Filing income tax can be a long and arduous process in the event that one isn’t clued up on the variety of forms available and what each of these entails and to who they are applicable. Paying income tax is important. This article aims to arm readers with knowledge on the same such that no confusions arise at the time of filing income taxes.
What are ITR Forms?
An Income tax return (or ITR) form allows taxpayers to fill out information pertaining to the income they have earned for a specified time (ordinarily a financial year) and the tax applicable. This form is meant to be sent to the income tax department which has released 7 notified forms i.e., ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 thus far. Taxpayers are required to submit their ITR to the income tax department on or prior to the specified last date of submission. A number of factors determine which ITR form might apply to a given individual. Factors include but aren’t limited to the income of the taxpayer, the sources of said income, and the category to which they belong i.e., are they classified as an individual, HUF or company, and so on.
What are the varied types of ITR Forms?
As mentioned above, the types of ITR forms presently available are 7 in number, each of which has been examined below.
ITR Form 1
This income tax return form is meant to be filed by individual taxpayers. Those eligible to fill this form have one or more of the following factors apply to them –
- Accrue an income via a salary or pension
- Accrue an income from one housing property
- Do not earn any capital gains
- Accrue income from other sources
- Do not possess or own property in foreign lands
- Income earned is entirely from domestic ventures
- Agricultural income up to Rs. 5,000, if any
- Windfall income earned via horse races and / or lotteries is inapplicable
- This form is not for an individual who is either Director in a company or has invested in unlisted equity shares
- This form is not for individual whose TDS has been deducted u/s 194N of Income Tax Act 1961