What is ITR? Check out Types of ITR Forms in India

ITR Form: Income Tax Return (ITR) is a form that every taxpayer in India needs to file with the Income Tax Department every year. It shows your income, expenses, deductions, and tax paid. Filing ITR is important because it helps the government check if you have paid the right amount of tax. If you paid extra tax, you can get a refund. ITR is also proof of income, which is needed for loans, visa applications, and financial transactions.

Types of ITR Forms in India

1. ITR-1 

ITR-1 is for individuals who earn income from salary, pension, or one house property. It also covers income from other sources like bank interest. The total income should not be more than ₹50 lakh. This is the easiest form to fill and is mostly used by salaried employees and pensioners.

2. ITR-2

ITR-2 is for individuals and Hindu Undivided Families (HUFs) who do not have business or professional income. It can be used if you have income from salary, pension, more than one house property, capital gains (like selling property or shares), or foreign income/assets. Non-Resident Indians (NRIs) also file ITR-2 if they earn taxable income in India.

3. ITR-3

ITR-3 is for individuals and HUFs with business or professional income. This includes self-employed professionals like doctors, lawyers, freelancers, and business owners. It also includes income from salary, house property, and capital gains. People filing ITR-3 may need to maintain profit and loss statements or balance sheets.

4. ITR-4 

ITR-4 is for people who opt for presumptive taxation under Sections 44AD, 44ADA, or 44AE. It is for individuals, HUFs, and partnership firms (not LLPs) with income up to ₹50 lakh. Under this scheme, income is calculated at a fixed rate without maintaining detailed books of accounts. Small traders, shopkeepers, professionals, and transport businesses often use this form.

5. ITR-5

ITR-5 is for partnership firms, LLPs, AOPs, BOIs, business trusts, and cooperative societies. It is not for individuals or HUFs. This form is used to declare income, deductions, and tax liability for non-corporate entities.

6. ITR-6

ITR-6 is for companies except those claiming exemption under Section 11 for charitable or religious purposes. Companies need to file this form online, showing income, deductions, business expenses, and audit details. It is mainly used by profit-making companies.

7. ITR-7

ITR-7 is for entities like charitable trusts, political parties, scientific research institutions, universities, and colleges that are required to file under Sections 139(4A), 139(4B), 139(4C), or 139(4D). These entities are often tax-exempt but must report income and expenses for transparency.

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