Which ITR form to file – ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7

As much as Income Tax Return filing is important, it is also very important to choose correct ITR form, from various ITR forms available at income tax portal.

Types of ITR Form:

ITR 1

ITR 1 form is simplest form among all ITR forms available on Income Tax portal. This is majorly for persons having income from Salary, FD interest, family pension etc.

Resident Individuals having Total income up to Rs 50 lakh can choose form ITR 1.

This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh

1. Income From Salary
2. Income from House property (only one house property is allowed to be shown in ITR1)
3. Income from Other Sources
4. Agriculture income upto Rs.5000

ITR-1 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 tax has been deducted u/s 194N 
(g) is a person in whose case payment or deduction of tax has been deferred on ESOP
(h) who has any brought forward loss or loss to be carried forward under any head of income

ITR 2

This return is applicable for Individual and Hindu Undivided Family (HUF):

ITR 2 can be filled when ITR 1 is not applicable and persons does not have income from business & profession

That means non resident can choose this form or person having income from capital gain/loss but doesn’t have income from business & profession can choose this form

ITR 3

This return is applicable for Individual and Hindu Undivided Family (HUF)

ITR 3 can be filled when ITR 1,2,4 is not applicable or persons have income from business & profession

This is the widest form covering all five heads of income – income from salary, house property, business & profession, capital gain and other sources.

ITR 4

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:

1. Income From Salary
2. Income from House property
3. Income from Business & Profession (Presumptive taxation)
4. Income from Other Sources
5. Agriculture income upto Rs.5000

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

ITR 4 is to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

Commission agents cannot file ITR 4

ITR 5

 This return is applicable to a person being a:

1. Firm
2. Limited Liability Partnership (LLP)
3. Association of Persons (AOP)
4. Body of Individuals (BOI)
5. Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
6. Local Authority referred to in clause (vi) of Section 2(31)
7. Representative Assessee referred to in Section 160(1)(iii) or (iv)
8. Cooperative Society
9. Society Registered under Societies Registration Act, 1860 or under any other law of any State
10. Trust other than Trusts eligible to file Form ITR-7
11. Estate of Deceased Person
12. Estate of an Insolvent
13. Business Trust referred to in Section 139(4E) and Investment Fund referred to in Section 139(4F)

However, a person who is required to file the Return of Income u/s 139(4A) or 139(4B) or 139(4D) shall not use this form.

ITR 6

Applicable for Companies other than those claiming exemption u/s 11. 

Company includes:   

• Indian Company
• Body corporate incorporated by or under the laws of country outside India 
• Any institution, association or body, whether incorporated or not and whether Indian or Non-Indian which is declared by general or special order of the Board, to be Company, etc.

ITR 7

Applicable for Persons including Companies who are required to furnish returns u/s 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D)

139(4A) – 
Income derived from Property held under Trust wholly / in part for charitable or religious purposes

139(4B) –
Chief Executive Officer of every Political Party

139(4C) – 
Various entities like Research Association, News Agency, etc. mentioned in Section 10

139(4D) – University, College or other Institution referred in Section 35

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