WHICH ITR FORM SHOULD I CHOOSE FOR RETURN FILING (AY 2022-23)

There are 7 ITR Forms available for filing, explained as below

 1. ITR-1 (SAHAJ) – Applicable for Individual

• Salary Pension
• One House Property
• Other sources (Interest, Family Pension, Dividend etc.)
• Agricultural Income up to Rs 5,000

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

Note: 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

2. ITR-2 - Applicable for Individual and HUF

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

• Not having Income under the head Profits and Gains of Business or Profession
• Who is not eligible for filing ITR-1

3. ITR-3 - Applicable for Individual and HUF

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

• Having Income under the head Profits and Gains of Business or Profession
• Who is not eligible for filing ITR-1, 2 or 4

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 Rs 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 / Pension
• One House Property
• Other sources (Interest, Family Pension, Dividend etc.)
• Agricultural Income up to Rs 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

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.

5. ITR-5

This form can be used by a Person being a:

a)      Firm
b)     Limited Liability Partnership (LLP)
c)      Association of Persons (AOP)
d)     Body of Individuals (BOI)
e)     Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
f)       Local Authority referred to in clause (vi) of Section 2(31)
g)      Representative Assessee referred to in Section 160(1)(iii) or (iv)
h)     Cooperative Society 
i)       Society registered under Societies Registration Act, 1860 or under any other law of any State
j)       Trust other than Trusts eligible to file Form ITR-7
k)      Estate of Deceased Person
l)       Estate of an Insolvent
m)    Business Trust referred to in Section 139(4E) 
n)     Investments Fund referred to in Section 139(4F)

Note: 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.

6. 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.

7. 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

Note: The category of persons whose income is unconditionally exempt under various clauses of Section 10, and who are not mandatorily required to furnish their Return of Income under the provisions of Section 139, may use this form for filing return (for instance - Local Authority).

For more details, Please watch our video