Procedure to file ITR

ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 are the 7 different versions of ITRs that are available for different kinds of people, organizations, and companies. One common question that comes up when filing the ITR is which form taxpayers should utilize. For a vast majority of small and medium taxpayers, the more straightforward ITR-1 and ITR-4 forms are appropriate.

The following are the forms’ specifics:

• ITER-1(Sahaj): 

The simplest ITR form, ITR-1 (Sahaj), is suitable for residents earning up to ₹50 lakh from the following sources:

• Salary
• One house property
• Additional resources (dividends, interest, family pension, etc.)
• Income from agriculture up to ₹50,000

• ITR-2: 

Compared to ITR-1 and ITR-4, ITR-2 is meant for a larger spectrum of taxpayers. The following is a summary of the people who usually utilize ITR-2:

• Hindu Undivided Families (HUFs) 
•  Individuals who are not qualified to use ITR-1 or ITR-4 This shows that their income comes from a variety of sources, including businesses covered by certain presumptive taxation schemes, housing property, agricultural revenue below a particular threshold, and salaries.

• ITR-3: 

Individuals or Hindu Undivided Families who do not qualify to file Form ITR-1 (Sahaj), Form ITR-2, or Form ITR-4 (Sugam) and whose income is classified as “profits or gains of business or profession” may use this form.

• ITR-4 (Sugam): 

This form is intended for Hindu Undivided Families and individuals who meet specific income requirements. Revenue from a business or profession with turnovers up to ₹50 lakh or ₹2 crores, respectively, under the presumptive taxation plan (section 44AD or 44ADA). Income from additional sources (pension, interest, dividends, etc.)

• ITR-5: 

A wide range of organizations, not just individual taxpayers, use this form. Registered and unregistered businesses, limited liability partnerships (LLPs), cooperative societies, and municipal governments are all considered business entities.

• ITR-6: 

Designed exclusively for businesses, this form expedites the filing procedure for these organizations. This is an overview:

• Goal user: Businesses that are officially recognized by the Firms Act of 1956 or the Companies Act of 2013 (including international firms)

Application: Relevant to all corporate configurations (public, private, etc.)

• ITR-7: 

If a business wants to claim an exemption under Section 139 (4A) for revenue received from a charitable or religious trust, it must use the ITR-7 Form when filing its income tax return. This includes firms, companies, local authorities, associations of persons (AOP), and Artificial Juridical Persons.