Income Tax Returns or ITR is a form that is used to declare the net tax liability, claiming of tax deductions, and to report the gross taxable income. It is mandatory for individuals who earn a certain amount of money to File IT Returns. Firms or companies, Hindu Undivided Families (HUFs), and self-employed or salaried individuals must file ITR to the Income Tax Department.

 

Income tax filing can be defined as the procedure by which IT return is filed. The process by which taxpayers file their returns online is called efiling or ITR filing. The process to file tax returns online can be completed on the Income Tax Department official website.

 ITR-1:

The form must be used by individuals who make an annual income of less than Rs.50 lakh via pension or salary and from only one house property.

 

 ITR-2:

The form must be used by shareholders of private companies, Directors of Companies, Non-Resident Indians (NRIs), or individuals who make an income via capital gains, from two or more house properties, and from foreign sources. However, the income of the individual must be more than Rs.50 lakh.

 

ITR-3:

The form must be used by individuals who run a proprietorship or are professionals in India.

 

ITR-4:

Individuals who are under the presumptive taxation scheme must use this form. In order for individuals to join the scheme, they must earn less than Rs.50 lakh from professional income or less than Rs.2 crore from business income.

 

ITR-5:

In order for association and body of individuals, Limited Liability Partnerships (LLPs), and partnership firms to report their income and tax computation, this form must be used.

 

ITR-6:

Companies that are registered in India must use this form.

 

ITR-7: 

In case entities are claiming an exemption as universities or colleges, scientific research institutions, political parties, and religious or charitable trusts, this form must be used.