Income tax return is a form which is compulsory for every taxpayer so that they could give the information about their income to the income tax department and if the income of the taxpayers is more than the decided slab rate by the government than they have to pay tax on their income . payment of tax depend on the type of taxpayer whether its individual , company, HUF, or other . there are many kind of ITR forms we have where taxpayer can choose the ITR just by the nature of their income whether they earning from any business or by getting monthly salary . mostly people thought that they don’t need to file any income tax return because they are earning less than the decided slab rate , so it is not true because every human being has the equal right to file ITR and it is a good thing if you are showing your income to the government whether your income is taxable or not . and if your income is taxable than you will be able to get so many benefits in future .
Income tax department has already prescribed us seven kind of ITR in which tax payers can choose any of them to file ITR according to their nature of income . so now we are going to discuss about all kind of ITR in order to opt the right one and it is the first and very important step that we need to make sure about the right ITR form while filling .
Types of ITR.
- ITR -1 : If any individual of India getting income up to 5000000 and they are earning this income from any salary , house property ,or by any other source than they can easily opt the form itr-1 to file their ITR but NRI can’t file this form .
- ITR-2 : This form is made for individual and NIR for their income from salary and other source ,and also for HUF for their income other than business or professional income.
- ITR -3 : This form is made for individual if they are getting income from any business or profession and if any salaried person are getting income from shares ,salaries ,business , profession , property, other source than they should opt for ITR -3
- ITR-4 : This ITR mostly used by individual , partnership firms , HUF, and for those who’s business turnover is up to 2crore and under section 44AD . and if anyone getting income from any professional service up to 50lakh and under section 44ADA.
- ITR-5 : This ITR are uses by all business entities AOP, BOI, LLP, partnership firm they all may opt ITR-5 to show their business or profession income to the Government .
- ITR-6 : This ITR use to file by companies to file their income by profession or Income .
- ITR-7 : This ITR is for the use of showing the income of any trust, Companies , associates .