Which ITR Should I File? Types of ITR Forms for FY 2023-24 (AY 2024-25) (2024)

ITR stands for Income Tax Return. The Income-tax Act,1961 releases all the ITR forms and specifies the procedures to be followed. This article provides an in-depth understanding of the definition of ITR and the types of ITR forms..

What is ITR?

Income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable, to the income tax department.

The department has notified 7 forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every taxpayer should file his ITR on or before the specified due date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category of the taxpayer like individuals, HUF, company, etc.

Why should you file ITR?

  • If you want to claim an income tax refund from the department.
  • If you have earned from or have invested in foreign assets during the FY.
  • If you wish to apply for a visa or a loan
  • If the taxpayer is a company or a firm, irrespective of profit or loss.
  • If you have a loss from business/profession or under capital gains head, you will not be allowed to carry them forward to the next years unless you file the return before the due date.

When is it mandatory to file income tax returns (ITR) in India?

  • If your gross total income is more than the basic exemption limit-
Age GroupBasic Exemption Limit
For individuals below 60 yearsRs 2.5 lakh
For individuals above 60 years but below 80 yearsRs 3.0 lakh
For individuals above 80 yearsRs 5.0 lakh
  • If your income is below the basic exemption limit, you will still be required to file your tax return if you meet any of these conditions:
  1. Deposited more than Rs 1 crore in 'current' bank account: You have to mandatorily file a tax return if you have deposited a total of Rs. 1 crore or more in one or more current accounts with a bank. However, no such requirement has been specified for deposits made in the post office current account; or
  2. Deposited more than Rs 50 lakh in 'savings' bank account: You have to mandatorily file a tax return if you have deposited a total amount of Rs 50 lakh or more in one or more of your savings bank accounts.
  3. Spent more than Rs 2 lakh on foreign travel: You have to mandatorily file a tax return if you have incurred a total expenditure of more than Rs 2 lakh on foreign travel whether for yourself or any other person; or
  4. Electricity expenditure is more than Rs 1 lakh: You have to mandatorily file a tax return if you have incurred more than Rs.1 lakh towards electricity consumption during the previous year; or
  5. TDS or TCS is more than Rs 25,000: If the tax deducted at source (TDS)/ tax collected at source (TCS) exceeds Rs 25,000 in the previous year. In the case of a senior citizen (above 60 years), this limit is Rs 50,000.
  6. Business turnover is more than Rs 60 lakh: In case you are a businessman and your total sales, turnover, or gross receipt is more than Rs 60 lakh during the previous year, then you have to mandatorily file a tax return
  7. Professional income is more than Rs 10 lakh: You have to mandatorily file a tax return if you are engaged in a profession and your gross receipts are more than Rs 10 lakh during the previous year.

Who are exempted from filing Income Tax Returns?

Central government have the power to exempt specified class or classes of persons from filing income tax returns in addition to the existing exempt persons like individuals having total income less than the basic tax expedition limit, non-residents not having income accruing or arising from India etc.

However, currently, there are no such exemptions that the central government has notified in this regard.

Which ITR to file?

The following infographic will help you find out which type of income tax return is applicable to you for FY 2023-24.

Once you figure out which ITR you need, click on the links below to learn more about them.

Which ITR Should I File? Types of ITR Forms for FY 2023-24 (AY 2024-25) (1)

ITR-1 OR SAHAJ

This Return Form is for a resident individual whose total income for the AY 2024-25 includes:

  • Income from Salary/ Pension; or
  • Income from One House Property (excluding cases where loss is brought forward from previous years); or
  • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
  • Agricultural income up to Rs 5000.

Who cannot use ITR-1 Form?

  • Total income exceeding Rs 50 lakh
  • Agricultural income exceeding Rs 5000
  • If you have taxable capital gains
  • If you have income from business or profession
  • Having income from more than one house property
  • If you are a Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Owning assets (including financial interest in any entity) outside India, including signing authority in any account located outside India
  • If you are a resident not ordinarily resident (RNOR) and non-resident
  • Having any foreign income
  • If tax has been deducted under Section 194N
  • If in case payment or deduction of tax has been deferred on ESOP
  • If you have any brought forward loss or loss needs to be carried forward under any income head

Still, do you have any doubts about ITR-1 in your mind?
Read our comprehensive guide on ITR-1 to get answers to all your questions.

ITR-2

ITR-2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2024-25 includes:

  • Income from Salary/Pension
  • Income from House Property
  • Income from Other Sources (including Winnings from Lottery and Income from Race Horses)
  • If you are an Individual Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Being a resident not ordinarily resident (RNOR) and non-resident
  • Income from Capital Gains
  • Having any foreign income
  • Agricultural income more than Rs 5,000
  • Owning assets (including financial interest in any entity) outside India, including signing authority in any account located outside India
  • If tax has been deducted under Section 194N
  • If in case payment or deduction of tax has been deferred on ESOP
  • If you have any brought forward loss or loss needs to be carried forward under any income head

Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

The total income can be more than Rs 50 Lakhs.

Who cannot use ITR-2?

This Return Form should not be used by an individual whose total income for the AY 2024-25 includes Income from Business or Profession. For declaring these types of Income, you may have to use ITR-3 or ITR-4. Go through our comprehensive guide on ITR-2 to know how to fill out the ITR-2 form.

ITR-3

The current ITR-3 Form is to be used by an individual or a Hindu Undivided Family who have income from a proprietary business or is carrying on a profession. The persons having income from the following sources are eligible to file ITR-3:

  • Carrying on a business or profession who is required to maintain the books of accounts and/or required to get them audited.
  • If you are an Individual Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • The return may include income from House property, Salary/Pension and Income from other sources
  • Income of a person as a partner in the firm

In short, individuals or HUFs who are not eligible to file ITR-1, ITR-2, and ITR-4, should file ITR-3
Click here to read our comprehensive guide to the ITR-3

ITR 4 or Sugam

The current ITR-4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are residents and whose total income includes:

  • Business income according to the presumptive income scheme under section 44AD or 44AE
  • Professional income according to presumptive income scheme under section 44ADA
  • Income from salary or pension up to Rs 50 lakh
  • Income from one house property, not more than Rs 50 lakh (excluding the amount of brought forward loss or loss to be carried forward)
  • Income from other sources having income not more than Rs 50 Lakh (excluding income from lottery and race-horses )

Please note that any individual earning income from the above-mentioned sources as a freelancer can also opt for a presumptive scheme if their gross receipts are not more than Rs 50 lakhs.

A presumptive income scheme under sections 44AD, 44AE and 44ADA is when an individual or an entity opts to derive its income on a presumptive basis, i.e. when the income is presumed at a minimum rate based on a percentage of gross receipts / gross turnover or based on ownership of commercial vehicles. However, if the business turnover exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

Who cannot use ITR-4 Form?

  • If your total income exceeds Rs 50 lakh
  • Having income from more than one house property
  • Owning any foreign asset
  • If you have signing authority in any account located outside India
  • Having income from any source outside India
  • If you are a Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Being a resident not ordinarily resident (RNOR) and non-resident
  • Having foreign income
  • If you are assessable in respect of the income of another person in respect of which tax is deducted in the hands of the other person.
  • If in case payment or deduction of tax has been deferred on ESOP
  • If you have any brought forward loss or loss needs to be carried forward under any income head

Click here to read our comprehensive guide to the ITR-4

ITR-5

ITR-5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

Click here to read our comprehensive guide to the ITR-5

ITR-6

For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return has to be filed electronically only.

Click here to read our comprehensive guide to the ITR-6

ITR-7

For persons including companies required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).

  • Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
  • Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.
  • Return under section 139(4C) is required to be filed by every –
    • Scientific research association;
    • News agency;
    • Association or institution referred to in section 10(23A);
    • Institution referred to in section 10(23B);
    • Fund or institution or university or other educational institution or any hospital or other medical institution.
  • Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish a return of income or loss under any other provision of this section.
  • Return under section 139(4E) must be filed by every business trust which is not required to furnish a return of income or loss under any other provisions of this section.
  • Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish a return of income or loss under any other provisions of this section.

Want to know more about the ITR-7 Form? Why not read our comprehensive guide to the ITR-7 Form?

Get answers to all your questions about how to fill the ITR-7 Form.

ITR FormApplicable toSalaryHouse PropertyBusiness IncomeCapital GainsOther SourcesExempt IncomeLottery IncomeForeign Assets/Foreign IncomeCarry Forward Loss
ITR-1 / SahajIndividual, HUF (Residents)YesYes(One House Property)NoNoYesYes (Agricultural Income less than Rs 5,000)NoNoNo
ITR-2Individual, HUFYesYesNoYesYesYesYesYesYes
ITR-3Individual or HUF, partner in a FirmYesYesYesYesYesYesYesYesYes
ITR-4Individual, HUF, FirmYesYes(One House Property)Presumptive Business IncomeNoYesYes (Agricultural Income less than Rs 5,000)NoNoNo
ITR-5Partnership Firm/ LLPNoYesYesYesYesYesYesYesYes
ITR-6CompanyNoYesYesYesYesYesYesYesYes
ITR-7TrustNoYesYesYesYesYesYesYesYes

Income Tax Form FY 2023-24 PDF Download: How To Download ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 Forms

ITR-1Click here to download ITR-1 Form
ITR-2Click here to download ITR-2 Form
ITR-3Click here to download ITR-3 Form
ITR-4Click here to download ITR-4 Form
ITR-5Click here to download ITR-5 Form
ITR-6Click here to download ITR-6 Form
ITR-7Click here to download ITR 7 Form

Related Income Tax Articles

  • Discard Income Tax Return
  • How to file ITR on the government portal?
  • Income Tax e-Filing Guide
  • What is Form 16?
  • Check your Income Tax Refund Status Online
  • Due date tax filing
  • ITR 1 vs ITR 4 Differences
  • ITR-3 vs ITR-4 Key Differences
  • ITR 1 vs ITR 2 Differences
  • Income tax slabs
  • Old vs New Tax Regime
Which ITR Should I File? Types of ITR Forms for FY 2023-24 (AY 2024-25) (2024)

FAQs

Should I file ITR 1 or 2? ›

If your income is from salary, one house property, and any other simple source, then ITR 1 is the best option. In case of income from multiple sources, like capital gains or foreign income, ITR 2 is the best option.

Which filing type to select in ITR? ›

Which ITR to File and Who is Eligible?
ITRWho cannot File
ITR 2Individuals / HUFs with a source of income from a company or a career
ITR 3Individuals or HUFs without a source of commercial or professional profits.
ITR 4A person who serves as a director of a corporation or owns unlisted stock shares.
4 more rows

Can we file ITR for AY 2023-24 now? ›

ITR filing last date for non audit tax payers for Financial Year 2023-24 (AY 2024-25) was July 31, 2024. However, if you miss filing within the due date, you can still file a belated return before December 31, 2024. Don't fall behind your taxes!

What is the meaning of itr1, itr2, itr3, and ITR 4? ›

Filing ITR is mandatory if income exceeds the basic exemption limit, or in cases like foreign asset/travel expenses. Certain taxpayers are exempt. Types include ITR-1 for individuals, ITR-2 for HUFs, ITR-3 for business income, and ITR-4 for presumptive income.

What is the difference between ITR-2 and 3? ›

ITR form 2: Individuals and HUFs having a total income of more than ₹50 lakh. The income should not be from profits and gains of business or profession can file ITR-2. ITR Form 3 - For individuals and HUF having income from business or profession, or an individual holding partnership in a firm may file ITR-3.

What happens if you file two tax returns? ›

If both returns were the same and the IRS already accepted the e-filed return, the IRS will reject the return that you mailed. However, the rejected return might delay the time it takes the IRS to process your return. It also might take longer to receive your refund if you are owed one. Was this topic helpful?

Can we file return for AY 2024-25? ›

Last Date for Filing Income Tax Returns in India 2024. The deadline for filing your Income Tax Returns (ITR) for the income earned in FY 2023-24 (AY 2024-25) is 31 July 2024, without incurring any late fees.

Who can file ITR 1? ›

ITR-1 can be filed by a Resident Individual whose:

Income is from salary, one house property, family pension income, agricultural income (up to ₹5000/-), and other sources, which include: Interest from Savings Accounts. Interest from Deposits (Bank / Post Office / Cooperative Society)

How to select a new tax regime in ITR? ›

If you wish to re-enter into new tax regime then you can file Form 10IEA for withdrawal option in the next assessment year. Again it is emphasised that that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of IT Act. I am filing ITR-5.

Who files ITR-4? ›

ITR-4 is the Income Tax Return form for taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income-tax Act,1961. However, if the turnover of the business mentioned above exceeds Rs. 2 crore, the taxpayer will have to file ITR-3.

Can we file ITR 3 to ITR-4? ›

Frequently Asked Questions. Can I file ITR-4 instead of ITR-3? Taxpayers who have opted for presumptive taxation under Section 44AD, 44ADA or 44AE are required to file ITR-4. ITR-3 can be filed even by the individual who are eligible to file under ITR-4.

Who uses ITR 3? ›

What is the ITR 3 form? The ITR-3 form is an income tax return form used in India for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession.

Can ITR 1 be revised to ITR 2? ›

Can I rectify my previously filed ITR using the rectification request service? Ans.. If you notice a mistake in your submitted ITR, and it has not processed by CPC, you can submit a revised return. You can use the rectification request service on the e-Filing portal only against an order/notice u/s 143(1) from CPC.

Which tax regime is better? ›

If your income is INR 20 lakh, which tax regime is better depends on the tax deductions you're eligible for. If your tax-saving investments are more than INR 3,75,000, the old regime is good for you, and if they are less than INR 3,75,000, the new regime is good for you.

Is it better to file 0 or 1 on taxes? ›

By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.

Which ITR needs to file for share trading income? ›

Step 1: Go to the e-filing portal > File ITR > Select assessment year (AY 2024-25) > Select ITR form (ITR-3 for trading income). Note, if you have just capital gains on sale of equity shares and mutual funds, you need to select ITR-2.

References

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