{"id":11055,"date":"2019-07-13T09:53:48","date_gmt":"2019-07-13T04:23:48","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11055"},"modified":"2021-05-24T00:41:30","modified_gmt":"2021-05-23T19:11:30","slug":"which-itr-form-use","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/which-itr-form-use\/","title":{"rendered":"Income Tax Return 2019: Which ITR Form to use for AY 2019-20?"},"content":{"rendered":"\n

The income tax return (ITR)<\/strong><\/span> forms for AY 2019-20 (FY 2018-19) were notified on April 9, 2019 by CBDT .\u00a0In this post we tell you which is the right ITR Form for you for AY 2019-20 (FY 2018-19).<\/strong> The choice of ITR Form mainly depends on the source and amount of income. Let\u2019s first look at the classification of source of income as per Income Tax laws.<\/p>\n

Types of Income as per Income Tax:<\/h2>\n

As per income tax laws there can be following 5 types of income<\/strong>:<\/p>\n

1. Income from Salary\/ Pension:<\/h3>\n

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.<\/p>\n

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Also Read: How to Pay 0 Income Tax on Rs 20 Lakh Salary?<\/a><\/p>\n<\/blockquote>\n

2. Income from Home\/Real Estate:<\/h3>\n

This is the income from any property \u2013 residential or commercial by renting\/leasing it out.<\/p>\n

3. Income from Capital Gains:<\/h3>\n

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.<\/p>\n

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Also Read:<\/strong> How to Save Long Term Capital Gains Tax from Property?<\/a><\/p>\n<\/blockquote>\n

4. Income from Business\/ Profession:<\/h3>\n

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.<\/p>\n

5. Income from Other Sources:<\/h3>\n

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<\/p>\n

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Also Read:\u00a0<\/strong>25 Tax Free Incomes & Investments in India<\/a><\/p>\n<\/blockquote>\n

Based on the type of income above we can choose the right ITR Form.<\/strong><\/p>\n

\"Which
Which Income Tax Return Form to use for AY 2019-20?<\/strong><\/figcaption><\/figure>\n

[box type=”info” size=”large” style=”rounded” border=”full”]<\/p>\n

Here are some posts which can help you with e-filing of ITR 2019:<\/strong><\/p>\n

1. 9 Most Important Changes in ITR Forms for AY 2019-20<\/a><\/p>\n

2. Calculate your Tax liability for FY 2018-19 (AY 2019-20)<\/a><\/p>\n

3. Download 44 page slideshow showing all tax exemptions<\/a><\/p>\n

4. Which ITR form to fill for Tax Returns for AY 2019-20?<\/a><\/p>\n

5. How to Claim Tax Exemptions while filing ITR?<\/a><\/p>\n

6. Use Challan 280 to Pay Self Assessment Tax Online<\/a><\/p>\n

7. Form 26AS \u2013 Verify Before Filing Tax Return<\/a><\/p>\n

8. 5 Ways to e-Verify your Income Tax Returns<\/a><\/p>\n

9. What if You DO NOT file your Returns by due Date?<\/a><\/p>\n

10. Can I file my Last Year Tax Return?<\/a><\/p>\n

11. Why and How to Revise Your Tax Return?<\/a><\/p>\n

12. What does Intimation U\/S 143(1) of Income Tax Act mean?<\/a><\/p>\n

13. What happens after you file your ITR?<\/a><\/p>\n

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Which ITR Form to use?<\/h2>\n

The table below gives a summary of which ITR Form to use with detailed explanation after that.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
ITR Forms -><\/strong><\/td>\nITR 1 (Sahaj)<\/strong><\/span><\/td>\nITR 2<\/strong><\/span><\/td>\nITR 3<\/strong><\/span><\/td>\nITR 4 (Sugam)<\/strong><\/span><\/td>\n<\/tr>\n
Applicable to<\/strong><\/span><\/td>\nResident Individuals<\/td>\n\n

Individual, HUF, Partner in a Firm, Director in Company, Unlisted Share Transaction<\/p>\n<\/td>\n

Individual, HUF, Partner in a Firm, Director in Company, Unlisted Share Transaction<\/td>\nIndividual, HUF<\/td>\n<\/tr>\n
Income\/Turnover Limit<\/strong><\/span><\/td>\nIncome Less than Rs 50 Lakhs<\/td>\nNo Limit<\/td>\nNo Limit<\/td>\nIncome Less than Rs 50 Lakhs \/\u00a0Turnover less than Rs 2 crore<\/td>\n<\/tr>\n
Salary<\/strong><\/span><\/td>\nYes<\/td>\nYes<\/td>\nYes<\/td>\nYes<\/td>\n<\/tr>\n
House Property<\/strong><\/span><\/td>\nOnly One House\/Property<\/td>\nOne or More House\/Property<\/td>\nOne or More House\/Property<\/td>\nOnly One House\/Property<\/td>\n<\/tr>\n
Business Income<\/strong><\/span><\/td>\nNo<\/td>\nNo<\/td>\nYes<\/td>\nOnly Presumptive Business Income<\/td>\n<\/tr>\n
Capital Gains<\/strong><\/span><\/td>\nNo<\/td>\nYes<\/td>\nYes<\/td>\nNo<\/td>\n<\/tr>\n
Other Sources<\/strong><\/span><\/td>\nAll except Income from Lottery\/Race Horse<\/td>\nYes<\/td>\nYes<\/td>\nAll except Income from Lottery\/Race Horse<\/td>\n<\/tr>\n
Exempt Income<\/strong><\/span><\/td>\nYes if Agriculture Income less than Rs 5,000<\/td>\nYes<\/td>\nYes<\/td>\nYes if Agriculture Income less than Rs 5,000<\/td>\n<\/tr>\n
Foreign Assets\/Foreign Income<\/strong><\/span><\/td>\nNo<\/td>\nYes<\/td>\nYes<\/td>\nNo<\/td>\n<\/tr>\n
Carry Forward Loss<\/strong><\/span><\/td>\nNo<\/td>\nYes<\/td>\nYes<\/td>\nNo<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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:<\/p>\n

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  1. Individuals being a director in a company<\/li>\n
  2. Individuals who have investment in unlisted equity shares at any time during the FY<\/li>\n<\/ol>\n

    Further, in a case where the income of another person like spouse, minor child, etc.\u00a0is to be clubbed with the income of the assessee, this Return Form can be used only if the\u00a0income being clubbed falls into the above income categories.<\/p>\n

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    Also Read:\u00a0<\/strong>13 changes in Tax laws from April 1, 2018<\/a><\/p>\n<\/blockquote>\n

    From Income Tax Department Website:<\/h3>\n
    \"Which
    Which ITR Form to fill for AY 2019-20 – Income Tax Department<\/strong><\/figcaption><\/figure>\n
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    Download:<\/strong> Income Tax Guide for Salaried & Professionals for FY 2019-20<\/a><\/p>\n<\/blockquote>\n

    Who can use ITR 1?<\/h2>\n

    ITR 1 can be used by resident individuals who fulfill following conditions in AY 2019-20 (FY 2018-19):<\/p>\n