Guidelines for filling Income Tax Returns

The Central Board of Direct Taxes (CBDT) notified the instructions are guidelines to help the taxpayers for filling the particulars in ITR-1 SAHAJ, ITR-2, ITR-3 ITR-4, ITR-5, ITR-6, and ITR-7,  for the Assessment Year 2021‐22 relating to the Financial Year 2020‐21.

The CBDT has not made significant changes to ITR forms in comparison to last year to help the taxpayers in view of the ongoing crisis due to the COVID pandemic. There is no change in the manner of filing of ITR Forms as compared to last year either, the tax body further mentioned.

1. Form ITR-1 Sahaj is a simple form mostly filed by a large number of small and medium taxpayers, which can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property, or other sources, like interest, etc.
2. Similarly, ITR-4 Sugam can be filed by individuals, Hindu Undivided Families (HUFs), and firms (other than limited liability partnerships (LLPs)) with total income up to Rs 50 lakh and income from business and profession computed under the presumptive taxation provisions.
3. ITR-2 can be filed by the Individuals and HUFs that do not have income from business or profession, and are not eligible for filing ITR-1 Sahaj.
4. Taxpayers earning from business or profession can file Form ITR-3.
5. Taxpayers other than individuals, HUFs and companies, i.e. partnership firms, LLPs etc., can file Form ITR-5.
6. ITR-6 can be filed by the companies. Trusts, political parties, charitable institutions, etc., claiming exemption income under the Income-Tax Act will have to file ITR-7.