Last Updated: March 29, 2023, 08:34 IST
Know which form you need to use to file your ITR
In order to make filing returns easier, the Income Tax Department has put out several different forms that an individual taxpayer can use
While filing their income tax returns (ITR), the question that first comes into many people’s minds is which form they need to use. In order to make filing returns easier, the Income Tax Department has put out several different forms that an individual taxpayer can use, as per their type of income and other criteria. If you are confused about which form you need to use while filing your ITR, we have got you covered. Read below to understand the different types of tax returns forms and which one you should file.
ITR-1 (SAHAJ): This is for an individual resident having total income up to Rs 50 lakh from salary, one house property, other sources of income like interest, family pension etc. and agricultural income of up to Rs 5,000. The form cannot be used if the person has income from outside India, any asset (including financial interest in any entity) located outside the country, or has tax deducted u/s 194N. Individuals who are directors in a company or have held unlisted equity shares at any point during the previous year are not eligible for filing returns using ITR-1.
ITR-2: This is for Individual and Hindu Undivided Family (HUF) who are not eligible to file returns under ITR-1. The person/HUF will use ITR-2 if they do not have income under the head Profits, Profession or Gains of Business.
ITR-3: This form is applicable for HUF and individuals who have income under the head “Profits or Gains of Business or Profession”, as per the Income Tax Department. These people are not eligible to file returns using ITR-1, 2 or 4.
ITR-4 (SUGAM): According to the Income Tax Department, this form is applicable for any Hindu Undivided Family (HUF) or individual, “who is resident other than not ordinarily resident or a Firm (other than LLP) which is a Resident having Total Income up to Rs 50 lakh and having Income from Business and Profession which is computed on a presumptive basis and income from salary/pension, other sources (interest, dividend etc.), one house property and more”.
There are three other forms apart from these- ITR-5,6 and 7. These are used by companies, partnerships or trusts.
The deadline to file the tax returns for AY 2022-2023 is July 31. If you fail to file your tax returns by then, you will have time till December 31 to file belated returns, and pay a penalty of Rs 5,000.
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Aparna DebAparna Deb is a Subeditor and writes for the business vertical of News18.com. Among other things, financial market, economy and policies interest her …Read More