Income tax: To avoid penalty, you have to file income tax return for assessment year 2020-21 by 31st December. The Income Tax Department has 7 different forms while filing ITR, so you need not worry. Let’s take a look at the different types of forms and find out which one will be right for you.
ITR Form 1: A person who earns his income from salary, property rent, interest and agriculture and pension (up to Rs 5000) has to fill ITR Form 1 (Sahaj). Whose annual income is up to one lakh rupees. 50 lakhs need to be filled in ITR Form 1 (Sahaj) from the above mentioned sources. It is generally filled by the salaried class persons.
ITR Form 2: This form can be filled by taxpayers and HUFs who do not have income from profit from business or profession but are also not eligible under ITR Form 1. Those earning an income of more than Rs. 50 lakhs annually from salary/pension, rent of property or interest from any other source should be filed in ITR Form 2.
ITR Form 3: Individuals who run a partnership business and earn their income from interest, salary or bonus received from it, need to file ITR Form 3. Income received by these individuals by way of rent on property should also be detailed in ITR Form 3.
ITR Form 4: ITR Form 4 requirements are to be filled by any individual having annual income up to Rs. 50 lakhs through trade or salary.
ITR Form 5: This is the most complex and most commonly used tax form. This is applicable for taxpayers ranging from individuals to HUF and ITR-7 form filers and other taxpayers. This form is also applicable to those institutions which have registered themselves as Firms LLP (Limited Liability Partnership), AOP (Association of Persons) BOI (Body of Individuals).
ITR Form 6: Companies that do not get exemption under Section 11 of the Income Tax Act will have to file ITR Form 6. It is filed by companies that are not covered under ITR Form 7.
ITR Form 7: This form is for such companies and individuals who are required to file return u/s 139(4A) or 139(4B) or 139(4C) or 139(4D). This form is suitable for those whose income is exempted under Section 10 of the Income Tax Act and for whom there is no mandatorily required to file ITR.
,