All Type of ITR Forms: ITR-1 to ITR-7 Explained for 2024-25

All Type Of ITR Forms: ITR-1 to ITR-7 Explained. Filing income tax returns (ITR) is a crucial responsibility for taxpayers in India. The Income Tax Department has categorized taxpayers based on their income sources and other factors, and accordingly, different ITR forms are prescribed.

This guide provides a complete overview of the various ITR forms, from ITR-1 to ITR-7, explaining their applicability, structure, and filing procedures.

Also Read-How to File Income Tax Returns (ITR) Online in India?

All Type Of ITR Forms: ITR-1 to ITR-7 Explained.

1. ITR-1 (Sahaj).

Who Can File ITR-1?

ITR-1 (Sahaj) is a simplified income tax return form for resident individuals with total income up to Rs. 50 lakh from salary/pension, one house property, agricultural income up to Rs. 5000, and other sources like interest income. It is an annexure-less return, meaning supporting documents need not be attached while filing.

The sources of income eligible for ITR-1 include:

• Income from salary or pension
• Income from one house property (excluding cases where loss is brought forward from previous years)
• Income from other sources (excluding winnings from lottery and income from racehorses)
• Agricultural income up to ₹5,000

Who Cannot File ITR-1?

Individuals who fall under the following categories cannot use ITR-1:

• Non-resident Indians (NRIs) and Resident Not Ordinarily Resident (RNOR)
• Individuals with total income exceeding ₹50 lakh
• Individuals with income from more than one house property
• Individuals with income from business or profession
• Directors in a company
• Individuals who have invested in unlisted equity shares
• Individuals with taxable capital gains
• Individuals with income from lottery, racehorses, or other legal gambling activities

Structure of ITR-1.

ITR-1 is a simple form divided into the following sections:

1. Part A: General Information – Personal details like name, PAN, address, date of birth, Aadhaar number, email, and mobile number.
2. Part B: Gross Total Income – Details of income from salary, house property, and other sources.
3. Part C: Deductions and Total Income – Deductions under Chapter VI-A and computation of total income.
4. Part D: Tax Computation and Tax Status – Calculation of tax liability, rebate under Section 87A, and tax payable or refundable.
5. Verification – Declaration by the taxpayer confirming the accuracy of the information provided.

Filing Procedure of ITR-1.

ITR-1 can be filed online through the Income Tax Department’s e-filing portal. The form can be pre-filled with data from the taxpayer’s profile, which needs to be verified and updated if necessary. After filling in the required details, the form can be submitted electronically, and the verification can be done using Aadhaar OTP, EVC, or by sending a signed physical copy of ITR-V to the Centralized Processing Centre (CPC) in Bengaluru.

2. ITR-2.

Who Can File ITR-2?

TR-2 is an income tax return form that can be filed by individuals and Hindu Undivided Families (HUFs) who have income from salary, pension, house property, capital gains, other sources, and foreign income, but do not have income from profits and gains of business or profession

The sources of income eligible for ITR-2 include:

• Income from salary or pension
• Income from house property (more than one house property allowed)
• Income from capital gains
• Income from other sources (including winnings from lottery and income from racehorses)
• Foreign income and assets
• It is applicable for those with total income exceeding ₹50 lakh
• Directors of companies and those who have invested in unlisted equity shares must file ITR-2
• Changes for AY 2023-24 include reporting of income from virtual digital assets, details of foreign income and assets, and tax benefits

Who Cannot File ITR-2?

Individuals and HUFs with income from business or profession cannot use ITR-2. Additionally, individuals who are eligible to file ITR-1 should not use ITR-2.

Structure of ITR-2.

ITR-2 is more detailed and includes the following sections:

1. Part A: General Information – Personal details and filing status.
2. Part B: Gross Total Income – Details of income from salary, house property, capital gains, and other sources.
3. Part C: Deductions and Total Income – Deductions under Chapter VI-A and computation of total income.
4. Part D: Tax Computation and Tax Status – Calculation of tax liability, rebate under Section 87A, and tax payable or refundable.
5. Schedules – Various schedules for detailed reporting of income, deductions, and tax computation, including Schedule CG (Capital Gains), Schedule OS (Other Sources), Schedule FA (Foreign Assets), and more.
6. Verification – Declaration by the taxpayer confirming the accuracy of the information provided.

Filing Procedure of ITR-2.

ITR-2 can be filed online through the Income Tax Department’s e-filing portal. The form can be pre-filled with data from the taxpayer’s profile, which needs to be verified and updated if necessary. After filling in the required details, the form can be submitted electronically, and the verification can be done using Aadhaar OTP, EVC, or by sending a signed physical copy of ITR-V to the CPC in Bengaluru.

3. ITR-3.

Who Can File ITR-3?

The ITR-3 form is the income tax return form in India for individuals and Hindu Undivided Families with business or professional income. It acts as a one-stop shop, allowing you to report income from various sources like salaries, capital gains, or house property alongside your business earnings. If your business requires a tax audit, ITR-3 can handle that too. Remember, it’s filed electronically and has different due dates depending on the audit requirement.

The sources of income eligible for ITR-3 include:

• Income from business or profession
• Income from house property
• Income from salary or pension
• Income from capital gains
• Income from other sources (including winnings from lottery and income from racehorses)
• Foreign income and assets

Who Cannot File ITR-3?

Individuals and HUFs who are eligible to file ITR-1, ITR-2, or ITR-4 should not use ITR-3.

Structure of ITR-3.

ITR-3 is comprehensive and includes the following sections:

1. Part A: General Information – Personal details and filing status.
2. Part B: Gross Total Income – Details of income from salary, house property, business or profession, capital gains, and other sources.
3. Part C: Deductions and Total Income – Deductions under Chapter VI-A and computation of total income.
4. Part D: Tax Computation and Tax Status – Calculation of tax liability, rebate under Section 87A, and tax payable or refundable.
5. Schedules – Various schedules for detailed reporting of income, deductions, and tax computation, including Schedule BP (Business or Profession), Schedule CG (Capital Gains), Schedule OS (Other Sources), Schedule FA (Foreign Assets), and more.
6. Verification – Declaration by the taxpayer confirming the accuracy of the information provided.

Filing Procedure of ITR-3.

ITR-3 can be filed online through the Income Tax Department’s e-filing portal. The form can be pre-filled with data from the taxpayer’s profile, which needs to be verified and updated if necessary. After filling in the required details, the form can be submitted electronically, and the verification can be done using Aadhaar OTP, EVC, or by sending a signed physical copy of ITR-V to the CPC in Bengaluru.

4. ITR-4 (Sugam).

Who Can File ITR-4?

The ITR-4 form, also known as Sugam, is designed for a specific group of taxpayers in India. It caters to individuals, Hindu Undivided Families (HUFs), and partnership firms (excluding LLPs) who opt for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.

This scheme estimates income based on a percentage of business turnover, simplifying tax filing for eligible small businesses and professionals. There are however, limitations on turnover thresholds for using ITR-4.

The sources of income eligible for ITR-4 include:

• Income from business or profession computed on a presumptive basis
• Income from salary or pension
• Income from one house property
• Income from other sources (excluding winnings from lottery and income from racehorses)
• Agricultural income up to ₹5,000

Who Cannot File ITR-4?

Individuals, HUFs, and firms who fall under the following categories cannot use ITR-4:

• Non-resident Indians (NRIs) and Resident Not Ordinarily Resident (RNOR)
• Individuals with total income exceeding ₹50 lakh
• Individuals with income from more than one house property
• Individuals with income from business or profession not computed on a presumptive basis
• Directors in a company
• Individuals who have invested in unlisted equity shares
• Individuals with taxable capital gains
• Individuals with income from lottery, racehorses, or other legal gambling activities

Structure of ITR-4.

ITR-4 is a simplified form divided into the following sections:

1. Part A: General Information – Personal details like name, PAN, address, date of birth, Aadhaar number, email, and mobile number.
2. Part B: Gross Total Income – Details of income from salary, house property, business or profession, and other sources.
3. Part C: Deductions and Total Income – Deductions under Chapter VI-A and computation of total income.
4. Part D: Tax Computation and Tax Status – Calculation of tax liability, rebate under Section 87A, and tax payable or refundable.
5. Verification – Declaration by the taxpayer confirming the accuracy of the information provided.

Filing Procedure.

ITR-4 can be filed online through the Income Tax Department’s e-filing portal. The form can be pre-filled with data from the taxpayer’s profile, which needs to be verified and updated if necessary. After filling in the required details, the form can be submitted electronically, and the verification can be done using Aadhaar OTP, EVC, or by sending a signed physical copy of ITR-V to the CPC in Bengaluru.

5. ITR-5.

Who Can File ITR-5?

ITR-5 is applicable for firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Persons (AJPs), estates of deceased or insolvent individuals, business trusts, and investment funds.

The sources of income eligible for ITR-5 include:

• Income from business or profession
• Income from house property
• Income from capital gains
• Income from other sources

Who Cannot File ITR-5?

Entities that fall under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act cannot use ITR-5.

Structure of ITR-5.

ITR-5 is detailed and includes the following sections:

1. Part A: General Information – Details of the entity, filing status, and other relevant information.
2. Part B: Gross Total Income – Details of income from business or profession, house property, capital gains, and other sources.
3. Part C: Deductions and Total Income – Deductions under Chapter VI-A and computation of total income.
4. Part D: Tax Computation and Tax Status – Calculation of tax liability, rebate under Section 87A, and tax payable or refundable.
5. Schedules – Various schedules for detailed reporting of income, deductions, and tax computation, including Schedule BP (Business or Profession), Schedule CG (Capital Gains), Schedule OS (Other Sources), and more.
6. Verification – Declaration by the taxpayer confirming the accuracy of the information provided.

Filing Procedure of ITR-5.

ITR-5 can be filed online through the Income Tax Department’s e-filing portal. The form can be pre-filled with data from the entity’s profile, which needs to be verified and updated if necessary. After filling in the required details, the form can be submitted electronically, and the verification can be done using Aadhaar OTP, EVC, or by sending a signed physical copy of ITR-V to the CPC in Bengaluru.

6. ITR-6.

Who Can File ITR-6?

The ITR-6 form is specifically designed for companies in India to file their income tax returns. It’s mandatory for most businesses, except those claiming exemption under Section 11 (typically for charitable or religious purposes).

This comprehensive form captures details on various income sources, deductions, and taxes applicable to the company. It must be filed electronically and often requires an accompanying tax audit report.

The sources of income eligible for ITR-6 include:

• Income from business or profession
• Income from house property
• Income from capital gains
• Income from other sources

Who Cannot File ITR-6?

Companies claiming exemption under Section 11 cannot use ITR-6.

Structure of ITR-6.

ITR-6 is comprehensive and includes the following sections:

1. Part A: General Information – Details of the company, filing status, and other relevant information.
2. Part B: Gross Total Income – Details of income from business or profession, house property, capital gains, and other sources.
3. Part C: Deductions and Total Income – Deductions under Chapter VI-A and computation of total income.
4. Part D: Tax Computation and Tax Status – Calculation of tax liability, rebate under Section 87A, and tax payable or refundable.
5. Schedules – Various schedules for detailed reporting of income, deductions, and tax computation, including Schedule BP (Business or Profession), Schedule CG (Capital Gains), Schedule OS (Other Sources), and more.
6. Verification – Declaration by the taxpayer confirming the accuracy of the information provided.

Filing Procedure of ITR-6.

ITR-6 can be filed online through the Income Tax Department’s e-filing portal. The form can be pre-filled with data from the company’s profile, which needs to be verified and updated if necessary. After filling in the required details, the form can be submitted electronically, and the verification can be done using a digital signature.

7. ITR-7.

Who Can File ITR-7?

The ITR-7 form caters to specific entities like trusts, societies, and companies seeking income tax exemptions. It’s not for everyone – only those claiming exemptions under sections like 139(4) or claiming specific reliefs.

The form itself is quite detailed with various schedules to report income sources, accumulated funds, and registration details. Due dates can vary depending on audit requirements.

The sources of income eligible for ITR-7 include:

• Income from property held under trust or other legal obligation wholly for charitable or religious purposes
• Income from political parties
• Income from scientific research associations, news agencies, and other specified entities
• Income from universities, colleges, or other institutions not required to furnish returns under any other provision

Who Cannot File ITR-7?

Entities whose income is unconditionally exempt under various clauses of Section 10 and who are not mandatorily required to furnish their return of income under the provisions of Section 139 cannot use ITR-7.

Structure of ITR-7

ITR-7 is detailed and includes the following sections:

1. Part A: General Information – Details of the entity, filing status, and other relevant information.
2. Part B: Gross Total Income – Details of income from property held under trust, political parties, scientific research associations, and other specified entities.
3. Part C: Deductions and Total Income – Deductions under Chapter VI-A and computation of total income.
4. Part D: Tax Computation and Tax Status – Calculation of tax liability, rebate under Section 87A, and tax payable or refundable.
5. Schedules – Various schedules for detailed reporting of income, deductions, and tax computation, including Schedule BP (Business or Profession), Schedule CG (Capital Gains), Schedule OS (Other Sources), and more.
6. Verification – Declaration by the taxpayer confirming the accuracy of the information provided.

Filing Procedure of ITR-7.

ITR-7 can be filed online through the Income Tax Department’s e-filing portal. The form can be pre-filled with data from the entity’s profile, which needs to be verified and updated if necessary. After filling in the required details, the form can be submitted electronically, and the verification can be done using a digital signature, EVC, or by sending a signed physical copy of ITR-V to the CPC in Bengaluru.

Wrapping Up.

Filing the correct ITR form is essential for accurate tax reporting and compliance with the Income Tax Act. Each ITR form is designed to cater to specific categories of taxpayers based on their income sources and other criteria. Understanding the applicability, structure, and filing procedures of each form ensures that taxpayers can fulfill their tax obligations efficiently and avoid any penalties or legal issues.

C.K. Gupta

Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.