What Is ITR?

ITR stands for Income Tax Return. The Income Tax Act of 1961 governs all forms and procedures RTI must follow. An Income Tax Return (IRI) is a form in which a taxpayer submits information about their earned income and applicable taxes to the Income Tax Service. The ministry has announced 7 different forms, i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 so far. Each taxpayer must file their ITR no later than the stated due date. The applicability of ITR forms varies depending on the taxpayer’s source of income, the amount of income earned, and the type of taxpayer such as individual, HUF, corporation, etc.

 

Different Types Of ITR Forms To File 

Why file an ITR?

An Income Tax Return (ITR) is required to be filed in India if any of the conditions mentioned below apply to you:  

 1. If your gross annual income is above the basic exemption ceiling as set out below 

ParticularsAmount
For individuals below 60 yearsRs 2.5 Lakh
For individuals above 60 years but below 80 yearsRs 3.0 Lakh
For individuals above 80 yearsRs 5.0 Lakh

 2. If you want to receive an income tax refund from the National Tax Service.

 3. Whether you earned or invested in foreign assets during the year. 

 4. If you want to apply for a visa or a loan 

 5. Taxpayers are corporations or companies, regardless of profit or loss. 

Additionally, you are required to show an ITR even if your income is below the basic exemption ceiling but you meet one of the following conditions: 

Have deposited a total amount of more than Rs.1 crore into one or more checking bank accounts; Where 

Have incurred a total cost of more than Rs 2 lakh for travelling abroad for yourself or any other person; Where 

Has incurred a total expenditure of more than Rs 1 Rs for electricity consumption.

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Types of ITR forms to file 

ITR-1 

This tax return is for residents whose total income for  2021-22 includes: 

  •  Income from salary/pension; 
  •  Income from one-house properties (except when losses from the previous year are carried forward). Also 
  •  Income from other sources of income (excluding lottery prizes and racehorse income) 
  •  Agricultural income up to Rs.5000.  

ITR 2 

 ITR 2 is intended for use by individuals or Hindu undivided families (HUFs), and the total income for  2021-22 includes 

  •  Income from salary/pension; 
  •  Income from homeownership; 
  •  Income from other sources of income (including lottery prizes and racehorse income). 

 (The total income from the above must be at least 50,00,000 rupees) 

  •  For individual directors of the company 
  •  If you invest in the unlisted stock at any time during the fiscal year 
  •  resident not ordinarily resident (RNOR) and non-resident 
  •  Income from capital gains; 
  •  Foreign assets / foreign income 
  •  Agricultural income of over 5,000 rupees 

You can also use this tax return if you want to pool the income of another person, such as your spouse or child,  with the income of the assessor, and if that income falls under any of the above

ITR3 

The current ITR3 form is used when an individual or an undivided Hindu family earns income from their business or is engaged in a profession. Those with income from the following sources of income are eligible to submit ITR3. 

  •  Exercise trade and profession 
  •  For individual directors of the company 
  •  Investing in unlisted stocks at any time during the fiscal year 
  •  Revenue may include income from homeownership, salary/pension, and income from other sources of income 
  •  Income of a person as a shareholder of a company. 

ITR4 

Current ITR4 applies to individuals, HUFs, and partnerships (excluding LLPs) who are residents and whose total income includes: 

  •  Business income according to an estimated income schedule based on Section 44AD or 44AE 
  •  Section 44ADA  Employment Income According to Estimated Income Schedule Based on 
  •  Income from salary or pension up to Rs.50lakh 
  •  Rs.50  Income from homes (excluding loss carried forward or loss carried forward) 
  • Income from other sources whose income does not exceed 50lakh (excluding lottery and racehorse income) 

Please note that individuals who are freelancers who earn from the above sources of income can also choose an estimation scheme if their total income is less than 50 lakh 

Estimated income systems based on Sections 44AD, 44AE, and 44ADA exist if an individual or group chooses to withdraw income on an estimated basis. About ownership of commercial vehicles. However, taxpayers are required to submit ITR3 if the business sales exceed 2 crores. 

ITR5 

ITR 5 is for companies, limited liability partnerships (LLPs), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), deceased estates, managers’ estates, business trusts, and mutual funds. 

ITR6 

For companies that are not claiming tax exemption under section 11 (income from property held for charitable or religious purposes), this declaration must be submitted electronically. 

ITR7 

For individuals, including individuals who need to make a declaration under Section 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D) or Section 139 (4E) or Section 139 (4F). .. 

The tax return for Section 139 (4A) must be filed by a person who receives income from a trust or other legal obligation held in whole or in part for charitable or religious purposes. If the general receipt exceeds the maximum amount not due to income tax without applying the provisions of Article 139A, the Article 139 (4B) Declaration must be submitted by a political party.

Returns under Section 139 (4C) must be submitted by each person – 

Scientific Research association; 

News agency; 

An association or institution as defined in Section 10 (23A). 

Section 10 (23B) Institution referred

A fund or institution or university or other educational institution or hospital or other medical institution. 

The statement in Section 139 (4D) must be submitted by a university, university, or other entity that does not need to submit a statement of income or loss under the other provisions of this section. 

Statements under Section 139 (4E) must be submitted by a certified accountant who does not need to submit an income statement under the other provisions of this section. 

The Declaration of Section 139 (4F) must be submitted by each mutual fund mentioned in Section 115UB. The other provisions of this section do not require the submission of a refund of income or loss.