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income tax form for individual

The following is the information for individual and HUF who have to file a return under the Income Tax Act. An explanation of who can file this season and who can’t file a return is provided in this article.

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Also read this for more information on income tax returns

Applicability of ITR – 1 (SAHAJ):

Return Form ITR – 1 (SAHAJ) can be used by a ordinarily resident individual whose total income includes:

  • (1) Income from salary/pension; or
  • (2) Income from one house property (excluding cases where loss is brought forward from previous years or loss to be carried forward; or)
  • (3) Income from other sources (excluding winnings from lottery, income from race horses and income chargeable to tax at special rates).

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 only when such income falls in any of the above categories.

Non-applicability of ITR – 1 (SAHAJ):

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

    1.  Who is a Non-resident or Not Ordinarily Resident
    2.  Who is a Director of a company
    3. Whose total income exceeds Rs. 50 lakhs
    4.  Who has income from more than 1 house property
    5.  Who has held unlisted equity shares at any time during the previous year
    6.  Who claims deduction under Section 80QQB or Section 80RRB in respect of royalty from patents or books
    7. Who claims deduction under Section 10AA or Part-C of Chapter VI-A
    8.  Who has brought forward loss or losses to be carried forward under any head
    9.  Person claiming deduction under Section 57 from income taxable under the head ‘Other Sources'(other than deduction allowed from family pension)
    10.  Who wants to claim relief under Section 90 or 91
    11. Who wants to claim credit of tax deducted at source in the hands of any other person.
    12. Who has any assets (including Financial Interest in an entity) located outside India.
    13.  Who has signing authority in any account outside India
    14.  Who has any income to be apportioned in accordance with provisions of Section 5A
    15.  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

Applicability of ITR – 2:

This Return Form is to be used by an individual or an Hindu Undivided Family who is not having income chargeable to income-tax under the head “Profits or gains of business or profession”.

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 if income to be clubbed falls in any of the above categories.

Non-applicability of ITR – 2:

Return Form ITR – 2 cannot be used by an individual or an Hindu Undivided Family whose total income for the year includes income from Business or Profession or he wants to claim deduction under section 10AA or part-c of chapter VI-A.

Applicability of ITR – 3:

Form ITR – 3 can be used by an individual or a Hindu Undivided Family who is having income under the head business or profession.

Non-applicability of 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.

Applicability of ITR – 4 (SUGAM):

Form ITR – 4 (SUGAM) can be used by an individual/HUF/Firm 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 computed as per the provisions of section 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 losses to be carried forward); or
e) Income from other sources (excluding winnings from lottery and income from race horses).
 
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.
 

Non-applicability of ITR – 4 (SUGAM):

 

Form ITR – 4 (SUGAM) cannot be used by a person:

 
    1.  Who is a Non-resident or Not Ordinarily Resident
    2.  Who is a Director of a company
    3.  Whose total income exceeds Rs. 50 lakhs
    4.  Who has income from more than one House Property
    5.  Who has held unlisted equity shares at any time during the previous year
    6.  Who claims deduction under section 80QQB or 80RRB in respect of royalty from patent or books
    7.  Who claims deduction under section 10AA or Part-C of Chapter VI-A
    8.  Who has brought forward loss or losses to be carried forward under any head
    9.  Person claiming deduction under Section 57 from income taxable under the head ‘Other Sources’ (other than deduction allowed from family pension)
    10.  Who wants to claim relief under Sections 90 or 91
    11.  Who wants to claim credit of tax deducted at source in the hands of any other person.
    12.  Who has any assets (including Financial Interest in an entity) located outside India.
    13.  Who has signing authority in any account outside India
    14.  Who has any income to be apportioned in accordance with provisions of Section 5A
    15.  Who has any of the following income:

a) Income from Business or Profession

b) Capital Gains or Loss.

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.

h) Income from speculative business and other special incomes.

i) 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.

 

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