What are ITR forms?

ITR Forms mean Income Tax Return forms. An ITR form is a prescribed form through which you communicate the details of your income earned, deductions claimed, and taxes paid in a financial year to the Income Tax Department. It also allows you to carry forward the losses and claim a refund from the Income Tax Department.

Different ITR forms are prescribed for different categories of taxpayers (individual, HUF, company, etc). The department has notified 7 various forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7, to date. The selection will depend upon your Taxpayer status, Nature of income, Residential Status in India, etc.

Can ITR forms and Income Tax Returns be used as interchangeable terms?

People tend to use ITR forms and ITR as interchangeable terms but they are not really so. ITR forms are the forms through which the income tax return is filed. Once your form is submitted successfully to the tax department, it can be called as Income Tax Return, and not at any stage before that.

How many types of ITR forms are there?

The Income Tax department’s official website lists different ITR forms that the taxpayers may be required to fill on the basis of their income. Some forms out of these are easy to file while others need some additional disclosures like P/L (profit and loss) statements etc. Know which ITR form is applicable for your e-filing of ITR -

ITR 1 or SAHAJ

Sahaj being one of the most simplified one page forms.

This form is for a resident individual whose total income includes the following:

• Income earned from salary or Pension.
• Income from other sources excluding income from winning a lottery or income from owning and maintaining race horses, income taxable under section 115BBDA or section 115E.
• Income from One House Property, however, in this form, loss brought forward from previous years or carry forward of losses are not eligible.
• Income from agriculture activities upto Rs 5000.
• Total income of the individual should not exceed 50 Lakhs.

• Non Resident
• Not Ordinarily Resident
• Person having business or profession
• Anyone having income exceeding Rs 50 lakhs
• If you own more than one house property
• Income arising from Winnings from Lottery or Race Horses, Gambling or speculation income
• An assessee having Capital Gains income
• Individual having financial interest in assets located outside India, which includes any signing authority for accounts held outside India
• Person having foreign income or claiming relief u/s 90/90A/91 for taxes paid in foreign country
• Loss under income from other sources
• One who desires to carry forward or brought forward loss under income from house property
• An individual who is holding the position of a Director in a company
• An Individual who has held any unlisted equity shares at any time during the previous year
• Agricultural income exceeding Rs. 5,000/-
• Any claim of credit of TDS in the hands of any other person
• Any tax has been deducted under Section 194N
• In case where payment or deduction of tax has been deferred on ESOP

ITR 2

This form is for individuals or a HUF (Hindu Undivided Family) whose income includes:

• Income from salary or Pension
• Income from House Property(one or more)
• Income from other sources including income from winning a lottery or income from owning and maintaining a race horse or income taxable at special rates.
• Persons who had investments in unlisted equity shares at any time during the entire financial year.
• Individual who is a director in a company.
• Individual who is a Resident(ROR/RNOR)or non resident.
• Income earned from capital gains
• Income from foreign assets/ other foreign income.
• Agricultural income more than Rs 5,000/-
• Incomes where clubbing provisions are applicable
• Individual having a financial interest in assets located outside India, which includes any signing authority for accounts held outside India
• One who desires to carry forward or brought forward loss under income from house property
• Any tax has been deducted under Section 194N
• In case where payment or deduction of tax has been deferred on ESOP
• (Total income can exceed 50 lakhs in this ITR Form)

• Individual or HUF accruing income from business or profession
• Partner of a partnership firm having income from partnership

ITR 3

This form is to be used by either an individual or a Hindu Undivided Family who are carrying on profession or a business. The following persons are eligible to fill this form:

• The residential status can be either Non-resident or Resident(ROR/RNOR)
• If a person is the director of the company.
• Persons who had investments in unlisted equity shares at any time during the entire financial year.
• Income from other sources
• Income of a person who is a partner in a firm.
• Income from salary or Pension
• Income from House Property(one or more)
• Total income can exceed 50 lakhs in this case.
• Income earned from capital gains or foreign assets/foreign income.
• who is having income under the head ?profits or gains of business or profession and who is not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam).
• In short, individuals or HUFs who are not eligible to file ITR-1, ITR-2, and ITR-4, should file ITR-3

• Companies
• Trusts
• Co-operative Society
• Local Authority
• Artificial Juridical Person
• Firm including LLP
• AOP, BOI

ITR 4 or Sugam

ITR-5

The following should choose ITR-5 form :

• Investment funds
• Business trusts
• Estate of insolvent,Estate of deceased
• Artificial Juridical Person (AJP)
• Body of individuals (BOIs)
• LLPs
• Associations of Persons (AOPs) and Firms.

• Individuals
• HUF
• Company
• Person require to file Form ITR-7 i.e. Trusts etc claiming the exemption of Section 11.

ITR-6

This form can be used by companies which are not claiming any exemptions under Section 11(Income from property held for charitable or religious purposes) and by a person which is required to file the return in Form ITR-7.

• Section 11 companies being companies formed with charitable or religious purpose
• Person on which Form ITR-7 is applicable

ITR-7

Persons including companies that are required to file returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E) or Section 139(4F) should choose ITR-7 form. The details against each section is briefed for you below:

• Section 139(4A): The return to be filed in respect of Income from a property, of which the true owner is a trust or such property is held under any other legal obligation. In this case, the income generated should be used only for charitable or religious purposes.
• Section 139(4B): The return to be filed in respect of total Income derived by a Political party
• Section 139(4C): The below mentioned entities should file returns under this section:
  i.) Scientific Research Association.
  ii.) Educational institutions, hospitals, and other medical institutions.
  iii.)Associations and institutions covered under section 10(23A) and Section 10(23B).
  iv.) News agencies.
  v.) Others as may be prescribed.
• Section 139(4D): The returns by colleges, universities or any other institutions which are not required to furnish return of income or loss under any other provision under this section.

Any other person from those specified above cannot report using ITR 7 Form. From A.Y.2022-23 onwards ITR 7 will not be applicable to the persons whose income is unconditionally exempt.

What are the key changes notified in the new ITR forms for FY 2022-23 (AY 2023-24)?

ITR forms are announced in advance this financial year 2022-23. The CBDT released Notification No. 04/2023 on February 10, 2023, with revised versions of Income Tax Return (ITR) forms and the ITR Acknowledgement for the Assessment Year 2023-24. The ITR forms comprise ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, ITR-6, ITR-V, and ITR Acknowledgement. For ITR filing, these forms will be available from April 01, 2023.

There are no major changes in the form. The substantial changes that are made are provided below:-

• There are no changes with respect to the eligibility criteria for the ITR-1 form. Individuals whose TDS have been deducted under Section 194N (cash withdrawal from banks) or have a deferred income tax liability for ESOPs cannot use the ITR-1 form for filing tax returns. Furthermore, Hindu undivided families (HUFs) cannot use ITR-1 for FY 2022-23 to file their ITR. Also, individuals who are the directors of any company or hold unlisted equity shares cannot use ITR-1.
• Section for VDA
  Other than ITR-1 for the rest of the forms, a new schedule for reporting Income from Virtual Digital Assets (VDA) such as cryptocurrencies has been included under Capital Gains. As per this amendment, taxpayers must report the date of acquisition, date of transfer, cost of acquisition, and the proceeds received on the sale of VDAs. A quarterly breakup must be provided under the Capital Gains Schedule for Income from VDA
• OLD and NEW Tax Regime
  The taxpayers have to report in the ITR3 and ITR4 forms if they have opted out of the new regime in the last assessment year and the year they opted out.
• Income from other sources
  A disclosure for ‘Income from retirement benefit accounts’ is added, as per which the taxpayers need to make a disclosure about the taxable income on which relief under section 89A was claimed in any of the earlier years.
• Intraday Trading
  In the forms ITR3/ITR5/ITR6, a new section for turnover and income from intraday trading must be reported under the ‘Trading Account’ section.
• Foreign institutional investors disclosure measure
  Foreign institutional investors (FII/FPI) must share their SEBI registration number as an additional disclosure measure.
• Balance Sheet Reporting
  In the balance sheet reporting, a small change is introduced. Income received via advances from individuals specified in Sec 40A(2)(b) of the Income Tax Act and others is to be reported under the ‘Advances ‘ section in Source of Funds.

The quantum of actual expenditure done in above categories should also be reported while filing ITR for FY 2019-20.

How can I download the ITR Form utility online?

ITR forms can be downloaded from the Income Tax India website for any year.

Steps to download ITR forms utility online -

1. Visit the official website of the Income Tax department of India.
2. Go to the “Downloads” head on the right side of the screen
3. Choose the specific assessment year.
4. Click on the option ‘Common Offline Utility (ITR 1 to ITR 4)
5. Click on ‘Utility Excel Based’ to download the excel file for desired ITR.

Which ITR to file for the FY 2022-23 (AY 2023-24)?