Income Tax Return AY 22-23: Last date is 31st July 2022, know which form to use for ITR?

Income tax return is filed by filling an online form. Different forms are used for different types of taxpayers. The assessment of these firms has been issued by the Central Board of Direct Taxes (CBDT) for filing returns of income tax payers

The last date for filing Income Tax Return AY 22-23 for the financial year 2021-22 or assessment year 2022-23 is 31 July 2022. There are indications from the government on one or two occasions that this time the date of filing returns will not be extended. In such a situation, if the ITR is not filed by the due date, the taxpayer may have to pay a penalty of between Rs 1,000 to Rs 5,000 before filing the ITR. Before July 31, if you want to avoid paying the penalty. Be sure to fill out your income tax return.

Income tax return is filed by filling an online form. Different forms are used for different types of taxpayers. The assessment of these firms has been issued by the Central Board of Direct Taxes (CBDT) for filing returns of income tax payers.

Let us know which type of taxpayer should use which form to file income tax?

ITR One (ITR 1)

Who should use?

Most of the people have to file ITR-1 form to file income tax return. Taxpayers falling under the following parameters are required to file their returns by filling the ITR-1 form.

  1. All Indian citizens whose total income does not exceed Rs 50 lakh during a financial year.
  2. All such people whose income comes from salary.
  3. All people who have a house property, family pension, agriculture (Rs 5000 per month), interest from savings accounts, interest from deposits, income tax refund, income on enhanced compensation or any income from spouse, ITR 1 Income tax return has to be filed using the form.

Apart from this, the following people should not use the ITR One form. 

  1. NRI
  2. Those who get income from abroad.
  3. Those whose income from agriculture is more than Rs 5000 per month.
  4. Whose total income is more than Rs 50 lakh per annum.
  5. Those who have income from the property of more than one house.
  6. who are directors in a company.
  7. Those who have invested in unlisted equity shares.

Let us tell you that section 115BAC has been added in ITR 1 for AY2021-22. Those opting for the new tax regime under section 115BAC should select ‘Yes’ in the new ITR form.

ITR 2 (ITR 2)

Who should use?

Form ITR 2 should be used by individuals or HUF (Hindu Undivided Families) who receive income from the following sources for filing income tax return.

  1. Income arising from salary or pension.
  2. Income from house property.
  3. Income above Rs 50 lakh
  4. Agricultural income of more than Rs.5,000.
  5. Income generated abroad.
  6. Those who are not eligible to file ITR 1.
  7. Taxpayers who do not have income from profits and gains of business or profession.
  8. Taxpayers who do not have income from profits and gains of business or profession in respect of interest, salary, bonus, commission or remuneration from a partnership firm.

Who shouldn’t use it?
No professional should use ITR 2 form for filing Income Tax Return.

ITR Three (ITR 3)

Who should use?
This form should be used by such individuals or firms who make any kind of income from any business or profession. These include partnership firms as well.

Who shouldn’t use it?

ITR 3 form should not be used by all those who derive income from anything other than business or profession.

ITR Four (ITR 4) SUGAM

Who should use?

  1. All such people and organizations whose income is more than 50 lakh rupees per annum.
  2. All such businessmen or professionals whose income is assessed on presumptive basis.

Who shouldn’t use it?

  1. All such businessmen or professionals whose income is not assessed on presumptive basis.

ITR Five (ITR 5)

 Who should use? 

All Firms, LLPs, AOPs, Business Trusts and Investment Funds should use this form to file ITR.

Who shouldn’t use it?

  1. It should not be used by any person or individual.
  2. Also, those who need to file Form 7 should not use this form.

ITR 6 (ITR 6)

Who should use?

  1. All such companies which are not required to use Form VII should use Form ITR 6.

Who shouldn’t use it?

All such companies which are required to use Form ITR VII.

ITR Seven (ITR 7)

Who should use?

Charitable companies, religious trusts, political parties, resource associations, news agencies and similar institutions as specified in the Act.

Who shouldn’t use it?

All such persons or institutions which fall under the category of other ITR forms.

Apart from this, if you feel in doubt in selecting the firms while filing the ITR return, then you should take the help of a professional to select the form and file the return.