Income tax Startups

Type of Income Tax Return Forms

Type of income tax return forms Type of income tax return forms

ITR stands for Income Tax Return​, which is a prescribed form containing particulars of income earned by a person during a financial year. It shows the tax liability of the person for the relevant assessment year. The taxes due and paid. Any person can file his income tax return by filing the form issued by the department on the income tax e-filing portal. The following are the type of income tax return forms that is required to be filed by a person.

TYPE OF INCOME TAX RETURN FORMS:

ITR-1(SAHAJ) :

Who can file Who cannot file  
If a person has Income from

–       salary/pension;

–       one house property

–       Income from other sources (cases not excluded)

Non-resident or Not Ordinarily Resident

 

 
This type of income tax return form shall be used in case of clubbing of income

–       If the income to be clubbed belongs to the above categories; and

–       Is not excluded from furnishing in this form

Director of a company

 

 
If total income earned during the year exceeds Rs. 50 lakhs  
If a person has income from more than 1 house property

 

 
If a person has income under the head following heads

–       Income from Business or Profession

–       Capital Gains

–       Income from any source outside India

–       ‘Other sources’ which is taxable at a special rate

 
This type of income tax return form is not to be used, if person has:

–       Agricultural income exceeding Rs. 5,000

–       held unlisted equity shares at any time during the previous year

–       brought forward loss or losses to be carried forward under any head

–       Dividend income received is more than Rs. 10 lakhs

–       As per sec 115BBE; any unexplained income during the year related to cash credit, unexplained investment, expenditure, etc.

 
If a person claims a deduction

–       in respect of royalty from patents or books

–       under section 10AA (business in SEZ) or Part-C of Chapter VI-A

–       deduction under section 57 from income taxable under the head ‘Other Sources'(other than deduction allowed from the family pension)

 
 If a person wants to claim

–       relief under ​section 90 (DTAA) or section 91 (Unilateral Relief)

–       the credit of tax deducted at source in the hands of any other person.

 
 If a person has the following outside India

–       any assets, including financial interest in an entity; or

–       authority to sign any account

 
If a person has any income to be apportioned following provisions of Section 5A (apportionment of income between spouses)  

 

ITR-2 : 2nd type of income tax return form

Who can file Who cannot file  
It is filed by individuals or HUFs who are

–       Directors

–       Shareholders of private companies

–       NRIs

–       Not eligible to file ITR-1

Individuals/HUFs who have income from business or profession i.e. under the head PGBP.

 

 
It is filed by individuals or HUFs who have

–       income from capital gains

–       Income from foreign sources

–       two or more house properties

 
This type of income tax return form shall be used in case of clubbing of income

–       If the income to be clubbed belongs to the above categories; and

–       Is not excluded from furnishing in this form

 

 

ITR-3

Who can file Who cannot file  
This type of income tax return form is used by Individuals/HUFs having income from

–       Business

–       Profession

Persons other than Individual or HUF  
If the person

–       Is a director in a company

–       Held investment in unlisted shares

–       Partner in a firm

Individual or HUF not having income from

–       Business; or

–       Profession

 

 

ITR-4 (SUGAM)

Who can file Who cannot file  
Individual/HUF/Firm (Other than LLPs) who has income from

–       ​Business (under presumptive taxation scheme)

–       Profession (under presumptive taxation scheme)

–       House Property

–       Salary/pension

–       Other sources (not excluded)

If a person is a

–       Non-resident or Not Ordinarily Resident

–       Director of a company

 
This type of income tax return form shall be used in case of clubbing of income

–       If the income to be clubbed belongs to the above categories; and

–       Is not excluded from furnishing in this form

If a person has income from

–       Business or Profession

–       Capital Gain/Loss

–       ‘Other sources’ which is taxable at a special rate

–       Dividend income received is more than Rs. 10 lakhs

–       As per sec 115BBE; any unexplained income during the year related to cash credit, unexplained investment, expenditure, etc.

–       Agricultural income exceeding Rs. 5,000

–       any source outside India

–       speculative business and other special incomes

–       agency business or commission or brokerage

 

 
This type of income tax return form cannot be used, if a person has

–       total income exceeds Rs. 50 lakhs

–       income from more than one House Property

–       held unlisted equity shares at any time during the previous year

–       brought forward loss or losses to be carried forward under any head

–       any income to be apportioned following provisions of Section 5A (apportionment of income between spouses)

 
If a person claims a deduction

–       in respect of royalty from patents or books

–       under section 10AA (business in SEZ) or Part-C of Chapter VI-A

–       under section 57 from income taxable under the head ‘Other Sources'(other than deduction allowed from the family pension)

 
If a person wants to claim

–       relief under ​section 90 (DTAA) or section 91 (Unilateral Relief)

–       the credit of tax deducted at source in the hands of any other person.

 
If a person has the following outside India

–       any assets, including financial interest in an entity; or

–       authority to sign any account

 

Note: If a person maintains all books of accounts and other documents as required and has also obtained a tax audit report. Then ITR-4 is not mandatory. The type of income tax return form to be used in such instance would be ITR-3 or ITR-5

ITR-5

Who can file Who cannot file  
This type of income tax return form is filed by a

–       firm,

–       LLP,

–       AOP,

–       BOI,

–       Artificial Juridical Person,

–       local authority

–       representative assessee u/s160(1)(iii) or (iv),

–       cooperative society,

–       society registered under Societies Registration Act, 1860 or under any other law of any State,

–       trust other than trusts eligible to file Form ITR-7,

–       estate of the deceased person,

–       estate of an insolvent,

–       business trust u/s 139(4E) and investments fund u/s 139(4F).

Persons who are required to file the return as

–       trust section u/s 139(4A); or

–       political party u/s 139(4B); or

–       associations, institutions u/s 139(4C); or

–       ​university, college u/s 139(​4D)

 

 

ITR-6

Who can file Who cannot file
This type of income tax return form is filled by Companies Persons other than a company
Companies claiming exemption u/s 11 i.e. having income from property held for a religious or charitable purpose.

 

ITR-7

Who can file Who cannot file  
All persons who are required to file a return

 

–       trust section u/s 139(4A); or

–       political party u/s 139(4B); or

–       associations, institutions u/s 139(4C); or

–       ​university, college u/s 139(​4D)

All persons who are not mentioned herein.  
Companies claiming exemption u/s 11 i.e. having income from property held for a religious or charitable purpose.    

(FAQs): Type of income tax return forms

Type of income tax return forms    Type of income tax return forms - FAQs

1. How can a person file income tax return online?

Income tax returns can be filed online, using utility software of the department. You can download the utility from the following link: https://www.incometaxindiaefiling.gov.in/downloads/incomeTaxReturnUtilities

2. Which return should be filed by any individual getting salary of Rs. 15 lakhs?

As your salary is less than Rs. 50 lakhs, the type of income tax return form applicable to you would be form ITR-1; also known as SAHAJ.

3. Can I file my return without paying taxes?

You should not file ITR without paying taxes as it will be declared defective and you will be issued notice to correct such mistake.

4. What will happen if I do not file my return on the due date?

The income tax return due date should be adhered to. On the late filing of return, you will have to bear the penalty. The penalty depends on the date return is filed. If a return is filed after the due date but before 31st December, then Rs. 5,000 are charged. In case of further delay Rs. 10,000 shall be charged.

However, only Rs. 1,000 shall be levied on the taxpayers whose income does not exceed Rs. 500,000.

5. Which type of income tax return form is used by Companies to file their returns?

Normally companies must furnish their returns in the form ITR-6. However, companies claiming exemption u/s 11 need to furnish the return in ITR-7.

6. Which type of income tax return form is used by LLPs to file their return?

All LLPs are required to furnish details of their income in ITR-5.

7. My employer has deducted excess tax from my income. Can I claim a refund?

Yes, you can claim a refund of any excess taxes deducted during the year. However, you will have to file your income tax return in a valid form.

8. What is the time limit to revise an Income Tax Return?

Any person can revise the return any number of times, but the time limit shall be the earlier of the following:

  • before the end of an assessment year;
  • or completion of the assessment.

9. Can a belated return be revised?

Yes, from FY 2016-17, a belated return can be revised. However, the same must be revised before the end of the assessment year. However, belated returns filed for previous financial years cannot be revised.

StairFirst is an e-service platform which provides company registration, corporate compliances, income tax-related and other professional services related to startups / new and old businesses. Contact Us for details

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