ITR 1 to ITR 7, have you selected the correct ITR form for AY 2022-23?


July 31 is the tax return (ITR) filing deadline for tax year 2022-23 or fiscal year 2021-22. There are several ITR forms available to taxpayers for various sources of income. It is important that taxpayers know the correct type of ITR form that is applicable to them.

Make no mistake about which form to choose when filing the tax return. Here’s everything you need to know

ITR 1 or Sahaj form

Who can file the ITR 1 form

The ITR 1 or Sahaj form is applicable to salaried persons whose total income does not exceed Rs 50 lakh for the financial year 2021-22. It should be mentioned that the salary also includes the pension. Taxpayers can also file ITR 1 for income from other sources such as interest from bank deposits or a property from home. Those with an agricultural income of up to Rs 5,000 can also use the Sahaj form to file a tax return. Persons qualifying as Ordinary Residents can only file Form ITR 1.

Who cannot file ITR 1 or Sahaj form

– Non-residents or residents but non-habitual residents
– Hindu undivided family (HUF)
– Ordinary residents with total income above Rs 50 lakh
– Manager in a company
– Those who hold unlisted equity investments
– Have carried forward losses or losses to be carried forward under the heading ‘income from the property of the house’
– Those who have income from any other source, for example, more than one house, capital gains, business or professional profits or gains, lottery winnings
– Taxpayers who hold assets outside India
– If the provisions of Section 194N of the Act are applicable i.e. TDS deducted on cash withdrawals exceeding Rs 1 crore (Rs 20 lakh in some cases)
– Those covered by the employee stock option income (ESOP) tax-deferral relief available to employees of “qualifying start-ups”

RIR Form 2

Who can file the ITR 2 form?

Salaried persons who earn more than Rs 50 lakh in the financial year 2021-22 must file an ITR 2. Taxpayers receiving capital gains income – short term and long term, can also opt for ITR 2. If income includes earnings from more than one home, ITR 2 will be the correct form to file the tax return. For income from other sources such as interest, family pension, dividends or winning lottery, taxpayers can choose ITR 2.

Further, ITR 2 will be applicable for 1) Those who hold investments in unlisted shares, 2) Director in a company, 3) For income from sources outside India and holding assets outside India , 4) Farm income over Rs 5,000. It should be noted that non-residents or residents but qualified as non-ordinary residents and Hindu undivided family (HUF) can file ITR Form 2. 5) Interest accrued on employee contributions to the PF to the extent that they are taxable, viz. interest on employee contributions exceeding INR 250,000 or INR 500,000 as applicable

Who cannot use the ITR 2 form?

ITR 2 will not apply to persons whose total income includes any profit from a business enterprise or other profession.

RIR Form 3

Who can file the ITR 3 form?

The ITR 3 form is for individuals or Hindu undivided families (HUF) who earn from a business or any other (self-employed) profession. Those who are partners in a business must opt ​​for ITR 3 when filing the tax return for AY 2022-23.

Those who deposit business or professional income on a presumptive basis and if the taxable income exceeds Rs 50 lakh and have income under the heading “capital gains”, must opt ​​for ITR 3.

Who cannot file the ITR 3 form?

1) People whose turnover is less than Rs 2 crore
2) Taxpayers who do not derive income from a business carried on by a business cannot claim ITR 3

ITR 4 or Sugam form

Who can file the ITR 4 form?

This form is for resident individuals, HUFs or companies (other than LLPs) who have received income from a profession or business in the previous financial year, but wish to adopt the presumed income (PIS) to calculate their income tax.

Any company with a turnover of less than Rs 2 crore can opt to be taxed presumptively. They must report profits of 8% for non-digital trades or 6% for digital trades, as applicable. Under the presumed income scheme, small businesses and professionals can take a percentage of total income as presumed income and pay tax on it. They do not need to estimate actual income by deducting expenses from income. This regime will be applicable to the legal, medical, engineering or architectural, accounting, technical consulting, interior design or any other profession notified by CBDT.

Who cannot file the ITR 4 form?

1) LLPs are not eligible to file ITR 4
2) Non-resident with income below Rs 50 lakh and income on deemed basis
3) Administrator of a company
4) Those who hold shares in an unlisted company

ITR Form 5 and ITR Form 6

Who can file the ITR 5 form, the ITR 6 form?

These two forms are not intended for individuals. The ITR 5 form is for partnerships, business trusts, investment funds, etc. Companies, LLPs, associations of partners, business trusts, investment funds generally opt for ITR 5.

ITR 6 is for companies registered outside of Section 11.

Who cannot file ITR Form 5, ITR Form 6?

Individuals, HUFs, or corporations cannot file ITR 5 or ITR 6 forms.

IRR Form 7

Who can file the ITR 7 form?

Form ITR 7 is for taxpayers, including corporations that are a charitable or religious trust, political party, research association, news agency, or similar organizations specified in law.

Read all Recent news and recent news here


About Author

Comments are closed.