Last date to file ITR today! Who can and cannot use income tax return forms 1-7

Filing your income tax return has been simplified by the Income Tax Department. The department has provided different forms for taxpayers belonging to different categories to make it easier for them to file their ITR. The deadline to file the income tax return for Assessment Year 2023-24 ends today, July 31.

It’s important to select the right ITR form as per your income level. To avoid any error due to the last minute rush you can follow this handy guide about selecting the right ITR form for filing your return.

If you fail to file your ITR using the correct form, your return will not be validated. You will also not be able to claim the correct deductions. Here are the different ITR forms and who can and cannot use them.

ITR-1 (SAHAJ): Who can use ITR-1?

ITR 1 can be used by salaried individuals with an annual income of up to Rs 50 lakh. This includes income from salary/pension, one house property or other sources (excluding winnings from lottery, race horses and income taxable under section 115BBDA /section 115BBE).

Who cannot use ITR-1?

ITR-1 cannot be used by a Non-Resident Indians, a person with an annual income of over Rs 50 lakh, or someone with income from capital gains, income from business or other profession, or someone who is the director of a company. A taxpayer who has held unlisted equity shares at any point during the previous year, received income from more than one house property or has any assets located outside India is also not eligible to use ITR-1. A person whose tax payment has been deferred u/s 191 (2) or 192 (1C) is not eligible for the form as well.

Form ITR-2: Who can use ITR-2?

ITR-2 is used by individuals and Hindu Undivided Family (HUF) who cannot file their tax return using ITR-1. Those who do not have income from “profit and gains of business or profession” in the nature of commission, interest, salary, bonus, or remuneration due to a partnership firm, can use this form.

Who cannot use ITR-2?

The form is not applicable for those HUF and individuals whose “total income for the year includes income from profit and gains from business or profession and also having income in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him or her from a partnership firm,” as per the Income Tax Department.

Form ITR-3: Who can use ITR-3?

Taxpayers with income from profits and gains of business/profession can use ITR-3. Freelancers whose income is less than Rs 50 lakh annually can opt for this form.

Who cannot use ITR-3?

ITR-3 cannot be used by anyone apart from individuals or HUFs. Those who do not have income from business or profession cannot use this form.

Form ITR-4 (SUGAM): Who can use ITR-4?

ITR-4 is applicable for HUF/firm/individual whose total income includes money from one house property, salary/pension, business income as per section 44AD/44AE, or income from other sources. The total income should be up to Rs 50 lakh.

Who cannot use ITR-4?

NRIs, directors of a company, people with Business or Profession Agricultural Income exceeding Rs 5,000, income from more than one house property, financial assets outside India or income over Rs 50 lakh cannot opt for ITR-4.

Form ITR-5: Who can use ITR-5?

A firm, LLP, BOI, AOP, Artificial Juridical Person (AJP) defined as per section 2(31)(vii) of the Income Tax Act; local authority, trusts, cooperative society, representative assessee referred to in Section 160(1)(iii) or (iv) can file their tax returns using ITR-5.

Who cannot use ITR-5?

ITR-5 cannot be used by anyone who is required to file their tax return u/s 139(4A), 4B, 4C or 4D. This includes political parties, colleges, institutions etc.

Form ITR-6: Who can use ITR – 6?

Any company, other than those seeking exemption under section 11, can use ITR-6 for filing tax return.

Who cannot use ITR – 6?

ITR-6 cannot be used by a company who is claiming exemption under section 11 of the Income Tax Act (charitable/religious trust can claim exemption under section 11).

Form ITR-7: Who can use ITR – 7?

The form can be used by any company/individual who is required to furnish return u/s 139(4A), 139(4B), 139(4C) or 139(4D) i.e. trusts, political parties, institutions and colleges.

Who cannot use ITR – 7?

ITR-7 cannot be used by a person who does not have to furnish returns u/s 139(4A), 139(4B), 139(4C) or 139(4D) of the Income Tax Act, 1961