Outlook Money
As the income tax return deadline of July 31 approaches, selecting the right ITR form is crucial for accurate filing. The Income Tax Department offers seven forms tailored to different taxpayer profiles and income sources.
Indian citizens who make up to Rs 50 lakh a year are eligible to fill out Form 1. It’s used by salaried individuals with income from salary, pension, and house property, as well as agricultural income up to Rs 5,000.
Individuals with an income of more than Rs 50 lakh must fill out Form 2. It covers multiple residential properties, capital gains and dividend income exceeding Rs 10 lakh.
Form 3 is for individuals and HUFs involved in proprietary businesses or professions. It comprises earnings from salary, capital gains and rental income.
Form 4 is for individuals, HUFs, and partnerships with income between Rs 50 lakh and Rs 2 crore, particularly freelancers and professionals.
Form 5 is intended for businesses, LLPs and various entities, including estates and trusts.
Form 6 is for companies, excluding those claiming income exemption under Section 11 for charitable purposes. Form 7 is required for entities such as charitable trusts and political parties and must be filed electronically.
Compiled By Manas Malhotra