File Income Tax Return

An income tax return file is an electronic document used to report your annual earnings to the government. File income tax return; it details all your taxable income sources, such as wages, investments, and self-employment income. You’ll also report any deductions and credits you qualify for, which can reduce your tax liability. This file allows you to calculate your final tax owed or determine if you’re due a refund. Most countries require electronic filing nowadays, making this a secure and convenient way to fulfill your tax obligations.

How to file income tax return online?

If we select the wrong form, then our ITR return will be wrong. How to file an income tax return is a very important topic these days. But to understand the filing procedure, we should know the exact form that we need to select according to our sources of income. Therefore, it is the first step to know or understand which income tax filing form is applicable to us. Therefore, in detail, we are discussing that.

What are the forms to file an income tax return?

ITR is a form through which the assessee communicates the details of income, deductions claimed, and taxes paid in a financial year to the Income Tax Department. It also allows you to carry forward the losses and claim a refund from the Income Tax Department.

Who should file an income tax return?

Individuals who earn income above a certain threshold limit are generally required to file an Income Tax Return (ITR). Individuals whose total income exceeds the basic exemption limit: For the financial year 2022-2023 (AY 2023-2024), the basic exemption limits for filing ITR in India were as follows:

1. Age of individual below 60 years of age: ₹2.5 lakh.
2. Individuals between 60 and people older than 70 years of age: ₹3 lakh.
3. Age of individual more than people older than 70 years of age: ₹5 lakh.

If your total income (before deductions) exceeds these thresholds, you are required to file an ITR:

1. Individuals with certain types of income:  Regardless of the income threshold, certain individuals are required to file an ITR in India, including.
2. Individuals who have earned income from PGBP (business or profession).
3. Individuals who have earned income from capital gains, such as sale of property or investments.
4. Individuals who have earned income from foreign assets or have foreign income.
5. Individuals who are claiming a refund of taxes.
6. Individuals who are eligible for relief or deduction under double taxation avoidance agreements.

How many types of ITR forms are there?

ITR 1 or SAHAJ for FY 2022–23

Who can file income tax return online?

This form is for a resident individual whose total income includes:

• Income earned from a salary or pension.
• Income from other sources, excluding income from winning a lottery or income from owning and maintaining race horses, is taxable under section 115BBDA (dividend income exceeding 10 lakh and tax at 10%) or section 115E.
• However, income from One House Property, in this form, the loss brought forward from previous years or carried forward of losses, are not eligible.
• Income from agriculture activities up to Rs 5000.
• The total income of the individual should not be more than 50 lakhs.

Who cannot file income tax return 1 (Sahaj)?

• Non-Resident.
• Not ordinarily resident.
• Person having a business or profession.
• Anyone with a total income exceeding Rs 50 lakhs.
• If you own more than one house.
• Income arising from winnings from lottery races, horse races, speculation income, or gambling.
• An assessee has capital gains income.
• Individuals having financial interest in assets located outside India, which includes any signing authority for accounts held outside India.
• Person having foreign income or claiming relief under 90/90A/91 for taxes paid in a foreign country.
• Loss of income from other sources.
• One who desires to carry forward or bring forward loss under income from house property.
• An individual who holds the position of director in a company.
• An individual who has held any unlisted equity shares at any time during the previous year.
• Agricultural income exceeding Rs. 5,000/-.
• Any claim of credit for TDS in the hands of any other person.
• Any tax has been deducted under Section 194N (cash withdrawal).
• In cases where payment or deduction of tax has been deferred on ESOP.

ITR 2:

Who can file ITR 2?

This form is for individuals or a HUF (Hindu Undivided Family) whose income includes:

• Income from a salary or pension.
• Income from house property (one or more).
• Income from other sources, including income from winning a lottery, income from owning and maintaining a race horse, or income taxable at special rates.
• Persons who had investments in unlisted equity shares at any time during the entire financial year.
• Individual who is a director of a company.
• Individual who is a resident (ROR/RNOR) or nonresident.
• Income earned from capital gains.
• Income from foreign assets or other foreign income.
• Agricultural income greater than Rs 5,000/-.
• Incomes where clubbing provisions are applicable.
• Individual having a financial interest in assets located outside India, which includes any signing authority for accounts held outside India.
• One who desires to carry forward or bring forward loss under income from house property.
• Any tax has been deducted under Section 194N.
• In cases where payment or deduction of tax has been deferred on ESOP.
• Total income can exceed 50 lakhs in this ITR form.

Who cannot file ITR 2?

• Individual or HUF whose accruing income is from business or profession.
• Partner of a partnership firm having income from the partnership.

ITR 3

1. Who can file ITR 3?

This form is to be used by either an individual or a Hindu Undivided Family who are carrying on profession or a business. The following people are eligible to fill this form:

• The residential status can be either non-resident or resident (ROR/RNOR).
• If a person is the director of the company.
• Persons who had investments in unlisted equity shares at any time during the entire financial year.
• Income from other sources.
• Income of a person who is a partner in a firm.
• Income from a salary or pension.
• Income from house property (one or more).
• Total income can exceed 50 lakhs in this case.
• Income earned from capital gains or foreign assets/foreign income.
• Who has income under the head profits or gains of business or profession and who is not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam).
• How to file ITR, In short, individuals or HUFs who are not eligible to file ITR-1, ITR-2, and ITR-4 should file ITR-3.

2. Who cannot file ITR 3?

• Companies.
• Trusts.
• Co-operative Society.
• Local Authority.
• Artificial Juridical Person.
• Firms, including LLPs.
• AOP, BOI.

3. Who can file ITR 4?

• This form is applicable to both resident individuals and HUFs.
• Other than LLPs, all partnership firms are residents and have an income that is either professional or from business.
• Those persons who have opted for a presumptive income scheme according to Section 44AD, Section 44AE, and Section 44ADA of the Income Tax Act.
• If the person’s business turnover exceeds Rs. 2 crores, then he is required to file ITR-3 with Audit report and not ITR 4.
• The total income for ITR 4 should not exceed Rs. 50 lakhs.
• Income from One House Property (loss brought forward from previous years or carry forward of losses are not eligible in this ITR Form).
• Income from Salary or Pension.
• Income from other sources. (excluding income from winning a lottery or income from owning and maintaining race horses, income taxable under section 115BBDA or 115BE).

4. Who cannot file ITR 4 (SUGAM)?

• Anyone who maintains books of accounts and is willing to set off expenses with income earned and not want to file as per the 44AD / 44ADA and 44AE provisions, i.e., on a presumptive taxation basis.
• Income earned through capital gains.
• If you own more than one house property, whether let out or self-occupied.
• A person with Agricultural income in excess of Rs 5,000.
• person who is a director of a company.
• Person has held any unlisted equity shares at any time during the previous year.
• Persons having financial interest in assets located outside India, which includes any signing authority for accounts held outside India.
• Income arising from lottery winnings, owning and maintaining race horses, gambling, or speculating income.
• Person claiming relief under section 90/90A/91 for taxes paid in foreign country.
• Loss of income from other sources.
• One who desires to carry forward or bring forward loss under income from house property.
• Any claim of credit for TDS in the hands of any other person.
• In cases where payment or deduction of tax has been deferred on ESOP.

ITR-5

Who can file income tax return 5?

The following should be chosen as the ITR-5 form :

• Investment funds.
• Business trusts.
• Estate of insolvent, Estate of deceased.
• Artificial Juridical Person (AJP).
• Body of individuals (BOIs).
• LLPs.
• Associations of Persons (AOPs) and Firms.

Who can not file income tax return 5?

• Individuals.
• HUF.
• Company.
• A person is required to file Form ITR-7, i.e., trusts, etc., claiming the exemption of Section 11.

ITR-6

Who can file income tax return 6?

This form can be used by companies which are not claiming any exemptions under Section 11 (income from property held for charitable or religious purposes) and by a person who is required to file the return in Form ITR-7.

Who can not file income tax return 6?

Section 11 companies are companies formed with charitable or religious purpose.

Person to whom Form ITR-7 is applicable.

ITR-7

Who can file income tax return 7?

Persons, including companies, that are required to file returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E) or Section 139(4F), should choose ITR-7 form. The details against each section is briefed for you below:

• Section 139(4A): The return to be filed in respect of Income from a property, of which the true owner is a trust or such property is held under any other legal obligation. In this case, the income generated should be used only for charitable or religious purposes.
• Section 139(4B): The return to be filed in respect of total Income derived by a Political party.
• Section 139(4C): The below-mentioned entities should file returns under this section.
• Scientific Research Association.
• Educational institutions, hospitals, and other medical institutions.
• Associations and institutions are covered under sections 10(23A) and 10(23B).
• News agencies.
• Others, as may be prescribed.
• Section 139(4D): The returns by colleges, universities, or any other institutions that are not required to furnish returns of income or loss under any other provision under this section.

Who can not file income tax return ITR 7?

Any other person from those specified above cannot report using the ITR 7 Form. From A.Y. 2022–23 onwards, ITR 7 will not be applicable to persons whose income is unconditionally exempt.

External Government Website Link:

MCA | INCOME TAX| SEBI