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Which IT form is right for me?

Last updated on: September 01, 2009 15:59 IST
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We are all aware that filing of tax returns is our moral duty. Whether you are an individual, hindu undivided family or a company, filing tax returns is a must. However, with the plethora of tax return forms available with the income tax, the question that arises is which form is meant for whom? Remember, different forms have different purposes and meant for different categories of tax payers. Here are the income tax forms meant for the respective taxpayers. Let us divide the tax payers into two categories: corporate and individuals as well as HUFs.

Individuals and HUFs

This category has four different types of forms.

ITR 1: If you are an individual whose main source of income is salary, then this is the form for you. There are two versions of the form available on the income tax site, the first one having 2 pages and second one with 3 pages. Don't worry, there is no difference between the two except for the size of the font. But don't use this form if you have income from other sources like rental income, capital gains, business income, dividends received from investment in shares of overseas companies, lottery or any other prizes.

ITR 2: This form is meant for people and HUFs whose income sources don't include business and profession. Besides salary, if your income sources include rent from property, capital gains and other earnings excluding those from business and profession, you should fill this form. This form is 12 pages long, of which 6 pages are simply explanatory notes.

ITR 3: Persons and HUFs who are partners in a partnership companies will have to submit this form. It is 14 pages long, of which 7 are simply explanatory notes.

ITR 4: Persons and HUFs who are in business or profession should fill out this form. It is 30 pages long, of which 10 pages comprise of explanatory notes.

For companies

ITR 5: This form contains 22 pages and 30 schedules where you must give details about your income, tax details and fringe benefit tax. It is meant for companies, association of persons and body of individuals. There are 10 pages containing explanatory notes.

ITR 6: Meant for companies, this form has 24 pages, and 34 schedules. It is used in lieu of older Form 1. It contains 9 pages of explanatory notes. Here also you must include your fringe benefit tax.

For charitable trusts and political organizations

ITR 7: Designed for the charitable trusts and political organizations, this form has 17 pages and 17 schedules. There are 8 pages of explanatory notes and you must also list fringe benefit tax information.

ITR 8: For those who must file returns for fringe benefit tax but not income tax, this form is a must. It has 4 pages with 3 extra pages listing explanatory notes.

When filing your tax returns, it is important to submit the correct form. Use the proper form listed above to save yourself of the trouble later on.

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