Every person who earns income in India (whether resident or non-resident) is required to pay taxes on income so earned. The Income-tax department requires the details of such income earned and taxes paid on it. Therefore, a return of income (Income-tax return) containing details of the income earned, deductions availed, taxes paid and taxes to be claimed as refund is required to be filed by such person.
If the total taxable income earned by the taxpayer during the financial year exceeds the basic exemption limit, then the taxpayer is required to file his Income-tax return for that year.
The Income-tax department has provided different Income-tax return forms (ITR Forms) as per the type of income. ITR Forms 1 to 4 is for individual taxpayers. Whereas ITR Forms 5 to 7 are for non-individual taxpayers.
Income-tax returns (forms) are classified as follows-
(i) ITR 1:
This ITR is applicable if the individual/HUF taxpayer is having-
a. Salary income,
b. Income from one house property,
c. Income from other sources
d. Agricultural income up to Rs. 5,000/-
and total income is up to Rs. 50 Lakh
(ii) ITR 2:
This ITR is applicable if the individual/HUF taxpayer is not carrying business or profession under any proprietorship.
(iii) ITR 3:
This ITR is applicable if the individual/HUF taxpayer is having income from a proprietary business or profession.
(iii) ITR 4:
This ITR is applicable if the individual, HUF and Firms (other than LLP) is having total income up to Rs. 50 lakhs and having presumptive income from a business or profession.
(v) ITR 5:
This ITR is applicable if the assessee is a-
a. Partnership Firm,
b. Limited Liability Partnership (LLP),
c. Association of person or body of individual.
(vi) ITR 6:
This ITR is applicable if the assessee is a Body Corporate i.e. Company.
(vii) ITR 7:
This ITR is applicable if the assessee is a –
a. Charitable Institution,
b. Political party,
c. News agency,
d. Scientific research organization,
e. School, college, university etc.