All 7 Income Tax Return (ITR) forms explained

There are seven types of return forms, starting from ITR 1 up to ITR 7. Let us decode the basic details of each type of ITR form.

ITR-1 OR SAHAJ

For Assessment year 2020-21 Return in Form ITR-1 can be filed by an resident individual having an total income up to 50 lakh. Total income for this purpose includes;

Income from salary or pension,
Income from one house property,
Income from other sources such as interest from bank account (excluding winning from lottery and income from race horses, income taxable under section 115BBDA or Income of the nature referred to in section 115BBE) or
Agricultural income is up to 5,000.

ITR-2

For Assessment year 2020-21 return in Form ITR-2 can be filed by an Individuals and HUFs having a total income of more than 50 lakh. The income should not be from profits and gains of business or profession can file ITR-2. An individual having income from salaries, more than one house property, capital gains and income from other sources, having income from sources outside India and holding assets outside India may file ITR-2. Also having Income from

Agricultural income more than Rs 5,000
If you have had investments in unlisted Equity shares at any time during the financial year
Income from Capital Gains; or
Foreign Assets/Foreign income.

ITR-3

For Assessment year 2020-21 return in Form ITR-3 can be filed by an Individual and HUF having income from business or profession, or an individual holding partnership in a firm may file ITR-3.

Carrying on any business or profession
If you are a Director in a company
Income of a person as a partner in the firm.
If you have had investments in unlisted equity shares at any time during the financial year
Income from Salary/Pension, House property, and Income from other sources.

ITR-4 or Sugam

For Assessment year 2020-21 return in Form ITR-4 can be filed by an Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE. A person who is a director in a company or has invested in the unlisted equity shares or has any brought forward/ carry forward loss under house property income cannot file the ITR 4.

ITR-5

For Assessment year 2020-21 return in Form ITR-5 can be filed by LLPs (Limited Liability Partnership) , Firms , Investment funds, Business trusts, Estate of insolvent, Estate of deceased, Artificial Juridical Person (AJP), Body of Individuals (BOIs), Associations of Persons (AOPs), must opt for ITR-5 form.

ITR-6

For Assessment year 2020-21 return in Form ITR-6 can be filed by companies that are not claiming exemptions under Section 11, this form must be chosen. Companies that are filing returns under this section can only do it electronically.

ITR-7

For Assessment year 2020-21 return in Form ITR-7 can be filed by Individuals and companies that have furnished returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E), or Section 139(4F) must opt for this form. Given below are the details of the returns that must be filed under each section:

• Section 139(4A): The returns must be filed by individuals who receive an income from a property that belongs to a trust or other legal obligations and the income that is generated is solely used for religious or charitable purposes.
• Section 139(4B): Returns must be filed under this section by a political party if the total income that has been generated is more than the maximum amount.
• Section 139(4C): Returns must be filed under this section by the below-mentioned entities:
• 1. Institutions or association that come under Section 10(23A)
  2. Medical institutions, hospitals, universities, funds, and other educational institutions.
  3. News agencies
  4. Institutions that come under Section 10(23B)

• Section 139(4D): Any college, university, or other institutions that are not required to furnish any income or loss must file returns under this section.
• Section 139(4E): Business trusts that are not required to furnish their income or loss must file their returns under this section.
• Section 139(4F): Investment funds that are present under Section 115UB and are not required to furnish any income or losses must file returns under this section.

For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).