How to Choose the Correct ITR Form for Filing?

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  • Authorized by Income Tax Department "e-Return Intermediary (ERI)" are entities who are authorized to e-file Income Tax Returns on behalf of taxpayers.
  • Registered with Startup India is duly certified under GOI's Startup India scheme.
  • Supported by iStart (Government of Rajasthan. Initiative for startups).
  • Supporting Government Making India Digital.
  • Assistance in e-Verification of the Filed Returns.

Pricing Summary

  • Web Online CA Fee
    Rs. 598/-
  • Complete By*
    19-Apr-2025

Documents Required

  • Form 16
  • Bank Statement
  • Details of Other Income

How to Choose the Correct ITR Form for Filing?

Filing Income Tax Returns (ITR) is a crucial responsibility for every taxpayer in India. However, choosing the correct ITR form can be confusing due to multiple categories and applicability. Selecting the wrong form may lead to notice from the Income Tax Department, delay in processing, or rejection of your ITR.

1. What is an ITR Form?

An Income Tax Return (ITR) form is a document used to report income, deductions, exemptions, and taxes paid to the government. Different forms are available based on:

  • Income source (Salary, Business, Capital Gains, etc.)
  • Taxpayer type (Individual, HUF, Company, LLP, etc.)
  • Total annual income
  • Choosing the right ITR form ensures hassle-free tax filing and prevents legal complications.

Understanding Different ITR Forms

Choosing the right Income Tax Return (ITR) form is crucial for accurate tax filing. Here’s a simplified guide to help you understand which form applies to your income type:

ITR Form Who Should Use It? Applicable Income Sources Not Meant For
ITR-1 (Sahaj) Salaried individuals Salary, Pension, One House Property, Other Sources (Interest, FD, etc.) Business Owners, Capital Gains, Agricultural Income above ₹5,000, Foreign Income
ITR-2 Individuals & HUFs Salary, Pension, Multiple House Properties, Capital Gains, Foreign Income, Other Sources Income from Business or Profession
ITR-3 Individuals & HUFs Salary, Business/Profession, Capital Gains, House Property, Other Sources Companies, LLPs
ITR-4 (Sugam) Individuals, HUFs & Firms (excluding LLPs) under Presumptive Taxation Business (Section 44AD), Professionals (Section 44ADA), Total Income up to ₹50 lakh Companies, LLPs, Those earning Capital Gains or Foreign Income
ITR-5 Firms, LLPs, AOPs, BOIs Business or Professional Income Individuals, HUFs, Companies
ITR-6 Companies (except those claiming exemption under Section 11) Business or Professional Income Individuals, HUFs, LLPs
ITR-7 Trusts, NGOs, Political Parties, Charitable Institutions Income from Trusts, Religious or Charitable Activities, Political Donations Individuals, Companies, LLPs

How to Choose the Right ITR Form?

Individuals & HUFs → ITR-1, ITR-2, ITR-3, ITR-4

Firms & LLPs → ITR-5

Companies → ITR-6

Trusts & NGOs → ITR-7

Consequences of Choosing the Wrong ITR Form

Filing ITR with an incorrect form can result in:

  • Defective Return Notice (Section 139(9)) – You may need to revise and resubmit your ITR.
  • Delayed Tax Refund – Your refund will not be processed until the correct form is submitted.
  • Legal Issues & Penalties – Incorrect filings can attract scrutiny from the Income Tax Department.

Step-by-Step Guide to File ITR

Step 1: Log in to the Income Tax e-Filing Portal

Click on ‘Login’ and enter your PAN & password

Step 2: Choose the Right ITR Form

Go to e-File > Income Tax Return > File Now

Select Assessment Year & ITR Form based on your income sources

Step 3: Fill Income & Tax Details

Enter income from salary, business, property, capital gains, etc.

Verify TDS deductions (Form 16, 16A, 26AS, AIS)

Claim deductions (80C, 80D, 80G, etc.)

Step 4: Submit & Verify ITR

Click Submit

Verify ITR via Aadhaar OTP, Net Banking, or Digital Signature Certificate (DSC)

FAQ's About ITR Forms

1. What happens if I file the wrong ITR form?

If you file the wrong ITR form, the Income Tax Department may mark your return as defective (under Section 139(9)). You will need to file a revised return with the correct form.

2. Can ITR-1 be used for multiple house properties?

No, if you own more than one house property, you must file ITR-2 instead of ITR-1.

3. Is ITR-4 applicable for professionals?

Yes, professionals such as doctors, lawyers, consultants, etc., can file ITR-4 under the presumptive taxation scheme (44ADA), provided their income is below ₹50 lakh.

4. Which ITR form should I use if I have foreign income?

If you have foreign income or foreign assets, you should file ITR-2 or ITR-3, depending on your other income sources.

5. Can I revise my ITR if I choose the wrong form?

Yes, you can file a revised return (u/s 139(5)) before the deadline if you used the wrong form earlier.

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