Income Tax Return Filing: Types of Income Tax Forms

Tuesday, July 4th, 2017 Amritesh 2 responses

Income Tax Return Forms

Income Tax Return Forms for the Financial Year 2016-17 (Assessment Year 2017-18) may be downloaded from the Income Tax Department (ITD) official portal. Income Tax Department (ITD) has provided number of forms for the Income Tax payers depending on the source of income of the respective individuals. The various types of Income Tax Return (ITR) and its applicability have been discussed in this post.

Few major changes have been made to the ITR Forms to make it simpler.

Changes introduced in the Income Tax Return Forms for the Financial Year 2016-17:

Paper Returns can only be filed by Individuals above the age of 80 years or one’s (includes HUF) whose annual income is up to 5 lacs during the Financial Year.

New Single Page ITR-1 Form available for Individuals with Annual Income up to 50 lacs p.a.

Income Tax Return Forms have been reduced to 7 from 9 for the Assessment Year 2017-18.

Previous ITR-2, 2A, and ITR 3 have been dispensed and merged with ITR- 2 (New).

Previous ITR-4 is now the ITR-3 (New) while the ITR-4S (Sugam) is now the New ITR-4 (Sugam).

New Column included in ITR-1 to mention exempt Long Term Capital Gains (LTCG). E-Filing has been made mandatory for LTCG of Rs 2,50,000 or more, irrespective of Taxable Income being less than Rs 2,50,000.

Aadhaar ID Enrollment is mandatory.

Due Date for Submission of Income Tax Returns is 31st July, 2017.

Types of Tax Return Forms and its Applicability

ITR-1

Also known as Sahaj is primarily filled by the Salaried Individuals, this form is applicable for following class of Individuals whose total Income includes:

Income from Salary/Pension

Income from House Property (Only 1 House)

Income from Other Sources

This form is not applicable for following class of Individuals:

Income from more than 1 House Property

Winnings from Lotteries or Horse Races

Income from Capital Gains Not Exempt from Tax (Short or Long)

Income from Agriculture Income in excess of Rs 5,000/-

Income from Business or Profession

Losses brought forward from previous years or Other Head Sources.

ITR-2A (Realigned as New ITR-2)

This form has been recently introduced, it is a much simpler and modified form as compared to ITR 2. It is applicable to Individuals and Hindu Undivided Family (HUF) whose Total Income includes:

Income from Salary/Pension

Income from House Property without Capital Gains (More than 1 House)

Income from Other Sources

Winnings from Lotteries and Horse Races

Long Term Capital Gains from Sale of Shares on which Securities Transaction Tax (STT) is paid.

Agriculture Income above Rs 5,000/-

NRI’s may also file this form.

This form is not applicable for following class of Individuals:

Resident Indian with Foreign Bank Accounts, Assets or Source of Income

Income from Capital Gains

Income from Business or Professions

ITR-2 (Realigned as New ITR-2)

This form is applicable for Individuals and HUF whose Total Income is inclusive of the following:

Income from Salary/Pension

Income from House Property

Income from Capital Gains

Income from Other Sources

Winnings from Lotteries and Horse Races

Clubbing of Income with another Individual (Child, Spouse etc)

Losses brought forward from previous years

Resident Indian with Foreign Bank Accounts, Assets or Source of Income

This form is not applicable for following class of Individuals whose Total Income includes:

Income from Business or Profession

Income as Partner from Partnership or Limited Liability Partnership Firm

ITR 3 (Realigned as New ITR-2)

This form is applicable for Individuals or HUF who derives income from partnership firm or limited liability partnership (LLP). This form may be used wherein taxable business income is not inclusive of any other income, except income by way of salary, remuneration, bonus, commission, or interest. Following class of Individuals or HUF may file this form:

Income from Salary/Pension

Income from House Property

Income from Capital Gains

Income from Other Sources

Winnings from Lotteries and Horse Races

Clubbing of Income with another Individual (Child, Spouse etc)

Losses brought forward from previous years

Resident Indian with Foreign Bank Accounts, Assets or Source of Income

Income as Partner from Partnership or Limited Liability Partnership Firm

This form is not applicable for Individuals or HUF whose taxable income includes Income from Proprietary Business or Profession.

ITR 4 (Renamed as New ITR-3)

 This form is applicable for Individuals or HUF whose taxable income includes Income from Proprietary Business or Profession. This form may be filled by following class of individuals or HUF:

Income from Salary/Pension

Income from House Property

Income from Capital Gains

Income from Other Sources

Winnings from Lotteries and Horse Races

Clubbing of Income with another Individual (Child, Spouse etc)

Losses brought forward from previous years

Resident Indian with Foreign Bank Accounts, Assets or Source of Income

Income as Partner from Partnership or Limited Liability Partnership Firm

Income from Proprietary Business or Profession

ITR 4S [Renamed as New ITR-4 (Sugam)]

This form also known as “Sugam” is applicable for Individuals or HUF whose tax is calculated on Presumptive basis. Following Individuals or HUF may use this form:

Business Income calculated in accordance with special provisions laid out in Section 44AD, 44AE and 44ADA.

Income from Salary/Pension

Income from House Property (Only 1 House)

Income from Other Sources

This is not applicable for the following class:

Income from more than 1 House Property

Winnings from Lotteries or Horse Races

Income from Capital Gains Not Exempt from Tax (Short or Long)

Income from Agriculture Income in excess of Rs 5,000/-

Income from Business or Profession not in accordance with Special Provisions

Losses brought forward from previous years or Other Head Sources.

Income taxable U/S 115BBDA or Nature of Income referred in U/S 115BBE

Relief claimed under International Taxation Norms

If the turnover of business is more than Rs 2 crores or Income from Profession exceeds 50 lacs.

ITR 5

This form is applicable for Firms, Limited Liability Partnership (LLP) firms, Association of Persons (AOPs) and Body of Individuals (BOIs).

ITR-6

This Form may be used by a Company, other than a Company claiming exemption Under Section 11.

ITR-7

This  Form  may  be  used  by  persons  including  companies  who  are  required  to  furnish  return  under  section  139(4A)  or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E)or section 139(4F).

Submission of Income Tax Return Forms (ITR)

All income taxpayers with Income above 5 lacs are now required to submit their returns online. Individuals having Aadhar Card need to seed their Aadhar ID with the ITR to complete the e-verification of the return. Whereas, Individuals without the Aadhar ID seeding would not be able File the Returns for the Assessment Year.

eFiling Portal

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Amritesh is an experienced professional in the field of HR, Finance and Compliance. He is currently working in the IT Industry with an US based firm. He took up Blogging as a hobby which eventually turned into passion. He primarily focuses on topics related to Personal Finance, HR, Compliance and Technology.

All the opinions/suggestions/views expressed on this blog are just for sharing information. Readers are requested to consult their respective financial advisers and experts before taking any decision. Views shared through post or comments are personal opinion meant for reference of the readers. These should not be considered as Investment Advice or Legal Opinion. The Blog or the Author does not take any responsibility regarding any such action taken by any Individual.
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