ITR – Which ITR Should I File? Types of ITR, How to FIle ITR – Income Tax Returns e-filing – ITR forms for FY 2020-21, AY 2021-22

What is ITR?

Income Tax Return (ITR) is a form in which taxpayers file information about income and tax revenue applicable to the tax department.

The department has introduced 7 different forms namely ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 to date. Every taxpayer must complete his / her ITR on or before the fixed date. The effectiveness of ITR forms varies depending on the taxpayer's income sources, the amount of income earned and the category of taxpayer as an individual, HUF , company, etc.

Why should you file ITR?

It is mandatory to file income tax return (ITR) in India if any of the conditions listed below apply to you:

1. If your gross annual income exceeds the basic release limit as described below-

2. If you want to apply for a tax refund from the department.

3. If you acquired or invested in foreign assets during FY.

4. If you wish to apply for a visa or loan

5. If the taxpayer is a company or company, regardless of profit or loss.

Also, you are required to complete the ITR even if your income is below the basic release limit but you meet one of the following conditions:

1. You have deposited a combined amount in excess of Rs.1 crore into one or more bank accounts; or
2. You have incurred a combined cost of more than Rs 2 lakh on a foreign trip on your own or by someone else; or
3. You have a total cost of more than Rs.1 lakh per electricity consumption.

Which ITR to file?

The following infographic will help you find out which type of income tax return applies to you at FY 2020-21 and last year FY 2019-20. Once you have located the ITR you need, click the links below to learn more about it.

ITR-1 OR SAHAJ

This Return Form is for a resident individual whose total income for the AY 2021-22 includes:

• Income from Income / Pension ; or
• Revenue from Single Household (except in cases where the loss is brought forward in previous years) ; or
• Revenue from Other Sources (other than Lottery Winning and Revenue from Racing Horse)
• Agricultural Income Up to Rs.5000.

Who cannot use ITR 1 Form?

• Income in excess of Rs.50 lakh
• Agricultural income in excess of Rs 5000
• If you have a large tax return
• If If you have an income from a business or profession
• Having an income from more than one home
• If you are a Director of a company
• If you have invested in unlisted shares at any time during the financial year < / li>
• Owning property (including financial interest in any organization) outside India) if you are a citizen, which includes the right to sign on any account outside India
• If you are a non-resident citizen (RNOR ) and non-citizen
• Own foreign assets or foreign income
• If you are assessed in relation to another person's income in respect of which tax is deducted from another person's hands.

Anyway, do you have any doubts about ITR-1 in your mind? Read our complete guide to ITR-1 for answers to all your questions.

ITR-2

ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2021-22 includes:

• Income from Revenue / Pension; or
• Income from Part of the House; or
• Revenue from Other Sources (including Lottery Winning and Revenue from Race Horses).

(Total income from the above should be more than Rs 50 Lakhs)

• If You Are the Only Director in the Company
• If you have invested in unlisted shares at any time during the financial year
• Citizenship is usually resident (RNOR) and non-resident
• Foreign / Foreign Income
• Agricultural Income Over Rs 5,000

Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

Who cannot use this Return Form

This Refund Form should not be used by a person with full AY 2021-22 salary which includes Business or Professional Income. To declare these Revenue types , you may need to use ITR-3 or ITR-4. -ITR. -2 know how to complete the ITR-2 form.

ITR-3

The current ITR3 Form should be used by an individual or an Individual Hindu Family who has an income from a patented business or occupation. People with income from the following sources are eligible to submit ITR 3:

• Continuing Business or Professional
• If You Are the Only Director in the Company
• If you have invested in unlisted shares at any time during the financial year
• Refund may include Household Income, Income / Pension and Income from Other Sources
• Personal Income Corporate Partners

Click here to read our comprehensive guide to the ITR-3

ITR-4 or Sugam

The current ITR 4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are residents and whose total income include:

Please note that any person earning from the above sources as an individual may also choose the consideration scheme if his or her total receipts do not exceed Rs.50 lakhs.

Estimated earnings plan under sections 44AD, 44AE and 44ADA is where a person or business presumptuously obtains revenue, that is, when revenue is estimated at a lower value based on percentage of total receipts / total profit. or based on ownership of commercial vehicles. However, if the business profit exceeds Rs 2 crore, the taxpayer will need to complete ITR-3.

Who cannot use ITR 4 Form?

• If your total income exceeds Rs 50 lakh
• Having an income from more than one house
• If there is a loss or loss that should be continued under any heading salary
• Owning foreign goods
• If you are authorized to sign up for any account outside of India
• Having income from any source outside of India
• >
• If you are a Director of a company
• If you have invested in unlisted shares at any time during the financial year
• Occupational Citizenship (RNOR) and non-resident
• and foreign assets or foreign income
• When you are assessed in relation to another person's income as to what tax is deducted from another person's hands. person.

Click here to read our comprehensive guide to the ITR-4

ITR-5

ITR 5 for companies, LLPs (Limited Liability Partnership), AOP (People's Organization), BOIs (Human Body), Artificial Juridical Person (AJP), Estate of the deceased, Inheritance of the Debt, Fund of business and investment fund.

Click here to read our comprehensive guide to the ITR-5

ITR-6

For companies other than companies seeking exemptions under section 11 (Revenue from the area reserved for charitable or religious purposes), this benefit should only be entered electronically.

Click here to read our comprehensive guide to the ITR-6

ITR-7

For individuals including companies who are required to make a profit under section 139 (4A) or section 139 (4B) or section 139 (4C) or section 139 (4D) or section 139 (4E) or section 139 (4F).

• Reimbursement under section 139 (4A) is required to be paid by everyone upon receipt of the proceeds of the property held under a trust or other legal obligation entirely for charitable or religious purposes or in part only for such purposes. < Reimbursement under section 139 (4B) is required to be lodged by a political party if the amount of income other than the provisions of section 139A exceeds the maximum, non-taxable income. -
  • Scientific research organization;
  • News Center;
  • Organization or institution referred to in section 10 (23A);
  • Institution referred to in section 10 (23B);
  • Fund or institution or university or other educational institution or any hospital or medical institution.
• Reimbursement under section 139 (4D) is required to be completed by any university, college or other institution, which is not required to provide inc. or losses under any of the other provisions of this section.
• Reimbursement under section 139 (4E) must be completed by all business trusts that are not required to reimburse income or losses under any of the other provisions of this section. .
• A return under section 139 (4F) must be paid by any investment fund referred to in section 115UB. It is not necessary to provide reimbursement for income or loss under any of the other provisions of this section.

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