FAQs on filing of Income Tax Return (ITR)

What is Income Tax Return?

​ITR stands for Income Tax Return. It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.​Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.

Who can file ITR-1 (SAHAJ Form)?

Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh can file ITR-1 (SAHAJ)

Who cannot file ITR-1 (SAHAJ Form)?

Return Form ITR - 1 (SAHAJ) cannot be used by an individual:

• Who is a Non-resident or Not Ordinarily Resident.

• Who is a Director of a company

• Whose total income exceeds Rs. 50 lakhs

• Who has income from more than 1 house property

• Who has held unlisted equity shares at any time during the previous year

• Who claims deduction under section 80QQB or Section section 80RRB in respect of royalty from patents or books

• Who claims deduction under section 10AA or Part-C of Chapter VI-A

• Who has brought forward loss or losses to be carried forward under any head

• Person claiming deduction under section 57 from income taxable under the head 'Other Sources'(other than deduction allowed from family pension)

• Who wants to claim relief under ​section 90 or section 91

• Who wants to claim credit of tax deducted at source in the hands of any other person.

• Who has any assets (including Financial Interest in an entity) located outside India.

• Who has signing authority in any account outside India

• Who has any income to be apportioned in accordance with provisions of Section 5A

• Who has any of the following income:

a) Income from Business or Profession

b) Capital Gains

c) Income taxable under the head 'Other sources' which is taxable at special rate

d) Dividend income exceeding Rs. 10 lakhs taxable under section 115BBDA

e) Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60% under section 115BBE

f) Agricultural Income exceeding Rs. 5,000

g) Income from any source outside India

Who can use Form ITR-2?

Form ITR – 2 can be used by an individual and Hindu Undivided Family who is not eligible to file​​ITR-1 Sahaj​ and not having income from “profit and gains of business or profession” and also not having income from “Profits and gains of business or profession” in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.

​​Further, in case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this Return Form can be used if income to be clubbed falls in any of the above categories.

Who cannot use Form ITR-2?

Form ITR - 2 cannot be used by an individual and HUF whose total income for the year includes income from profit and gains from business or profession and also having income in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from partnership firm​.

Who can use Form ITR-3?

​​Form ITR–3 can be used by an individual or a Hindu Undivided Family who is having income from profits and gains of business or profession.​​​ITR–3 is also required to be filed by a person whose income is chargeable to tax under the head “Profits and gains of business or profession” is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.

Who cannot use Form ITR-3?

​​​​​Form ​ITR–3 cannot be used by any person other than an individual or a HUF. Further, an individual or a HUF not having income from business or profession cannot use ​​ITR–3.​​

Who can use Form ITR-4?

​​​​​Form ITR – 4 (SUGAM) can be u​sed by an Individual/HUF/Firm (Other than LLP)​ whose total income for the year includes:

(a) Business income computed as per the provisions of section 44AD or​44AE; or​;

(b) Income from Profession as computed as per the provisions of​44ADA; or

(c) Income from salary/pension; or

(d) Income from one house property (excluding cases where loss is brought forward from previous years); or

(e) Income from other sources (excluding winnings from lottery and income from race horses dividend income in excess of Rs. 10 lakhs or unexplained Income, etc. as referred to in section 115BBE)

Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used where income to be clubbed falls in any of the above categories. ​

Who cannot use Form ITR-4?

​​​​​​Form ITR – 4 (SUGAM) cannot be used by an individual/HUF:

• Who is a Non-resident or Not Ordinarily Resident

• Who is a Director of a company

• Whose total income exceeds Rs. 50 lakhs

• Who has income from more than one House Property

• Who has held unlisted equity shares at any time during the previous year

• Who claims deduction under section 80QQB or section 80RRB in respect of royalty from patent or books

• Who claims deduction under section 10AA or Part-C of Chapter VI-A

• Who has brought forward loss or losses to be carried forward under any head

• Person claiming deduction under Section 57 from income taxable under the head 'Other Sources' (other than deduction allowed from family pension)

• Who wants to claim relief under section 90and section 91

• Who wants to claim credit of tax deducted at source in the hands of any other person.

• Who has any assets (including Financial Interest in an entity) located outside India.

• Who has signing authority in any account outside India

• Who has any income to be apportioned in accordance with provisions of Section 5A

• Who has any of the following income:

a) Income from Business or Profession

b) Income from Business or Profession, Capital Gains or Loss

c) Income from Business or Profession Income taxable under the head 'Other sources' which is taxable at special rate

d) Income from Business or Profession, Dividend income exceeding Rs. 10 lakhs taxable under Section 115BBDA

e) Income from Business or Profession, Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60% under section 115BBE

f) Income from Business or Profession, Agricultural Income exceeding Rs. 5,000

g) Income from Business or Profession Income from any source outside India

h) Income from Business or Profession Income from speculative business and other special incomes.

i) Income from Business or Profession Income from agency business or commission or brokerage

In case the assesse keeps and maintains all books of accounts and other documents referred to in section 44AA, and also gets his accounts audited and obtains an audit report as per section 44AB, filling up the Form ITR-4 (Sugam) is not mandatory. In such a case, other regular return forms viz. ITR-3 or ITR-5, as applicable, should be used.

Who can use Form ITR-5?

​Form​ ITR – 5 can be used by a person being a firm, LLP, AOP, BOI, Artificial Juridical Person (AJP), local authority, representative assessee, 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) and investments fund referred to in section 139(4F).

Who cannot use Form ITR-5?

​​​​​​Form ITR – 5 cannot be used by, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or​139(​4D) (i.e., trusts, political party, institutions, colleges).

Who can use Form ITR-6?

​​​​​​​​Form ITR – 6 can be used by a company, other than a company claiming exemption under section 11 (charitable/religious trust can claim exemption under section 11​).

Who cannot use Form ITR-6?

​​​​​​​​​​​Form ITR – 6 cannot be used by a company claiming exemption under section 11​ (charitable/religious trust can claim exemption under section 11).​

Who can use Form ITR-7?

​​​​​​Form I​TR – 7 can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B)​ or section 139(4C) or section 139(4D) ​ (i.e., trusts, political party, institutions, colleges).

Who cannot use Form ITR-7?

​​​​​​​​​​​​Form ITR – 7 cannot be used by a person who is not required to furnish return under section 139(4A) or section 139(4B)​ or section 139(4C) or section 139(4D) (i.e., trusts, political party, institutions, colleges). ​

What are the benefits of filing of Income tax return?

​​​​Filing of return is your duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.​​

Is it necessary to file loss return?

​​If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date. ​​

Can I file ITR after due date?

Return of income which has not been furnished on or before the due date specified under section 139(1) is called belated return. Belated return of income is furnished under section 139(4). Any person who has not furnished a return of income within the time period allowed under section 139(1) or within the time period allowed under a notice issued under section 142(1), may furnish return for any previous year at any time before the end of the relevant assessment year or before completion of the assessment, whichever is earlier. However, a belated return attracts late filing fees under section 234F.

As per section 234F, late filing fees of Rs.5,000 shall be payable if return furnished after due date specified under section 139(1) but before 31st December of the assessment year. In other cases, late filing fees of Rs. 10,000 is payable. However amount of late filing fees to be paid cannot exceed Rs.1,000, if the total income of the person does not exceed Rs.5 lakhs.

How will extra tax refunded?

​​​The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. The department has been making efforts to settle refund claims at the earliest.​​

Can I file a revised return to rectify mistakes?

​A return of income can be revised at any time during the assessment year or before the assessment made whichever is earlier.

How many time can I revise the ITR?

If a person after furnishing the return finds any mistake, omission or any wrong statement, then return should be revised within prescribed time limit.

A return can be revised before the end of the Assessment Year or before the completion of the assessment; whichever is earlier.

Read here:

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FAQs on filing of Income Tax Return (ITR)

FAQs on Income and Computation of Income

Filing of Tax return is mandatory for all individual whose income is more than prescribed limit and for all other entities. Now pay your tax and submit your return with Lawfox in a hassle free way. Contact us now for filing your Tax return. 

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