The Income Tax Department has notified Income Tax Return Forms 1 and 4 for the assessment year 2024-25. This form is filled by individuals and entities with total annual income up to Rs 50 lakh.
The Income Tax Department has notified Income Tax Return Forms 1 and 4 for the assessment year 2024-25. This form is filled by individuals and entities with total annual income up to Rs 50 lakh. This will allow individuals, other than Hindu Undivided Families (HUFs), companies with income up to Rs 50 lakh and people earning income from business and profession in the current financial year (April 2023-March 2024) to apply for income earned in this financial year. Can start filing returns.
Generally, ITR forms for the financial year are notified in late March or early April. But last year, the forms were notified in February. However, this year ITR forms have been notified in December itself to facilitate taxpayers to file returns early. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simple forms.
The Income Tax Department notified the forms on Friday. Sahaj can be filed by resident individuals with income up to Rs 50 lakh and income from salary, owning a house, other sources (interest) and agriculture up to Rs 5,000. The Sugam form can be filled by individuals, Hindu Undivided Families and companies like Limited Liability Partnership (LLP) whose total income is up to Rs 50 lakh and whose income is from business and profession.
How to choose the right ITR form for you?
ITR Form 1
Those Indian citizens whose annual income is up to Rs 50 lakh fill Form 1. Your salary, pension or any other source is also included in the income up to Rs 50 lakh. Agricultural income up to Rs 5000 is also included in this. But if you are a director of a company, have invested in an unlisted company, earn from capital gains, earn from more than one house or property or earn from business, then you cannot fill this form.
ITR Form 2
If your income is more than Rs 50 lakh then this form is for you. Under this, one has to declare about more than one residential property, capital gain or loss on investment, dividend income of more than Rs 10 lakh and income from farming of more than Rs 5000. Apart from this, even if the PF is earning interest, this form is also filled.
ITR Form 3
If you are a businessman, have invested in equity unlisted shares, or are earning as a partner in a company, then you can fill ITR Form 3. Apart from this, you can fill this form even if you have income from interest, salary, bonus, capital gains, horse racing, lottery, rental income from more than one property.
ITR Form 4
Means for Individual and HUF (Hindu Undivided Family). If your income comes from your business or any profession like income of doctor-lawyer, those running partnership firms (other than LLP), those earning income under section 44AD and 44AE and those earning more than Rs 50 lakh from salary or pension. People fill this form. If you are a freelancer but your annual income is more than Rs 50 lakh, you can still fill this form.
ITR Form 5
ITR 5 is for those entities which have registered themselves as Firms, LLPs, AOPs, BOIs. The same form is also used for Association of Persons and Body of Individuals.
ITR Form 6 and 7
For companies which do not get exemption under Section 11 of the Income Tax Act, ITR Form 6 is required. Companies and individuals who have to file return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) need to fill ITR Form 7.
