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INCOME TAX

ITR- 1

The ITR-1 (Income Tax Return Form 1), also known as Sahaj, is the simplest income tax return form in India, designed for resident individuals with specific types of income

Who Can File ITR-1 ?

You can file ITR-1 if you are a Resident Individual with:

  1. Income up to ₹50 lakh in a financial year.

  2. Income sources:

    • Salary/Pension

    • One House Property (excluding loss carried forward)

    • Other Sources (Interest, Dividends, etc.)

    • Agricultural Income (up to ₹5,000)

Documents Required for ITR-1 Filing

  • Form 16 (if salaried)

  • Bank statements (for interest income)

  • Aadhaar & PAN (mandatory)

  • Rent receipts (if claiming HRA)

  • Home loan interest certificate (if applicable)

  • Investment proofs (for deductions under 80C, 80D, etc.)

Benefits of Filing ITR-1 Early

  • Faster refund processing (if applicable)

  • Avoids last-minute errors

  • Helps in loan/visa approvals

Not Applicable If:

You have capital gains (other than above), foreign assets/income, more than one house property, or are a company director.
 

Purpose: Simplified return for salaried individuals with basic income sources

ITR- 2

ITR-2 is the Income Tax Return form for Individuals and HUFs who do not have income from business or profession but may have other complex income sources like capital gains, multiple house properties, or foreign income.

Who Should File ITR-2?
You must file ITR-2 if you are an Individual or HUF with:

  • Salary/Pension Income

  • Income from more than one house property (including rental income)

  • Capital Gains (Sale of property, stocks, mutual funds, etc.)

  • Foreign Income/Assets

  • Agricultural Income > ₹5,000

  • Income from Lottery, Horse Racing, etc. (Taxed u/s 115BB)

  • Director of a company (even if salary is the only income)

  Documents Required for ITR-2 Filing
 

  • Form 16 (for salaried individuals)

  • Bank statements (interest income, dividends)

  • Capital Gains Statements (from brokers for stocks, mutual funds)

  • Property Sale/Purchase Documents (if capital gains apply)

  • Home Loan Interest Certificates (for multiple properties)

  • Foreign Income/Asset Details (if applicable)

  • Aadhaar & PAN (mandatory)

Purpose: For individuals with more complex income sources (e.g., capital gains, foreign income)

ITR- 3

ITR-3 is the Income Tax Return form for Individuals and HUFs who have income from business or profession, including freelancers, consultants, and business owners. It also covers income from salary, house property, capital gains, and other sources.

Who Should File ITR-3?

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You must file ITR-3 if you are an Individual or HUF with:

  • Income from Business or Profession (Self-employed, freelancers, partners in firms, etc.)

  • Income as a Proprietor (Shop, consultancy, trading, etc.)

  • Income from Salary/Pension (if also having business income)

  • Income from House Property (One or multiple properties)

  • Capital Gains (Sale of property, stocks, mutual funds, etc.)

  • Foreign Income/Assets

  • Income from Lottery, Horse Racing, etc. (Taxed u/s 115BB)

  Documents Required for ITR-2 Filing
 

  • Form 16 (for salaried individuals)

  • Bank statements (interest income, dividends)

  • Capital Gains Statements (from brokers for stocks, mutual funds)

  • Property Sale/Purchase Documents (if capital gains apply)

  • Home Loan Interest Certificates (for multiple properties)

  • Foreign Income/Asset Details (if applicable)

  • Aadhaar & PAN (mandatory)

Purpose: For professionals, freelancers, and business owners

ITR- 4

ITR-4 (Sugam) is the Income Tax Return form for Individuals, HUFs, and Firms (excluding LLPs) with presumptive income from business or profession. It is designed for small businesses, freelancers, and professionals opting for simplified taxation under Sections 44AD, 44ADA, or 44AE.

Who Should File ITR-4?

You must file ITR-4 if you are:

Individual, HUF, or Firm (not LLP)

 

Eligible for Presumptive Taxation under:

  • Section 44AD (Business with turnover ≤ ₹3 Cr*)

  • Section 44ADA (Professionals with income ≤ ₹75 Lakh)

  • Section 44AE (Leasing of trucks/vehicles)

Income Sources:

  • Business/Profession (Presumptive Scheme)

  • Salary/Pension

  • One House Property (No loss carried forward)

  • Other Sources (Interest, Dividends, etc.)

  • Agricultural Income (≤ ₹5,000)

  Documents Required for ITR-4 Filing

  • Bank Statements (Business & Personal)

  • Form 16 (If salaried)

  • GST Returns (If applicable)

  • Presumptive Income Calculation (6%/8%/50% as per scheme)

  • Investment Proofs (Section 80C, 80D, etc.)

  • Aadhaar & PAN (Mandatory)

Not Applicable If:

You have capital gains, foreign income/assets, or more than one house property

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Purpose: Simplified return for small businesses and professionals under presumptive scheme

ITR- 5

ITR-5 is the Income Tax Return form for firms, LLPs, AOPs (Association of Persons), BOIs (Body of Individuals), co-operative societies, trusts, and other entities that are not eligible to file ITR-1 to ITR-4.

Who Should File ITR-5?

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The following entities must file ITR-5:

  • Partnership Firms (including LLPs)

  • Limited Liability Partnerships (LLPs)

  • Association of Persons (AOPs)

  • Body of Individuals (BOIs)

  • Co-operative Societies

  • Trusts (including religious, charitable, or educational trusts)

  • Estate of Deceased Persons

  • Estate of Insolvent Persons

  • Artificial Juridical Persons (AJPs)

  Documents Required for ITR-5 Filing
 

  • Books of Accounts (Profit & Loss Statement, Balance Sheet)

  • Audit Report (if applicable) (Form 3CA/3CB & 3CD)

  • Bank Statements (Business transactions)

  • GST Returns (If registered under GST)

  • Partnership Deed/LLP Agreement (For firms/LLPs)

  • Trust Deed (For trusts)

  • PAN & Aadhaar (of authorized signatory)

Key Features of ITR-5

✔ Applicable to non-corporate entities (Firms, LLPs, AOPs, etc.)
✔ Must disclose all income sources (Business, profession, capital gains, house property, etc.)
✔ Requires detailed financial statements (Profit & Loss, Balance Sheet)
✔ Mandatory audit in certain cases (If turnover exceeds ₹1 Cr for businesses or ₹50 Lakh for professions)

Purpose: For entities other than individuals and companies not filing ITR-7

ITR- 6

ITR-6 is the Income Tax Return form exclusively for companies (except those claiming exemption under Section 11). It must be filed electronally (no paper filing allowed) and requires detailed financial disclosures.

Who Should File ITR-6?

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  • All Companies registered under the Companies Act, 2013/1956

  • Foreign Companies operating in India

  • Companies with or without profit (Including loss returns)

Documents Required for ITR-6 Filing

  • Audited Financial Statements (Balance Sheet, P&L, Notes to Accounts)

  • Tax Audit Report (Form 3CA/3CB & 3CD, if applicable)

  • Board Resolution (Authorizing signatory for e-filing)

  • MAT/AMT Computations (If applicable)

  • Transfer Pricing Report (For international transactions)

  • GST Returns (If registered)

  • Previous Year’s ITR (For carry-forward losses)

Key Features of ITR-6

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✔ Mandatory e-Filing (No offline submission)
✔ Requires audited financials (if turnover > ₹1 Cr)
✔ Detailed disclosures (Balance Sheet, P&L, tax computations)
✔ No presumptive taxation (Must maintain books of accounts)

Filing Mode: Must be filed electronically with Digital Signature Certificate (DSC)

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Purpose: For regular companies (excluding charitable/religious)

ITR- 7

ITR-7 is filed by entities claiming tax exemptions under specific sections of the Income Tax Act, including trusts, political parties, and institutions with special tax status.

Who Should File ITR-7?
 

  • Charitable/Religious Trusts (Exempt under Section 11/12)

  • Political Parties (Exempt under Section 13A)

  • Educational/Medical Institutions (Exempt under Section 10(23C))

  • Scientific Research Associations (Exempt under Section 35)

  • News Agencies/Sports Institutions (Exempt under Section 10(23BBA)

  Documents Required for ITR-7 Filing

  • Trust Deed/Registration Certificate (Section 12A/80G)

  • Audit Report (Form 10B/10BB) (If income > ₹5 lakh)

  • Income & Expenditure Statement

  • Donation Details (For 80G compliance)

  • PAN & Aadhaar of Trustees

  • Bank Statements

Key Features of ITR-7

✔ Mandatory for tax-exempt entities
✔ Requires detailed income & expenditure statements
✔ Audit compulsory if income > ₹5 lakh (Section 12A/80G trusts)
✔ No e-Verification needed (Physical submission to IT Dept.)

Includes: Charitable/religious trusts, political parties, research/educational institutions

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Purpose: For entities claiming exemption under specific sections

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