Which ITR form to Choose for Filing Income Tax Return

Which ITR form to Choose for Filing Income Tax Return


Income Tax department has unveiled the income tax return forms for the Assessment Year 2017-18. The main intention has been to simplify the ITR forms and make them user friendly. This year department brought several modifications to the ITR Forms. Old ITR-2, ITR-2A and ITR-3 have been done away with and merged to new ITR-2. As the ITR 2A and ITR 3 no longer exist, ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam) respectively.


This Form is to be used by an individual whose total income does not exceeds Rs. 50 Lakhs for the assessment year 2017-18 and this income may consists of :- Income from Salary/ Pension; or Income from One House Property (excluding cases where loss is brought forward from previous years); or Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Who cannot use ITR1 Return Form

If your total income exceeds Rs 50 lakhs.
If you have foreign assets
If you have agricultural income which is more than Rs. 5,000,
If you have taxable capital gains
If you have income from business or profession
If you have income from more than one house property


This Form can be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2017-18 consists of :-
Income from Salary/Pension; or
Income from House Property; or
Income from Capital Gains; or
Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
Income of a person as a partner in the firm
Foreign Assets/Foreign income/signing authority in a account located outside India
Agricultural income more than Rs 5,000

ITR 3:

This Form can be used by an individual or an Hindu Undivided Family who have income from proprietary business or profession. The persons having income from one or more following sources are eligible to file ITR 3 :
Return may include income from House property, Salary/Pension and Income from other sources
Carrying on a business or profession

ITR-4 S or Sugam:

ITR 4 is applicable to individuals and HUFs having income from a business or profession and who have opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds Rs 2 crores, the tax payer will have to file ITR-3.

ITR-5 :

For firms, LLPs, Association of Persons and Body of Individuals


For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes).


This form is for persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).
Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.
Return under section 139(4C) is required to be filed by every –
scientific research association;
news agency ;
association or institution referred to in section 10(23A);
institution referred to in section 10(23B);
fund or institution or university or other educational institution or any hospital or other medical institution.
Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.

Choosing an ITR form should be careful as it leads to made the return defective. This year return undergone massive modifications. ITR 1 is made simpler as it is made as one page return. Recently govt announced demonetization it may made mandatory to disclose the denomination of currency held in hand as on specific dates.

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