Income tax return: As deadline approaches, know which form to use for ITR filing

• June 30, 2023
• CA Chandan Agarwal's Office

The choice of the appropriate ITR form primarily depends on your sources of income.

The deadline to file the Income Tax Return (ITR) for the financial year 2022-23 (assessment year 2023-24) is July 31. The IT department has notified ITR 1, 2, 3, 4, 5, 6, and 7 forms for AY 2023-24 for taxpayers.

There are seven Income Tax Return (ITR) forms applicable to an individual. The income tax department has enabled online filing of ITRs 1 and 4.

If the aggregate of your income exceeds the threshold of the basic exemption limit, it is mandatory to file ITR. The threshold of basic exemption is ₹2.50 lakh for those below 60 years, and ₹3 lakh for individuals between 60 and 80 years. It is ₹5 lakh for those over 80 years.

Salaried professionals file ITR after receiving Form 16 from their employer either on or before the 15th of June of the assessment year.

Types of ITR filing form

Using an incorrect form while filing ITR results in rejection from the IT department. The ITR form is selected according to the sources of income.

ITR form 1: Taxpayers and individual residents earning an income of up to ₹50 lakh from salary, income from one house property, other sources such as interest or dividend, and agricultural Income up to ₹5,000.

ITR form 2: Individuals and Hindu Undivided Family (HUFs) with a total income of over ₹50 lakh which is not amassed from profits of business or profession.

ITR form 3 – For individuals and HUF getting income from business or profession, or people holding partnership in a firm.

ITR form 4: Small and medium taxpayers who have opted for the presumptive income scheme under Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act.

ITR form 5: Limited liability partnership (LLPs), businesses, AOPs (Association of persons) and BOIs (Body of Individuals), Artificial Juridical Person (AJP), co-operative society, etc should select form 5.

ITR form 6: Firms which are not claiming the exemptions under Section 11 of the IT Act should opt for this form.

ITR form: 7 Charitable /religious trusts, political parties, scientific research institutions which require the exemptions can choose ITR 7.

Source: https://www.hindustantimes.com/business/income-tax-return-filing-itr-which-form-to-use-for-individuals-last-date-july-31-101687933931862.html