ITR Forms — Selection, E-Filing Portal, and Due Dates

Learning Objectives

• Match each ITR form to its eligible taxpayers and use cases
• Apply the form-selection flowchart to Sunrise Retail Pvt Ltd and Kiran Sharma
• Navigate the key sections of the Income Tax e-filing portal at incometax.gov.in
• Understand pre-filled data through AIS and Form 26AS
• Know the filing due dates and late filing consequences for AY 2026-27

Overview of ITR Forms

There are seven ITR forms. Filing the wrong form results in a defective return notice from the Income Tax Department, which must be rectified within the time allowed — or the return is treated as invalid.

ITR-1 (Sahaj) — The Simplest Form

Eligible for: Resident individuals with:

• Salary or pension income
• Income from one house property (no carried-forward losses)
• Income from Other Sources (excluding lottery, horse race, special rate income)
• Total income ≤ ₹50,00,000

Cannot use ITR-1 if:

• Capital gains of any kind
• Business or profession income
• Foreign assets or foreign income
• Director in a company or holds unlisted shares
• Agricultural income >₹5,000
• Non-resident or Not Ordinarily Resident

Sunrise Retail example: A junior accountant who earns only salary, has a savings account, and no other income — files ITR-1. But a director (like Kiran) cannot use ITR-1 even if all other conditions are met.

ITR-2 — For Investment Income Without Business

Eligible for: Individuals and HUF who:

• Have no business or profession income
• May have capital gains (shares, property, mutual funds)
• May have foreign assets or foreign income
• May have multiple house properties
• No total income limit

Common use case: A salaried person who sold equity shares or sold property in the year. Or someone with a foreign bank account.

Kiran Sharma scenario: If Kiran had only salary and sold shares (no consulting, no proprietorship), he would use ITR-2. But since he has business income from Kiran Electronics, he must use ITR-3.

ITR-3 — Business and Professional Income

Eligible for: Individuals and HUF with income from business or profession (including partners of a firm).

What it covers:

• All sources covered by ITR-2 (salary, capital gains, house property)
• PLUS income from business or profession (PGBP)
• Partners' income from a firm

Cannot opt for presumptive taxation (44AD/44ADA) in ITR-3 — those taxpayers use ITR-4.

Kiran Sharma earns salary from Sunrise Retail AND has business income from Kiran Electronics (proprietorship). He has both salary (employment income) and PGBP (business income). He files ITR-3.

ITR-4 (Sugam) — Presumptive Taxpayers

Eligible for: Individuals, HUF, and partnership firms (not companies or LLPs) who have opted for:

• Section 44AD (business turnover-based)
• Section 44ADA (professional receipts-based)
• Section 44AE (transport operators per-vehicle)

Conditions and restrictions:

• Total income ≤ ₹50,00,000
• No capital gains, foreign income, or foreign assets
• Non-residents cannot use ITR-4

Example: If Kiran Electronics (his proprietorship) uses 44AD presumptive with ₹1.2 crore turnover, and his total income ≤ ₹50L with no capital gains, Kiran could file ITR-4 instead of ITR-3. However, because he also has salary income (which is permitted in ITR-4), ITR-4 remains an option — as long as he has no capital gains or foreign income.

ITR-5 — Firms and LLPs

For partnership firms, LLPs, AOPs, BOIs, and co-operative societies. Not for individuals or companies.

ITR-6 — All Companies

Every company (private limited, public limited, OPC, Section 8 company — unless claiming Section 11 exemption) files ITR-6. There is no income threshold — a company with zero income still files ITR-6.

Sunrise Retail Pvt Ltd files ITR-6 for every assessment year without exception.

Key requirements for ITR-6:

• Must be filed electronically — no physical filing permitted
• Digital Signature Certificate (DSC) mandatory for e-verification
• Tax audit report (Form 3CB-3CD for non-specified cases) must be filed before the ITR
• MAT provisions apply unless opting for Section 115BAA (which Sunrise Retail has done)

ITR-7 — Charitable and Religious Trusts

For entities claiming exemption under Sections 11 and 12 (charitable/religious trusts), Section 10(23C) (educational institutions, hospitals), and other specified entities.

Form Selection Flowchart

Is the taxpayer a COMPANY?
  YES → ITR-6

Is it a FIRM / LLP / AOP / BOI?
  YES → ITR-5

Is it a TRUST / CHARITABLE INSTITUTION?
  YES → ITR-7

Is it an INDIVIDUAL or HUF?
  Has business / profession income (PGBP)?
    YES → Opted for 44AD / 44ADA / 44AE AND total income ≤ ₹50L AND no capital gains?
            YES → ITR-4 (Sugam)
            NO  → ITR-3
    NO  → Any capital gains or foreign income?
            YES → ITR-2
            NO  → Total income ≤ ₹50L AND only salary + one house property + Other Sources?
                    YES → ITR-1 (Sahaj)
                    NO  → ITR-2

The Income Tax E-Filing Portal

All ITRs for AY 2026-27 must be filed through https://www.incometax.gov.in.

Key Portal Sections

Annual Information Statement (AIS)

The AIS aggregates information reported to the IT Department by third parties:

Always verify AIS before filing. Discrepancies can be flagged on the portal — submit a feedback and the AIS data is updated before ITR processing.

Form 26AS

Form 26AS is the traditional TDS credit statement. While AIS is more comprehensive, 26AS remains the primary document for verifying:

• TDS deducted from Kiran's salary by Sunrise Retail
• TDS on professional fees received by Kiran from clients
• Advance tax and self-assessment tax paid

Form 16 — TDS Certificate from Employer

Every employer deducting TDS on salary must issue Form 16 to the employee by 15 June of the assessment year. Form 16 has two parts:

• Part A: Quarterly TDS deducted and deposited
• Part B: Full computation of taxable salary — allowances, deductions, tax computation

Kiran receives Form 16 from Sunrise Retail by 15 June 2026 for FY 2025-26.

Filing Process — Step by Step

E-Verification Methods

An ITR is only complete after e-verification. An unverified submission is treated as not filed.

Sunrise Retail Pvt Ltd must use a DSC — mandatory for companies. Kiran Sharma uses Aadhaar OTP (quickest).

Due Dates for Filing — AY 2026-27

When Is Tax Audit Required — Section 44AB?

• Business with gross turnover >₹1,00,00,000 (₹1 crore) — unless ≥95% digital receipts and opting for 44AD (threshold then ₹3 crore)
• Profession with gross receipts >₹50,00,000 — unless opting for 44ADA
• Opted out of presumptive scheme having opted in a previous year

Sunrise Retail Pvt Ltd: ₹2.80 crore turnover > ₹1 crore — audit mandatory. Due date: 31 October 2026.

Kiran Sharma: Kiran Electronics' actual turnover for FY 2025-26 is below ₹1 crore. No audit obligation from the business side. His consulting/professional receipts are also below thresholds. His ITR-3 due date: 31 July 2026.

Late Filing Consequences

Case Study Application

Sunrise Retail Pvt Ltd — Filing Summary

Kiran Sharma — Filing Summary

Practice Exercises

Key Terms

Next up: Module 7 — Advance Tax — The pay-as-you-earn regime: who must pay, the four instalment dates, Section 234B and 234C interest for shortfalls, and Kiran Sharma's quarterly advance tax schedule for FY 2025-26.