Are you confused about ITR forms? Here is all you need to know

The Government has made various changes when it comes to filing your income taxreturns. For instance, Aadhar number has been made mandatory requirement in filing income tax returns. Even the Income Tax Forms have been changed for the Assessment Year 2017-18. Income Tax Forms always tend to confuse and leave taxpayers baffled about which form to fill to file their returns.

Income tax returns should be filed by all individuals whose income is above Rs 2.5 lakhs. For individuals whose salary is over Rs 5 lakhs, it is mandatory to file their returns online. The process for filing the returns remain same, only the forms have been changed.

As the income tax return date of July 31, 2017 is round the corner, let us take a look at different ITR Forms and their applicability.

ITR - 1 a.k.a. Sahaj

The Income Tax Department has simplified the tax filing process by introducing ITR - 1 Form which is also called Sahaj. This form is a one-page form which is easy and quick to file. The form has five parts which are as follows:

1. Part A - it contains your general information
2. Part B - it contains your Gross Total Income
3. Part C - it is meant for claiming deductions
4. Part D - here is where you compute your tax liability
5. Part E - here you provide other relevant information.

Besides these, you have to mention the details of the money you deposited post demonetisation. This form is to be used if your total income comprises of salary, pension, income from house property and income from other sources. However, your total income should be up to Rs.50 lakhs. You can also club your spouse's or minor child's income under this form.

ITR - 2

This form is a consolidation of three old ITR forms - 2, 2A and 3, and is used by both individuals and HUFs. This form is to be used if your income includes salary, pension, more than one house property, capital gains or income from other sources(including winning from horse races, lottery), assets outside India and if you have agricultural income of over Rs.5000. Like ITR - 1 Form, you can club your spouse's or minor child's income with yours and file it together. This form is not, however, applicable for the ones with business income.

ITR - 3

This is also a new form introduced this year which has substituted the old ITR - 4 Form and is to be used by individuals and HUFs. This form is used if your sources of income are one or more of these - salary, pension, more than one house property, capital gains, horse races, lottery, assets outside India, self-proprietorship business, professional income, partnership income and if you have agricultural income more than Rs.5000.

ITR - 4S a.k.a. Sugam

Sugam Form is used if your income is from business which is computed as per the provisions of Section 44AD and 44AE of the Income Tax Act, profession which is computed as per Section 44ADA of the Income Tax Act, single house property and from other sources. The form can be used by individuals, HUFs and partnership firms.

ITR - 5

The form is meant to be filed by firms, Limited Liability Partnerships, Association of Persons, Body of Individuals, artificial judicial persons according to Section 2 (31)(vii), cooperative societies, persons according to section 160(1)(iii) or (iv), registered societies and local authorities.

ITR - 6

Companies, other than ones claiming exemption under Section 11, should use this form to file their returns.

ITR - 7

Individuals and companies should use this form if they are mandated to file their returns under the following Sections of Income Tax:

1. Section 139 (4A)
2. Section 139 (4B)
3. Section 139 (4C)
4. Section 139 (4D)
5. Section 139 (4E)
6. Section 139 (4F)

These are all the forms which are available for filing your income tax returns. Every form has a particular applicability. Some forms are meant for individuals and Hindu Undivided Families (HUFs) while others are to be used by partnership firms. Some forms are designed for income tax filing done by self-proprietorship businesses while others are designed for companies. So, before you sit down to file your taxes, find out which ITR form is meant for you.