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.
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.
The ITR 1 or Sahaj Form is applicable to the following situations:
Individuals and Hindu United Families who fall in the below categories, should avail of this form.
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.
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.
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.
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.
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 –
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.
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 –
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.
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Last update on 11-Mar-2021
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