The income tax department has uploaded all seven forms for e-filing. It is a step in the right direction as it gives you a chance to file your income tax return (ITR) form much before the deadline of July 31st. Having said that, do not delay the process of filing ITR till the last week of July, as you can start it now from the comforts of your home. Here is a guide to help you select the right ITR form Also Read - India Fast Moving From Tax Terrorism to Tax Transparency, Says PM Modi
Who can File ITR 1
• It includes income from salaried income, interest income and income from one house property
• The form is for people with income of up to Rs 50 lakh a year
• It applies when agriculture income is up to Rs 5,000
• The form is not for people who have income from business and profession, or capital gains
• If you have any income or asset outside India during the year, then also the form is not applicable to you. Also Read - I-T Dept Exposes Rs 500 Crore Fake Bill Entry Operation Racket, Raids 42 Locations Across India
Who can File ITR-2
• The form is for people with income of more than Rs 50 lakh a year
• The form is applicable to those who have more than one house property.
• ITR 2 is for those who have any taxable capital gains
• If you have income from business and profession from a partnership firm then the form is applicable
• ITR 2 is not applicable to those who have income under business and profession through a proprietorship firm.
• For people having agriculture income of more than Rs 5,000 Also Read - ITR: Income Tax Return Filing Deadline For FY 2019-20 Extended To Dec 31, Check Details
Who can file ITR-3
• This form is for those who have income from business and profession.
• You can include income from salary, house property, lottery income, interest or any other income in this form.
Who can file ITR-4
• The form is for those who have opted for presumptive income scheme.
• Under ITR 4 people pay income tax based on estimated income as they do not resources to maintain proper books of accounts.
Who can file ITR-5
• Firms, LLPs, Association of Persons and Body of Individuals need to file ITR-5.
• It applies to people other than individual, HUF, company and person filing ITR-7
Who can file ITR-6
• It is for companies not claiming exemption under section 11.
• Section 11 applies to those whose income from property is held for charitable or religious purposes.
Who can file ITR-7
ITR-6 is filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D), Section 139 (4E) and Section 139 (4F).