The department provides various methods for filing your return, accommodating different needs and preferences.

Online submission: This is the most preferred method, enabling you to directly file your ITR through the Income Tax Department’s e-filing portal.

Offline tools: For individuals who favour an offline approach, the department offers downloadable utilities in Excel and JSON formats for ITR-1, ITR-2, ITR-4, and even ITR-6 for FY 2023-24 (AY 2024-25). You can utilize these tools to prepare your ITR offline and subsequently upload the compiled data to the e-filing portal for submission.

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What types of income tax forms are available?

There are seven types of ITR forms, ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7, designed for various individuals, businesses, and companies. When filing the ITR, a common question often arises regarding which form taxpayers should use. ITR-1 and ITR-4 are simpler forms suitable for a large number of small and medium taxpayers.

The details of the forms are as follows:

• ITR-1 (Sahaj): This is the simplest ITR form, appropriate for resident individuals with income up to ₹50 lakh from:

1. Salary
2. One house property
3. Other sources (interest, dividends, family pension, etc.)
4. Agricultural income up to ₹50,000

• ITR-2: ITR-2 is intended for a wider range of taxpayers compared to ITR-1 and ITR-4. Here’s a breakdown of the individuals who typically use ITR-2:

1. Individuals and Hindu Undivided Families (HUFs)
2. Who are not eligible to use ITR-1 or ITR-4: This indicates that their income is not solely derived from salary, house property, agricultural income below a certain threshold, or business covered under specific presumptive taxation schemes.

Typical situations for using ITR-2 include:

1. Income from diverse sources: Salary, interest, dividends, capital gains (from the sale of investments or property), etc.
2. Income from multiple properties
3. Residents or Non-residents filing tax returns with foreign income
4. Directors of a company (Indian or foreign)
5. Income from sources not included in ITR-1 or ITR-4

If your income situation is more intricate than what is covered by ITR-1 or ITR-4, ITR-2 is likely the form you’ll require.

• ITR-3: This form can be used by individuals or Hindu Undivided Families whose income falls under the category of “profits or gains of business or profession" and who are not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam).
• ITR-4 (Sugam): This form is for individuals and Hindu Undivided Families meeting certain income criteria:

1. Income from business or profession under the presumptive taxation scheme (section 44AD or 44ADA) with turnovers up to ₹50 lakh or ₹2 crores, respectively.
2. Income from other sources (such as interest, dividends, pension, etc.)

• ITR-5: This form is used by a broad spectrum of entities beyond individual taxpayers. Business entities encompass firms (registered or unregistered), limited liability partnerships (LLPs), cooperative societies, and local authorities.

Representative assessees encompass the estate of a deceased individual, the estate of an insolvent, investment fund, business trust, Artificial Juridical Person (AJP) as defined under Section 2(31)(vii) of the Income Tax Act, association of persons (AOP), and body of individuals (BOI).

Also Read: Income tax e-filing: You can file your ITR even if your PAN card is inoperative. Here is how

Essentially, any business entity or representative assessee not falling under the categories for ITR-1 to ITR-4 or ITR-6 (companies) would use ITR-5.

• ITR-6: This form is specifically tailored for companies, streamlining the filing process for these entities. Here’s a summary:

1. Target user: Companies registered under the Companies Act, 2013 or the Companies Act, 1956 (including foreign companies)
2. Applicability: Applicable to all company structures (private, public, etc.)

However, companies whose income is derived from property held for religious or charitable purposes are not required to file the ITR-6 Form.

• ITR-7: Firms, companies, local authorities, associations of persons (AOP), and Artificial Juridical Persons can file their Income Tax Return using the ITR-7 Form if they are claiming exemption under Section 139 (4A) for income earned from a charitable or religious trust.

How to file an ITR?

There are two primary methods to file your ITR in India. 

Online filing: This is the most popular and convenient option. Here’s a general guideline:

1. Access the income tax e-filing portal. 
2. Register or Login: New users should register using their PAN card details, while existing users can log in with their credentials.
3. Select “File Income Tax Return": Go to the e-filing section and opt to file your ITR.
4. Choose the Assessment Year: Pick the relevant assessment year (AY) for which you’re filing the return (for instance, AY 2024-25 for FY 2023-24).
5. Select ITR Form: Select the appropriate ITR form based on your income profile (as discussed earlier in our conversation).
6. Fill in the details: The portal will assist you in entering your income details from various sources, deductions, taxes paid, etc.

Verification: After completing the form, you can electronically verify your return using Aadhaar OTP, net banking, or EVC (Electronic Verification Code). Alternatively, you can dispatch a signed copy of ITR-V to a designated CPC centre for verification.

• Offline filing: This approach requires downloading ITR utilities and preparing your return offline.

1. Download ITR utilities: The Income Tax Department offers downloadable utilities in Excel or JSON formats for certain ITR forms on their website.
2. Fill in the offline utility: Utilize the downloaded utility to input your income details and draft your ITR offline.
3. Upload the data: After preparation, upload the created data file to the income tax e-filing portal for submission.
4. Verification: Just like online filing, you’ll be required to electronically authenticate your return using Aadhaar OTP, net banking, or EVC.

When completing your ITR details, make sure you have all the essential documents on hand, such as Form 16 (if applicable), bank statements, investment proofs, etc., before you begin the filing process. While the Income Tax Department website offers numerous resources and tutorials to assist you in the filing process, it may be beneficial to consult a tax professional if your tax situation is intricate or if you have any uncertainties.