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New ITR forms: Which one is right for you?

Author: AN Shanbhag Sandeep Shanbhag/Wednesday, October 3, 2018/Categories: Tax, Expert View

New ITR forms: Which one is right for you?

While dealing with income tax returns (ITR), most articles speak of the first three forms. However, there are more than seven prescribed returns forms and unless you know in details about each, it may be difficult to choose the right one.

Given below is a list of forms applicable for returns of FY 18-19:

ITR-1: This is the simplest form to be filed by an individual taxpayer who earns income from salary/pension, from one house property and income from other sources. The total annual taxable income should not exceed Rs 50 lakh and it should not include any income from betting and gambling. ITR-1 has been withdrawn for NRIs. ITR-2 or ITR-3 is applicable to them.

A person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the department.

ITR-2: This form is applicable for individuals and HUFs with income other than income from ‘profits and gains from business or profession’.

ITR-3: This form is for individuals and HUFs having ‘income from profits and gains from business or profession’. An individual or an HUF, who is a partner in a firm, shall be required to file Form ITR-3 only and not ITR-2.

A field relating to Sec. 115H has been added relating to benefits availed under continuation of special provisions u/s 115C to 115I related with NRIs who have returned to India permanently.

ITR-4: This is the form for taxpayers who opt for presumptive taxation scheme u/ss 44AD, 44ADA or 44AE, ITR-4. The old ITR-4 sought only 4 financial particulars of the business related with total creditors, total debtors, total stock-in-trade and cash balance. The new ITR-4 seeks as many as 14 additional details such as amount of secured/unsecured loans, advances, fixed assets, capital account, etc.

ITR-5: Persons other than individual, HUF, company and persons filing ITR-7 will have to choose this form.

ITR-6: This form is for companies other than those claiming exemption u/s 11.

ITR-7: Those persons including companies required to furnish returns u/ss 139 4A, 4B, 4C, 4D, 4E or 4F (charitable & religious organisations) have to file this form.

ITR-V: This form is to be used by all taxpayers. This is the acknowledgment form to be submitted with your returns. Where the ITR is transmitted electronically without digital signature you have to post it separately to CPC at Bengaluru within 120 days. Where the ITR is filed physically, you have to submit it along with the relevant ITR. Your returns will not be considered as filed unless the signed ITR-V reaches the CPC.

There are some points to be remembered while filing your ITR:

  1. The new ITR forms require to report each capital gain exemption separately u/ss 54, 54B, 54EC, 54EE, 54F, 54GB and 115F. Further, the date of transfer of original capital asset is required to be mentioned.
  2. In case of capital gain arising out of transfer of unquoted shares, it would now be mandatory for the investors to obtain the fair market value report as determined by a merchant banker or CA.
  3. These new ITR forms require to report CGST, SGST, IGST and UTGST paid by or refunded to the assessee.
  4. All these forms except ITR-7 have been designed as annexure-less to make them amenable for electronic filing.

All tax returns have to be filed electronically. However, a very senior citizen requiring to file ITR-1 or ITR-4 can file paper returns, if he so desires.

Tax Return Preparers (TRP)

The I-T department has launched a TRP scheme, where trained professionals assist taxpayers to file the returns. A TRP can collect a maximum of Rs 250 to prepare and file a tax return and can be located at  

The authors, A.N. and Sandeep Shanbhag, are leading financial advisors. Write to them at

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