FAQ on Which ITR Form to File – Clear All Your Confusion: Taxpapers or a tax professional recommend reading “Which ITR form should I file” before reading these FAQs. If you still have any questions, please read these FAQs. Test your knowledge on which ITR form to file by attempting the MCQ.
Q1: How many ITR forms are available for filing income tax returns?
There are seven ITR forms, namely ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.
Q2: Who can file ITR-1 (SAHAJ) for AY 2023-24?
ITR-1 is applicable to resident individuals with income from salary/pension, one house property (excluding loss), and other sources (excluding lottery winnings and racehorses). Agricultural income up to Rs. 5000 is also considered under ITR-1.
Q3: Who cannot file ITR-1 for AY 2023-24?
Individuals exceeding Rs. 50 lakh total income, having agricultural income over Rs. 5000, taxable capital gains, income from business/profession, more than one house property, directorship in a company, unlisted equity shares, assets or signing authority outside India, foreign income, or liability to pay tax on behalf of another person cannot file ITR-1.
Q4: Which individuals or HUFs should file ITR-2 for AY 2023-24?
ITR-2 should be filed by individuals or HUFs with income from salary/pension, house property (More than one house property), other sources (including lottery winnings and racehorses), directorship in a company, investments in unlisted equity shares, foreign income, agricultural income exceeding Rs. 5000, or ownership of assets/signing authority outside India.
Q5: Who cannot file ITR-2 for AY 2023-24?
Individuals with income from business/profession should not use ITR-2. They should choose ITR-3 or ITR-4, depending on their circumstances.
Q6: What is the suitable ITR form for individuals or HUFs having income under the head “business or profession”?
Individuals or HUFs with income under the head “business or profession” should file ITR-3.
Q7: Who can file ITR-4 (Sugam) for AY 2023-24?
ITR-4 is suitable for individuals, HUFs, and firms with income up to Rs. 50 lakhs from business/profession under presumptive taxation schemes (sections 44AD, 44ADA, and 44AE), income from house property, and other sources.
Q8: Who cannot file ITR-4 (Sugam) for AY 2023-24?
Individuals with income exceeding Rs. 50 lakhs from salaries, house property, or other sources, as well as individuals with directorships and unlisted equity shares, need to choose a different form. ITR-4 is also not applicable to individuals, HUFs, or partnerships requiring tax audit under the Income Tax Act, 1961.
Q9: Which entities can file ITR-5 for AY 2023-24?
ITR-5 can be filed by entities such as firms, LLPs, AOPs, BOIs, AJPs, deceased individuals’ estates, insolvent individuals’ estates, business trusts, and investment funds.
Q10: Which ITR form is suitable for companies (except those claiming exemption under section 11)?
Companies, except those claiming exemption under section 11, should file ITR-6.
Q11: Can a salaried individual with income from capital gains file ITR-1?
No, a salaried individual with income from capital gains cannot file ITR-1. They should choose ITR-2 or the appropriate form based on their specific circumstances.
Q12: I am an individual who is a partner in a partnership firm. Which ITR form should I use?
If you are an individual who is a partner in a partnership firm, you should file ITR-3, which is applicable for individuals having income from business or profession.
Q13: I have income from salary, house property, and capital gains. Which ITR form should I use?
In this case, you should file ITR-2, as it is suitable for individuals with income from salary/pension, house property, capital gains, and other sources.
Q14: I have income from salary, house property, and agricultural activities. Which ITR form should I use?
If you have income from salary, house property, and agricultural activities exceeding Rs. 5000, you should file ITR-2.
Q15: Can a non-resident Indian (NRI) file ITR-1 or ITR-2?
No, NRIs cannot file ITR-1 or ITR-2. NRIs should use the appropriate ITR form based on their income sources and residential status, such as ITR-3, ITR-4, or others as applicable.
Q16: I have rental income from multiple properties. Which ITR form should I use?
If you have rental income from multiple properties, you cannot use ITR-1. Instead, you should choose ITR-2 or ITR-3, depending on your overall income sources.
Q17: I have income from salary, house property, and speculative business. Which ITR form should I use?
If you have income from salary, house property, and speculative business, you should file ITR-3, as it covers income from business or profession.
Q18: I have income from salary and have taken a home loan. Which ITR form should I use?
If you have income from salary and have taken a home loan, you can file ITR-1.
Q19: Can a taxpayer change the ITR form after filing the return?
No, once the income tax return is filed using a particular ITR form, it cannot be changed. It is crucial to select the correct ITR form based on your income sources and comply with the requirements. You can only revise the income tax return.
Q20: What is ITR-7 used for?
A: ITR-7 is for individuals or companies required to file returns under specific sections, such as trusts, political parties, institutions, and colleges.
Q21: How do I choose the right ITR form?
A: Consider the type of income sources, residential status, and income amount. Review the criteria mentioned in the article to select the appropriate ITR form.
Q22: What are common mistakes to avoid while selecting an ITR form?
A: Common mistakes include choosing the wrong form, not disclosing all sources of income, and filing the wrong form multiple times. Ensure you select the correct form and provide accurate information.
Q23: What documents are required to file ITR?
A: Key documents include Form 16, Form 26AS, bank statements, investment proofs, and other supporting documents. These are necessary for verifying the information provided in your tax return.
Q24: How can I fill out the selected ITR form?
A: Download the relevant ITR form, gather all required documents, fill out the form accurately, and verify it using your Aadhaar number, net banking, or bank account details. You can also file ITRs online through the Income Tax Department’s website.
MCQ on Which ITR Form to File? Test Your Knowledge
Please don’t cheat. The answers are given at the end of this article. If you want to learn first about Which ITR form to file then read this detailed article on Which ITR form to file here.
1. How many ITR forms are there for filing income tax returns?
a) 4
b) 6
c) 7
d) 8
2. Which ITR form is suitable for individuals with an annual income of up to Rs.50 lakhs and income sources like salaries, pensions, and interest income?
a) ITR-1
b) ITR-2
c) ITR-3
d) ITR-4
3. Who can file ITR-1 (SAHAJ) form?
a) Individuals with income from business or profession
b) Individuals with agricultural income exceeding Rs 5,000
c) Individuals with total income exceeding Rs 50 lakh
d) Individuals with income from salary, pension, and one house property
4. Which ITR form is applicable for individuals who have income from business or profession?
a) ITR-1
b) ITR-2
c) ITR-3
d) ITR-4
5. Which ITR form is suitable for individuals, HUFs, and companies with an annual income up to Rs.50 lakhs, and who have opted for presumptive taxation under sections 44AD, 44ADA, and 44AE?
a) ITR-2
b) ITR-3
c) ITR-4
d) ITR-5
6. Which ITR form can be used by entities other than individuals and HUFs, such as firms, LLPs, AOPs, BOIs, and business trusts?
a) ITR-3
b) ITR-4
c) ITR-5
d) ITR-6
7. What is one of the common mistakes to avoid while selecting an ITR form?
a) Not disclosing all sources of income
b) Choosing the right form based on income sources
c) Filing the wrong form multiple times
d) Filling out the form correctly
8. What are the criteria for selecting the right ITR form?
a) Residential status only
b) Income sources only
c) Income amount only
d) Income sources, residential status, and income amount
9. Which document is issued by the employer and contains details of salary income and TDS?
a) Form 16
b) Form 26AS
c) Bank statement
d) Investment proof
10. Which step involves verifying the ITR form using Aadhaar number, net banking, or bank account details?
a) Downloading the ITR form
b) Gathering relevant documents
c) Filling out the form
d) Verifying the form
Answers:
c) 7
a) ITR-1
d) Individuals with income from salary, pension, and one house property
c) ITR-3
c) ITR-4
c) ITR-5
a) Not disclosing all sources of income
d) Income sources, residential status, and income amount
a) Form 16
d) Verifying the form