Types of ITR
The department prescribes seven types of ITR forms based on the type of taxpayer and income:
- ITR-1 for individuals resident in India and with total income up to Rs 50 lakh. An individual having income from salary, house property and other sources can file ITR-1. An NRI cannot file ITR-1. Salaried taxpayers can use their form 16 to file ITR.
- ITR-2 for individuals and HUF for their income other than income from business or profession. Individuals and NRI having income from salary, house property, capital gains and other sources can file ITR-2. Salaried individuals who have gains or losses from buying and selling shares should file ITR-2.
- ITR-3 for individuals to report their income from a business or a profession. Salaried individuals who have income from intraday trading in shares or income from futures and options should file ITR-3. Individuals can report income from salaries, house property, capital gains, business or profession (including presumptive income) and other sources in ITR-3.
- ITR-4 for individuals, HUF and partnership firms for their income under presumptive scheme of taxation. ITR-4 is for income from a business whose turnover is up to Rs 2 crore and taxed under section 44AD. Also, ITR-4 is for income from a profession whose turnover is up to Rs 50 lakh and taxed under section 44ADA. A freelancer carrying out a notified profession can file ITR-4.
- ITR-5 for partnership firms, LLP, AOP and BOI. Business entities such as LLP, partnership firms, AOP and BOI can file ITR-5 for reporting income from business and profession and any other source of income.
- ITR-6 is the income tax return for companies to file income from business or profession and any other sources of income.
- ITR-7 is the income tax return for companies, associations and trusts claiming income tax exemption.