Applicability of Income Tax Return (ITR) for Individuals
Below mentioned chart demonstrates the applicability of Income Tax Forms but few things should be kept in mind while filling Income Tax Returns:
Based on the applicability of Heads of Income the Selection of Applicable Income Tax Return Forms have to be made.
The applicability of the same are as under:
|
ITR
|
Applicability
|
Salary
|
House Property
|
Profits and Gains from Business and Profession
|
Capital Gains
|
Other Sources
|
Exempt Income
|
|
ITR-1 (SAHAJ)
|
Individual other than Not Ordinarily Resident
|
Yes
|
One House Property only
|
XX
|
XX
|
Yes
|
Agricultural Income up to ₹ 5,000
|
|
ITR-2
|
Individual and HUF
|
Yes
|
Yes
|
XX
|
Yes
|
Yes
|
No Limit
|
|
ITR-3
|
Individual and HUF
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
|
|
ITR-4 (SUGAM)
|
Individual, HUF and Firm (other than LLP) offering tax Under Presumptive Taxation u/s 44AD, 44ADA or 44AE.
|
Yes
|
One House Property only
|
Yes
|
Yes
|
Yes
|
Agricultural Income up to ₹ 5,000
|
Disclosure in the Following applicable Schedules are important:
|
S.No
|
Schedule
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Remarks
|
|
1
|
AL
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Details of Assets and liabilities in case your income exceeds Rs.50 Lacks
|
|
2
|
FA
|
Disclosure of Foreign Assets or Investment in Foreign Stocks applicable to a Resident individual.
|
Apart from the same ITR-1 and ITR-4 can not be used for the following reasons the same is as under:
ITR-1 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case tax has been deducted u/s 194N
(g) is a person in whose case payment or deduction of tax has been deferred on ESOP
(h) who has any brought forward loss or loss to be carried forward under any head of income
ITR-4 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP
(g) who has any brought forward loss or loss to be carried forward under any head of income
ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.
Source of information is https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1