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Different Types of ITR Forms

In India, like in any other country, citizens must pay taxes. However, the tax paid by taxpayers depends on the category under which the taxpayer falls. Based on that category, they must pay taxes using the ITR form. The ITR form is a form through which a taxpayer discloses their income and assets to the income tax department. All taxpayers must file the ITR before the date specified by the Income Tax Department each year.

Types of Income Tax Returns Forms

There are seven different types of ITR forms: ITR1 or SAHAJ; ITR 2; ITR3; ITR 4 or Sugam; ITR 5; ITR 6; and ITR7. The ITR form you must use will depend on whether you are an individual taxpayer or an organization, your total income, as well as the sources from where you gather your income. Here is a list of 7 types of ITR forms that are available for Indian citizens to use.

1. ITR-1 or Sahaj

The ITR 1 or Sahaj Form is applicable to the following situations:

  • Income earned through sources like lottery etc
  • Agricultural income lesser than Rs.5000
  • Salary and pension earners
  • Payments received for a single house property with certain exclusions

2. ITR-2

Individuals and Hindu United Families who fall in the below categories, should avail of this form.

  • Income greater than Rs.50 Lakh
  • Income received through salary, pensions, capital gains and other sources
  • Agricultural income higher than Rs.5000
  • Individuals whose sources of income don’t include business ventures

3. ITR-3

Individuals and Hindu United Families who fall in the below categories, should avail of this form.

  • Income from a business or profession
  • Individual director in a company
  • Income received as a partner in a firm
  • Investments in unlisted equity shares
  • Income received through salary, pensions, capital gains and other sources

4. ITR-4

Individuals, HUFs, Partnership firms having income from business and profession can opt for ITR 4 form. Moreover, those who have chosen for presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act are eligible to file their returns using the ITR 4 form.

5. ITR-5

ITR 5 form is to be filed by Firms, Body of Individuals, Co-operative societies, LLPs, Association of Persons, Local authorities, Artificial Judicial Persons, Estate of Insolvent, Estate of Deceased, Investment Fund, and Business Trust and not individual citizens.

6. ITR-6

ITR 6 form can is eligible to be filed electronically by companies, except for those companies that claim an exemption under Section 11, which is income from a religious or charitable property.

7. ITR-7

Companies filing the return under below sections of Income Tax Act can file using ITR-7:

Section 139(4A): Individuals holding a property for charitable or religious purposes.

Section 139(4B): Political parties and affiliates.

Section 139(4C): Institutions or associations such as medical institutions, news agencies and establishments, educational institutions, think tanks and agencies involved in scientific research.

Section 139(4D): Colleges and universities or any such institution where revenue and losses are not required to be reported as per the rules laid under this section of the Act.

Aspiring home loan borrowers must familiarize themselves with the concept of ITR and must fill in the right ITR form as most lenders require borrowers to submit their ITR form while availing of a home loan. The ITR form serves as income proof and gives the lender an idea of how much money does the borrower make. This, in turn, allows the lender to assess a borrower's creditworthiness and risk appetite and decide the loan amount for a borrower.

Which ITR Form to Use for Home Loan

Individuals who plan on filing an ITR for their housing loan must select the ITR-1 (otherwise known as the SAHAJ form) – which is applicable to salaried professionals paying of their home loans for a self-occupied property. More specifically, this form is valid for those who –

  • Have income from a fixed salary or pension
  • Total income not exceeding Rs.50 Lakh
  • Income from a housing property
  • Incomes from other sources
  • Agricultural income up to Rs.5000

The form allows you to claim deductions up to Rs.1.5 Lakh on the principal repayment, stamp duty and registration charges. One can also be eligible for deductions worth Rs.2 Lakhs on interest repaid annually under Section 24, depending on home loan interest rate.

How to File ITR For Home Loan

The process to file your income tax returns for your home loan is straightforward and easy to follow. The process can be completed through the following steps –

  • Fill in your personal details such as your name, date of birth, AADHAR card number and listed address.
  • Select ‘Income Sources’ and fill in your income details under the ‘Salaries’ sectional. Another thing to do here is to upload your Form 16, so your details can be verified and auto populated. This step can be done manually, or through the form.
  • Next click on the self-occupied property box and enter the interest payable on borrowed capital into the box. Also fill in other income sources such as fixed deposits etc.
  • Key in the deductions that you’re eligible for under Sections 80C, 80D, and others (C1) and tally them up. If you have more deductions, click the ‘More Deductions’.
  • You will have to get your C1 calculations done, to arrive at C2 (or your total income)
  • Based on your total income calculations (after deductions and TDS), your taxable amount will be presented to you.

How to Download ITR for Home Loan

If you wish to download your ITR-V or the Income Tax Return Verification form, which the Income Tax Department releases as proof of an individual's e-filing, follow these simple steps.

  • Go to the official website of the Income Tax Department, Government of India and log in to your account.
  • Once you have logged in, click on 'View Returns/Forms'.
  • Next, click on the acknowledgement number or the form that you wish to download.
  • If you wish to e-verify your ITR-V, click on 'Click here to view your returns pending for e-verification.'
  • Click on ITR-V/Acknowledgement and the document will start getting downloaded.
  • Once the document has been downloaded, you will be required to enter your PAN number in small caps along with your date of birth as the password to open the document.
  • Sign the downloaded document and send it to CPC Bangalore to complete the ITR verification process.