Income Tax Forms

You must file an income tax return (ITR) in India if your gross total income exceeds the basic exemption limit for your age group:

Even if your income is below these limits, you must still file a tax return if any of the following conditions apply to you:

• You deposited more than Rs 1 crore in one or more current bank accounts.
• You deposited more than Rs 50 lakh in one or more savings bank accounts
• You spent over Rs 2 lakh on foreign travel for yourself or someone else.
• Your electricity bill exceeded Rs 1 lakh during the previous year.
• Your tax deducted at source (TDS) or tax collected at source (TCS) was more than Rs 25,000 (or Rs 50,000 if you are a senior citizen).
• Your business had a total turnover of more than Rs 60 lakh in the previous year.
• Your professional income was more than Rs 10 lakh in the previous year.

     Which ITR You Need to File?

  The following information will help you find out which type of income tax return is applicable to you for FY 2023-24.

ITR-1 or SAHAJ

This Return Form is for individual residents whose total income for the AY 2024-25 includes:

• Income from salary/pension
• Income from one house property (excluding cases with loss brought forward from previous years)
• Income from other sources (excluding winnings from lottery and racehorses)
• Agricultural income up to Rs 5000

     Who can not use the ITR-1 Form

• Total income exceeding Rs 50 lakh
• Agricultural income exceeding Rs 5000
• Taxable capital gains
• Income from business or profession
• Income from more than one house property
• Director in a company
• Investments in unlisted equity shares during the financial year
• Owning assets or having financial interests outside India, including signing authority in any foreign account
• Resident not ordinarily resident (RNOR) and non-resident
• Foreign income
• Tax deducted under Section 194N
• Deferred tax payment or deduction on ESOP
• Any brought forward loss or loss to be carried forward under any income head

     ITR-2

    ITR-2 is for individuals or Hindu Undivided Families (HUFs) whose total             income for the AY 2024-25 includes:

• Income from salary/pension
• Income from house property
• Income from other sources (including lottery winnings and racehorse income)
• Being a director in a company
• Investments in unlisted equity shares during the financial year
• Resident not ordinarily resident (RNOR) and non-resident
• Income from capital gains
• Any foreign income
• Agricultural income over Rs 5,000
• Owning assets or having financial interests outside India, including signing authority in any foreign account
• Tax deducted under Section 194N
• Deferred tax payment or deduction on ESOP
• Any brought forward loss or loss to be carried forward under any income head

If you need to include the income of another person (like a spouse or child) with your income, you can use this form if their income falls into any of the categories above.

There is no upper limit on total income; it can exceed Rs 50 lakh.

ITR-3

The current ITR-3 Form is for individuals or Hindu Undivided Families (HUFs) with income from a proprietary business or profession.

• Running a business or profession that requires maintaining and/or auditing books of accounts
• Being a director in a company
• Investments in unlisted equity shares during the financial year
• Income from house property, salary/pension, and other sources
• Income as a partner in a firm

ITR-4 or Sugam

The current ITR-4 Form is for individuals, Hindu Undivided Families (HUFs), and partnership firms (except LLPs) who are residents and have the following types of income:

• Business income under the presumptive income scheme (sections 44AD or 44AE)
• Professional income under the presumptive income scheme (section 44ADA)
• Income from salary or pension up to Rs 50 lakh
• Income from one house property up to Rs 50 lakh (excluding any brought forward loss or loss to be carried forward)
• Income from other sources up to Rs 50 lakh (excluding income from lottery and racehorses)
• Freelancers earning from the above sources can also use this scheme if their gross receipts do not exceed Rs 50 lakh.
• The presumptive income scheme (sections 44AD, 44AE, and 44ADA) allows income to be calculated based on a percentage of gross receipts/turnover or ownership of commercial vehicles. If business turnover exceeds Rs 2 crore, you must file ITR-3.

Who can not file ITR-4 Form?

• Total Income exceeds Rs 2 crore
• Income from more than one house property
• Owning foreign assets
• Signing authority in any foreign account
• Income from any foreign source
• Director in a company
• Investments in unlisted equity shares during the financial year
• Resident not ordinarily resident (RNOR) and non-resident
• Foreign income
• Assessable for another person’s income where tax is deducted from that person’s income
• Deferred tax payment/deduction on ESOP
• Any brought forward loss or loss to be carried forward under any income head

Selecting appropriate  Income tax form is tedious process . If you face difficulty in selecting appropriate Income tax form , feel free to contact us