Income Tax Return 2019: Which ITR Form to use for AY 2019-20?

The income tax return (ITR) forms for AY 2019-20 (FY 2018-19) were notified on April 9, 2019 by CBDT . In this post we tell you which is the right ITR Form for you for AY 2019-20 (FY 2018-19). The choice of ITR Form mainly depends on the source and amount of income. Let’s first look at the classification of source of income as per Income Tax laws.

Types of Income as per Income Tax:

As per income tax laws there can be following 5 types of income:

1. Income from Salary/ Pension:

This is income that an employee receives from his employer. Pension to ex-employee is also treated as salary for Income tax. However family pension (after ex-employee death) is considered as income from other sources as NO employee-employer relationship exists between family and employer.

Also Read: How to Pay 0 Income Tax on Rs 20 Lakh Salary?

2. Income from Home/Real Estate:

This is the income from any property – residential or commercial by renting/leasing it out.

3. Income from Capital Gains:

The profits on selling of an asset like equity, mutual funds, gold, NCDs, Bonds or real estate. The capital gains are further classified as Short Term or Long Term depending on the time frame of transactions and asset under consideration.

Also Read: How to Save Long Term Capital Gains Tax from Property?

4. Income from Business/ Profession:

This is income for professional such as lawyers, doctors etc which they generate through freelancing or private practice. Income from running a business is profits that the business generates after deduction of expenses such as rent, salary to staff, etc.

5. Income from Other Sources:

All other income other than the above falls under this category. This might cover interest received on fixed deposits, gifts, winning of prize or lottery, etc

Also Read: 25 Tax Free Incomes & Investments in India

Based on the type of income above we can choose the right ITR Form.

Which Income Tax Return Form to use for AY 2019-20?

Which Income Tax Return Form to use for AY 2019-20?

Which ITR Form to use?

The table below gives a summary of which ITR Form to use with detailed explanation after that.

ITR Forms ->ITR 1 (Sahaj)ITR 2ITR 3ITR 4 (Sugam)
Applicable toResident Individuals

Individual, HUF, Partner in a Firm, Director in Company, Unlisted Share Transaction

Individual, HUF, Partner in a Firm, Director in Company, Unlisted Share TransactionIndividual, HUF
Income/Turnover LimitIncome Less than Rs 50 LakhsNo LimitNo LimitIncome Less than Rs 50 Lakhs / Turnover less than Rs 2 crore
SalaryYesYesYesYes
House PropertyOnly One House/PropertyOne or More House/PropertyOne or More House/PropertyOnly One House/Property
Business IncomeNoNoYesOnly Presumptive Business Income
Capital GainsNoYesYesNo
Other SourcesAll except Income from Lottery/Race HorseYesYesAll except Income from Lottery/Race Horse
Exempt IncomeYes if Agriculture Income less than Rs 5,000YesYesYes if Agriculture Income less than Rs 5,000
Foreign Assets/Foreign IncomeNoYesYesNo
Carry Forward LossNoYesYesNo

Following 2 categories of tax payers who used to file ITR 1 until last year have to file ITR 2 or 3 for AY 2019-20:

  1. Individuals being a director in a company
  2. Individuals who have investment in unlisted equity shares at any time during the FY

Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

Also Read: 13 changes in Tax laws from April 1, 2018

From Income Tax Department Website:

Which ITR Form to fill for AY 2019-20 - Income Tax Department

Which ITR Form to fill for AY 2019-20 – Income Tax Department

Download: Income Tax Guide for Salaried & Professionals for FY 2019-20

Who can use ITR 1?

ITR 1 can be used by resident individuals who fulfill following conditions in AY 2019-20 (FY 2018-19):

  • Total income from all sources is less than Rs 50 Lakhs
  • Have income from Salary/ Pension or
  • Income from only ONE House Property (excluding cases where loss is brought forward from previous years) or
  • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Who cannot use ITR 1?

Following conditions make you ineligible for ITR 1 (Sahaj)

  • If you are NRI (Non-Resident Indian)
  • Income is more than Rs 50 Lakhs
  • Have foreign assets
  • Have capital gains
  • Have income from business or profession
  • Have agriculture income more than Rs 5,000
  • Have income from more than one house property
  • Have income from winning from Lottery or Race Horses
  • Individuals being a director in a company
  • Individuals who have investment in unlisted equity shares at any time during the FY

ITR 1 Form covers almost 90% of tax payers.

Also Read: How to Claim Tax Exemptions while filing ITR?

Who can use ITR 2?

ITR 2 can be used by individuals who fulfill following conditions in AY 2019-20 (FY 2018-19):

  • Have income from Salary/ Pension or
  • Income from one or more House Property or
  • Income from Capital Gains or
  • Income from Other Sources or
  • Income of a person as a partner in the firm
  • Foreign Assets/Foreign income

Who cannot use ITR 2?

  • You cannot use ITR 2 only if you have income from business or profession.

Also Read: 13 Tax Free Components You Must have in Salary

Who can use ITR 3?

ITR can be used by individuals who fulfill following conditions in AY 2019-20 (FY 2018-19):

  • Have income from Business or Profession or
  • Have income from Salary/ Pension or
  • Income from one or more House Property or
  • Income from Capital Gains or
  • Income from Other Sources or
  • Income of a person as a partner in the firm
  • Foreign Assets/Foreign income

Also Read: Calculate Tax on Equity and Debt Mutual Funds

Who can use ITR 4 or Sugam?

ITR 4 is similar to ITR 1 with the additional condition that people with income from business & profession (opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE) can use this form.

ITR 4 can be used by individuals who fulfill following conditions in AY 2019-20 (FY 2018-19):

  • Total income from all sources is less than Rs 50 Lakhs
  • Have income from business & profession and opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE of Income tax Act. However if the turnover exceeds Rs 2 crore, ITR 3 has to be filed.
  • Have income from Salary/ Pension or
  • Income from only ONE House Property (excluding cases where loss is brought forward from previous years) or
  • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Also Read: Calculate Tax on Arrears in 7 Easy Steps

Who cannot use ITR 4?

Following conditions make you ineligible for ITR 4

  • Income is more than Rs 50 Lakhs
  • Business turnover exceeds Rs 2 crore
  • Have foreign assets
  • Have capital gains
  • Have agriculture income more than Rs 5,000
  • Have income from more than one house property
  • If you have income from winning from Lottery or Race Horses
  • Individuals being a director in a company
  • Individuals who have investment in unlisted equity shares at any time during the FY

ITR 5

This Form can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), co-operative society and local authority.

Also Read: 4 Reasons to File ITR even if your Income is not Taxable

ITR 6

It is applicable to a company, other than a company claiming exemption under section 11 (by charitable/religious trust)

ITR 7

It is applicable for trusts, political parties, institutions, colleges, etc. covered under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

ITR – V

It is the acknowledgement of filing the return of income

You can download the ITR Forms for AY 2018-19 from Income Tax Department Website.

The above comparison of ITR Forms would help you to choose the right form to use for AY 2019-20 (FY 2018-19).

8 thoughts on “Income Tax Return 2019: Which ITR Form to use for AY 2019-20?

  1. Amarjit Singh says:

    I have income of Rs. 96000/- from LIC commission during F Y 2018-19 and 3500/- from Bank deposit. Can I file ITR 1 to refund my TDS of Rs 4800/- ? Please clarify.

    • Amarjit Singh says:

      If LIC commission income during this fy year below one lac then ITR 1 can be filed to refund the 5% TDS. Please clarify.

  2. I am LIC agent, a member of Scheduled Tribed working in Mizoram. Which ITR to claim TDS on commission u/s 10(26)?

  3. Regan Raj says:

    I am a salaried person and also working as LIC agent so I am getting commission. Which ITR I should file?

    • commission income is considered as business income from ITR perspective. Also presumptive taxation is not applicable or such income. Hence you have to file ITR 3.

  4. BIKAS BISWAS says:

    Sir,
    My mother who is a super senior citizen has income from family pension and some savings bank interest only. Which ITR she is required to file for the AY 2019-20?
    In ITR1 for AY 2019-20…..In Part A (General Information) a column “Nature of Employment”…..Govt. PSU, Pensioners, Others has been added which is mandatory to fill in online efiling. But my mother is a family pensioner which is included in “Income from other sources”. Unlike previous years there is no option like “not applicable” under “Nature of Employment”. Which option she should chose?

    • You are right Family pension is “income from other sources” and in your case nature of employment would be blank or not applicable. In case its a issue now, wait for some days & it will be resolved as many people who fill up ITR 1 are not employed.

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