In the realm of tax filing, the tax department unveils 6 distinctive ITR forms, leaving taxpayers pondering over the suitable selection. These 6 ITR forms cater to diverse taxpayer categories. Now, delve into the intricacies of these 7 forms and their distinct attributes for return submissions.
Filing for ITR 2024: Recently, the Central Board of Direct Taxes (CBDT) made available ITR forms 1, 2, 3, 4, and 6 via the Income Tax Department’s e-filing platform for the fiscal year 2023-24 (AY2024-25).
What constitutes an ITR form and the deadline for filing returns? An income tax return (ITR) form serves as a conduit for taxpayers to furnish comprehensive details regarding their income and tax disbursements to the Income Tax Department for a given fiscal year. Taxpayers are mandated to file their tax returns on or before the stipulated deadline, set for July 31 this year.
Given the array of 6 ITR forms outlined by the tax department, taxpayers often find themselves in a quandary regarding the appropriate choice. These 6 ITR forms are tailored to suit distinct taxpayer demographics. Let’s now explore the specifics of these 7 forms and their unique attributes for return filings.
ITR 1, or SAHAJ This form pertains to individuals who are residents (excluding those who are not ordinarily residents) with a total income not exceeding Rs 50 lakh. It encompasses income from salaries, single house property, miscellaneous sources (interest, etc.), and agricultural income of up to Rs 5,000.
It’s noteworthy that individuals with income from business or profession, or those with income from multiple house properties, are ineligible to file ITR 1.
ITR 2 Applicable to individuals and Hindu Undivided Families (HUFs) devoid of income from business or professional gains. Individuals with income from salary/pension, house property, and other sources are obligated to file ITR 2. Additionally, individuals engaged in share investment, capital gains transactions, or receiving foreign income are also subject to filing ITR 2.
ITR 3 Reserved for individuals and HUFs deriving income from business or professional gains.
ITR 4, or SUGAM Designed for individuals, HUFs, and non-Limited Liability Partnership (LLP) firms, who are residents with a total income not exceeding Rs 50 lakh. It encompasses income from business and professional endeavors computed under sections 44AD, 44ADA, or 44AE, along with agricultural income up to Rs 5,000.
ITR 5 Catering to firms, LLPs, Associations of Persons (AOPs), Bodies of Individuals (BOIs), Artificial Juridical Persons (AJPs), Estates of deceased or insolvent individuals, business trusts, and investment funds.
ITR 6 Exclusive to electronic filing, this form is tailored for companies excluding those availing exemptions under section 11 (pertaining to income from property held for charitable or religious purposes).
