Income Tax Return: How to choose correct ITR form for tax filing

financialexpress.com:

Taxpayers are required to select an ITR form (Income Tax Return form) based on their income types and residential status. An ITR form is a document that facilitates reporting income and filing taxes to the Income Tax Department.

For ITR filing FY 2023-24, the Central Board of Direct Taxes (CBDT) in April this year released seven forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. Taxpayers are directed to file tax returns through the ITR form applicable to them on or before the due date. The applicability of various ITR forms is decided by income sources of individuals, taxable earnings, and the category of the taxpayer, such as individuals, HUF, companies, etc.

Taxpayers are required to file an ITR to claim refunds against the taxes paid from the government. They are also required to file an ITR if they have earned income from or invested in foreign assets during the financial year. The income tax provisions also say that one has to file a tax return if he or she plans to apply for a visa or a loan. In the case of companies, the firm needs to file a tax return regardless of profit or loss. Taxpayers must note that if they have a loss from business or profession, they cannot carry these losses forward to subsequent years if they fail to file a tax return before the due date in that particular year.

Also read: ITR Filing: 10 things you need to know before filing income tax return

As discussed earlier, there are 7 ITR forms the Income Tax Department has notified, and often, taxpayers get confused which ITR form is applicable to them. In this article, we will discuss ITR forms 1-4, which are very common, and taxpayers’ eligibility to file the respective ITR form applicable to them.

Eligibility Criteria

ITR-1 can be