Income tax returns: Which form to use to file income tax returns; all details here
ITR forms 2022-23: In February, the Central Board of Direct Taxes (CBDT) released the ITR forms for this fiscal. Taxpayers can file ITR as soon as this financial year ends.
- Mar 29, 2023,
- Updated Mar 29, 2023 3:36 PM IST
Income Tax Returns: April 1, 2023, will mark the start of the new financial year 2023-24. Taxpayers must file their income tax returns by July 31 for the financial year 2022-23. In February, the Central Board of Direct Taxes (CBDT) released the ITR forms for this fiscal. Taxpayers can file ITR as soon as this financial year ends.
There are seven types of ITR forms, ranging from ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7, for different individuals, businesses, and companies. Now, while filing the ITR, the common question arises about which form the taxpayers need to use. ITR-1 and ITR-4 are simpler forms that cater to a large number of small and medium taxpayers.
Here’s a quick look at the different forms that an individual taxpayer can use, as per their type of income and other criteria.
1. ITR 1 (Sahaj): This is the basic ITR form for individual taxpayers with total income up to Rs 50 lakh from salary, one house property, other sources of income like interest, family pension etc., and agricultural income of up to Rs 5,000.
Individuals who have income from outside India, own any asset (including financial interest in any entity) located outside the country, or have tax deducted u/s 194N, cannot use this form.
2. ITR-2: This form is meant for individuals and Hindu Undivided Family (HUF) who are not covered under the ITR-1. The person/HUF will use ITR-2 if they do not have income under the head Profits, Profession or Gains of Business.
3. ITR-3 can be used by individuals or Hindu Undivided Families who have their income under the head “profits or gains of business or profession” and who are not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam).
4. ITR-4 (Sugam): ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) with total income up to Rs 50 lakh and having income from business and profession. These taxpayers have income from Business and Profession, which is computed on a presumptive basis and income from salary/pension, other sources (interest, dividend etc.), one house property, and more”.
5. ITR 5: This form is suitable for bodies such as firms, Body of Individuals (BOIs), Limited Liability Partnerships (LLPs), Artificial Juridical Person (AJP), Association of Persons (AOPs), the estate of insolvent, the estate of deceased, investment fund, business trust, local authority, and co-operative society.
6. ITR 6: This form is to be filed by every company irrespective of its structure registered under the Companies Act 2013 or the earlier Companies Act 1956.
However, the companies whose source of income comes from the property that is held for religious or charitable purposes are not required to file ITR 6 Form.
7. ITR 7: Firms, companies, local authority, association of Person (AOP) and Artificial Judiciary Person are eligible for filing Income Tax Return through ITR-7 Form if they are claiming exemption as one of the following categories: under Section 139 (4A)- if they earn from a charitable /religious trust.
Penalty for not filing ITR
If one fails to file the income tax return by July 31, then he will have time till December 31 to file belated returns and pay a penalty of Rs 5,000.
"The penalty for filing a late ITR is Rs 5,000 but it doubles that amount for later filings. However, if your taxable income is below Rs 5 lakh, the maximum penalty will be Rs 1,000. On the other hand, if the tax evaded exceeds Rs 25 lakh the punishment could be 6 months to 7 years," as per the website of the Income Tax Department.
Also read: Income tax refunds: How to check your refund status if you haven’t received it yet
Also read: New income tax regime to no LTCG tax benefit on debt MFs: 9 big changes in tax rules; details here
Also read: How are new ITR forms different from old ones; all you need to know
Watch: PPF vs Tax-saving FD vs ELSS: Tax Benefits under Sec 80C
Income Tax Returns: April 1, 2023, will mark the start of the new financial year 2023-24. Taxpayers must file their income tax returns by July 31 for the financial year 2022-23. In February, the Central Board of Direct Taxes (CBDT) released the ITR forms for this fiscal. Taxpayers can file ITR as soon as this financial year ends.
There are seven types of ITR forms, ranging from ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7, for different individuals, businesses, and companies. Now, while filing the ITR, the common question arises about which form the taxpayers need to use. ITR-1 and ITR-4 are simpler forms that cater to a large number of small and medium taxpayers.
Here’s a quick look at the different forms that an individual taxpayer can use, as per their type of income and other criteria.
1. ITR 1 (Sahaj): This is the basic ITR form for individual taxpayers with total income up to Rs 50 lakh from salary, one house property, other sources of income like interest, family pension etc., and agricultural income of up to Rs 5,000.
Individuals who have income from outside India, own any asset (including financial interest in any entity) located outside the country, or have tax deducted u/s 194N, cannot use this form.
2. ITR-2: This form is meant for individuals and Hindu Undivided Family (HUF) who are not covered under the ITR-1. The person/HUF will use ITR-2 if they do not have income under the head Profits, Profession or Gains of Business.
3. ITR-3 can be used by individuals or Hindu Undivided Families who have their income under the head “profits or gains of business or profession” and who are not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam).
4. ITR-4 (Sugam): ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) with total income up to Rs 50 lakh and having income from business and profession. These taxpayers have income from Business and Profession, which is computed on a presumptive basis and income from salary/pension, other sources (interest, dividend etc.), one house property, and more”.
5. ITR 5: This form is suitable for bodies such as firms, Body of Individuals (BOIs), Limited Liability Partnerships (LLPs), Artificial Juridical Person (AJP), Association of Persons (AOPs), the estate of insolvent, the estate of deceased, investment fund, business trust, local authority, and co-operative society.
6. ITR 6: This form is to be filed by every company irrespective of its structure registered under the Companies Act 2013 or the earlier Companies Act 1956.
However, the companies whose source of income comes from the property that is held for religious or charitable purposes are not required to file ITR 6 Form.
7. ITR 7: Firms, companies, local authority, association of Person (AOP) and Artificial Judiciary Person are eligible for filing Income Tax Return through ITR-7 Form if they are claiming exemption as one of the following categories: under Section 139 (4A)- if they earn from a charitable /religious trust.
Penalty for not filing ITR
If one fails to file the income tax return by July 31, then he will have time till December 31 to file belated returns and pay a penalty of Rs 5,000.
"The penalty for filing a late ITR is Rs 5,000 but it doubles that amount for later filings. However, if your taxable income is below Rs 5 lakh, the maximum penalty will be Rs 1,000. On the other hand, if the tax evaded exceeds Rs 25 lakh the punishment could be 6 months to 7 years," as per the website of the Income Tax Department.
Also read: Income tax refunds: How to check your refund status if you haven’t received it yet
Also read: New income tax regime to no LTCG tax benefit on debt MFs: 9 big changes in tax rules; details here
Also read: How are new ITR forms different from old ones; all you need to know
Watch: PPF vs Tax-saving FD vs ELSS: Tax Benefits under Sec 80C