Income Tax Return Filing: While filling the income tax return, first of all people get confused on which form they should choose. Experts are explaining the meaning of ITR form so that you do not have any problem in filling ITR.
The season for filing Income Tax Return has started. People have started getting Form-16 from companies and with this the traffic on Income Tax Portal has started increasing. However, an important thing in filing Income Tax Return (ITR) is that you choose the right form.
The Income Tax Department can declare your return as defective if you fill the wrong form. There are 6 types of income tax return forms. Which form to choose depends on how your income is, category of taxpayer you belong to etc. Let us know what experts say about selecting the form… Yeeshu Sehgal, Head of Tax Market, AKM Global, a tax consulting firm, has given detailed information about this.
ITR-1: This form is for Indian citizens whose income is up to Rs 50 lakh. This income should be from salary, family pension, a residential property etc. Income from lottery or race course does not come under this category. At the same time, ITR-1 is the correct form even if the income from farming is up to Rs 5,000. However, if a person is a director in a company or has shares in an unlisted company, then he cannot file ITR-1.
ITR-2: This form is for those people and Hindu Undivided Families, whose income is more than Rs 50 lakh and they are not making profit from any business. In this, information has to be given about more than one residential property, capital gain or loss on investment, dividend income of more than Rs 10 lakh and income from agriculture more than Rs 5000. The same form is to be filled even if the Provident Fund is earning interest in the form of interest.
ITR-3: This form is for individuals and Hindu Undivided Families who are earning income from the profits of a business. In this, information about all the income categories given in ITR-1 and ITR-2 has to be given. If a person is a partner in the firm, then he has to fill a separate ITR form. The same form has to be filled even if there is capital gain from the sale of shares or property or income from interest or dividend.
ITR-4: ie Sugam: This form is for individuals, other than Hindu Undivided Families and LLPs, whose total income is more than Rs 50 lakh and they are earning from such sources as 44AD, 44ADA or 44AE come under the purview of sections. This form is not for those people who are directors in a company or have investment in equity shares or have earned more than Rs 5000 from farming.
ITR-5: This form for filing income tax return is for LLP companies, Association of Persons, Body of Individuals, Artificial Juridical Person, Co-operative Society and Local Authority.
ITR-6: This form is for companies that have not claimed exemption under section 11. Under section 11, such income is exempt from tax, which is derived from property held with a trust for any charitable or charitable purpose.