Different Types of ITR Forms You Should Know

The Different Types Of ITR Forms

Before filing an ITR, one should know about the several types of ITR forms. Let us go into the details of each of these forms!

ITR 1-Form

Residents of India who fall into one of the following groups are obligated to fill out and submit the accompanying form:

  • Pensions and regular salaries make up the majority of an individual’s income.
  • The owner of a single-family residence has the potential to generate income from the property. On the other hand, if the losses were carried over from the previous year, it is possible to claim an exclusion.
  • If the income produced through agriculture is less than or equivalent to 5,000 Indian rupees.
  • The most money that may be made from this endeavor is fifty lakh rupees, which is fifty thousand dollars.
  • Additional sources of income, such as those earned from lotteries, horse racing, or other sorts of games of chance.

ITR 2-Form

Individuals who fall into one of the following categories and undivided Hindu families (Huf) are required to fill out an ITR-2 form:

  • It is required that the individual’s annual income be larger than rs. 50,000,000.
  • Both a pension and a salary are two viable options for generating income.
  • Profits are made through the ownership of the residential real estate.
  • A financial windfall is achieved through successful lottery or equine race participation.
  • If the person in question has the director position for a certain business.
  • If the individual’s annual revenue from agriculture is greater than RS. 5,000.
  • A profit has been made as a consequence of gains made on investments.
  • If investments were made in unlisted equity shares during the fiscal year.
  • The sources of revenue are income from foreign countries and assets in foreign countries.

ITR 3-Form

This form must be filled out by hugs and individuals who make their living through a profession or a sole proprietorship. The following types of taxpayers can obtain a copy of form ITR-3:

  • People who derive their income from a profession or an entrepreneurial endeavor.
  • During the fiscal year, the presence or absence of any investments in unlisted equity shares.
  • If the individual is a partner in the business.
  • If the person in question is an active participant on the organization’s board of directors.
  • Suppose your income comes from a pension, salary, rental property, or any other source if your income comes from any other source.
  • The annual income of the company is greater than two crores of rupees.

ITR 4-Form

  • Suppose an undivided Hindu family (HUF), a partnership firm, or an individual residing in India earns money from a profession or business. In that case, they are expected to file tax returns using the form ITR-4. If they do not, they may be subject to penalties and fines.
  • On the other hand, limited liability partnerships (LLPs) are not allowed to select this form of organization as their preferred business structure. Individuals who have already chosen to participate in the presumptive income scheme in line with the terms of section 44ad, section 44ada, and section 44ae of the income tax act 1961 should also decide to file their taxes using this particular form.

ITR 5-Form

The ITR-5 form is required to be filled out by investment funds, business trusts, estates of the insolvent and deceased, artificial juridical persons (AJPS), bodies of people (BOIS), associations of persons (AOPS), limited liability partnerships (LLPs), and firms.

ITR 6-Form

  • This form is required to be filled out by any business that does not make a section 11 exemption claim.
  • Electronic tax return filing is required to comply with this clause for all companies.

ITR 7-Form

This form is obligatory for use by individuals and organizations that have previously submitted tax returns following sections 139(4a), 139(4b), 139(4c), 139(4d), 139(4e), and 139(4f).
The following is a rundown of the specifics regarding the returns that are required to be filed according to each section:

  • Individuals who receive income from property owned by a trust or other legal obligations and who utilize the income only for religious or charitable purposes are required to file tax returns per section 139 of the internal revenue code (4a).
  • A political party must file returns per this section if the income generated exceeds the maximum amount specified in section 139(4b).
  • The following types of entities are required to file tax returns according to section 139(4c):
    Organization for the advancement of scientific research.
    Institutions or associations referred to in section 10(23a).
    – Educational establishments include hospitals, universities, other schools, foundations, and medical schools.
    – Publications and media outlets.
    – Organizations that fall under section 10 (23b).
  • Any college, university, or other institution exempt from reporting revenue or loss must file returns under this section per the provisions of section 139(4d).
  • Following subsection 139(4e), business trusts that do not have to reveal their profits or losses are required to submit tax reports.
  • According to section 139(4f), investment funds are required to be present by section 115UB but are exempt from reporting any income or losses required to file returns.

The Essential Items Of Sources Needed To File The ITR

Before beginning the electronic filing process, you should ensure that you have all the necessary paperwork.

  • Passbooks for savings accounts held at banks and post offices, as well as PPF accounts.
  • Salary slips.
  • Aadhar card & PAN card.
  • Form-16 is a certificate of TDS that will be sent to you by your employer. It will offer details of the payment received from you as well as any TDS deducted from it.
  • Certificates of interest originating from banks and the post office.
  • Form 16B from the buyer, if you have sold a property, which will show the TDS deducted from the amount you gave. Form 16C from your tenant, which will include the details of any TDS deducted on the rent received by you, if any form 26AS, which will be your consolidated yearly tax statement. It includes everything you need to know about the taxes deposited against your PAN.
  • Taxes deducted at source (TDS) by your employer & taxes deducted at source (TDS) by banks.
  • Taxes deducted at source (TDS) by any other organizations from payments given to you;
    Taxes paid in advance by you;
    Taxes paid as a result of your self-assessment;
  • Evidence of the benefits of tax-saving investments.
  • Documentation to support claims for tax deductions under sections 80D through 80U (health insurance premium for self and family, interest on education loan).
  • Financial institution’s mortgage loan statement.

Need expert advice on which ITR to file? Connect us and talk to our experts today!


What exactly are sources of interest income?

Documentation of interest received: the taxpayer must also submit proof or certificate that provides information regarding the amount of interest accrued during the tax year from fixed deposits (FDs) and savings accounts. The individual banks’ net banking apps all make it possible to quickly and conveniently obtain the receipt of such income. It is also possible to receive it directly from the bank in person.

How big of a penalty will there be if the ITR deadline is missed?

Until the previous year, the maximum penalty assessed to taxpayers who missed the deadline for submitting their income tax filings was Rs.10,000. However, the authorities have reduced the fine to a total of Rs.5000 beginning with the fiscal year 2021.