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.
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:
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 is one of the types of ITR forms that specifically suit all individuals and HUF entities falling under the following applicability parameters:
This is one of the types of ITR exclusively for HUF entities and individual taxpayers meeting the required eligibility criteria:
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 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:
This ITR form is ideal for companies to file their tax returns electronically. Here are the eligibility criteria:
All companies and individuals who need to file their returns under the following sections are applicable to file ITR-7:
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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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.
The right form to file is ITR-1 or ITR-2, depending on your total income.
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.
The seven types of ITR forms include the following:
ITR-1 is applicable for individuals earning income below ₹50 lakhs, while ITR-2 is ideal for individuals generating income above ₹50 lakhs.
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.
All individual taxpayers and members of HUF earning an income of less than ₹50 lakhs a year can file ITR-1.
All individual taxpayers and members of HUF earning an income exceeding ₹50 lakhs can file ITR-2.
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.
Category : Tax
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