Income tax return (ITR) form wise applicability and no applicability for the FY 18-19 AY 19-20

[Sandeep Rawat]

Applicability of ITR – 1 (SAHAJ)

Return Form ITR – 1 (SAHAJ) can be used by a ordinarily resident individual whose total income includes:

1. Income from salary/pension; or

2. Income from one house property (excluding cases where loss is brought forward from previous years) or loss to be carried forward; or

3. Income from other sources (excluding winnings from lottery, income from race horses and income taxable under section 115BBDA or Income of the nature referred to in section 115BBE).

Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used only when such income falls in any of the above categories.

Non-applicability of ITR – 1 (SAHAJ)

Return Form ITR – 1 (SAHAJ) cannot be used by an individual:

• Who is non-resident or not ordinarily resident.

• Whose total income for the assessment year 2018-19 exceed ₹ 50 lakh.

• Whose total income for the year includes income from more than one house property.

• Whose total income for the year includes income from winnings from lottery or income from race horses, or income taxable under section 115BBDA.

• Whose total income for the year includes income chargeable to tax under the head “Capital Gains”.

• Whose total income for the year includes income of the nature referred to in section 115BBE.

• Whose total income for the year includes agricultural income of more than ₹ 5,000.

• Whose total income for the year includes income from business or profession.

• Whose total income for the year includes loss under the head “Income from other sources”.

• Who has claimed relief under section 90 and/or section 91.

• Who is having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.

• Any resident having income from any source outside India.

• Who has any income to be apportioned in accordance with provisions of section 5A.

Applicability of ITR – 2

This Return Form is to be used by an individual or an Hindu Undivided Family who is not having income chargeable to income-tax under the head “Profits or gains of business or profession”.

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

Non-applicability of ITR – 2

Return Form ITR – 2 cannot be used by an individual or an Hindu Undivided Family whose total income for the year includes income from Business or Profession.

Applicability of ITR – 3

Form ITR – 3 can be used by an individual or a Hindu Undivided Family who is having income under the head business or profession.

Non-applicability of ITR – 3

Form ITR – 3 cannot be used by any person other than an individual or a HUF. Further, an individual or a HUF not having income from business or profession cannot use ITR – 3.

Applicability of ITR – 4 (SUGAM)

Form ITR – 4 (SUGAM) can be used by an individual/HUF/Firm whose total income for the year includes :

1. Business income computed as per the provisions of section 44AD or 44AE; or

2. Income from profession computed as per the provisions of section 44ADA; or

3. Income from salary/pension; or

4. Income from one house property (excluding cases where loss is brought forward from previous years); or

5. Income from other sources (excluding winnings 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 taxpayer, this return form can be used where income to be clubbed falls in any of the above categories.

Non-applicability of ITR – 4 (SUGAM)

Form ITR – 4 (SUGAM) cannot be used by an individual/HUF:

• Whose total income for the year includes income from more than one house property.

• Whose total income for the year includes income from winnings from lottery or income from race horses.

• Whose total income for the year includes income chargeable to tax under the head “Capital Gains”.

• Whose total Income for the year includes income taxable under section 115BBDA.

• Whose total income for the year includes income of the nature referred to in section 115BBE.

• Any resident having income from any source outside India.

• Whose total income for the year includes agriculture income of more than ₹ 5,000.

• Whose total income for the year includes income from speculative business and other special incomes.

• Whose total income for the year includes income from agency business or income in the nature of commission or brokerage.

• Who claims relief under section 90, 90A and/or section 91.

• Who has any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.

• Any resident having income from any source outside India.

In case of a taxpayer who is engaged in any business eligible for the presumptive taxation scheme of section 44AD or section 44AE or section 44ADA but he does not opt for the presumptive taxation scheme, then such a taxpayer has to maintain the books of account of the business as per the provisions of section 44AA and has to get these accounts audited. In such a case he cannot use ITR 4.

Applicability of ITR – 5

Form ITR – 5 can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority.

Non-applicability of ITR – 5

Form ITR – 5 cannot be used by a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) (i.e., trusts, political parties, institutions, colleges, investment fund etc.).

Applicability of ITR – 6

Form ITR – 6 can be used by a company, other than a company claiming exemption under section 11 (exemption under section 11 can be claimed by a charitable/religious trust).

Non-applicability of ITR – 6

Form ITR – 6 cannot be used by a company claiming exemption under section 11 (exemption under section 11 can be claimed by a charitable/religious trust).

Applicability of ITR – 7

Form ITR – 7 can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F) (i.e., trusts, political parties, institutions, colleges, investment fund etc.).

Non-applicability of ITR – 7

Form ITR – 7 cannot be used by a person who is not required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F) (i.e., trusts, political parties, institutions, colleges, investment fund etc.).

For further clarification and professional assistance, feel free to contact at [email protected]

(Mr. Sandeep Rawat has vast experience & knowledge in dealing with Direct and Indirect Taxation. He is Cofounder & Managing partner at SRTConsultancy & Co.)