ITR FORMS: Who can use which form??

Income Tax Department has come up with many changes with regard to filing Income Tax Return for the Assessment year 2013-14 relating to the financial year 2012-13, one of most important of those is applicability of ITR forms for various assessees. Applicability of these forms depends on tax payer’s source of income. It is thus important to know the relevance of each of these forms.

ITR-1 SAHAJ

ITR–1 Form is to be used by an Individual having income from following sources:
- Income from Salary/ Pension
- Income from One House Property (not being brought forward losses from previous years)
- Income from Other Sources (not being income from lottery or race horses
Moreover, in case any income of spouse, minor child, etc. gets clubbed with the income of the assessee, then ITR–1 can be used only if the clubbed income falls into the above income source.

Note: ITR-1 can be filed only if Exempt Income (Section 10) is less than Rs. 5,000. Else, ITR-2 needs to filed.

ITR-2

This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year includes:-

(a) Income from Salary / Pension; or

(b) Income from House Property; or

(c) Income from Capital Gains; or

(d) Income from Other Sources (including Winning from Lottery and Income from Race Horses). Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

ITR-3

This form is to be used by a person being an Individual or HUFs who is a partner in a firm whose income chargeable to income-tax under the head “Profits or gains of business or profession” should not include any income except the income stated below:
- Interest
- Salary
- Bonus
- Commission or
- Remuneration
By whatever name called, due to, or received by Individual or HUF from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm shall use this form only and not Form ITR-2.

ITR 4S SUGAM

It is applicable for small businessmen and professionals covered under presumptive taxation under section 44AD & 44AE of the Act is used for computation of business Income:
- Salary/Pension
- One House Property
- Other Sources
Moreover, in case any income of spouse, minor child, etc. gets clubbed with the income of the assessee, then ITR-4S can be used only if the clubbed income falls into the above income source. Also, the above income will be deemed to be computed after considering every losses, allowances, depreciation, etc.

Return in ITR-4S cannot be filed by a person who:
Is a resident Individual or a HUF (other than not ordinarily resident in India) deriving income as referred to in section 44AD or 44AE, and has:
a)Any asset (including financial interest) located outside India;
Signing authority in any account located outside India;
b) Has claimed any relief of tax under section 90, 90A or 91;
c) Has income exceeding Rs. 5,000 which is not chargeable to tax. In other words, if assessee claims exemption in respect of any income under sections 10, 10A, 10AA, etc.

ITR-4

ITR-4 Form is used by an Individual or HUF who is carrying out a proprietary business or profession and who are not filing Return under Presumptive Taxation Scheme. The following income can be included in ITR-4 form:
- Income from Salary/Pension
- Income or Losses from House property
- Income from Business Profession
- Income or Losses from Capital gains
- Income or Losses from Other Sources
Moreover, every Partnership firms, Individuals & HUF having their tax audits mandatory u/s 44AB is required to file their ITR-4 Electronically using digital signature.

ITR-5

This Form can be used a person being a firm, AOP, BOI, artificial juridical person referred to in section 2(31) (vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4) (a) or 139(4) (a) or 139(4) (b) or 139(4) (c) or 139(4) (d) shall not use this form.

ITR-6

ITR-6 can be used by a company, other than a company claiming exemption under section 11.

ITR-7

ITR 7 Form can be used by persons including companies who are required to furnish return under:
- Section 139(4A) : Filing return by charitable/Religious trust
- Section 139(4B) : Filing return by political party
- Section 139(4C) : Filing return by certain Institutions
- Section 139(4D) : Filing return by Scientific Research University
No documents are required to be affixed with any ITR Forms. ITR Forms can be filed either manually or electronically, with or without digital signature, with the Income Tax Department.

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