In today's digital era, income tax is a significant source of revenue for governments worldwide. In India, the income tax department has simplified the process of filing income tax returns (ITR) through various online methods. Filing ITR is mandatory for individuals, businesses, and companies that earn income above a specified threshold. However, different types of ITR are available based on the income sources and taxpayer's status.
In this blog, we will discuss the different types of ITR and their eligibility criteria.
Types of ITR:
ITR-1 (Sahaj): ITR-1 is for individuals having income from salaries, one house property, and other sources such as interest income, etc. The taxpayer should have a total income of up to Rs. 50 lakhs, and their age should be less than 60 years.
ITR-2: ITR-2 is for individuals and Hindu Undivided Families (HUFs) who have income from multiple sources. They should not have any income from profits and gains from business or profession. This form is also applicable to those who have foreign assets/income.
ITR-3: ITR-3 is for individuals and HUFs who are partners in a firm or own a business or profession. This form is applicable for taxpayers who have income from profits and gains from business or profession.
ITR-4 (Sugam): ITR-4 is for individuals, HUFs, and firms who have opted for the presumptive taxation scheme under section 44AD, 44ADA, or 44AE of the Income Tax Act. The taxpayer should have a total income of up to Rs. 50 lakhs.
ITR-5: ITR-5 is for LLPs, Association of Persons (AOPs), Body of Individuals (BOIs), and Partnership Firms. This form is not applicable to companies.
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