New tax payers always get confuse with selecting the right tax
return form while trying to file taxes
online. In India, according tax payer types, income tax forms are divided
into several ranges which are easily identifiable with correct
information. Choosing the right form is
important because return filed with the wrong ones get rejected. Here in this
article, only those ITR or Income Tax Return forms has been discussed that are
specific to different types of individual and HUF tax payers. In Online income tax payment process,
also, the selection of forms remains same.
This form type is specific to salaried or pension holder
individuals including the individuals living on house rental income or living
on bank interest income. This form is commonly known as ITR-1 form. For those
individuals who are having assets in any foreign country need not to fill in
this form. The individuals claiming tax benefits under any foreign treaty also
must not use this form to file taxes online. Also, this form does not apply on the income generated from lottery
and horse racing. Individual with income exemption exceeding Rs. 5000 also fall
out of this form category. The final category that falls out of this form
specification is the individuals who have losses under their income generated
from any other sources then mentioned in here.
Type2: For Individuals and HUFs Not Having Income from
Business or Profession
To make online income tax payment,
this type 2 or mostly known as ITR-2 form will be only used by the individuals
and HUFs described in the form category specifications. The individuals with
salaried job or pension holders falls under this category. This category of tax
payers also includes individuals generating income from more than one house or
capital gains or from lottery or from winnings or race courses. All this type
of individuals need to fill in this form to file taxes online. All those individuals who are not supposed file
taxes with ITR-1 should use this form. However, any individual or HUF who has
income from business or profession must not use this form to file taxes.
Type 3: Individuals and HUFs without income from any
proprietorship
ITR-3 is specified for individuals having income from any
firm partnership or from salary or bonus or commission or capital gains. Also,
this form can be used to make online
income tax payment by the individuals who have income from house rents or
brought forward losses or from other resources. Only the individuals and HUFs
who have sole proprietorship business should not use this form to file taxes.
Type 4: for Proprietor Businesses and Professions
The ITR-4 form is specific to individuals and HUFs who have
sole proprietorship businesses and an individual professional such as lawyer,
doctor and CA. Also, individuals getting income from commission can use this
form to file taxes online.
This is specific to the individuals who have business
turnover less than 1Cr and would like to avail presumptive taxation rule
benefits according to IT act regulations.
This is an auto-generated form which generates after
uploading the ITR-1, ITR-2 and ITR-4 forms through online system. This is an
acknowledgment form which needs to be duly filled, signed and sent to the CPC
office in Bangalore, India.
There are other forms also exists such as ITR-6 and ITR-7
which are not specific to individuals or HUFs for making income tax payment.
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