ITR update: Mandatory to fill form, consequences if not filed, important for taxpayers.

Guide to Filing Income Tax Returns in India

India has a progressive income tax system, which means that individuals with higher incomes pay a higher percentage of their income as tax. All individuals whose income is taxable in India are required to file an income tax return. Here’s a guide to help you navigate the different forms and filing requirements.

ITR-1: Sahaj Form

This form is exclusively for individuals and can only be used if you meet the following criteria:

• You earn your income through salary or pension.
• You have only one house property.
• You have no income from any other business or from the sale of any asset.
• You have no property or assets in countries other than India.
• Your income from agriculture is less than Rs. 5,000.
• You have not earned any windfall income like lottery or horse race.

ITR-2A

This form can be used by individuals or a Hindu Undivided Family (HUF) and is applicable if:

• You earn your income through salary or pension.
• You earn income from more than one house property.
• You have no income from any other business or from the sale of any asset.
• You have no property or assets in countries other than India.
• Your income from agriculture is less than Rs. 5,000.
• You have not earned any windfall income like lottery or horse race.

ITR-2

This form is useful for individuals who have earned income through the sale of property or assets. It is also applicable to individuals who earn income from countries outside India. In most cases, individuals or HUFs can use this form for filing their returns.

ITR-3

This form is applicable to an individual taxpayer or an HUF who works solely as partners in a firm, but who do not carry on any business under the firm. It is also applicable to persons who do not earn any income from the business carried on by the firm.

ITR-4

This form is useful for individuals who do business or who earn income through any profession. It is applicable to all types of business, undertaking or profession, without any limit on the income earned. Taxpayers can club any income from windfall profits, speculation, salary, lottery, residential properties, etc. with the income earned from their business.

ITR-4S: Sugam Form

This form can be used by individuals or HUFs to file their income tax return. It is applicable to those who earn income from any business, have a single house property, and do not earn income from the sale of property or assets in India.

ITR-5

This form is used by entities other than individuals, such as firms, LLPs, and Association of Persons (AOPs), for filing their income tax returns.

By keeping these forms in mind, individuals and entities can ensure that they file their income tax returns accurately and in a timely manner.