Which ITR to file?

 

ITR 1                                                                       

1.Only for Individual or HUF

2. Should be Resident (Only Ordinary resident)

3. Total Income upto 50 Lakh

4. Income-  a. Salaries Income

                   b. Income from One House Property

                   c. Income from Other Sources (Interest etc.)

                   d. Agricultural Income upto Rs.5000 only

The followings are Not Eligible:- 

 A. This Return Form should not be used by an individual who 

(a) is a Director in a company; 

(b) has held any unlisted equity shares at any time during the previous year; 

(c) has any asset (including financial interest in any entity) located outside India;   

(d) has signing authority in any account located outside India; or 

(e) has income from any source outside India. 

(f) has deferred tax on ESOP received from employer being an eligible start‐up. 

(g) has withdrawn cash and TDS has been deducted u/s 194N on such withdrawal. 

B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:‐   

(a) Profits and gains from business and professions;   

(b) Capital gains;

 (c) Income from more than one house property; 

(d) Income under the head other sources which is of following nature:‐  

(i) winnings from lottery; 

(ii) activity of owning and maintaining race horses; 

(iii) income taxable at special rates under section 115BBDA or section 115BBE;    

(e) Income to be apportioned in accordance with provisions of section 5A (Portuguese Civil Code); or 

(f)   Agricultural income in excess of ₹5,000. 

C. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:‐  

(a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’;   

(b) loss under the head ‘Income from other sources’;   

(c) any claim of relief under section 90 and/or section 91; 

(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or 

(e) any claim of credit of tax deducted at source in the hands of any other person.  

ITR 2                                                                       

1. an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR‐1 (Sahaj)                                                             

                                                            and 

2.who is not having any income under the head “Profits or gains of business or profession”

ITR 3                                                                       

an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR‐1 (Sahaj), ITR 2 or ITR 4 (Sugam) 

ITR 4                                                                       

1. an Individual or HUF who is Resident (Only Ordinary)

2. a Firm (Other than LLP) which is Resident

3. Total Income upto 50 Lakh from following heads:- 

a. Income from Salary/ Pension or 

b. Income from One House Property or

c. Interest income and / or income from family pension taxable under Other Sources or

d. Income from PGBP from presumptive basis U/s 44AD, 44AE** and 44 ADA

         

**Note:- if Income under 44AE after giving effect of proviso as per 44AE (3) [i.e, Provided that where the assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) subject to the conditions and limits specified in clause (b) of section 40.]  then Assessee should file ITR 5.

The followings are Not Eligible:- 

A. This Return Form should not be used by an individual who 

(a) is a Director in a company; 

(b) has held any unlisted equity shares at any time during the previous year; 

(c) has any asset (including financial interest in any entity) located outside India;   

(d) has signing authority in any account located outside India; or 

(e) has income from any source outside India. 

(f) has deferred tax on ESOP received from employer being an eligible start‐up. 

(g) has withdrawn cash and TDS has been deducted u/s 194N on such withdrawal. 

B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:‐   

(a) Profits and gains from business and professions;   

(b) Capital gains;

 (c) Income from more than one house property; 

(d) Income under the head other sources which is of following nature:‐  

(i) winnings from lottery; 
(ii) activity of owning and maintaining race horses; 

(iii) income taxable at special rates under section 115BBDA or section 115BBE;    

(e) Income to be apportioned in accordance with provisions of section 5A (Portuguese Civil Code); or 

(f)   Agricultural income in excess of ₹5,000. 

C. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:‐  

(a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’;   

(b) loss under the head ‘Income from other sources’;   

(c) any claim of relief under section 90 and/or section 91; 

(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or 

(e) any claim of credit of tax deducted at source in the hands of any other person.