Which ITR Form Should You File? Know The Types Of Forms And Their Purposes

Income Tax Return (ITR) is a tool for taxpayers to report earnings and tax payments to the Income Tax Department. The deadline for filing ITR for the financial year 2023-24 is July 31, 2024. However, before filing ITR, taxpayers must assess their tax liability and make payments. For instance, Form 26AS provides information on tax deducted at source (TDS), while Form 16 shows total income and deductions. There are various types of ITR forms available for different situations; here are some of them. Here are types of ITR forms for taxpayers.

ITR 1

Individuals living in India with a total income of up to Rs 50 lakh will need to file ITR 1. They could be salaried individuals or self-employed working from home. Salaried taxpayers can file their ITR using Form 16. However, Form ITR 1 does not apply to non-resident Indians (NRIs).

ITR 2

Form ITR 2 is for individuals and Hindu Undivided Families (HUFs) to report revenue from sources other than their business, job, capital gains, etc. Salaried persons who have profited or lost money from stock transactions can also submit an ITR 2. ALSO READ: ITR Filing: Verify Your Tax Return Within 30 Days To Avoid Penalty—Know More

ITR 3

The ITR 3 form is used to report income from a variety of sources, including employment, real estate, capital gains, business, earnings from stocks, futures and options trading, etc.

ITR 4

Individuals, HUFs, and partnership businesses are subject to presumptive tax. ITR 4 records revenue from enterprises with a turnover of up to Rs 2 crore and professions with a turnover of up to Rs 50 lakh; freelancers can also file Form ITR 4.

ITR 5

Limited Liability Partnerships (LLPs), Association of Persons (AOPs), and Body of Individuals (BOIs) will be required to submit ITR 5 to report earnings from their business, profession, or other income sources.   ALSO READ: Income Tax Refund FY2023-24: Here’s A Step-by-Step Guide To Check The Status

ITR 6

ITR 6 is used by businesses to declare revenue from their industry or activity or any other type of income.

ITR 7

Form ITR 7 is used by corporations, partnerships, and trusts exempted from paying income tax. Here are types of form used to file ITR ALSO READ: What Is Capital Gain Account Scheme And When Will You Need It? All You Need To Know

Form 16

Employees receive a Form 16 TDS certificate from their employers, listing gross pay, exemptions like HRA and LTA, net taxable pay, reported tax-saving deductions, TDS, and other revenue or loss information.

Form 26AS

Form 26AS contains specific tax information deducted at source (TDS) on interest income, earnings from property sales, self-assessment tax or advance tax, and specified financial transactions.

Form 15G & Form H

Form 15G is for persons under 60 with gross taxable income less than the basic exemption threshold, while Form 15H is for senior citizens with zero net salary tax. The taxpayer must apply for both forms.