Types of ITR Forms

1. ITR-1 (Sahaj)
   • Who can use it?
     • Salaried individuals with income from salary/pension.
     • Income from one house property (excluding cases with losses brought forward).
     • Other income like interest (excluding lottery winnings and racehorse income).
   • Exclusions:
     • If total income exceeds ₹50 lakhs.
     • If you have income from more than one house property or capital gains.
2. ITR-2
   • Who can use it?
     • Individuals and HUFs not having income from business or profession.
     • Income from salary, house property, interest, capital gains, or foreign assets.
   • Exclusions:
     • Those with business or professional income.
3. ITR-3
   • Who can use it?
     • Individuals and HUFs with income from a proprietary business or profession.
4. ITR-4 (Sugam)
   • Who can use it?
     • Individuals, HUFs, and firms (other than LLPs) with presumptive income.
     • Includes income from business or profession calculated under Sections 44AD, 44ADA, or 44AE.
   • Exclusions:
     • If total income exceeds ₹50 lakhs or involves foreign assets.
5. ITR-U (Updated Return)
   • Who can use it?
     • Taxpayers needing to correct errors or omissions in a previously filed ITR.
     • Can be filed within 24 months from the end of the relevant assessment year.
   • Restrictions:
     • Cannot be used for refund claims, reduced tax liability, or specific disallowed deductions.

Due Dates for Filing

• Individuals and entities not requiring a tax audit: July 31st of the assessment year.
• Taxpayers requiring a tax audit: October 31st of the assessment year.
• Taxpayers under transfer pricing audit: November 30th of the assessment year.
• Belated return filing (after due date): Before December 31st with applicable penalties.

Penalties for Late Filing

• Penalty amounts:
  • ₹5,000 if total income exceeds ₹5 lakh.
  • ₹1,000 if total income is below ₹5 lakh.
• Interest on tax dues:
  • 1% per month from the original due date until payment.

Benefits of Filing ITR

1. Claim Tax Refunds:
   • Helps reclaim excess TDS or advance tax paid.
2. Proof of Income and Address:
   • Useful for loans, visa applications, and financial transactions.
3. Carry Forward Losses:
   • Enables adjustment of losses against future profits, reducing tax liabilities.
4. Avoid Penalties:
   • Filing on time avoids hefty fines and interest charges.
5. Track Financial Health:
   • Encourages review of income, expenses, and investments, promoting better financial planning.

Filing ITR on time ensures compliance, provides financial benefits, and builds credibility.