WHAT IS ITR FILING? TYPES OF ITR FORMS FOR FY 22-23

WHAT IS ITR?

Income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable to the income tax department.

The department has notified 7 various forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every taxpayer should file his ITR on or before the specified due date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category of the taxpayer like individuals, HUF, company, etc.

TYPES OF ITR FORMS

The Income Tax Department in India has designed different types of Income Tax Return (ITR) forms that cater to the various types of income and taxpayers in the country. Here are the types of ITR forms in India:

ITR-1 (Sahaj): This form is applicable for individuals with a total income of up to Rs. 50 lakhs, who earn income from salary, one house property, and interest income from savings account.

ITR-2: This form is applicable for individuals with a total income of more than Rs. 50 lakhs, who earn income from salary, house property, capital gains, or foreign assets.

ITR-3: This form is applicable for individuals and Hindu Undivided Families (HUF) who have income from business or profession.

ITR-4 (Sugam): This form is applicable for individuals, HUFs, and firms (other than LLP) who have presumptive income from business or profession.

ITR-5: This form is applicable for partnership firms, LLPs, AOPs (Association of Persons), BOIs (Body of Individuals), and other similar entities.

ITR-6: This form is applicable for companies not claiming exemption under Section 11 of the Income Tax Act, 1961.

ITR-7: This form is applicable for persons, including companies, who are required to furnish a return under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) of the Income Tax Act, 1961.

It is essential to choose the correct ITR form as per your sources of income and eligibility. It is recommended to take the assistance of a tax expert or a chartered accountant for filing your Income Tax Returns accurately.