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Which ITR Should I File? - Types of Income Tax Return Forms for FY 2023-24 (AY 2024-25)

Updated on: 23 May, 2024 03:15 PM

ITR filing is mandatory for individuals who have an annual income exceeding the basic exemption limit. There are various types of Income Tax return forms that taxpayers have to fill to complete e filing their ITR. These ITR forms are classified on the basis of the nature of income. However, the ITR form required in each case is different, and it can be confusing to select the right one.

In this article, we will learn about the different types of income tax return forms, who should file ITR, key changes in ITR forms, etc.

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 form types 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 the 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 form 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) form. Individuals with Total Income exceeding the Basic Exemption Limit: For the financial year 2023-2024 (AY 2024-2025), the basic exemption limits for filing ITR in India were as follows:

Age Group Income Threshold
Below 60 years ₹2.5 lakh
60 to 80 years ₹3 lakh
Above 80 years ₹5 lakh

Note: If your total income (before deductions) exceeds these thresholds, you are required to file an Income Tax Return (ITR).

Certain Individuals Required to File ITR:

Type of Income
Income from business or profession
Income from capital gains (e.g., property, investments)
Income from foreign assets or foreign income
Claiming a refund of taxes
Eligible for relief or deduction under double taxation avoidance agreements

These individuals are required to file an ITR regardless of the income threshold.


Why Should You File ITR?

  1. Legal Proof:
    Income Tax Return serves as a legally significant document registered with the government.
    Accepted as a valid identity proof as well as Income proof.
  2. Deduction Claims:
    Filing Income Tax Returns enables taxpayers to claim deductions and exemptions provided by the government to reduce tax liabilities.
    These deductions are applicable to investments and can help in minimizing tax obligations. Additionally, refunds for Tax Deducted at Source (TDS) can be claimed.
  3. Loan Application:
    It is essential for loan applications, as banks require various documents including Aadhar card, PAN card, and income proof like Income Tax Returns for the past three years.
  4. International Travel Facilitation:
    It is vital for international travel plans as many countries require Income Tax Returns as part of visa application documentation.
    Filing returns showcases a responsible financial history, enhancing visa approval chances.
  5. Avoidance of Penalties:
    Failure to file Income Tax Returns when liable to pay taxes can result in penalties as per the Income Tax Act 1961.
  6. Loss Carryforward Provision:
    Enables individuals to offset losses against future income, providing tax relief in subsequent years.

Types of ITR Forms and Which ITR to File?

The Income Tax Department’s official website lists different ITR form types 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 2023-24


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 a 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 cases where payment or deduction of tax has been deferred on ESOP

ITR 2 FY 2023-24


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.
  • An individual who is a Resident(ROR/RNOR)or non-resident.
  • Income earned from capital gains
  • Income from foreign assets/ other foreign income.
  • Agricultural income of 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 2023-24


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 2023-24


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 racehorses , 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.

itr-form

What are the Key Changes Notified in the New ITR Forms for FY 2023-24 (AY 2024-25)?


ITR forms are announced in advance this financial year 2023-24. 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.

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 2023-24 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 2024-25 (FY 2023-24)?

ITR Form Number Description
ITR 1 For individuals who are a resident other than Not ordinarily Resident, who have a total income upto Rs. 50 lakhs. Having income from salaries, one house property, other sources and agricultural Income upto Rs. 5 thousand ( not for any individual who is holding the position of a director in a company or invested in unlisted equity shares)
ITR 2 Income of both individuals and HUFs from salaries, multiple house property, capital gains, foreign investments, and agricultural Income Rs. 5 thousand or more. The total annual income can exceed Rs. 50 Lakhs. The individual should not have gains and profits of a business or profession.
ITR 3 The individual and HUF having all income applicable for FORM ITR 2 and gains and profits of business or profession. Partners of a firm can file this ITR FORM.
ITR 4 For individuals, HUFs and firms other than LLP, a resident having total income of upto 50 lakhs and having income from business and profession, which is computed under sections 44AD, 44ADA, and 44AE. ( not for any individual who is holding the position of a director in a company or invested in unlisted equity shares)
ITR 5 For persons other than Individual, HUFs, company and person filing for ITR-7. This form is applicable for Firms, LLP, AOI,, BOP.
ITR 6 For all the companies other than the ones claiming exemption under Section-11
ITR 7 Persons/Companies who are required to furnish returns under sections 139(4A), 139(4B), 139 (4C) and 139 (4D).

ITR filing for FY 2023-24 has started. If you are also confused about which ITR Form to fill, contact our tax experts who not only help you select the appropriate ITR form but also file your ITR accurately and without any hassle. Book online CA now!


FAQs on ITR Forms

Q- Can I file ITR for AY 2024-25 now?

The deadline to file ITR as per sec 139(1) of Income Tax Act for AY 2024-25 (FY 2023-24) is 31st July 2024.


Q- How to know which ITR form to be filled?

You can refer to the above blog for knowing the applicability of ITR form types.


Q- What is the ITR form for individuals?

ITR - 1 / ITR-2 / ITR-3 / ITR-4 can be filed by Individuals depending on the sources of income and other relevant information.


Q- Which ITR form for salary income?

If a resident individual is having only Salary income then Form ITR-1 is relevant subject to other conditions.


Q- Which ITR should be filed for the commission agent?

The applicability of ITR form types depends upon the source of income. For example, the commission agency income can be treated as other sources of income or business income.
If an individual is having a major source of income as salary and is also earning commission income, then he can choose to file ITR1. Whereas if the individual is having the main source of income as commission then it may be treated as business income and he can choose to file ITR3 in this case.


Q- What is the difference between ITR 3 and ITR 4?

ITR-4 is applicable in case business/ professional income is reported on presumptive basis under section 44AD/ 44ADA/ 44AE whereas ITR-3 is applicable on business or professional income reported on other than presumptive basis. There are many other differences which can be derived from the blog above.


Q- What is the difference between ITR 1 and ITR 4?

ITR-1 is applicable to Resident Individuals having Income from Salaries, One House property, Other sources of income as specified. On the other hand, ITR-4 is applicable on Resident Individuals, HUF or Firms except LLP having Income from business and profession which is computed under Section 44AD/ 44ADA/ 44AE (i.e.,on presumptive basis)


Q- Which ITR form is applicable for nil return?

ITR Form depends on the type of taxpayer , source of income and such other factors. For eg., If a nil return is to be filed of a HUF then ITR-2 or ITR-3, or ITR-4 shall be relevant depending on sources of income and other factors.


Q- Which ITR form is to be used for commission income?

If the commission is business income of an individual then it should be reported as business income and accordingly, ITR-3 shall be applicable and if it is not his business income then it shall be treated as income from other sources, consequently, ITR-1 or ITR-2 shall be relevant subject to other conditions.


Q- Which ITR form should NRI use?

ITR-2 or ITR-3 is applicable on Non-resident Individuals.


Q- Which ITR form to fill for self employed?

ITR-3 or ITR-4 shall be applicable on a self-employed.


Q- How to file ITR if I have form 16?

ITR is to be filed using details appearing in Form-16. ITR can be filed either on the income tax website directly or online or by downloading Excel or the utility of the Income Tax Return Form from the IT website. Tax2win.in also assists in ITR filing in a smooth and simplified manner with maximum tax saving.


Q- I am a salaried person. I also deal in share trading. Which ITR should I file?

ITR 1 is used for salaried persons. But in case assessee is dealing in shares trading which may result in capital gains then ITR 2 is filed.


Q- Where do you declare profession tax on the ITR-1 form?

Professional tax is declared in deductions u/s 16 in ITR 1


Q- Which ITR form should I use for dual income from salary and consultancy charges under section 194J?

ITR 4 is filed if a person is having income from salary and profession, if the person wants to report consultancy income on presumptive basis.


Q- In which month do ITR forms become available?

ITR forms are available throughout the year and every year updated ITR forms are released after the end of the relevant financial year. There is no fixed specified date in this regard.


Q- ITR: Which ITR I have to fill for 2 incomes (commissions -194H and Salary)?

ITR 1 is applicable for salary income and other sources of income. If the commission is business income of an individual then it should be reported as business income and accordingly, ITR-3 shall be applicable


Q- Which ITR form should you use if you have a rental income from two houses?

ITR form 2 is filled for income from multiple house property.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.