The process of filing Income Tax (ITR) for the financial year 2022-23 (AY 23-24) has started. Generally, it is mandatory for everyone to file ITR by 31st July. Those who come under the ambit of ITR have to submit income tax by filling the form.
Those who are not, those people can also fill the ITR form. It is very useful in taking loan. The Income Tax Return Form (ITR Form) to be filled for this year has been released by the Income Tax Department recently. These forms have become effective from April 1, 2023.
Let us tell you that there are 7 types of ITR forms in the country. Their numbers range from ITR-1 to ITR-7. These forms have been prepared according to people with different income and sources of income. Apart from these, there is also Zero ITR form. For AY 2023-24 (Assessment year 2023-24), if a person’s annual income is above Rs 2.5 lakh according to the old tax slab or above Rs 3.5 lakh according to the new tax slab, then he must file ITR. In such a situation, Zero ITR can also be filled.
How many types of ITR forms
Let us tell you that there are mainly seven types of ITR forms. It includes ITIR-1 (ITR-1), ITIR-2 (ITR-2), ITIR-3 (ITR-3), ITIR-4 (ITR-4), ITIR-5 (ITR-5), ITIR-6 ( ITR-6) and Itir-7 (ITR-7).
ITR-1 can be filed by a resident individual who:
- Total income during the financial year does not exceed ₹ 50 lakh
- Income from salary, one house property, family pension income, agricultural income (up to ₹5000/-) and other sources, which includes:
- interest from savings accounts
- Interest on Deposits (Bank/Post Office/Cooperative Society)
- Interest from income tax refund
- Interest received on enhanced compensation
- any other interest income
- family pension
- The income of the spouse (except those covered under the Portuguese Civil Code) or the income of the minor is added (only if the source of income is within the specified limits mentioned above).
ITR 2 (ITR-2): Who is eligible to file ITR-2 for the assessment year 2021- 22?
- ITR-2 can be filed by any individual or HUF:
- Not eligible to file ITR-1 (Sahaj)
- Such persons who are not deriving profits and gains from the business or profession and are not deriving the following types of income from the profits and gains of business or profession:
- Commission or remuneration, by whatever name called, received from a partnership firm
- If the income of any other person such as spouse, minor child, etc. is to be clubbed with his income – if such income falls in any of the above categories.
ITR 3 (ITR-3) : Let us tell you that this form is chosen by individual taxpayers and HUFs who earn income from owning a profession or a business. Taxpayers who have income from investment in unlisted shares, are partners in a company, are directors of a company or have a business turnover of more than Rs 2 crore, file this form.
ITR 4 (ITR-4): Individuals, HUFs and partnership firms who are residents of India, earning income from any business or profession (doctor, lawyer etc.); They have to select ITR-4. It is also called SUGAM Form. Explain that there is no limit on the income earned in this.
ITR 5 (ITR-5) : Let us tell you that this ITR-5 form is for institutions. Entities that are registered as Firms, LLPs, AOPs, BOIs have to fill ITR-5 form.
ITR 6 (ITR-6) : ITR 6 is for any company which is not claiming exemption under section 11 of the Income Tax Act, 1961. Firms filing income tax return under this section can file it electronically only.
ITR 7 (ITR-7): ITR 7 form is filed by political party, hospital, medical institution, university, fund, news agencies, scholarly research association and other educational institution, college or university or commercial trust.
What does Zero ITR mean?
Another special thing is that only those people who come under the ambit of income tax do not have to file income tax return. Apart from the normal ITR, zero ITR form would have been a kind of ITR return, which is called Nil Income Tax Return filing. If a person is outside the tax slab issued by the Income Tax Department and still fills the tax return form, then it is considered as zero ITR filing.