Journalism of Courage
This is an archive article published on June 27, 2024
ITR filing for FY 23–24: Which form to file—types and eligibility criteria
ITR Filing: There are a total of seven types of income tax return forms available, which are categorised on the basis of individual income. Refer to which ITR form is applicable for one to file to avoid errors, delays, and scrutiny.
Check out types of ITR forms and their eligibility. (Source_ Freepik)
Which ITR form to file in FY 23-24: As we approach the end of another financial year, it’s time for individuals and entities across India to turn their attention to the all-important task of filing their income tax returns (ITR). Income tax is a critical component of our nation’s fiscal framework, providing the government with the resources needed to fund essential public services and drive national development.
At the beginning of the financial year, the Central Board of Direct Taxes (CBDT) released seven distinct ITR forms in April 2024—ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7—to cater to the diverse income sources and taxpayer categories, with a deadline of July 31, 2024 (Wednesday).
As the filing process becomes more streamlined and digitised today, here is all you need to know about different kinds of ITR forms, taxpayers’ eligibility to file the respective ITR form applicable to them, and more.
Understanding the ITR Forms:
ITR-1 (Sahaj):
Eligibility:
The ITR-1 form can be filed by a resident or ordinarily resident individual whose total income from the following sources does not exceed ₹50 lakh:
- Salary or pension
- One-house property
- Other sources
Non-Eligibility:
However, ITR-1 cannot be used by a person who
- Has income or assets originated from outside India
- Has any brought-forward loss or loss been carried forward under any head of income
- Has income from business, profession, or capital gains
ITR-2: Eligibility and non-eligibility
ITR-2 is applicable for individuals or HUFs who do not have income under the heading “Profits and Gains of Business or Profession” and are not eligible for ITR-1.
A person cannot use ITR-2 if they have income like interest, salary, bonus, commission, or remuneration from a partnership firm.
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ITR-3: Eligibility and non-eligibility
Individuals or HUFs having income under the heading “Profits and Gains of Business or Profession” or income from a partnership firm can file ITR-3. However, a person without income from a business or profession cannot use this form.
ITR-4: Eligibility and non-eligibility
ITR-4 is for resident and ordinarily resident individuals with total income up to ₹50 lahks (₹75 lahks in specified cases) from profession or up to ₹2 crore (₹3 crore in specified cases) from business, computed on a presumptive basis under sections 44AD, 44AE, or 44ADA. It can also include income from salary, pension, one-house property, and other sources. ITR-4 cannot be used by a person who:
- Has any asset (including financial interest) been located outside India?
- Has income from any source outside India
- Has any brought-forward loss or loss been carried forward?
- Has income from other sources like winnings from the lottery
- Claims credit of tax deducted at source in the hands of any other person.
Other ITR forms
ITR-5:
Applicable to firms, LLPs, AOPs, BOIs, AJPs, co-operative societies, estates of deceased or insolvents, business trusts, and investment funds, subject to conditions.
ITR-6:
For firms not claiming exemption under Section 11. The due date is October 31 for AY 2023–24.
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ITR-7:
Used by persons, including companies, required to furnish returns under sections 139(4A) to 139(4F).
By familiarising themselves with these ITR forms and their respective eligibility criteria, taxpayers can ensure that they file their returns accurately and on time, avoiding any potential penalties or scrutiny.
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