The income Tax department offers different Income Tax returns for different categories of Taxpayers. The different categories have been made based on the source of Income i.e. Salaried, House Property Income, Capital Gains, business or profession and Income from Other Sources.
The ITRs for Salaried, House Property Income, and Other Sources are relatively easier and small i.e. ITR-1 & ITR-2 whereas the ITRs for Business/Profession are quite complex and lengthy which is ITR-3. There is a separate ITR for presumptive Income taxation which is ITR-4. For Firms, LLPs and AOPs, ITR-5 has been prescribed whereas companies have to file ITR-6. For Trusts/Societies, Local Authorities, etc., ITR-7 has been prescribed.
In this post, we will look at which ITR is applicable for various taxpayers.
Presently there are seven ITRs that have been notified for the F.Yr. 19-20 [A.Yr.2020-21] by the CBDT.
The taxpayer has to choose the ITR applicable to him out of the above seven ITRs.
Here we will provide some simple steps to choose the ITR applicable for a particular taxpayer.