Following forms must be used for income tax filing of HUF
- ITR 2
- ITR 3
- ITR 4 or SUGAM
ITR 2 Return Form must be filed by
A Hindu Undivided Family (HUF) who is not having any income under the head āProfits or gains of business or professionā.
ITR 3 Return Form must be filed by
A Hindu Undivided Family who is having income under the head āprofits or gains of business or professionā and who is not eligible to file Sugam (ITR-4).
ITR 4 can be Filed by,
ITR 4 Return Form must be filed by a HUF whose total income for the assessment year 2018-19 comprises,
(a) Income from Business, which is computed in accordance with special provisions referred to in sections 44AD and 44AE of the Act for computation of business income; or
(b) Professional income, which is computed in accordance with special provisions referred to in sections 44ADA; or
(c) Salary or Pension; or
(d) Income obtained through One House Property (other than the cases where there is brought forward loss or loss to be carried forward under this head); or
(e) Income earned through Other Sources (other than earned by Winning Lottery and Income from Race Horses).
- The income computed must be presumed to have been computed after adding full effect to every loss, allowance, depreciation or deduction under the Income-tax Act.
- In such a case where the income of another person like spouse, minor child, etc. is to be combined with the income of the assessee, this Return Form can be used only if the income being combined falls into the above income categories. For presumptive income from Business & profession
ITR 4 or SUGAM Cannot be used in the following cases,
(a) Income obtained through more than one house property or where there is brought forward loss or loss to be carried forward under this head; or
(b) Income earned by Winnings lottery or income from Racehorses; or
(c) Income obtained under āCapital Gainsā, e.g. Short-term capital gains or long-term capital gained through the sale of house, plot, shares etc.; or
(d) Taxable income under section 115BBDA; or
(e) Income of nature under section 115BBE; or
(f) Agricultural income which exceeds ā¹5,000; or
(g) Income through Speculative Business and other special incomes; or
(h) Income obtained through an agency business or income in the nature of commission or brokerage; or
(i) Individuals claiming relief of foreign tax paid under section 90, 90A or 91; or
(j) Any resident of India having any asset (Comprising financial interest in any entity) located outside India or signing authority in any account located outside India; or
(k) Any resident of India having income from any source outside India.
Sugam or ITR 4 form is not mandatory
SUGAM or ITR 4 Form must not be applied at the option of the assessee
- if the assesses keeps and maintains all the books of account and other documents referred to in section 44AA in respect of the business or profession;
- if the assesses gets his accounts audited and obtains a report of such audit as required under section 44AB in respect of the business or profession. In the above scenarios, regular ITR-3 as the case may, should be filed and not SUGAM.