Income Tax returns: Know which ITR form is relevant for youhttps://indianexpress.com/article/business/banking-and-finance/income-tax-returns-forms-itr-2019-5926647/

Income Tax returns: Know which ITR form is relevant for you

The IT department has notified forms ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 till date. The last date for filing returns for the assessment year 2019-2020 is August 31.

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Every taxpayer needs to file his ITR before the last date.

Income Tax Return (ITR) is a form in which taxpayers file information about their income and tax which is applicable to the income tax department. The IT department has notified forms ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 till date. Every taxpayer needs to file his ITR before the last date. The last date for filing returns for the assessment year 2019-2020 is August 31.

Criteria to file returns in India

A person needs to file returns in India if any of the following conditions are applicable to him/her.

1. If your gross annual income is more than –

Rs 2.5 Lakh (for people below the age of 60 years)

Rs 3 Lakh (for people above the age of 60 years but below 80 years)

Rs 5 Lakh (for people above the age of 80 years)

2. If you have more than one source of income like house property, capital gains etc.

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3. If you want to claim an income tax refund from the department.

4. If you have earned from or have invested in foreign assets during the Financial Year.

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

6. If the taxpayer is a company or a firm, irrespective of profit or loss.

ITR Form types

Below mentioned are the various types of ITR forms.

ITR 1/Sahaj

This form is for a resident individual whose total income for the assessment year includes the following:

1. Income from Salary/ Pension

2. Income from One House Property (excluding cases where loss is brought forward from previous years)

3. Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

4. Agricultural income up to Rs. 5,000

ITR-2

ITR 2 is for the use by an individual or a Hindu Undivided Family (HUF) whose total income for the assessment year 2018-19 includes:

Income from Salary/ Pension

Income from One House Property

Income from Other Sources (including Winning from Lottery and Income from Race Horses)
(Total income from the above should be more than Rs 50 Lakhs)

If you are an Individual Director in a company

If you have had investments in unlisted equity shares at any time during the financial year

Being a resident not ordinarily resident (RNOR) and non-resident

Income from Capital Gains; or Foreign Assets/Foreign income

Agricultural income more than 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.

ITR-3

The Current ITR 3 Form is to be used by an individual or a Hindu Undivided Family who have income from a proprietary business or are carrying on profession. The persons having income from the following sources are eligible to file returns using this form:

Carrying on a business or profession

If you are an Individual Director in a company

If you have had investments in unlisted equity shares at any time during the financial year

The return may include income from House property, Salary/Pension, and Income from other sources

The income of a person as a partner in the firm.

ITR-4/Sugam

The current ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession.

It also includes those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

ITR-5

ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

ITR-6

This form is for Companies other than those claiming an exemption under section 11 (Income from property held for charitable or religious purposes). Please note that this return has to be filed electronically only.

ITR-7

For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).

Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.

Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.

Return under section 139(4C) is required to be filed by every –

Scientific research association;

News agency ;

Association 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 other medical institution.

Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.

Return under section 139(4E) must be filed by every business trust which is not required to furnish return of income or loss under any other provisions of this section.

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Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish the return of income or loss under any other provisions of this section.