Types of ITR Forms: 7 Forms you must know when filing your returns

Published on: 31 July 2023

There are different types of ITR each taxpayer needs to file for declaring earned income and paying the applicable tax to the Income Tax Department. Before filing your returns, you need to know which ITR to file based on your source of income, your category and the total income you earn. 

There are 7 types of ITR forms notified by the IT Department to date. It is essential for every taxpayer in the country to file their returns using the right ITR form within the prescribed due date.

If you are an individual, you need to file a different form when compared to an entity like a company. These ITR forms contain a taxpayer’s income, expenses and other essential tax details, helping the IT Department and the taxpayer calculate and assess the tax liabilities easily. Filing the returns also aid in claiming tax refunds. 

Read on to understand which ITR form to choose. 

An overview of seven types of ITR forms

ITR-1 or the Sahaj Form

If you are thinking about which ITR to file as a resident individual earning an income of less than or equal to ₹50 lakhs, ITR-1 is the answer. Simply put, all individual taxpayers need to mandatorily file this one amongst the various types of ITR forms. 

Here is a quick snapshot of its applicability:

• All individuals earning income from pension or salary
• Individuals dependent on the income from a single housing property
• Individuals with no income from business or capital gains
• Individuals earning an agricultural income of up to ₹5,000
• Individuals with income from other sources

However, if you are a non-resident Indian or earning income from multiple house properties, you are not eligible to file ITR-1.

ITR-2

ITR-2 is one of the types of ITR forms that specifically suit all individuals and HUF entities falling under the following applicability parameters:

• If your income exceeds ₹50 lakhs
• If your income is generated through capital gains, salary, pension and other sources
• If your agricultural income exceeds ₹5,000
• If you earn income from foreign assets

ITR-3

This is one of the types of ITR exclusively for HUF entities and individual taxpayers meeting the required eligibility criteria:

• Individuals earning income from any profession or business
• Individuals generating income by being a partner in an organisation
• Individuals earning income from investments via unlisted equity shares
• Individuals generating income as a Director of the company

ITR-4 or the Sugam Form

Wondering which ITR form to file as a business owner or professional earning up to ₹50 lakhs? The answer is the Sugam Form. Here is the applicability of this ITR form:

• All individuals generating income from their business
• Individuals who do not earn income through capital gains
• Individuals earning income applicable under ITR-1
• Individuals generating income sources within India
• Individuals without assets or properties in India

ITR-5

All trusts, business firms and other corporate entities must file their returns using this form. Here is a small glimpse of its applicability.

The following entities can file ITR-5:

• Artificial judicial persons
• Co-operative societies
• Limited Liability Partnerships
• Association of Persons
• Body of Individuals
• Business trusts

ITR-6

This ITR form is ideal for companies to file their tax returns electronically. Here are the eligibility criteria:

• All companies that do not claim exemption as per Section 11 of the Income Tax Act
• Income generated from housing property
• Income earned from business income
• Income generated from various sources

ITR-7

All companies and individuals who need to file their returns under the following sections are applicable to file ITR-7:

• Section 139(4A)
• Section 139(4B)
• Section 139(4C)
• Section 139(4D)

However, all individuals generating income from capital gains or salaried individuals are not eligible to file ITR-7. 

Having clarity about these ITR forms helps you file the right form during an assessment year, avoiding the hassles of going through the process again. Similarly, you need to be aware of the various tax benefits you can earn through investments and loans. Knowing the essential details can help you claim tax exemptions and save money.

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FAQs on Types of ITR

Which ITR to file for a salaried person?

ITR-1 or the Sahaj form is ideal for a salaried person earning income below ₹50 lakhs and ITR-2 when earning income above ₹50 lakhs.

Which ITR to file for generating income from salary and share trading?

The right form to file is ITR-1 or ITR-2, depending on your total income.

What are the different types of ITR filing?

There are seven different types of forms to file, out of which the first 4 are applicable to individuals and the rest 3 for companies, trusts and other entities.

What are the types of ITR forms?

The seven types of ITR forms include the following:

• ITR-1
• ITR-2
• ITR-3
• ITR-4
• ITR-5
• ITR-6
• ITR-7

What is ITR-1 vs ITR-2?

ITR-1 is applicable for individuals earning income below ₹50 lakhs, while ITR-2 is ideal for individuals generating income above ₹50 lakhs.

Which one to select: ITR-1 or ITR-4?

If you are an individual earning income of up to ₹50 lakhs, you need to file ITR-1. On the other hand, if you are running a business generating an income of up to ₹50 lakhs, ITR-4 is the form you need to file. 

Who can file ITR-1?

All individual taxpayers and members of HUF earning an income of less than ₹50 lakhs a year can file ITR-1.

Who will file ITR-2?

All individual taxpayers and members of HUF earning an income exceeding ₹50 lakhs can file ITR-2.

Who can file ITR-3?

All individual taxpayers and members of HUF who are operating as partners in a firm and generating income without conducting any business can file ITR-3.