you are a Director of a company
    • If you have invested in unlisted shares at any time during the financial year
    • Occupational Citizenship (RNOR) and non-resident
    • and foreign assets or foreign income
    • When you are assessed in relation to another person's income as to what tax is deducted from another person's hands. person.

    Click here to read our comprehensive guide to the ITR-4

    8. ITR-5

    ITR 5 for companies, LLPs (Limited Liability Partnership), AOP (People's Organization), BOIs (Human Body), Artificial Juridical Person (AJP), Estate of the deceased, Inheritance of the Debt, Fund of business and investment fund.

    Click here to read our comprehensive guide to the ITR-5

    9. ITR-6

    For companies other than companies seeking exemptions under section 11 (Revenue from the area reserved for charitable or religious purposes), this benefit should only be entered electronically.

    Click here to read our comprehensive guide to the ITR-6

    10. ITR-7

    For individuals including companies who are required to make a profit under section 139 (4A) or section 139 (4B) or section 139 (4C) or section 139 (4D) or section 139 (4E) or section 139 (4F).

    • Reimbursement under section 139 (4A) is required to be paid by everyone upon receipt of the proceeds of the property held under a trust or other legal obligation entirely for charitable or religious purposes or in part only for such purposes. < Reimbursement under section 139 (4B) is required to be lodged by a political party if the amount of income other than the provisions of section 139A exceeds the maximum, non-taxable income. -
      • Scientific research organization;
      • News Center;
      • Organization or institution referred to in section 10 (23A);
      • Institution referred to in section 10 (23B);
      • Fund or institution or university or other educational institution or any hospital or medical institution.
    • Reimbursement under section 139 (4D) is required to be completed by any university, college or other institution, which is not required to provide inc. or losses under any of the other provisions of this section.
    • Reimbursement under section 139 (4E) must be completed by all business trusts that are not required to reimburse income or losses under any of the other provisions of this section. .
    • A return under section 139 (4F) must be paid by any investment fund referred to in section 115UB. It is not necessary to provide reimbursement for income or loss under any of the other provisions of this section.
    ITR Form Applicable to Salary House Property Business Income Capital Gains Other Sources Exempt Income Lottery Income Foreign Assets/Foreign Income Carry Forward Loss
    ITR 1 / Sahaj Individual, HUF (Residents) Yes Yes(One House Property) No No Yes Yes (Agricultural Income less than Rs 5,000) No No No
    ITR 2 Individual, HUF Yes Yes No Yes Yes Yes Yes Yes Yes
    ITR 3 Individual or HUF, partner in a Firm Yes Yes Yes Yes Yes Yes Yes Yes Yes
    ITR 4 Individual, HUF, Firm Yes Yes(One House Property) Presumptive Business Income No Yes Yes (Agricultural Income less than Rs 5,000) No No No
    ITR 5 Partnership Firm/ LLP No Yes Yes Yes Yes Yes Yes Yes Yes
    ITR 6 Company No Yes Yes Yes Yes Yes Yes Yes Yes
    ITR 7 Trust No Yes Yes Yes Yes Yes Yes Yes Yes

    Want to know more about the ITR-7 Form? Why not read our complete ITR-7 Form Guide?

    Find answers to all your questions about how to complete Form ITR-7.

    Frequently Asked Questions

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    What is the "Help me decide which ITR form to file" service?

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    Different ITR forms apply to individual taxpayers based on income type and residency status.

    Until AY 2019-20, there was no service to help individual taxpayers to know which ITR forms and schedules within the ITR form were important to them.

    From AY 2020-21 onwards, individual taxpayers will have Help me decide which form of ITR to file for service to determine the appropriate ITR that applies to them (both online and offline services) .


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    What is wizard-based selection of ITR/Schedules?

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    To guide taxpayers who are unaware / unsure of the type of ITR and / or their working AY schedule, the wizard tool is offered in both online mode and offline use. Based on a carefully selected and relevant quiz, easily understood by even someone who is unfamiliar with the law / Income Tax Regulations, the wizard recommends an effective ITR / Schedule based on the answers / answers provided by the taxpayer.


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    I already know which ITR form I need to file, and the schedules applicable to me. Do I still need to use the "Help me decide which ITR form to file" service?

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    No. You can select your ITR form directly from the I know which ITR form to complete. If you know the schedules, then choose what I know which programs work.


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    Do I have to use the "Help me decide which ITR form to file" service on the e-Filing portal, and then go to the offline utility to file my return?

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    No. You can access this service directly from the offline application. You do not need to log in to the e-Filing portal separately to use this service.


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    What should I do to ensure that the correct ITR/Schedule is recommended to me using this service?

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    You should read the ‘eligibility criteria’ carefully and determine the applicable ITR. If you are unsure and continue to use questions based on the wizard, make sure your answers are correct. The ITR / Active Schedules will be recommended to you based on your feedback.


    CEO Krishna Gopal

    Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

    Krishna Gopal Varshney
    Co-founder & CEO