Income Tax: You need to file the Income Tax Returns for Assessment Year 2020-21 by December 31, in order to avoid penalty. The Income Tax Department has 7 different kinds of forms used while filing ITR, so you don’t have to worry. Let’s have a look at the different kinds of forms and know which one would be the right one for you.
ITR Form 1: An individual who makes his/her income from salary, property rent, interest and agriculture and pension (up to Rs 5000) will have to fill ITR Form 1 (Sahaj). Those who have an annual income of up to Rs. 50 Lakhs from the above-mentioned sources need to fill ITR Form 1 (Sahaj). This is generally filled up by Salaried-class individuals.
ITR Form 2: This form can be filled by taxpayers and HUFs who do not have income from profits from business or profession but are not also eligible under ITR Form 1. Those who make an income of more than Rs. 50 Lakhs annually from salary/pension, property rent or interest from any other source should fill ITR Form 2.
ITR Form 3: Individuals who run a partnership business and make their income from interest, salary or bonus received from it need to fill ITR Form 3. Income received by these individuals through rent on the property also needs to be detailed in ITR Form 3.
ITR Form 4: ITR Form 4 needs are filled by anyone having an annual income of up to Rs. 50 Lakhs through business or salary.
ITR Form 5: This is the most complicated 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 who have registered themselves as Firms LLPs (Limited Liability Partnership), AOPs (Association of Persons) BOIs (Body Of Individuals).
ITR Form 6: Those companies which do not get exemption under Section 11 of the Income Tax Act will have to fill ITR Form 6. It is filled by those companies which are not covered under ITR Form 7.
ITR Form 7: This form is for such companies and individuals who are required to file returns under section 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 those who are not compulsorily required to file ITR.
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