Which ITR Should I File? : Income Tax Returns e-filing for FY 2020-21, AY 2021-22

WHICH ITR SHOULD I FILE? : INCOME TAX RETURNS E-FILING FOR FY 2020-21, AY 2021-22

Returns and Forms Applicable for Salaried Individuals for AY 2021-22

​1. ITR-1 (SAHAJ) – Applicable for Individual

​This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh

• Salary / Pension
• One House Property
• Other sources (Interest, Family Pension, Dividend etc.)
• Agricultural Income up to ₹ 5,000

Note: ITR-1 cannot be used by a person who:
(a) is a Director in a company 
(b) has held any unlisted equity shares at any time during the previous year 
(c) has any asset (including financial interest in any entity) located outside India 
(d) has signing authority in any account located outside India 
(e) has income from any source outside India 
(f) is a person in whose case tax has been deducted u/s 194N 
(g) is a person in whose case payment or deduction of tax has been deferred on ESOP

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 2. ITR-2 - Applicable for Individual and HUF

This return is applicable for Individual and Hindu Undivided Family (HUF).

• Not having Income under the head Profits or Gains of Business or Profession
• Who is not eligible for filing ITR-1

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3. ITR-3- Applicable for Individual and HUF

This return is applicable for Individual and Hindu Undivided Family (HUF)

• Having Income under the head Profits or Gains of Business or Profession
• Who is not eligible for filing ITR-1, 2 or 4

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4. ITR-4 (SUGAM) – Applicable for Individual, HUF and Firm (other than LLP)

This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business and Profession which is computed on a presumptive basis and income from any of the following sources:

• Salary / Pension
• One House Property
• Other sources (Interest, Family Pension, Dividend etc.)
• Agricultural Income up to ₹ 5,000
• Income from Business /  Profession computed on presumptive basis u/s 44AD / 44ADA / 44AE 

 ITR-4 cannot be used by a person who:

1. (a) is a Director in a company
2. (b) has held any unlisted equity shares at any time during the previous year 
3. (c) has any asset (including financial interest in any entity) located outside India 
4. (d) has signing authority in any account located outside India 
5. (e) has income from any source outside India 
6. (f) is a person in whose case payment or deduction of tax has been deferred on ESOP

Please note that  ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business and Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

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ITR 5 - ​For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7

This Form can be used by a person being a firm, Limited Liability Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP) referred to in clause (vii) of section 2(31), local authority referred to in clause (vi) of section 2(31), representative assessee referred to in section 160(1)(iii) or (iv),Primary Agricultural Credit Society, Co‐operative Bank other than a primary agricultural credit society or a primary co‐operative agricultural and rural development bank, Primary Co‐ operative Agricultural and Rural Development bank, any other cooperative society, society registered under Societies Registration Act, 1860 or under any other law of any State, trust other than trusts eligible to file Form ITR‐7, estate of deceased person, estate of an insolvent, business trust referred to in section 139(4E) , investments fund referred to in section 139(4F) and Any other AOP /BOI.
However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4D)shall not use this form.

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ITR 6 - ​For Companies other than companies claiming exemption under section 11

​This Return Form can be used by a company as per section 2(17) of the Income Tax Act, This form is filed by company other than a company which is required to file return in Form ITR‐7. 

​As per section 2(17) of Income Tax Act, companymeans: ‐  (i) Indian Company (Domestic Company) (ii) Body corporate incorporated by or under the laws of country outside India (iii) Any institution, association or body, whether incorporated or not & whether Indian or Non‐Indian which is declared by general or special order of the board to be company,etc.

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ITR 7 - For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only

This Return Form can be used bypersons including companies who are required to furnish return under section139(4A) or section139(4B) or section139(4C) or section 139(4D).

The category of persons whose income is unconditionally exempt under various clauses of section 10,  and who are not mandatorily required to furnish the irreturn of income under the provisions of section139, may use this form for filing return. An indicative list of such persons is given below:‐