ITR stands for “Income Tax Return.” It is a form that individuals and organizations use to file their income tax liability with the government. The form includes information about an individual’s or organization’s income, expenses, and taxes paid and is used by the government to calculate an individual’s or organization’s income tax liability for a given tax year.
In India, there are several types of ITR forms, depending on the nature of an individual’s income, such as ITR-1, ITR-2, ITR-3, ITR-4, etc. which are to be used by different categories of taxpayers. The form that you need to use depends on the type and amount of income you have earned in a particular financial year.
Filing an ITR is mandatory for all individuals or organizations whose taxable income exceeds a certain threshold as per the income tax laws. The due date for filing the ITR is usually the 31st of July of the assessment year (next year of the financial year).
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There are several ways to file ITR for example physically filing the return by submitting the hard copy to the income tax office or by e-filing the return which is done electronically over the internet.
Type of ITR forms
In India, there are several types of ITR (Income Tax Return) forms that individuals and organizations can use to file their income tax liability with the government. Each form is designed for a specific category of taxpayers and corresponds to a particular type of income. Some of the most commonly used ITR forms are:
- ITR-1 (SAHAJ): This form is for individuals who have a salary income or a pension income, and have an income from one house property.
- ITR-2: This form is for individuals and Hindu Undivided Families (HUFs) who have income from sources other than salary or pension, such as capital gains or income from multiple house properties.
- ITR-3: This form is for individuals and HUFs who have income from proprietary businesses or professions.
- ITR-4 (SUGAM): This form is for individuals and HUFs who have a presumptive income from a business or profession.
- ITR-5: This form is for firms, LLP, AOP, BOI, and for other than companies and individuals, who are required to file a return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F).
- ITR-6: This form is for companies other than companies claiming exemption under section 11.
- ITR-7: This form is for persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), 139(4D), and 139(4F).
It’s important to note that the forms I have mentioned are the most common ones, there are other forms available as well and it’s a good idea to check with the Indian Income Tax department for more information.
To file the ITR click here.