Explore the ITR forms for AY 2023-24. From individuals, and HUFs, to firms & LLPs. Discover criteria like income sources, resident status, foreign assets & more
What is ITR?
The Income Tax Return (ITR) is a form where taxpayers report their income and the tax due to the tax department. To date, the department has released 7 forms, from ITR-1 to ITR-7. Each taxpayer must submit their ITR by a set deadline.
The Income Tax Return (ITR) is a key document for Indian taxpayers. It allows individuals and businesses to clearly report their financial dealings for a year.
Declaration of Income:
This aspect of the ITR requires the taxpayer to detail all their sources of income in the given year. This includes earnings from salary, business profits, income from house property, capital gains, and other sources. This comprehensive listing ensures transparency and is the base upon which tax calculations are made.
Deductions Claimed:
Deductions play a pivotal role in reducing the total taxable income, and consequently, the amount of tax payable. Under various sections of the Income Tax Act, taxpayers can claim deductions for specific investments, expenditures, and charitable activities. By mentioning these deductions in the ITR, taxpayers can ensure they aren’t overpaying their taxes.
Tax Payments:
The ITR isn’t just about reporting earnings; it’s also about confirming that the taxpayer has paid the correct amount of tax due. In the ITR, taxpayers mention details of taxes paid, whether as Tax Deducted at Source (TDS), Tax Collected at Source (TCS), or as advance or self-assessment tax payments.
Reporting and Accountability:
The act of filing an ITR is also an act of accountability. By submitting this document, taxpayers are affirming that they’ve accurately and honestly reported their income and deductions. This makes it easier for the government to track financial activities, ensure compliance with tax laws, and maintain a transparent financial system.
Calculation of Tax Liability:
After considering the reported income and subtracting the deductions, the ITR form helps in calculating the final tax liability. If there’s any tax due, the taxpayer needs to pay it. Conversely, if they’ve paid excess tax, they can claim a refund.
Why should you file ITR?
Filing the Income Tax Return (ITR) comes with a multitude of benefits and responsibilities:
Income Tax Refunds: If you’ve paid more tax than you owe, filing an ITR allows you to claim a refund from the income tax department.
Foreign Assets & Earnings: For those who have earned from or invested in foreign assets during the fiscal year, filing an ITR is a requirement. It ensures transparency and legal compliance regarding international transactions.
Loan and Visa Applications: When you apply for a visa or a loan, having a record of your filed ITRs can be beneficial. It serves as proof of your financial stability and integrity.
Business and Profit/Loss: For companies or firms, filing an ITR is mandatory, whether they make a profit or incur a loss. It provides a clear financial trail for businesses.
Carrying Forward Losses: Business or capital gains losses? These can be carried forward to offset future gains, but only if you file your ITR before the due date.
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When is it mandatory to file income tax returns (ITR) in India?
The mandate to file an ITR in India hinges on a few conditions:
Gross Income Limits:
- Individuals below 60 years: ₹2.5 lakh.
- Individuals between 60 to 80 years: ₹3.0 lakh.
- Individuals above 80 years: ₹5.0 lakh.
Bank Deposits:
- Current account deposits exceeding ₹ 1 crore in a year.
- Savings account deposits over ₹ 50 lakh in a year.
Expenditures:
- More than ₹2 lakhs spent on foreign travel for oneself or others.
- Electricity bills exceeding ₹1 lakh in a year.
- TDS/TCS Thresholds: Filing is required if the tax deducted or collected at source surpasses ₹25,000 in a year. For senior citizens above 60, this limit rises to ₹ 50,000.
Business Metrics:
Businesses with a turnover, sales, or gross receipts surpassing ₹60 lakh in a year.
Professional Income:
- Those engaged in a profession with gross receipts over ₹ 10 lakh in the previous year need to file an ITR.
- Being aware of these guidelines and consistently filing your ITR ensures you remain in good standing with the tax authorities and can avail the full benefits and protections of the law.
Which ITR to File?
| ITR Form | Who Should Use? | Specific Conditions | Who Shouldn’t Use? |
| ITR-1 (Not explicitly named) | Individuals with Ordinarily Resident status | – Gross income up to ₹50 lakhs – Income from wages, single house, other sources up to ₹5,000 – Equivalent income from partner or minor combined with taxpayer | – Non-residents – Residents with income over ₹50 lakh – Directors of a company – Holders of unlisted equity – Those with losses under “profits from house property” – Income from foreign sources and properties |
| ITR-2 (Not explicitly named) | Non-residents / Residents but Not Ordinarily Residents / Ordinarily Residents; Hindu Undivided Family (HUF) | – Gross income over ₹50 lakh – Income from various sources like wages, multiple houses, capital gains – Income from foreign sources and properties | – Directors of a company – Holders of unlisted equity |
| ITR-3 (Not explicitly named) | Individuals / HUFs with income from a profession or business | Includes partners in firms | Individuals or HUFs without income from profession or business |
| ITR-4 (Not explicitly named) | Individuals, HUFs, and firms (other than LLPs) | Income from profession or business on a “presumed basis” | – Directors of companies – Holders of unlisted shares |
| ITR-5 (Not explicitly named) | All entities except individuals, HUFs, or companies filing ITR-7 (e.g., LLPs) | – | Those aiming to be exempted from tax on charitable or religious trust income |
| ITR-6 (Not explicitly named) | Except those explicitly omitted | – | All companies |
| ITR-7 (Not explicitly named) | Individuals, HUFs, or companies | Entities like charitable trusts, political parties, research organisations, hospitals, universities, colleges, NGOs, etc. | Others not listed |
ITR-1 OR SAHAJ
The Return Form is designed for resident individuals for AY 2023-24 with:
- Earnings from Salary/Pension;
- Revenue from a Single Property (except when there’s a carried-over loss from prior years);
- Other Income types, excluding Lottery Winnings and Race Horse Profits;
- Farming income not exceeding ₹5,000.
Who Cannot Use the ITR-1 Form?
- Your income exceeds ₹50 lakh.
- Farming income surpasses ₹5,000.
- You have taxable gains from capital.
- You earn from business or a profession.
- You have income from multiple properties.
- You’re a company director.
- You invested in unlisted stocks during the year.
- You own overseas assets or have foreign account authority.
- You’re a non-ordinary resident or non-resident with foreign earnings.
- You’re accountable for another’s income where tax was deducted at their end.
- Tax was deducted under Section 194N.
- Tax on your ESOP was deferred or tax payment delayed.
- You have losses to carry forward or report.
ITR-2
For:
- Individuals/HUFs with:
- Salary or pension income
- House property income
- Other income (lottery & race horse winnings included)
- Directorship in a company
- Unlisted equity investments during the year
- Non-ordinary or non-resident status
- Capital gains
- Foreign income
- Agricultural income > ₹5,000
- Overseas assets/accounts
- Tax deductions under Section 194N
- Deferred ESOP tax
- Carryover losses
- When another’s income is combined with the assessee’s if the income falls in these categories.
- Income can be > ₹50 Lakhs
Who Cannot Use the ITR-2 Form?
Income from Business or Profession (use ITR-3 or ITR-4 for that)
ITR-3
For:
- Individuals/HUFs with:
- Business or professional income
- Directorship in a company
- Unlisted equity investments during the year
- Additional income sources like house property, salary, etc.
- Partnership firm income
- Those ineligible for ITR-1, ITR-2, ITR-4.
ITR-4 (Sugam)
For:
Residents with:
- Presumptive business income (under section 44AD or 44AE)
- Presumptive professional income (under section 44ADA)
- Salary or pension ≤ ₹50 lakh
- Single house property income ≤ ₹50 lakh (excluding losses)
- Other sources ≤ ₹50 Lakh (excluding lottery, race-horses)
- Freelancers with gross receipts ≤ ₹50 lakhs
Who Cannot Use the ITR-4 Form?
- Income > ₹50 lakhs
- Multiple house property incomes
- Foreign assets/accounts
- Directorship in a company
- Unlisted equity investments
- Non-ordinary or non-resident status
- Foreign income
- Tax responsibilities for another’s income
- Deferred ESOP tax
- Carryover losses
ITR-5
For:
Firms, LLPs, AOPs, BOIs, AJPs, Deceased estates, Insolvent estates, Business trusts, Investment funds.
ITR-6
For:
Companies, excluding those with exemptions under section 11.
ITR-7
For:
- Entities filing returns under sections: 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F).
- Includes trusts, political parties, research associations, news agencies, specific institutions & funds, universities, colleges, business trusts, and investment funds.
How many types of ITR forms are available for individuals?
For individuals, there are a total of seven forms available for filing income tax returns, which include ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7.
What are the ITR forms that can be used by firms and companies?
Firms and companies have the option to utilise ITR-5, ITR-6, and ITR-7 forms for submitting their income tax returns.
Is it necessary to attach documents with ITR form?
Whether you choose to file ITR forms manually or electronically, there is no requirement to submit any documents such as proof of investment or TDS certificates. However, it is essential to retain these documents and provide them to the tax authorities if requested during assessments or inquiries.
What is the password to open ITR-V?
The password is formed by combining your PAN number and date of birth. It should consist of the last five digits of your PAN followed by the DDMMYYYY format of your date of birth.
How many times can the revised return be filed?
You have the option to file the revised return multiple times within the one-year time limit before it expires.
Which ITR for which income?
ITR 1 is designated for individuals who have income from salary/pension and other sources.
Who can file ITR 3?
Individual taxpayers or Hindu Undivided Families (HUFs) who earn profits and gains from a business or profession can file ITR 3.
What amount of penalty is charged in case TDS return is not filled within due date?
If the TDS return is not filed within the specified timeframe, a penalty ranging from ₹ 10,000 to ₹ 1 lakh can be levied.
Can I edit ITR forms once submitted?
In case any incorrect statements or mistakes are made while filling ITR forms, a revised return can be filled out and submitted through the e-filing portal.
Will I have to pay some additional tax while filing my ITR if my salary is still subject to TDS?
The amount of tax deducted at source (TDS) may differ from the actual tax liability on the income earned. TDS rates are predetermined percentages applied to payments, while the income tax is calculated based on slab rates. If the TDS deducted is lower than expected, you will need to pay the remaining tax amount. Conversely, if the TDS deducted is higher than necessary, you are eligible for a refund. It is important to calculate your total annual income from all sources and determine the tax payable or claim any rebates after filing your ITR.
How do I get a tax refund and a TDS refund under Section 87A of the Internal Revenue Code?
If your net income after deductions and allowances is below ₹ 5 lakh, you will be eligible for a refund of the taxes you have paid. The maximum refund amount you can receive is ₹ 12,500. In such a situation, you may qualify for a refund of the TDS deducted from your earnings.
May I file an ITR if I have a loss from a job, a home, or the selling of stock?
Yes, you can file an ITR even if you have incurred a loss from a company, a stock sale, or interest charged on a home loan. Filing an ITR enables you to carry forward the loss and set it off against future income in subsequent years. However, it is important to note that you must file your ITR on or before the deadline.
How will I find out if my IT refund has been processed?
You can verify the status of your income tax refund by visiting the website https://tin.tin.nsdl.com/oltas/refund-status-pan.html.
How many types of ITR forms are available for individuals?
For individuals, there are a total of seven forms available for filing income tax returns, which include ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7.
What are the ITR forms that can be used by firms and companies?
Firms and companies have the option to utilise ITR-5, ITR-6, and ITR-7 forms for submitting their income tax returns.
Is it necessary to attach documents with ITR form?
Whether you choose to file ITR forms manually or electronically, there is no requirement to submit any documents such as proof of investment or TDS certificates. However, it is essential to retain these documents and provide them to the tax authorities if requested during assessments or inquiries.
What is the password to open ITR-V?
The password is formed by combining your PAN number and date of birth. It should consist of the last five digits of your PAN followed by the DDMMYYYY format of your date of birth.
How many times can the revised return be filed?
You have the option to file the revised return multiple times within the one-year time limit before it expires.
Which ITR for which income?
ITR 1 is designated for individuals who have income from salary/pension and other sources.
Who can file ITR 3?
Individual taxpayers or Hindu Undivided Families (HUFs) who earn profits and gains from a business or profession can file ITR 3.
What amount of penalty is charged in case TDS return is not filled within due date?
If the TDS return is not filed within the specified timeframe, a penalty ranging from ₹ 10,000 to ₹ 1 lakh can be levied.
Can I edit ITR forms once submitted?
In case any incorrect statements or mistakes are made while filling ITR forms, a revised return can be filled out and submitted through the e-filing portal.
Will I have to pay some additional tax while filing my ITR if my salary is still subject to TDS?
The amount of tax deducted at source (TDS) may differ from the actual tax liability on the income earned. TDS rates are predetermined percentages applied to payments, while the income tax is calculated based on slab rates. If the TDS deducted is lower than expected, you will need to pay the remaining tax amount. Conversely, if the TDS deducted is higher than necessary, you are eligible for a refund. It is important to calculate your total annual income from all sources and determine the tax payable or claim any rebates after filing your ITR.
How do I get a tax refund and a TDS refund under Section 87A of the Internal Revenue Code?
If your net income after deductions and allowances is below ₹ 5 lakh, you will be eligible for a refund of the taxes you have paid. The maximum refund amount you can receive is ₹ 12,500. In such a situation, you may qualify for a refund of the TDS deducted from your earnings.
May I file an ITR if I have a loss from a job, a home, or the selling of stock?
Yes, you can file an ITR even if you have incurred a loss from a company, a stock sale, or interest charged on a home loan. Filing an ITR enables you to carry forward the loss and set it off against future income in subsequent years. However, it is important to note that you must file your ITR on or before the deadline.
How will I find out if my IT refund has been processed?
You can verify the status of your income tax refund by visiting the website https://tin.tin.nsdl.com/oltas/refund-status-pan.html.
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