Online Income Tax Return

It usually gets confusing initially when one has to file his income tax returns online. There are numerous categories of Income Tax Return forms. However, let us today talk about different ITR forms and their uses:

ITR 1 (SAHAJ): This form is for individuals earning income from salaries and interest.

ITR 2: This form comprises to the requirements of individuals or Hindu Undivided Families (HUF) who do not have income from their business or profession.

ITR 3: It is for the Individuals or Hindu Undivided Families who are partners in other firms but do not carry out any business or profession as proprietors.

ITR 4: This form is again for individuals and HUFs who earn income from their profession or proprietary business.

ITR 4S (SUGAM): this is for the individuals and HUFs who receive revenue from presumptive businesses.

ITE 5: The form complies with the requirements of Firms, LLPs, AOPs and BOIs.

ITR 6: the form is for the companies who have not claimed for exemptions under section 11.

ITR 7: This is for people as well as businesses who want to furnish returns U/S 139 (4A) or 139 (4B) or 139 (4C) or 139 (4D).

Form 26 AS vs. Form 16- Check your tax credit

Always check the form 26 AS before you file income returns. This shows how much tax has been subtracted from your salary and deposited to the IT department by the employer. Make sure that the tax deducted from the income as per Form 16 is same as the calculations in Form 16 AS. If you file the returns ignoring the errors if any you might get a notice from the IT department.

80G- claim saving certificated and other deductions

One can also claim these extra deductions. Under Section 80G, one can claim deductions on any donations made to charitable institutions.

Interest statement showing interest on savings and fixed deposits

One gets a deduction of Rs. 10,000 on interest earned on savings accounts. It is imperative to note that any interest earned on the bank deposits will form a taxable part of income under the normal applicable slab rates.

Furthermore, for the above returns, you should mandatorily have the following with you:

  • Tax returns of the previous year
  • Bank statement
  • Tax deducted at Source (TDS) certificates
  • Profit and Loss statement, audit reports, balance sheet if applicable

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