Which ITR is applicable to Individuals for filing Income Tax Returns
There are four forms available for Individuals to file and they have to choose one
ITR 1
ITR-1 can be filed by residents of India with a total income of up to Rs.50 lakh earned from home, job, or any other outlets. Salaried taxpayers can file ITR-1 by using Form 16, which cannot be done by NRIs (Non-Resident Indians)
This form must be used by resident Indians who fall under the below-mentioned categories:
– Income is generated from a pension or salary
– Income is generated from single-house property. However, in case the losses have been brought forward from the previous year, exclusion is allowed.
– In this case, agriculture generates an income of not more than Rs.5,000. -Total income of up to Rs 50 lakh in a financial year: Income generated from other sources such as winning horse races, lottery, etc.
ITR2
ITR-2 form must be used by individuals earning from sources other than occupation or enterprises. Earning from home, capital gains, jobs, or any other sources, and having made capital gains from stock purchases and sales can file ITR-2. Here are the following individuals who are eligible for ITR-2 who fall under the below-mentioned categories:
– The Income of the individual must be more than Rs.50 lakh.
– Income can be generated via a pension or from a salary. – Income that is generated from house property.
– Income that is generated from winning a lottery or horse races. – In case the individual is the Director of a company.
– The agricultural income of the individual is more than Rs.5,000. – Income has been generated from capital gains.
– In case any investments were present in equity shares that were unlisted during the financial year.
– Income is generated from foreign income and foreign assets
ITR 3
This form must be chosen by individuals and HUFs who make an income from a profession or from a proprietorship business. ITR-3 can be filed by the salaried individual who has income from the intraday stock exchange or futures. The below-mentioned individuals can opt for the ITR-3 form:
– Individuals who are generating income from a profession or business.
– Everyone who is income requires to file ITR2 and above mention income ITR4 ITR-4 is the Income Tax Return form for taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.
– Business income under section 44AD in the case where turnover is > 2 crore. However, if the turnover of the business mentioned above exceeds Rs.2 crore, the taxpayer will have to file ITR-3.
– Income from profession calculated under section 44ADA up to receipts of Rs 50 lakhs – Salary/pension having income up to Rs 50 lakh
– Income from One House Property with income up to Rs 50 lakh – Income from Other Sources having income up to Rs 50 lakh (excluding winning from lottery and income from horse races).
Selecting the right ITR is very important as it ensures that you do not receive Defective Notice from Income Tax Department
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