Complete Information About The Type Of ITR Forms List We Can File
The term ITR is a small abbreviation for Income Tax Return which is filed by people to Income Tax department. Here, the question arises that which types of ITR we can file for? We are with few of the ITR Forms List that may help you better understand them before filing.
It is a popular type of Income tax return form which individuals can commonly file depending on their type of income:
-From pension or salary
-Income generated from the property of one house (we cannot include here loss from previous years that are forwarded to current year).
-Another source of Income like the lottery or from horse races.
If your income is more than Rs 50 lakhs or you hold the foreign assets, they are not valid for filing ITR-1. The form also cannot be applied on the cases like capital gains that are taxable, agricultural income that exceeds more than Rs 5000, or income from profession or business.
This is another type of form from the ITR Forms List which is popularly in use by Hindu-undivided family or individuals whose income types are:
- income from property of houses,
- income of a person from any firm as a partner,
- above income more than Rs. 5000 from agriculture,
- income through profits on capitals,
- another source of income (lottery or horse races)
- income from foreign assets
A person whose income includes the mode of profession or business is not eligible for filing this type of ITR.
The ITR-3 is a new form of old ITR-4.The current ITR-3 form is mainly in use by any individual or the undivided Hindu family who holds income from business/profession. A proprietary business or income from any profession can be filed for the tax return under form ITR-3. One can also include for filing ITR-3 the income from any other sources or from salary/pension.
Since we no longer use the old ITR-4S we now know it as ITR-4. The following form is applicable to the people who hold any income from business or any profession. Also, people who have opted for the presumptive scheme of income under Sec 44ADA, Sec 44AD or Sec 44AE can apply.
ITR-5 is another popular form which is applicable to the Body of Individuals (BOI), Association of Person’s (AOP’s), Firms or LLP.
It is a type of return form which one can file electronically only. It is applicable to the companies excluding exemption claiming companies under Section 11.
The ITR-7 is applicable for the companies and persons as well who necessitate endowing return covered under Section 139 (4A to 4D).
Section 139 (4A):
Income derived from Charitable or religious property under a trust or any of the legal obligations.
Section 139 (4B):
Income of the political parties which exceeds the maximum amount which is not tax chargeable.
Section 139 (4C):
News agencies, Research-based scientific associations, institution covered under Section 10 and 12 or medical institutions or universities.
Section 139 (4D):
Any of the institutions or universities can fill it.
Above is the ITR Forms List which states its provisions and clearly states its terms and conditions. One can go through to understand clause before filing ITR.
Learn how to file ITR online?
Popular Mistakes On ITR Forms List That Should Be Avoided
We all are well familiar with the fact that ITR is an abbreviation for Income Tax Return, which is filed by more than thousands of people. The government authorized ITR has been serving as an effective way of filing tax returns without any hassle. ITR is actually a type of form that assesses people to file returns to Income tax department. At the end of the financial year, people usually file their income tax returns. Hence, this is a season when people usually file for their returns which is best possible through ITR. Since billions of the people file for their ITR, it is common that mistakes are emitted in ITR Forms List that may cost you later. Thus, it is best to know and avoid them before only. Here I am with a discussion on few of the common mistake often committed by people.
Inappropriate personal details
More than over thousands of people get mistaken while filling up their personal details in ITR Forms List. Every year thousands of ITR applications are rejected due to irrelevant personal details such as names, IFSC code, bank details and address in ITR Forms List. Hence, it is important to keep in mind that we put appropriate details carefully in ITR forms.
Wrong form choice
Another major and commonly remitted mistake while filing ITR is the choice making of the forms. People usually choose wrong forms since; they get confused at the time. Total seven types of forms are available under which only four are relevant choices for ITR filing. You must choose the relevant form as an individual so that you may not be rejected.
Inappropriate track of new tax rules
It is prior and important for the people to keep complete track on the changing or the upcoming tax rules. If there is any change in the rule and you have filed ITR considering the previous rule, your application won’t be accepted then. Every year there are certain changes in the tax rules. Thus, it is mandatory for us that we see that current tax rule is relevant to us or not while ITR filing.
Mistaken in claiming deduction under Sec 80
Many of us usually claim wrong details under section 80C. Many of the people mention their EPF details under the head which is extremely incorrect in every manner. It would be appropriate if you understand the details to be filled with filling the form.
Failure in including certain income
Many of us fail to include certain income which at a time becomes a big cause of form’s rejection. You must insert an appropriate income while filing the ITR so that you may not regret it in future.
All of these mentioned mistakes are minor but they all become a big cause for the rejection of your ITR. One must read all the schemes and details carefully and should understand the details that have they have to mention. If you are not omitting these mistakes, your tax return will surely get an acceptance by Income tax department.
- 1 Complete Information About The Type Of ITR Forms List We Can File
- 2 Popular Mistakes On ITR Forms List That Should Be Avoided