Which ITR is applicable for my Income?

The most of the confusion about income tax forms after Saral (Old Form) is choosing income tax form / ITR for one’s income. For example Suppose one has income from salary and interest income from banks. The form ITR1 will be used, but if having income from capital gain along with salary income then ITR2 will be used. So it is very important to learn how to choose appropriate ITRs / Income Tax Forms to file Income Tax Return. I have given instruction “which ITR form to use” one by one form starting from ITR1.

Form ITR1

ITR 1 is the basically for those

Persons

    * Individuals

Income

   1. Income From Salary / Pension
   2. Income From Other Sources: Interest / Family Pension

So, ITR 1 is not for one who has

    * Having Income from Capital Gain.
    * Having Income From House Property (e.g. Rented out the Property)
    * Having Income From Business & Profession.

Form ITR2

ITR-2 is for those

Persons:

    * Individuals
    * HUF (Hindu Undivided Family)

Having Income From

    * Salary / Pension / Family Pension
    * Interest
    * House Property
    * Capital Gains

So ITR-2 is for those who has salary income with Capital Gain or house Property Income or if only capital gain or house property income.


ITR2 is not for those if having income from

    * Business & Profession.
    * if only salary/ Pension / Family income

Form ITR-3
ITR3 is for those

Persons

    * partner in a firm
    * behalf of an HUF that is a partner in a firm


Form ITR-4

Form ITR-4 is for those

Persons:

    * Individuals
    * HUFs (Hindu Undivided Family)

Income:

    * Income from proprietary business or profession.


The Below table is provided by income tax department for “which Form is applicable for one’s income?”

Which Form is Applicable

S.No For Þ Individual Individual, HUF Source of Income ß ITR-1 ITR-2 ITR-3 ITR-4 1 Income from Salary/Pension • • • • 2 Income from Other Sources (only Interest Income or Family Pension) • • • • 3 Income/Loss from Other Sources • • • 4 Income/Loss from House Property • • • 5 Capital Gains/Loss on sale of investments/property • • • 6 Partner in a Partnership Firm • • 7 Income from Proprietary Business/Profession •