Here is how to Select the correct Income Tax Return (ITR) - Form

First things first. Are you required to file your Income Tax Return?

Iron Rule:

If you are required to pay income tax to the government, you are required to file your return of Income to the government.

If you are not required to pay Income tax, but have paid TDS to the government, you should most definitely file your return and claim the refund of TDS paid on your behalf. To check if you have paid any TDS or not, you should check your form 26AS.

Filing your ITR? Learn how to download these important documents.

Bottom line, Whether you have to pay taxes or not, it is a good practice to file your return of income every year.

If you file it in time, you won't have to worry about getting refunds of taxes, claiming depreciation and other deductions and carrying forward of losses, among other things.

Which Income Tax Return Form (ITR Form) should I select?

Here is a shortcut, try to select any number from 1-7 below which is applicable to you. Then, refer the ITR form number heading for the number you selected.

(1) Only Ordinary Resident Individuals and HUFs can select ITR 1 if their total income is less than Rs 50 lakhs and they have no business income.

(2) Directors of companies, shareholders of unlisted companies, and Individuals / HUFs with income greater than Rs 50 lakhs should file ITR form 02.

(3) Partners of Partnership firms, and Individuals/HUF with income greater than Rs 50 lakhs should select Form ITR - 03

(4) Persons who have opted for presumptive basis for calculation of tax liability, and income less than Rs 50 lakhs should select ITR - 04 (Sugam)

(5) Joint Ventures, AOP, BOI etc should file ITR - 05

(6) Companies should select form ITR-06

(7) Charitable or religious trusts or societies should select form ITR -07

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Form ITR - 01 (Sahaj)

Who should not file this Form ITR - 01 (Sahaj)?

(1) Only Individuals and HUFs can select this ITR Form - 01

(2) Who should select this form?

Resident Individuals and HUFs with income less than Rs 50 lakhs, having salary and house property income, agricultural income upto Rs 5,000, no business income, no carry off or forward of house property loss, and not holding assets outside India.

(3) Do not use this form for

(a)Non-residents/ Resident but Not Ordinarily Residents

(b) Persons with income above Rs 50 lakh (surcharge provisions applicable)

(c) Directors of Companies,

(d) holder of unlisted shares (also ESOPs allotted/ transferred by employer being an eligible start-up)

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Form ITR - 02

(1) Only Individuals and HUFs can select this ITR Form - 02

(2) Who should select this Form ITR - 02 ?

(a) Persons with income from Salary, more than one House Property, Capital Gains and Other sources, BUT NOT Profits and Gains from business or profession.

(b) Persons with income above Rs 50 lakh (surcharge provisions applicable)

(c) Directors of Companies,

(d) holder of unlisted shares

(3) Who should not select this Form ITR - 02 ?

(a) Individuals/HUFs with income from profits and gains from business or profession.

(b) Partner of a Partnership form

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Form ITR - 03

(1) Only Individuals and HUFs can select this ITR Form - 03

(2) Who should select this ITR Form - 03?

(a) Individuals/HUFs with income from all heads of Income INCLUDING profits and gains from business or profession.

(b) Partner of a Partnership form

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Form ITR - 04 (Sugam)

(1) Only Resident - Individuals, HUFs and Partnership Firms (excluding LLPs) can select this Form ITR - 04 (Sugam)

(2) Who should select this Form ITR - 04 (Sugam)?

Those individuals and HUFs, including partnership firms, but excluding LLPs who:

(a) Have opted for "Presumptive Basis" - for computing tax liability.

(b) Have a business income up to Rs 50 lakhs.

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Form ITR 5 onwards should be prepared by body corporates with a separate legal existence.

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Form ITR - 5

(1) These type of Entities can select this ITR Form - 05

(a) Partnership Firm, not opted presumptive basis for computation of tax/

(b) LLPs/

(c) Association of Persons (AOPs)/

(d) Business trusts/

(e) Investment funds

(2) Who should not file this Form ITR - 05?

(a) Individuals and HUFs

(b) Companies registered under the Companies Act

(c) Charitable trusts and societies who have the section 12AA (of Income Tax Act, 1961) / 12AB exemptions.

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Form ITR - 06

(1) Companies registered under the companies act, 2013 should file this return of Income.

(1) Each and every body corporate, who does not have a section 12AA (of Income Tax Act, 1961) / 12AB registration as a charitable trust or society or a section 8 company should file Form ITR - 06.

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Form ITR - 07

(1) This form should be filled by charitable and religious trusts including Section 8 Companies, if they have an active section 12AA (of Income Tax Act, 1961) or 12AB registration.

(2) Each and every charitable or religious trust, political party, research association, news agency or similar organizations, which has an active section 12AA (of Income Tax Act, 1961) / 12AB registration as a charitable or religious - trust or society etc should file Form ITR - 07.