Which ITR form should I file?

Shrutika_Shah · April 11, 2023, 1:12pm

Are you ready for the filing of ITR for FY 2022-23/AY 2023-24 as the annual tax-filing season is just around the corner?

The FM in budget 2023 said that the government wants to make the filing and processing of returns to be quick and seamless.

But remember, the selection of the right ITR form number is important to avoid unnecessary delays in processing and conflicts later on.

So, how do I know which ITR should I file?
The table below explains the ITR form number you should file depending on the source of income you have for a particular financial year.

Let’s answer some common questions and understand which ITR form number to be filed under different income situations. (Considering the individual is a resident)

“I have a salary income of ₹10 lakhs, interest from FD of ₹50,000. Which ITR should I file?”
Ans: ITR 1 is applicable if the total income from salary, one house property, and interest in a financial year are up to 50 lakhs.
“I have traded in the capital markets for the first time and made a gain of ₹50,000. I also have a rental income of ₹3 lakhs from 2 let-out properties and made a profit of ₹25000 from online gaming (Dream 11). Which ITR should I file?”
Ans: ITR 2 is applicable if you have income from salary, multiple house properties, LTCG & STCG, and interest. Also, a partner’s income from the partnership firm is reported in ITR 2.
“My clothing business has a turnover of ₹50 lakhs and a profit of ₹20 lakhs. I have also traded in FnO and made a loss of ₹1 lakh. I have received savings account interest of ₹40,000 as well. Which ITR is applicable to me?”
Ans: ITR 3 is applicable if you have income from salary, multiple house properties, LTCG & STCG, business & profession, and interest. Both FnO and clothing are business incomes, so ITR 3 is applicable.
“I am a doctor. My gross receipts for this FY amount to ₹48 lakhs. I am opting for the presumptive scheme. I have no other source of income, which ITR should I file?”
Ans: ITR 4 must be filed if you have opted for the presumptive taxation scheme and you have no other source of income except business & profession and the income is up to ₹50 lakhs.

But wait, have you also traded in the trending crypto? If yes, read about the New ITR Forms for AY 2023-24: Tax on Crypto & Minor Changes for ITR filing.

Though Quicko auto selects your ITR form number upon entering the income details, knowing the basics of tax is essential.

These ITR Forms will be applicable for a particular financial year. Hence one needs to select the correct ITR Form before filing it.

Have questions? Shoot’em here!

SAAD625 · April 30, 2023, 6:18am

Which ITR needs to be filled when the source of income is only capital gains?

Shrutika_Shah · April 30, 2023, 7:58am

Hi @SAAD625

ITR 2 is to be filed for only reporting Income from capital gains.
You can read about Which ITR Form Number to Fill? - Learn by Quicko.

Hope this helps.

Neeraj_Choudhary · June 26, 2023, 6:58am

Hi
I have salary income of 1.25 lakhs and f&o loss of 10k. Can I file presumptive ITR-4 with profits declared @ 6% ?

Muskan_Balar · June 26, 2023, 7:26am

Hi @Neeraj_Choudhary

Based on the information provided, you are eligible to file your income tax return under the presumptive taxation scheme. To proceed with this, you would need to file ITR-4, which is the applicable form for individuals opting for presumptive taxation.

Read more about Section 44AD - Presumptive Taxation for Business - Learn by Quicko.

Neeraj_Choudhary · June 26, 2023, 1:33pm

Hi
I have a salary income of 1.2 lacs and f&o loss of 10k.
Is it compulsory for me to file ITR 3 or can I go for ITR 4?

Muskan_Balar · June 27, 2023, 5:33am

Hi @Neeraj_Choudhary

Based on the type of income you receive, you will need to choose the appropriate ITR Form.

In your case, since you have a non-speculative income derived from your business, considering a business income, you are required to file ITR 3. However, if you decide to opt for the presumptive taxation scheme, then you would need to file ITR 4.

Lokesh · July 6, 2023, 8:17am

I lost my job in 2022 and started freelancing. For that purpose, I bought a laptop. Registered on freelance platforms, by giving PAN and other relevant details. The income I get from these platforms deduct TDS. However, I don’t have any freelance income till 31st March, 2023. Can I claim my laptop as a deduction? Which ITR should I file?

My only income for FY22-23 is salary till the day I lost my job in 2022.

Shrutika_Shah · July 6, 2023, 9:49am

Hi @Lokesh

If you do not have any business/profession/freelance income in FY 2022-23 then you will not be able to claim the depreciation on the laptop as an expense.

However, for FY 2022-23/AY 2023-24 if you have only salary income up to ₹50, lakhs then you should file ITR 1.

Here’s a read on Which ITR Form Number to Fill? - Learn by Quicko for your reference.

MAHESH_M · July 8, 2023, 12:06pm

               which ITR to be filed for me,doing LIC AGENT,CAPITALGAINS(STOCKS),please suggest

Shrutika_Shah · July 10, 2023, 6:22am

Hi @MAHESH_M

If you’re an LIC agent, and you receive commission income and also have capital gains, you are required to file ITR 3.

MAHESH_M · July 10, 2023, 6:34am

thank you @Shrutika_Shah

sonu_prajapati · July 9, 2023, 7:58am

I want to know which ITR should i file if i have :
Taxable salary income < 5 Lakhs
Some short term capital gain
Some intraday gains and losses
Few FnO trading losses
FD accrued interest
MF investments but not reedemed in FY 22-23
dividend from equity shares

Shrutika_Shah · July 10, 2023, 7:02am

Hi @sonu_prajapati

You are required to file ITR 3 as you have FnO & Intraday transactions which are considered as business income. Salary, STCG, and IFOS will also be reported under ITR 3.

sonu_prajapati · July 10, 2023, 7:27am

Hi @Shrutika_Shah ,

Thanks for clarification. Just 1 more question suppose i had only salary, capital gain on sale of shares (STCG) and MF, dividend , only 2 intraday trades. No FnO. Then also do I need to file ITR 3 ??

Shrutika_Shah · July 10, 2023, 7:47am

Hi @sonu_prajapati

Yes, you will be required to file ITR 3 even if you have 1 intraday or FnO transaction as they both are considered business income.

sanket_prabhudesai · July 10, 2023, 5:02pm

I have sold my residential flat in last FY and purchased a new one on loan. I have salary income. I have shares but no STCG LTCG for the year. No intraday trading. I also have income from tuitions. Which ITR do I file?

Shrutika_Shah · July 11, 2023, 5:09am

Hi @sanket_prabhudesai

You should file ITR 1 if your total income is up to ₹50,00,000 in an FY from income from salary, one house property, and income from other sources.

If you’re reporting any capital gain/loss, then you should file ITR 2. If you report intraday or F&O income then should file ITR 3.

Hope this helps.

waghjagdish87 · July 19, 2023, 6:05am

Dear Sir/Mam,
I have Rs.13 Lac salary income.
TDS deducted by company properly,
Home loan interest upto 2 lacs
Rs.2,000 STCG loss
Rs.60000/- loss from F&O trading (Turnover Rs.2 lacs) but don’t want to carry forward any loss for future.
Please suggest can i submit ITR-3 or ITR-2
If ITR-3 then required to submi BS and P&L details in return. need tax audit or not ??
and where to show loss in ITR-3 or ITR-2.@Sakshi_Shah1 @Divya_Singhvi @Shrutika_Shah @Sreetama_Chakraborty

Shrutika_Shah · July 19, 2023, 11:53am

Hi @waghjagdish87

You must file ITR 3 since you have F&O trading income.
The losses are to be reported under Schedule CFL in the ITR.

If there is no other business income apart from F&O trading, then you can disclose the B/S & P/L that pertains to your F&O trading business.

Here’s how you can Prepare your Income Tax Return : Help Center on Quicko. In case you want expert assistance, you can book a MEET.

Hope this helps.