Which ITR Form to Use for Filing Income Tax Return?

To file income tax return (ITR), one needs to fill the appropriate form. But which form to fill? The form to be filled depends on the type of income earned.

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Income Tax Department has divided income earned under the following heads-

  • Income from salary- It covers income earned out of the employer–employee relation between the payer and payee. It covers pension also.

  • Income from proprietary/business/profession- It covers income earned through business or profession.

  • Income from house property- Any income you earn from a residential or commercial property is taxable. However, rental income is taxable subject to some exemptions.

  • Income from capital gains- Any profit arising from the transfer of a capital asset, such as property and gold.

  • Income from other sources- Any income that doesn’t fall under any of the above four heads of income is taxed under ‘income from other sources’. It includes interest on saving bank account, dividend, income from royalty, interest on securities, etc.

Now as you know the nature of your income, refer to the following table to find out the ITR form applicable to you.

Nature of Income Individual Individual/Hindu Undivided Family
ITR-1 (Sahaj) ITR-2 ITR-2A ITR-3 ITR-4 ITR-4S (Sugam)
Income from salary/pension √ √ √ √ √
Income/loss from 1 house property √ √ √ √ √
Income/loss from more than 1 houses √ √ √ √
Income from proprietary/ business/profession √
Income from presumptive business √
Share as a partner in a partnership firm √ √
Capital gains/losses on sale of investment/property √ √ √
Income from interest income or family pension √ √ √ √ √
Income from foreign assets √ √ √
Income/loss from Other Sources √ √ √ √

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Disclaimer: ^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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