ITR 1, ITR 2, ITR 3 and ITR 4 are among the different Income Tax Return (ITR) forms in which taxpayers file reports on their income received and the tax applicable to the income tax department of the Government of India.

Income Tax Department has notified 7 forms for filing the Income Tax Returns this year. These forms include Sahaj Form (ITR-1), Form ITR-2, Form ITR-3, Sugam Form (ITR-4), Form ITR-6 and Form ITR-7.

The applicability of the ITR forms varies depending on the source of income of the taxpayer, the amount of income received and the category of the taxpayer belonging to various categories like individual, HUF, business, etc.

These forms are released every year by Income Tax Department. To file Income tax returns one needs to fill the appropriate Income Tax return form.

ITR 1 Return Form is for a resident individual whose total income for the assessment year is less than Rs. 50 lakhs and who has income from

• Salary/ Pension; or
• One House Property (excluding cases where loss is brought forward from previous years); or
• Other Sources (excluding Winning from Lottery and Income from Race Horses)
• Agricultural income upto Rs.5000
  
  ITR 2 Return Form is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY  is more than 50 lakhs  and who is not eligible to file Form ITR-1 (Sahaj) and who is not having any income under the head “Profits or gains of business or profession”. who has:

• Income from Salary/Pension; or
• Income from House Property; or
• Income from Other Sources (including Winnings from Lottery and Income from Race Horses).

OR

• If you are an Individual Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Being a resident not ordinarily resident (RNOR) and non-resident
• Income from Capital Gains; or
• Foreign Assets/Foreign income

The ITR-3 Form is to be used by an individual or a Hindu Undivided Family who have income from proprietary business or are carrying on profession. The persons having income from following sources are eligible to file ITR 3 :

• Carrying on a business or profession
• If you are an Individual Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Return may include income from House property, Salary/Pension and Income from other sources
• Income of a person as a partner in the firm
  
  

ITR-4 or Sugam is for those having income from business but only from presumptive business. For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE] [Not for an individual who is either Director in a company or has invested in unlisted equity shares]

ITR-5 is meant for firms, LLPs, AOPs (Association of persons) and BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

ITR-6 is for Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return has to be filed electronically only.

ITR-7 is filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).