Income tax return is a form in which taxpayer must file information in relation to income earned during the previous year. Till the date income tax department has specified 7 forms for different category of taxpayers. Taxpayer has 2 options to file ITR. Taxpayer can either choose online method or file using the ‘Common Offline Utility’ method.
It is mandatory to file income tax return if Income earned during the previous year does not exceed the maximum amount which is not chargeable to Income-tax.
Various Threshold Limits under the Income Tax Act has been given below:
| S No | Particulars | Threshold Limits |
| 1 | In case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person | 2,50,000 |
| 2 | In case of resident senior citizen (who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year) | 3,00,000 |
| 3 | In case of super senior citizen (who is at least 80 Years of age at any time during the previous year) | 5,00,000 |
Now the question arises that which ITR form should I file?
Selecting correct ITR form is first job and filing information in the form is second. First you need to select the form which is applicable on you. Incorrect filing of ITR form may lead you to trouble. Let us take you to the answer of this question.
ITR 1: For resident individual whose total income is upto Rs 50 lakhs having the income from salaries, one house property, other sources (Interest etc.), and agricultural income upto Rs.5 thousand can file ITR under this form.
This form is simple and summarised.
ITR 2: Individuals and HUFs not having income from profits and gains of business or profession.
This form can be filed by taxpayer who are not allowed to use for ITR 1 for filing. For Example Individual having total income exceeding Rs. 50 lakhs, Agriculture income is more than Rs.5 thousand or having income from 2 house properties.
ITR 3: ITR 3 is applicable for individual and HUF earning from profits and gains of business or profession.
ITR 4: For resident Individuals, HUFs and Firms (other than LLP) having total income not more than Rs.50 lakhs and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE and agricultural income upto Rs.5 thousand.
It is to be noted that individual being a freelancer can also opt to file his ITR under the presumptive income basis. Section 44AD and 44ADA are the sections under which incomes are declared based on percentage of income prescribed by income tax act. Section 44AE applies on the transporter who can file his ITR on presumptive basis too.
ITR 5: For persons other than-
- individual,
- HUF,
- company and
- person filing Form ITR-7
Form should be filed by a partnership firm, Association of person (AOP), Body of Individual (BOI), Artificial Juridical Person who is referred to u/s 2(31)(vii), Estate of Deceased, Local authority and Cooperative society.
ITR 6: For Companies (Private Limited company or Limited company) other than companies claiming exemption under section 11. ITR 6 is to be filed by digital signature only. Option to verify the ITR using EVC code of Aadhar OTP is not available to the companies.
ITR 7: For persons including companies required to furnish return under sections
- 139(4A) or
- 139(4B) or
- 139(4C) or
- 139(4D) only.
