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Which ITR Form applies to you?

 

Income tax return (ITR) filing is mandatory if an individual's gross total income exceeds Rs 2.5 lakh in a financial year (FY). If an individual is required to file a tax return, then it is important to ensure that the correct ITR form is used to file a tax return.

Which ITR Form applies to you?

ITR

Who can file?

Who cannot file?

ITR 1 (Sahaj)

·       Individual qualifying as Ordinarily Resident

·      Non-residents/ Resident but Not Ordinarily Residents

·       Having total income of up to Rs 50 lakh

·      Hindu Undivided Family (HUF)

·       Having income from salaries, one house property, income from other sources (interest, etc.) and agricultural income up to Rs 5,000

·      Ordinarily Residents having total income of more than Rs 50 lakh

·      Director in a company

Further, in case of clubbing of income, an individual can file ITR-1 if the income of the other person (whose income the individual is reporting in his ITR) is from sources as mentioned above. For example, Mr. A will file his ITR after clubbing off income earned by his spouse. In such a case, Mr. A would be able to file the ITR-1 form only if the income of the spouse is from the sources specified above.

·      Holding investments in unlisted equity shares

·      Having brought forward losses or losses to be carried forward under the head ‘income from house property’

·      Having income from any other source, e.g., more than one house property, capital gains, profits or gains of business or profession, winning from lottery

·      Holding assets outside India

·      Where provisions of Section 194N of the Act are applicable i.e. TDS deducted on cash withdrawals exceeding Rs 1 crore (Rs 20 lakh in certain cases)

·      Covered under the tax deferral relief for income from Employees Stock Options (ESOP) available to employees of ‘eligible start-ups’

ITR 2

·         Non-residents / Resident but Not Ordinarily Residents and Ordinarily Residents

·     Individuals/ HUF having business income/ income from profession

·         Hindu Undivided Family (‘HUF’)

·         Having a total income of more than Rs 50 lakh

·         Director in a company

·         Holding investments in unlisted equity shares

·         Having income from the following sources: salaries, more than one house property, capital gains and income from other sources

·         Having income from sources outside India and holding assets outside India

ITR 3

·         Individuals/ HUF having business income/ income from profession

·      Persons other than individuals/ HUF having business income/ income from profession

·         Partner of a Firm

ITR 4 (Sugam)

·         Resident Individuals/ HUF/ Firm (other than LLP) having total income up to INR 50 lakh

·      Having profits or gains from business or profession which are not computed on a presumptive basis

·         Having business income/ income from profession computed on ‘presumptive basis’

·      Other restrictions similar to ITR-1

ITR 5

·       Any person except individual or HUF or company

·      Individual or HUF or company

·       E.G., Firms/ LLPs/ Association of Persons (AOPs)/ business trusts/ investment funds.

·      Any other person required to file ITR-7

ITR 6

·       Companies other than those filing ITR-7

·      Companies required to file ITR-7

ITR 7

·   Persons including companies which are a charitable or religious trust, political party, research association, news agency, or similar organizations specified in the Act

·      Other categories of taxpayers

 

Consequences of late filing/ non-filing

If the ITR is not filed by the due date which is currently July 31, 2022 (for salaried individuals), a penalty ranging from Rs 1,000 up to Rs 5,000 will be levied and needs to be remitted before the ITR can be filed. This fee or penalty has to be paid even if the tax liability is nil. Further, in case of belated filing, taxpayers will also not be able to carry forward certain losses for set-off in the future years.

Source- ET

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