7 Different types of ITR (Income Tax Return) forms, Which One Should I File?

All individuals having taxable income or those that satisfy other prescribed conditions are required to file annual tax return (ITR) within the specified due date. There are different type of ITR forms for different individuals satisfying different conditions or eligibility.

There are 7 types of ITR forms summarized as below.

ITR-1

1. Who is eligible to file ITR-1 for AY 2021-22?

ITR-1 can be filed by a Resident Individual whose:

• Total income does not exceed ₹ 50 lakh during the FY
• Income is from salary, one house property, family pension income, agricultural income (up to ₹5000/-), and other sources, which include:
• Interest from Savings Accounts
• Interest from Deposits (Bank / Post Office / Cooperative Society)
• Interest from Income Tax Refund
• Interest received on Enhanced Compensation
• Any other Interest Income
• Family Pension
• Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).

2. Who is not eligible to file ITR-1 for AY 2021-22?

ITR-1 cannot be filed by any individual who:

• is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
• has total income exceeding ₹ 50 lakh
• has agricultural income exceeding ₹ 5000/-
• has income from lottery, racehorses, legal gambling etc.
• has taxable capital gains (short term and long term)
• has invested in unlisted equity shares
• has income from business or profession
• is a Director in a company
• has tax deduction under section 194N of Income Tax Act
• has deferred income tax on ESOP received from employer being an eligible start-ups
• owns and has income from more than one house property
• is not covered under the eligibility conditions for ITR-1

ITR-2

Who is eligible to file ITR-2 for AY 2021-22?

ITR-2 can be filed by individuals or HUFs who:

• Are not eligible to file ITR-1 (Sahaj)
• Do not have income from profit and gains of business or profession and also do not have income from profits and gains of business or profession in the nature of:
• interest
• salary
• bonus
• commission or remuneration, by whatever name called, due to, or received by him from a partnership firm
• Have the income of another person like spouse, minor child, etc., to be clubbed with their income – if income to be clubbed falls in any of the above categories.

ITR-3

Who is eligible to use this Return Form for AY 2021-22?? 

This Return Form is to be used by an individual or a Hindu Undivided Family 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).  

ITR-4

Who is eligible to file ITR-4 for AY 2021-22?

ITR-4 can be filed by a Resident Individual / HUF / Firm (other than LLP) who has:

• Income not exceeding ₹ 50 Lakh during the FY
• Income from Business and Profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE
• Income from Salary / Pension, One House Property, Agricultural Income (up to ₹ 5000/-)
• Other sources which include (excluding winning from Lottery and Income from Race Horses): 
• Interest from Savings Account
• Interest from Deposit (Bank / Post Office / Cooperative Society)
• Interest from Income Tax Refund
• Family Pension
• Interest received on enhanced compensation
• Any other Interest Income (e.g., Interest Income from unsecured loan)

2. Who is not eligible to file ITR-4 for AY 2021-22?

ITR-4 cannot be filed by an individual /HUF / Firm (other than LLP) who:

• is a Residents Not Ordinarily Resident (RNOR), and Non-Resident Indian
• has total income exceeding ₹ 50 Lakh
• has agricultural income in excess of ₹ 5,000/-
• is a Director in a Company
• has income from more than One House Property;
• has income of the following nature: 
• winnings from lottery;
• activity of owning and maintaining race horses;
• income taxable at special rates u/s 115BBDA or Section 115BBE;
• has held any unlisted equity shares at any time during the previous year
• has deferred income tax on ESOP received from employer being an eligible start-up
• is not covered under the eligibility conditions for ITR-4

ITR-5

Who is eligible to use this Return Form? 

This Form 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), the local authority referred to in clause (vi) of section 2(31), representative assessee referred to in section 160(1)(iii) or (iv), Primary Agricultural Credit Society, Co‐operative Bank other than a primary agricultural credit society or a primary co‐operative agricultural and rural development bank, Primary Co-operative Agricultural and Rural Development Bank, any other cooperative society, a 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, the estate of a deceased person, the estate of an insolvent, business trust referred to in section 139(4E), investments fund referred to in section 139(4F) and Any other AOP /BOI. 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.

ITR-6

Who is eligible to use this Return Form? 

This Return Form can be used by a company as per section 2(17) of the Income Tax Act, This form is filed by a company other than a company which is required to file a 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 a 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 the company, etc.

ITR-7

Who is eligible to use this Return Form? 

This Return Form can be used by persons including companies who are required to furnish returns 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 section10, 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.