Confused about which I-T return form to use? Know here
The window to file your income tax returns is ongoing, scheduled to end on July 31. There are different types of Income tax return forms which might be confusing for taxpayers. Moreover, the government has changed requisite forms for Assessment Year 2017-18. Worry not. Here's all you need to know to determine which form you should fill.
Use ITR-1 for income under Rs. 50L
The I-T department has introduced the one-page ITR-1 form, also called Sahaj, which has five parts for general information, income details, claiming deductions, computing tax liabilities, and other relevant details. Use this form if your income sources comprise salary, pension, property on lease and others. However, total income should be under Rs. 50L. You can also club your spouse's or child's income under this.
The ITR-2 clubs three earlier forms
The ITR-2 is a clubbed version of three old ITR forms - 2, 2A and 3. You can use this form if your income sources consist of salary, pension, more than one house, capital gains or other sources like lottery, foreign assets, and agricultural income over Rs. 5,000. This form isn't applicable for those with income from business though.
ITR - 3 extends scope of the earlier form
This form, meant for individuals and Hindu Undivided Families (HUFs), has replaced the old ITR-4. It extends the scope of the earlier form to include self-proprietorship business, professional and partnership income, and agricultural income above Rs. 5,000 as sources of income.
ITR 5 and 6 for firms, societies and more
Firms, Limited Liability Partnerships, Body of Individuals, Association of Persons, artificial judicial persons according to Section 2 (31)(VII), persons according to section 160(1)(iii) or (iv), cooperative societies, registered societies and local authorities should use the ITR-5. On the other hand, companies other than the ones claiming exemption under Section 11 should use ITR-6 to file returns.
ITR-7 reserved for individuals and firms under certain sections
This last form is reserved for individuals and companies who are mandated to file their returns under Sections 139 (4A), (4B), (4C), (4D), (4E) or (4F). Make sure you choose the correct form to file your tax returns out of all these.
