Which ITR form to choose in 2024 | ITR 1,2,3,4,5,6,7

In India, there are 7 different Income Tax Return (ITR) forms available ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7, each designed to suit the specific nature of person and income and every form have specific requirement to fulfill.

Selecting the appropriate form is crucial because using the wrong one could lead to discrepancies in tax filings, potentially prompting the Income Tax Department to issue a notice for clarification or correction.

ITR-1 (Sahaj):

This form is for individuals who have income from salary, pension, one house property, and other sources like interest income. It is typically used by salaried employees or pensioners with a single property.

ITR-2:

Individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession can use this form. It is suitable for those with income from multiple properties, capital gains, or foreign assets.

ITR-3:

This form is for individuals and HUFs with income from business or profession. It includes provisions for declaring income from partnership firms.

ITR-4 (Sugam):

Also known as Sugam, this form is for taxpayers who have opted for the presumptive income scheme under Section 44AD, Section 44ADA, or Section 44AE of the Income Tax Act. It is typically used by small business owners, professionals, and freelancers.

4. ITR-4 (SUGAM) – Applicable for Individual, HUF and Firm (other than LLP)

This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:Salary / PensionOne House PropertyOther sources (Interest, Family Pension, Dividend etc.)Agricultural Income up to ₹ 5,000 Note:ITR-4 cannot be used by a person who: (a) is a Director in a company (b) has held any unlisted equity shares at any time during the previous year  (c) has any asset (including financial interest in any entity) located outside India  (d) has signing authority in any account located outside India  (e) has income from any source outside India  (f) is a person in whose case payment or deduction of tax has been deferred on ESOP (g) who has any brought forward loss or loss to be carried forward under any head of income   (h)has total income exceeding Rs. 50 lakhs. Please note that ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

ITR-5:

Partnerships, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), and Body of Individuals (BOIs) should file their returns using this form.

ITR-6:

Companies other than those claiming exemption under Section 11 must use this form to file their income tax returns.

ITR-7:

This form is for persons, including companies, who are required to furnish returns under Section 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D) of the Income Tax Act Includes trusts, political parties, research associations, institutions, colleges, etc., mentioned under the specified sections.

Choosing the correct ITR form ensures accurate reporting of income and prevents potential issues with the tax authorities. Therefore, taxpayers must carefully assess their sources of income and filing requirements before selecting the appropriate form for submission.

How to file Income tax Returns

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