Know ITR (Income Tax Return) Forms

Guide to ITR and Sahaj, Sugam tax forms to help you identify which ITR form to pick for filing your tax return in 2011.
Income Tax department has unveiled the new income tax return forms for the Assessment Year 2011-12 i.e. Sahaj and Sugam. Thus making the existing Saral II forms are no longer applicable. The main intention behind the modification is to simplify the ITR forms and make it user friendly.

SAHAJ and SUGAM are the first technology enabled Tax Payer Friendly Forms in the country. “Sahaj'' and ''Sugam'' aimed at reducing compliance burden on salaried persons and small businessmen. While Sahaj is for salaried people, Sugam return form is applicable for small businessmen and professionals covered under presumptive taxation.

Benefits of SAHAJ and SUGAM Forms are listed below
• Simpler and Tax Friendly forms
• Enhanced Accuracy in processing
• Cost Optimization
• Automation and Harnessing Technology
• Implementation of International best practices
• Increased Transparency
• Simplicity in record management system
Applicability of these forms depends on tax payer’s source of income. It is thus important to know the relevance of each of these forms.

ITR-1 Form
This Return Form is to be used by an individual whose total income for the assessment year includes:-
(a) Income from Salary/ Pension; or
(b) Income from One House Property (excluding cases where loss is brought forward from previous years); or
(c) Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses).

Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

Also Read : Importance of filing Income Tax Return (ITR)

ITR-2 Form
This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year includes:-
(a) Income from Salary / Pension; or
(b) Income from House Property; or
(c) Income from Capital Gains; or
(c) Income from Other Sources (including Winning from Lottery and Income from Race Horses)...

Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

ITR-3 Form
This Return Form is to be used by an individual or an Hindu Undivided Family who is a partner in a firm and where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm shall use this form only and not Form ITR-2.

Sugam or ITR-4S Form
It is applicable for small businessmen and professionals covered under presumptive taxation.

ITR-4 Form
This form is applicable, both, to Individuals and HUFs who carry out any business or professional activity in addition to having sources of income applicable to ITR-3.

ITR-5 Form
This Form can be used a person being a firm, AOP, BOI, artificial juridical person referred to in section 2(31) (vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4) (a) or 139(4) (a) or 139(4) (b) or 139(4) (c) or 139(4) (d) shall not use this form

ITR-6 Form
This Form can be used by a company, other than a company claiming exemption under section 11.

ITR-7 Form
This Form can be used by persons including companies who are required to furnish return under section 139(4A) or under section 139(4B) or under section 139(4C) or under section 139(4D).

ITR-V/ Acknowledgement Form
Acknowledgement form for all ITR- Forms


About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com

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