Types of ITR in India

Filing Income Tax Returns (ITR) is an essential obligation for taxpayers in India. The government has categorized different types of Income Tax Returns based on the nature of income and the taxpayer's category. Understanding the different types of Income Tax Returns helps taxpayers choose the appropriate form for compliance. Below is a detailed overview of the various Income Tax Returns applicable in India.

1. ITR-1 (Sahaj) – For Salaried Individuals

ITR-1 is meant for resident individuals earning income from:

• Salary or pension

• One house property

• Other sources like interest income

• Total income up to ₹50 lakh

This type of Income Tax Return is the simplest form for salaried individuals who do not have capital gains or business income.

2. ITR-2 – For Individuals and HUFs (Without Business Income)

ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) who earn income from:

• Salary or pension

• More than one house property

• Capital gains (sale of property, shares, etc.)

• Foreign income and assets

This Income Tax Return is used by those who do not have income from business or profession.

3. ITR-3 – For Individuals and HUFs with Business Income

ITR-3 is for individuals and HUFs who have income from:

• Business or profession

• Partnership firm (as a partner, not proprietor)

• Capital gains, multiple house properties, and other sources

This Income Tax Return is more detailed and includes disclosures about profit and loss, assets, and liabilities.

4. ITR-4 (Sugam) – For Presumptive Taxation

ITR-4 is for small businesses and professionals opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE. It applies to:

• Individuals, HUFs, and firms (excluding LLPs)

• Businesses with turnover up to ₹2 crore

• Professionals with gross receipts up to ₹50 lakh

This Income Tax Return simplifies filing for small taxpayers who declare income on a presumptive basis.

5. ITR-5 – For Partnership Firms and LLPs

ITR-5 is meant for:

• Partnership firms

• Limited Liability Partnerships (LLPs)

• Associations of Persons (AOPs) and Body of Individuals (BOIs)

This Income Tax Return does not apply to individuals or companies.

6. ITR-6 – For Companies (Other Than Exempt Entities)

ITR-6 is exclusively for companies that are not eligible for exemption under Section 11 (income from property held for charitable purposes). It is mandatory for businesses that are registered as companies under the Companies Act.

7. ITR-7 – For Trusts, Political Parties, and NGOs

ITR-7 is filed by entities claiming exemptions under Sections 139(4A), 139(4B), 139(4C), and 139(4D). It applies to:

• Charitable and religious trusts

• Political parties

• Educational institutions

• Research associations and other specified entities

This Income Tax Return ensures transparency in tax filings for non-profit organizations.

Conclusion

Choosing the correct Income Tax Return form is crucial for accurate and hassle-free tax filing. The selection depends on the taxpayer’s income sources and structure. Filing the correct Income Tax Return on time helps avoid penalties and ensures compliance with tax laws in India. Consulting a tax expert can simplify the process and provide clarity on the best filing approach.