Which ITR form I should file?

This article briefly explains about which Income Tax Return Form a taxpayer has to file for the Assessment Year(AY) 2020-21 relating to the Financial Year 2019-2020 only. In case of any doubt, please refer to relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.

# ITR-1 SAHAJ

AY 2020-21
This Return Form(ITR-1 SAHAJ) is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the Assessment Year 2020-21 does not exceed Rs. 50 lakh and who has income under the following heads:-
(a) Income from Salary/ Pension; or
(b) Income from One House Property; or
(c) Interest income and/ or family pension taxable under Other Sources.

Note:
Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

Who is not eligible to use ITR-1 SAHAJ?

A. This Return Form should not be used by an individual 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; or
(e) has income from any source outside India.

B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:-
(a) Profits and gains from business and professions;
(b) Capital gains;
(c) Income from more than one house property;
(d) Income under the head other sources which is of following nature:-
(i) winnings from lottery;
(ii) activity of owning and maintaining race horses;
(iii) income taxable at special rates under section 115BBDA or section 115BBE;
(e) Income to be apportioned in accordance with provisions of section 5A; or
(f) Agricultural income in excess of ₹5,000.

C. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:-
(a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’;
(b) loss under the head ‘Income from other sources’;
(c) any claim of relief under section 90 and/or section 91;
(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or
(e) any claim of credit of tax deducted at source in the hands of any other person.

Annexure-less Return Form
No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.

Manner of filing and Verification of ITR-1 SAHAJ:

This Return Form can be filed with the Income-tax Department in any of the following ways,:-
A. electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC), or
(iii) Aadhaar OTP, or
(iv) by sending duly signed paper Form ITR-V - Income Tax Return Verification Form by post to CPC at the following address –
“Centralized Processing Centre,
Income Tax Department,
Bengaluru— 560500,
Karnataka”.
The Form ITR-V - Income Tax Return Verification Form should reach within 120 days from the date of e-filing the return.
The confirmation of the receipt of ITR-V at Centralized Processing Centre will be sent to the assessee on e-mail ID registered in the e-filing account.

B. in paper form, at the designated offices of Income-tax Department, along with duly signed Form ITR-V. This mode of furnishing return is permissible only in case of super senior citizens (i.e. an individual of the age of 80 years or more at any time during the previous year).

# ITR-2

This Return Form(ITR-2) is to be used by an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR-1 (Sahaj) and who is not having any income under the head “Profits or gains of business or profession”.

Who is not eligible to use ITR-2?

This Return Form(ITR-2) should not be used by an individual whose total income for the Assessment Year 2020-21includes Income under the head “Profits or Gains of Business or Profession”.

Manner of filing and verification of ITR-2:

# ITR-3

This Return Form (ITR-3) is to be used by an individual or a HUF who is having income under the head “profits or gains of business or profession” and who is not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam).

Manner of filing ITR-3

Manner of filing this Return Form

(i) digitally signing the verification part, or

(ii) authenticating by way of electronic verification code (EVC), or

(iii) Aadhaar OTP, or

(iv) by sending duly signed paper Form ITR-V – Income Tax Return Verification Form by post to CPC at the following address –

“Centralized Processing Centre, Income Tax Department, Bengaluru— 560500, Karnataka”.

The Form ITR-V-Income Tax Return Verification Form should reach within 120 days from the date of e-filing the return. The confirmation of the receipt of ITR-V at Centralized Processing Centre will be sent to the assessee on e-mail ID registered in the e-filing account. However, in a case where accounts are required to be audited u/s 44AB, it is mandatory to verify the return electronically under digital signature. In case an assessee is required to furnish a report of audit under sections 10AA, 44AB, 44DA, 50B, 80 -IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E,115JB or 115JC, he shall file such report electronically on or before the date of filing the return of income.

# ITR-4 SUGAM

This Return Form(ITR-4 SUGAM) is to be used by an individual or HUF, who is resident other than not ordinarily resident, or a Firm (other than LLP) which is a resident, whose total income for the assessment year 2020-21 does not exceed Rs.50 lakh and who has income under the following heads:-

(a) Income from business where such income is computed on presumptive basis under Section 44AD (i.e. Gross Turnover upto Rs. 2 crore) or Section 44AE (income from goods carriage upto ten vehicles); or
(b) Income from Profession where such income is computed on presumptive basis under Section 44ADA (i.e. Gross receipt upto Rs. 50 lakh); or
(c) Income from Salary/ Pension; or
(d) Income from One House Property; or
(e) Interest income and / or income from family pension taxable under Other Sources.

Who is not eligible to use ITR-4 SUGAM?

A. This Return Form should not 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; or
(e) has income from any source outside India.

B. This return form also cannot be used by a person who has any income of the following nature during the previous year:-
(a) Profits and gains from business and professions which is not required to be computed u/s 44AD, 44ADA or 44AE, such as income from speculative business, agency business, commission or brokerage income etc.;
(b) Capital gains;
(c) Income from more than one house property;
(d) Income under the head other sources which is of following nature:-
(i) winnings from lottery;
(ii) activity of owning and maintaining race horses;
(iii) income taxable at special rates under section 115BBDA or section 115BBE;
(e) Income to be apportioned in accordance with provisions of section 5A; or
(f) Agricultural income in excess of ₹5,000.

C. Further, this return form also cannot be used by a person who has any claims of loss/deductions/relief/tax credit etc. of the following nature:-
(a) any brought forward loss or loss to be carried forward under any head of income;
(b) loss under the head ‘Income from other sources’;
(c) any claim of relief under section 90, 90A or section 91;
(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or
(e) any claim of credit of tax deducted at source in the hands of any other person.

Note
1. The income computed on presumptive basis under sections 44AD or 44AE or 44ADA shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income-tax Act. However, person having loss after giving effect to proviso to sub-section 3 of Section 44AE shall file ITR5

2. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

3. Form ITR-4 (Sugam) 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 and profession on presumptive basis under section 44AD, 44ADA or 44AE. However, in case the assessee 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 and not this Form.

4. Annexure-less Return Form: No document (including TDS Certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.

Manner of filing and verification of ITR-4 SUGAM:

This Return Form can be filed with the Income-tax Department in any of the following ways–

(A) electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and verified in any one of the following manner –

(i) digitally signing the verification part, or

(ii) authenticating by way of electronic verification code (EVC), or

(iii) Aadhaar OTP, or

(iv) by sending duly signed paper Form ITR-V - Income Tax Return Verification Form by post to CPC at the following address –

“Centralized Processing Centre,

Income Tax Department,

Bengaluru— 560500,

Karnataka”.

The Form ITR-V - Income Tax Return Verification Form should reach within 120 days from the date of e-filing the return.

The confirmation of the receipt of ITR-V at Centralized Processing Centre will be sent to the assessee on e-mail ID registered in the e-filing account.

(B) in paper form, at the designated offices of Income-tax Department, along with duly signed Form ITR-V. This mode of furnishing return is permissible only in case of super senior citizens (i.e. an individual of the age of 80 years or more at any time during the previous year).

When Obligation arises to file return [ITR-1 or ITR-2 or ITR-3 or ITR-4] :

Every individual or HUF whose total income before allowing deductions under Chapter VI-A of the Income-tax Act or deduction for capital gains (section 54 to 54GB), exceeds the maximum amount which is not chargeable to income-tax is obligated to furnish his return of income. The maximum amount which is not chargeable to income tax for Assessment Year 2020-21, in case of different categories of individuals, is as under:-

SI.No	Category	Amount(Rs)
1	In case of an individual who is below the age of 60 years or HUF	2,50,000
2	In case of an individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2019-20	3,00,000
3	In case of an individual, being resident in India, who is of the age of 80 years or more at any time during the previous year 2019-20	5,00,000

👉If a person fulfils one or more conditions mentioned below, it is obligated to furnish his return of income mandatorily.

a) Deposit of amount or aggregates of amount exceeding Rs 1 crore in one or more current accounts;
b) Incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or any other person;
c) Incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity.

# ITR-5

This Form(ITR-5) can be used by a person being a firm, Limited Liability Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP) referred to in clause (vii) of section 2(31), local authority referred to in clause (vi) of section 2(31), representative assessee referred to in section 160(1)(iii) or (iv),cooperative society, society registered under Societies Registration Act, 1860 or under any other law of any State, trust other than trusts eligible to file Form ITR-7, estate of deceased person, estate of an insolvent, business trust referred to in section 139(4E) and investments fund referred to in section 139(4F). However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4D)shall not use this form.

Manner of filing ITR-5 :

This Return Form can be filed with the Income-tax Department electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and verified in any one of the following manner –
Manner of filing this Return Form
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC), or
(iii) Aadhaar OTP, or
(iv) by sending duly signed paper Form ITR-V – Income Tax Return Verification Form by post to CPC at the following address –
“Centralized Processing Centre, Income Tax Department, Bengaluru— 560500, Karnataka”. The Form ITR-V-Income Tax Return Verification Form should reach within 120 days from the date of e-filing the return. The confirmation of the receipt of ITR-V at Centralized Processing Centre will be sent to the assessee on e-mail ID registered in the e-filing account. However, in a case where accounts are required to be audited u/s 44AB, it is mandatory to verify the return electronically under digital signature.
In case an assessee who is required to furnish a report of audit under sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA(1), 80LA(1A) 92E, 115JB or 115JC he shall file the report electronically on or before the date of filing the return of income.
4 Filling out the ITR-V –Income Tax Return Verification Form
Where the Return Form is furnished in the manner mentioned at 3(iv), the assessee should print out Form ITR-V-Income Tax Return Verification Form. ITR-V-Income Tax Return Verification Form, duly signed by the assessee, has to be sent by ordinary post or speed post only to Centralized Processing Centre, Income Tax Department, Bengaluru–560500 (Karnataka).

# ITR-6

This Return Form(ITR-6) can be used by a company as per section 2(17) of the Income Tax Act, This form is filed by company other than a company which is required to file return in Form ITR-7. As per section 2(17) of Income Tax Act, company means: -
(i) Indian Company (Domestic Company)
(ii) Body corporate incorporated by or under the laws of country outside India
(iii) Any institution, association or body, whether incorporated or not & whether Indian or Non-Indian which is declared by general or special order of the board to be company,etc.

Manner of filing ITR-6:

# ITR-7

This Return form(ITR-7) can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).

The category of persons whose income is unconditionally exempt under various clauses of section 10, and who are not mandatorily required to furnish their return of income under the provisions of section 139, may use this form for filing return. An indicative list of such persons is given below:-

Sl.no	Category of persons	Exempt under section
1	Local authority	Section 10(20)
2	Regimental Fund or Non-public Fund established by the Armed forces of the Union	Section 10(23AA)
3	Fund, by whatever name called, set up by the Life lnsurance Corporation (LIC) of India on or after 1^stAugust, 1996, or by any other insurer	Section 10(23AAB)
4	Authority (whether known as the Khadi and Village Industries Board or by any other name)	Section 10(23BB)
5	Body or Authority	Section 10(23BBA)
6	SAARC Fund for Regional Projects set up by Colombo Declaration	Section 10(23BBC)
7	lnsurance Regulatory and Development Authority (IRDA)	Section 10(23BBE)
8	Central Electricity Regulatory Commission	Section 10(23BBG)
9	Prasar Bharati	Section 10(23BBH)
10	Prime Minister's National Relief Fund	Section 10(23C)(i)
11	Prime Minister's Fund (Promotion of Folk Art)	Section 10(23C)(ii)
12	Prime Minister's Aid to Students Fund	Section 10(23C)(iii)
13	National Foundation for Communal Harmony	Section 10(23C)(iiia)
14	Swachh Bharat Kosh	Section 10(23C)(iiiaa)
15	Clean Ganga Fund	Section 10(23C)(iiiaaa)
16	Provident fund to which the Provident Funds Act, 1925 applies	Section 10(25)(i)
17	Recognized Provident Fund	Section 10(25)(ii)
18	Approved Superannuation Funds	Section 10(25)(iii)
19	Approved Gratuity Fund	Section 10(25)(iv)
20	Other funds referred to in sub-clause (v) of section	Section 10(25)(v)
	10(25)
21	Employees' State Insurance Fund	Section 10(25A)
22	Agricultural Produce Marketing Committee	Section 10(26AAB)
23	Corporation, body, institution or association established for promoting interests of members of Scheduled Castes or Scheduled Tribes or backward classes	Section 10(26B)
24	Corporation established for promoting interests of members of a minority community	Section 10(26BB)
25	Corporation established for welfare and economic upliftment of ex-servicemen	Section 10(26BBB)
26	New Pension System (NPS) Trust	Section 10(44)

Manner of filing ITR-7:

In case an assessee is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via),12A(1)(b), 92E he shall file such report electronically on or before the date of filing the return of income.

Source: Income Tax India e-filing.

Which ITR form I should file?

# ITR-1 SAHAJ

# ITR-2

# ITR-3

# ITR-4 SUGAM

When Obligation arises to file return [ITR-1 or ITR-2 or ITR-3 or ITR-4] :

# ITR-5

# ITR-6

# ITR-7

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