Types of ITR Form and ITR Form Applicability

TYPES OF ITR AND THEIR APPLICABILITY

1. SAHAJ ITR 1

• This form is applicable to individuals who are residents and have total income of up to Rs 50 lakh constituting Income from Salary, one house property, income from other sources (including family pension and interest income), and income from agricultural activities maximum up to Rs 5000.
• ITR form does not apply to a Director in a company or made investment in unlisted equity shares or even in cases where TDS got subtracted as per section 194N where the ESOP taxation aspect has been deferred under new relaxation.
• It is applicable to Individuals and HUFs having income from different sources except from business or professional income.
• Thus, an individual or HUF, not eligible to file Sahaj ITR 1, can file ITR-2. Therefore, any director of a company, as well as anyone who owns unlisted equity shares of a company, will be required to file ITR-2 returns. Also, individuals having more than one house property should also file an ITR-2 income tax return.

3. ITR 3

It is to be filed by persons having income from a business or profession. Thus, the eligible source of income for ITR 3 are –

• • Running a business or profession whether subject to audit or not.
  • Income from all other sources like salary, house property, capital gain and other sources, be also included.

1. 4. SUGAM ITR 4

• It is applied to Individuals, HUFs, and Firms, excluding LLPs, who are residents and have total income up to Rs.50 lakh. Such income constitutes income from business and profession, subject to computation under sections 44AD, 44ADA, or 44AE.
• Apart from business or profession, it includes income from one house property with single ownership, interest Income, Family Pension, and agricultural income up to Rs.5,000.

5. ITR 5

• This form is to be filed by Firms, LLPs, Association of Persons, Body of Individuals, Artificial Juridical Person, legal heirs of deceased and insolvent persons, trust and investment-based funds.

6. ITR 6

• Such form is required to be filed by companies not eligible for an exemption under Section 11. It is to be noted that exemption under section 11 is provided to companies that receive income from property held for charitable or religious purposes. Such a return can be filed electronically and authorized with the assigned digital signature.

7. ITR 7

• It is to be filed by trusts, political parties, charitable institutions etc. receiving exempt income under the Act. Also, where the individuals and companies fall under section 139(4A), section 139 (4B), section 139 (4C), or section 139 4D, they can also file ITR-7 form.
• One of the required aspects of this form is that the taxes deducted, collected, or paid by or on their behalf, must match with their Tax Credit Statement Form 26AS. This form is divided into two parts with a total of 23 schedules.
• 

IMPORTANT FORMS AND DATES 

1. The due date for filing ITR depends on the type of person along with the ITR form applicable to them. Also, whether an audit is required or not, further varies the due date.
2. Generally, the due date for most of the ITR forms is 31^st July of the assessment year (AY). And relates to income earned during 1st April to 31^st March of the previous year. However, such a due date is subject to extension, as may deem fit by the government.
3. Specifically for AY, taxpayers are advised not to file their return before 15^th June
4. FORM 26AS:  It is the most important document required before filing ITR. It is also known as the annual consolidated statement, which contains all tax-related information of the taxpayer like the details of tax deducted at source, advance tax etc.
5. It also reflects details of Annual Information Return (AIR), which is filed by different entities based on what an individual has invested or spent, mostly high-value transactions
6. Such information will be provided in Form 26AS latest by 31^st May. Thus, if filed by mid-June, the pre-filled returns & Form 26AS would not be updated on the tax department’s website and thus the taxpayer may not be able to file a tax return with correct information.
7. Form 26AS also prefills the details pertaining to information uploaded by the deductor of TDS.
8. Deductor is a person/entity who deducts the tax at the source on a specified payment made. Such TDS deducted be deposited with the Income Tax Department within a prescribed time limit.
9. FORM 16: Form 16 contains the details pertaining to TDS deducted on salary paid to an employee. It is also known as the TDS (Tax Deducted at Source) certificate, provided by the employer after furnishing the information related to the taxes paid on behalf of the employee.
10. The FORM 24Q: Such form is provided by the employer deducting tax under Section 192 of the Income Tax Act, 1961, at the time of paying salary to the employee. It contains the details of the salary paid and the TDS deducted from it and the same be submitted to the Income Tax Department on a quarterly basis.
11. This form is constituted of 2 annexures namely– Annexure I and Annexure II. Annexure I contain the details about the deductor, challans, and deductees, name of the employee, PAN of the employee, date of payment/ credit, TDS Section code, TDS amount, the amount paid or credited, and education cess.
12. Annexure-II consists of salary details like the total breakup of the salary and deductions to be claimed by the employee.
13. FORM 26Q: It is used for filing TDS deducted on all the payments other than the salary. This form is to be submitted by the deductor after every quarter and is applicable for TDS u/s 193 and 194 of the Income Tax Act of 1961. Payments include income on dividend securities, interest on securities, directors’ remuneration, professional fees, etc.
14. The FORM 27Q: It is relevant for TDS deducted on payments made to non-resident Indians and foreigners and does not include salary income. Is a declaration of TDS for the NRIs and Foreigners. Form 27Q shows the amount of TDS deducted on additional income such as interest, bonus, or any other sum owed to NRI or foreigners.
15. FORM 27EQ: It is a quarterly statement for TCS deducted u/s 206C of the Income Tax Act of 1961. The same is submitted by the corporate deductors & collectors every quarter and it is mandatory to furnish TAN in this form.
16. PRE-FILLED ITR FORM: As proposed in Budget, the new ITR Forms will come with a software, which will pre-fill the details, pertaining to salary income, tax deducted at source, tax payments, etc, to ease the compliance burden of taxpayers.
17. Apart from this, Budget proposed to provide prefilled details of capital gains from listed securities, dividend income, and interest from banks, post office, etc, in the new TR forms.
18. The prefilled information will also reflect in Form 26AS, which would be available in the taxpayer’s account on the IT portal.

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