Income Tax Return Forms: Types of ITR Forms for FY 2022-23, AY 2023-24 & Which ITR to File?

What are ITR forms?

ITR 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,LLP, Partnership firms etc). The department has notified 7 various forms i.e., ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7, till date. The selection will depend upon Taxpayer’s 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 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 an Income Tax Return, and not at any stage before that.

Who should file the ITR?

Individuals who earn income above a certain threshold limit are generally required to file an Income Tax Return (ITR). Individuals with Total Income exceeding the Basic Exemption Limit: For the financial year 2022-2023 (AY 2023-2024), the basic exemption limits for filing ITR in India were as follows:

• 1. a. For individuals below 60 years of age: ₹2.5 lakh.
  b. For individuals between 60 and 80 years of age (senior citizens): ₹3 lakh.
  c. For individuals above 80 years of age (super senior citizens): ₹5 lakh
  If your total income (before deductions) exceeds these thresholds, you are required to file an ITR.
• 2. Individuals with certain types of Income:- Regardless of the income threshold, certain individuals are required to file an ITR in India, including
  a.Individuals who have earned income from business or profession.
  b. Individuals who have earned income from capital gains, such as sale of property or investments.
  c. Individuals who have earned income from foreign assets or have foreign income.
  d. Individuals who are claiming a refund of taxes.
  e. Individuals who are eligible for relief or deduction under double taxation avoidance agreements.

How many types of ITR forms are there?

The Income Tax Department’s official website lists different ITR forms that taxpayers may be required to fill out based on their income. Some forms 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 for FY 2022-23

Sahaj is one of the most simplified one-page ITR forms.

Who can file ITR 1?

This form is for a resident individual whose total income includes-

• 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.
• However, income from One House Property, in this form, the loss brought forward from previous years or carried forward of losses are not eligible.
• Income from agriculture activities up to Rs 5000.
• The total income of the individual should not exceed 50 Lakhs.

Who cannot file ITR 1(Sahaj)?

• Non-Resident
• Not Ordinarily Resident
• Person having business or profession
• Anyone having total 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 FY 2022-23

Who can file 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)

Who cannot file ITR 2?

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

ITR 3 for FY 2022-23

Who can file 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

Who cannot file ITR 3?

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

ITR 4 or Sugam for FY 2022-23

Who can file ITR 4?

• This form is applicable to both the resident individuals and HUFs.
• Other than LLPs all partnership firms which are residents and have an income which is either professional or from business.
• Those persons who have opted for a presumptive income scheme according to Section 44AD, Section 44AE and Section 44ADA of the Income Tax Act.
• If the person’s business turnover exceeds Rs. 2 crore, then he is required to file ITR-3 with Audit report, and not ITR 4.
• The total income for ITR 4 should not exceed Rs. 50 lakhs.
• Income from One House Property(loss brought forward from previous years or carry forward of losses are not eligible in this ITR Form ).
• Income 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 115BE).

Who cannot file ITR 4(SUGAM)?

• Anyone who maintains books of accounts and is willing to set off expenses with income earned and not want to file as per the 44AD / 44ADA and 44AE provisions i.e. presumptive taxation basis.
• Income earned through capital gains.
• If you own more than one house property whether let out or self occupied
• A person having Agricultural income in excess of Rs 5,000.
• Person who is a Director in a company
• Person has held any unlisted equity shares at any time during the previous year
• Persons having financial interest in assets located outside India, which includes any signing authority for accounts held outside India
• Income arising from Winnings from Lottery or owning and maintaining of Race Horses, Gambling or speculation income
• Person 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
• Any claim of credit of TDS in the hands of any other person
• In case where payment or deduction of tax has been deferred on ESOP

ITR-5

Who can file 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.

Who cannot file ITR 5?

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

ITR-6

Who can file 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.

Who cannot file ITR 6?

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

ITR-7

Who can file 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.

Who cannot file ITR 7?

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. Schedule VDA has been added.
• 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.

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 the 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 AY 2023-24 (FY 2022-23)?