Decoding ITR Forms: FY 2023-24 Essentials (AY 2024-25)

To determine which Income Tax Return (ITR) form you should file for FY 2023-24 (AY 2024-25), you need to consider various factors such as your sources of income, total income, and other specific conditions applicable to you. Here’s a breakdown of the types of ITR forms available and their applicability:

1. ITR-1 (Sahaj)

   :

   • Applicability:
     • For resident individuals whose total income includes:
       • Income from Salary/Pension.
       • Income from One House Property (excluding cases where loss is carried forward from previous years).
       • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses).
       • Agricultural income up to Rs 5,000.
   • Who cannot use ITR-1:
     • Total income exceeding Rs 50 lakh.
     • Agricultural income exceeding Rs 5,000.
     • Taxable capital gains.
     • Income from business or profession.
     • Income from more than one house property.
     • Director in a company.
     • Investments in unlisted equity shares.
     • Assets outside India.
     • Resident not ordinarily resident (RNOR) and non-resident.
     • Foreign income.
     • Tax deducted under Section 194N.
     • Deferred tax on ESOP.
     • Brought forward losses.

2. ITR-2:

   • Applicability:
     • For individuals and HUFs whose total income includes:
       • Income from Salary/Pension.
       • Income from House Property.
       • Income from Other Sources (including winnings from lottery and race horses).
       • Income from Capital Gains.
       • Agricultural income more than Rs 5,000.
   • Who cannot use ITR-2:
     • Income from Business or Profession.
     • Read our comprehensive guide on ITR-2 to know more.

3. ITR-3

   :

   • Applicability:
     • For individuals or HUFs having income from a proprietary business or carrying on a profession.
   • Who can file ITR-3:
     • Carrying on a business or profession required to maintain books of accounts and/or audited.
     • Income from House property, Salary/Pension, and other sources.
     • Income as a partner in a firm.
   • Check out our comprehensive guide to ITR-3.

4. ITR-4 (Sugam)

   :

   • Applicability:
     • For individuals, HUFs, and Partnership firms (other than LLPs) whose total income includes:
       • Business income under presumptive income scheme (44AD or 44AE).
       • Professional income under presumptive income scheme (44ADA).
       • Income from salary or pension up to Rs 50 lakh.
       • Income from one house property, not more than Rs 50 lakh.
       • Income from other sources, not more than Rs 50 lakh (excluding lottery and race-horses).
   • Who cannot use ITR-4:
     • Total income exceeding Rs 50 lakh.
     • Income from more than one house property.
     • Foreign assets.
     • Director in a company.
     • Investments in unlisted equity shares.
     • Resident not ordinarily resident (RNOR) and non-resident.
     • Foreign income.
     • Assessable income in another person’s hands.
     • Deferred tax on ESOP.
     • Brought forward losses.
   • Read our comprehensive guide on ITR-4.

5. ITR-5

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   • Applicability:
     • For firms, LLPs, AOPs, BOIs, AJP, Estate of deceased, Estate of insolvent, Business trust, and investment fund.
   • Check out our comprehensive guide to ITR-5.

6. ITR-6

   :

   • Applicability:
     • For Companies other than those claiming exemption under section 11 (Income from property held for charitable or religious purposes).
   • Read our comprehensive guide to ITR-6.

7. ITR-7

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   • Applicability:
     • For persons including companies required to furnish returns under specific sections (like 139(4A), 139(4B), etc.).
     • For entities such as political parties, scientific research associations, news agencies, etc.
   • Give detailed information and important points.

Choose the appropriate ITR form based on your income sources, total income, and other specific conditions applicable to you. If you’re unsure, consulting with a tax advisor would be beneficial.