Know about different types of ITR forms | Fusion - WeRIndia

Know about different types of ITR forms

Know about different types of ITR forms

Taxpayers who do not need audit have to file their income tax returns (ITR) for the financial year 2019-20 by 31 December 2020. While filing your ITR, you have to use the correct income tax form. Otherwise, it is considered invalid.

The income tax department does not consider the ITR if it is filed by the taxpayer using the wrong form. In such cases, the department asks the taxpayers to correct the defect by filing ITR again using the correct form. If taxpayers do not correct it, then their ITR is treated as invalid by the IT department. Hence, know the correct ITR form to file your income tax returns.

Different types of income tax forms are available on the website of income tax.

Here are the details about each of them:

ITR 1 is also known as Sahaj. Resident Indian individuals and HUFs can use this form. If you are earning income through salary or pension, then you can use it. Taxpayers who have only domestic income shall have to use it. The income should not exceed more than ₹50 lakhs and agricultural income should not exceed ₹5,000. To use this ITR form, you should not earn capital gains and hold a property abroad. You should have income from only one housing property. Income from other sources like interest from bank accounts and fixed deposits can be disclosed using this form. You should not have any income from business or through horse racing and lotteries to use this form.

ITR 2 can be used by individuals and HUFs where their total income is more than ₹50 lakhs. Taxpayers who have income from other sources (other than business), more than one house property and assets outside India can use this form. However, taxpayers who earn income from trading in shares, capital gains or have income from business cannot use it.

ITR 3 is meant for taxpayers who earn from business or profession. Individuals who are partners in a firm or directors of a company can use this form. All sources of income can be shown using this form. However, the turnover of the business should not exceed ₹2 crores.

Read about the remaining ITR forms in the next article.

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