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Types of ITR Forms- Which ITR You Should File for Your Business?

  • Posted By SuperCA
  • On 02 June

Types of ITR Forms- Which ITR You Should File for Your Business?

The income tax return is the process by which taxpayers can avail IRS with reports about the amount of income that they earn and the tax payments.  An income tax return needs to be filed either on or before the stipulated time. The method that applies to a taxpayer for filing of ITR is determined by the class to which the taxpayer belongs, like individual, corporation, etc. Also, the ITR is chosen on the basis of existence, overall income and the type of income he earns.

Before proceeding to file an ITR, the taxpayer needs to assess his tax liability and then make payments. The taxpayer should also go through 26AS Form on TDS and other taxes before filing his ITR. Form 16 is the generally used form in order to fill out the details of income and deduction statements.


Types of ITR

The different types of ITR have been explained below:

  • ITR-1: Any individual who resides in India has a total income of up to Rs. 50 lakh can file for ITR-1. It can be filed by any individual who earns money from home, job or other sources. However, an NRI is not eligible to file ITR-1.
  • ITR-2:  Those individuals and HUFs who generate their revenue from sources other than occupation or company are eligible to file an ITR-2. Also, individuals and NRIs whose source of income is either a job or a house property or some other sources can also file for ITR-2. It can also be filed by those people who earn a salary but have made profits or losses from purchases and sales of stocks.
  • ITR-3: ITR-3 is used to disclose the earnings of individuals from their enterprises or occupations. Salaried individuals who earn money from stock exchange and trading options are also supposed to file ITR-3 Form. ITR-3 form can be used by individuals to keep a track record of their revenue generated from jobs, capital gains, companies, trades, real estate and other sources.
  • ITR-4: The income of individuals, partnerships and HUFs has to go through a presumptive taxation system. ITR-4 helps in keeping a track of the earnings of a company with a turnover of up to Rs. 2 Crore. This income is liable for taxation under Section 44AD. Also, those individuals who have an occupation with a turnover of up to Rs. 50 lakh can also file ITR-4 as their income is liable for taxation under Section 44ADA. ITR-4 is also filed by someone who works as a freelancer in a notified occupation.
  • ITR-5: Alliance companies are supposed to file for ITR-5. LLPs, AOPs, Partnership companies and BOIs have to file ITR-5 in order to disclose the profits that they earn from their businesses and professions along with their income from other sources.
  • ITR-6: The ITR-6 is filed by various businesses in order to provide a report of the revenue generated by them from industry or their occupation and also other forms of income that they earn.
  • ITR-7: ITR-7 is for those businesses, trusts or partnerships that are excluded from the payments of income taxes on a continuous basis. ITR-7 is a federal return.


Different types of forms for filing an ITR

The different types of forms that a taxpayer needs to fill in order to file an ITR are explained as follows:

  • Form 16: An employee is provided the Form 16 TDS certificate from their employer or from the head of their organisation. Form 16 contains the total pay and the exemptions like HRA and LTA. Form 16 also consists of details of the net amount of tax payable by the employee, of all the revenue and loss reported deductions that help in saving the tax and the salary TDS.
  • Form 26AS: Form 26AS contains the details of TDS (tax deducted at source) on different types of earnings like wages, debts and the selling of property that is immovable. It also includes the details of the advance tax that is paid by the taxpayer, financial transactions and the self-assessment tax.
  • Form 15G and Form 15H:  In order to earn income without TDS a taxpayer needs to use form 15G and 15H. If a taxpayer is under the age of 60 years and the total taxable income is less than the basic exemption limit, then he can file a Form 15G. And, if the taxpayer is a senior citizen and the net tax on your salary is zero, then he can file the form 15h.



Eligible candidates

Ineligible Candidates


Those individuals who possess the Ordinarily Resident status and have a total income of up to Rs 50 lakh.

Those who earn income from the sources like wages, a single-family residence, and other sources of income up to Rs 5,000;

This form represents the equivalent income earned by a single person like a partner or infant, and which is combined in the hands of the taxpayer.

Non-residents and HUF;

Residents whose net income exceeds Rs 50 lakh on a regular basis;

The director of a company;

Having unlisted equity investments; facing losses under “profits from house property”;

Earning revenue from abroad and having property in abroad;


 Non-residents / Residents but Not Ordinarily Residents / Ordinarily Residents/HUFs;

Those with a net income of over 50 lakh rupees;

The director of a company;

investment in stocks that are not traded publicly;

Having multiple sources of income like wages, multiple house properties, capital returns, and others;

Having revenue from sources situated in abroad and properties located in foreign

Individuals and HUFs who have a source of income from either a company or a career


Individuals and HUFs who have a commercial or professional income(includes firm partners)

 Individuals and HUFs who do not have a source of professional or commercial profit


 Individuals or HUFs or firms (except LLPs) who calculate their technical or corporate profits on a “Presumed Basis”

Any individual who serves as the director of a company or has stock shares that are unlisted


 Any person who is not an entity or HUF or a corporation who files an ITR-7

An individual, an HUF or a corporation can file ITR-7


 All the businesses except for the expressly omitted ones

Those companies who want to be let out from the payment of taxes on charitable trust revenue


Those who can file ITR-7 are a charitable or religious trust, a political group, a scientific research organisation, a news agency, a trade union, a hospital, a college or a university or an NGO and more related organisations

 No other type of Taxpayer is there