Income Tax Return Forms in India

Feb. 27 – Assessees who earn a taxable income must declare their total income earned by filing an income tax return form at the end of each financial year. For this process, the Income Tax Department of India has issued the following forms for filing income tax returns:

ITR-1 (SAHAJ)

This form is to be used by an individual whose income includes:

• Income from a salary or pension;
• Income from renting out house property (excludes cases where losses are brought forward from previous years); or
• Income from miscellaneous sources (excludes winnings from the lottery or horse racing).

This tax return form may not be used by a resident that has assets (including financial interests in an entity) located outside of India or signing authority on any account(s) located outside of India.

ITR-2

This form is to be used by an individual or a Hindu Undivided Family (HUF) whose total income includes:

• Income from a salary or pension;
• Income from renting out house property;
• Income from capital gains; or
• Income from miscellaneous sources (excludes winnings from the lottery or horse racing).

Furthermore, if the income of another person in the family (e.g., a spouse, child, etc.) is to be included with the income of the assessee, this return form may be used if their source of income falls under any of the above listed categories.

This form may not be used by individuals who derive an income from Business or Profession. Business refers to trade, commerce, manufacturing or anything concerning them, while Profession refers to special knowledge that is only acquired after study and application.

ITR-3

This form is to be used by individuals or HUFs that are partners in firms but do not carry out any business or professional services.

ITR-4S (SUGAM)

This form is to be used by an assessee who declares their income on a presumptive basis under section 44AD or 44AE, i.e., when profit is assumed to be a certain percent or amount of turnover.

ITR-4

This form is to be used by individuals or HUFs who derive their income from a proprietary business or profession.

ITR-5

This form is to be used to file the income tax returns of firms, Association of Persons and Body of Individuals.

ITR-6

This form is to be used by Companies that do not claim any deductions under Section 11 of the Income Tax Act 1961.

ITR-7

This form is to be used by persons (including companies) that are required to provide income tax returns under:

• Section 139 (4A) – Charitable or Religious trusts;
• Section 139 (4B) – Political parties;
• Section 139 (4C) – Research associations, news agencies, institutions etc.; or
• Section 139 (4D) – Universities, colleges, etc.

ITR-V

This form is to acknowledge that an income tax return had been properly filed online. The following assessees must file their income tax returns online:

• Companies;
• Firms;
• Individuals/HUFs that need to to get their accounts audited under Section 44AB;
• Individuals/HUFs with a total income that exceeds INR1,000,000; and
• Individuals/HUFs that are residents with assets located outside of India or signing authority on any account(s) located outside of India.

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