Taxation Time By TaxFetch - 01

Types of ITR Forms

ITR-1 (Sahaj)

For Salaried Individuals with Simple Income

Who Can File

  • Resident Individual (not NRI or RNOR)
  • Salary or Pension Income
  • One House Property
  • Other sources like interest, family pension
  • Agricultural Income up to Rs.5,000
  • Total income up to Rs.50 lakhs

Who Cannot File

  • Director in a company
  • Held unlisted shares
  • Foreign income or assets
  • Deferred ESOP tax
  • Losses carried forward
  • Total income > Rs.50 lakhs

ITR-2

For NRIs, Investors, & Partners (No Business Income)

Who Can File

  • Individuals or HUFs (Not eligible for ITR-1)
  • Income from Salary, Multiple House Properties, Capital Gains
  • NRI/Resident with foreign income
  • Agricultural income > Rs.5,000
  • Partners in Firms/LLPs (no business income)
  • Director in a company anytime in the year

Who Cannot File

  • Business or professional income holders

ITR-3

For Business Owners, Freelancers, Professionals

Who Can File (Individuals or HUFs with)

  • Business income
  • Professional income
  • Partner in firm/LLP with business income
  • Capital Gains, Multiple incomes
  • Hold unlisted equity shares anytime in the year
  • Must file ITR-3 if not eligible for ITR-1, ITR-2, or ITR-4
  • Director in a company anytime in the year

ITR-4 (Sugam)

For Presumptive Taxpayers

Who Can File

  • Resident Individuals / HUF / Firm (not LLP)
  • Total Income up to Rs.50L
  • Presumptive Income: Business (44AD), Profession (44ADA), Transport (44AE)
  • Income from Salary + 1 House Property + Other sources
  • LTCG u/s 112A up to Rs.1.25L

Who Cannot File

  • Directors
  • Foreign income/assets
  • Unlisted shares
  • Carried forward losses
  • Income > Rs.50L
  • Capital Gains (STCG or LTCG > Rs.1.25L)

ITR-5

For LLPs, Firms, AOPs, Societies, Trusts

Who Can File

  • LLPs, Firms, AOPs, BOIs
  • Cooperative Societies, Registered Societies
  • Estates (Deceased/Insolvent), Business Trusts
  • Trusts not claiming exemption under Sec 139(4A/B/D)

Who Cannot File

  • Individuals or HUFs
  • Trusts filing u/s 139(4A), (4B), or (4D)

ITR-6

For Companies Only

For companies except those claiming exemption u/s 11. All companies registered under the Companies Act are required to file ITR-6, unless they are claiming exemption under Section 11 (income from property held for charitable or religious purposes).

Key Don'ts (Cross-Check Before Filing!)

Carried forward losses? Avoid ITR-1/4

ESOPs or unlisted shares? Avoid ITR-1/4

Foreign income/assets? Use ITR-2 or 3

Director/Partner? Avoid ITR-1/4

Switching tax regimes? File Form 10-IEA for ITR-3/4

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