Important Information for Individuals to help you decide which ITR Form to Use for E Filing

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Income Tax Return Filing Due date is just around the corner

Now the Income Tax Portal being revamped we all are pretty excited to see the new features on E filing portal which are user friendly and further eases out the ITR E filing experience. Just after you push the Login button   a new range of list of forms take over and now you wonder which form is apt or applicable for you.

Our Article will answer this question specifically

ITR 1 – This simple ITR form is applicable for Resident Individuals only in cases where

  • Total Income < Rs 50 lacs . The income may consist of various forms like Salaries, Interest Income etc. Property owners deriving income from one property can also us ITR 1 form. Be careful if you are earning Rental income from more than 1 property this form can’t be used.
  • Don’t have income from Business or Profession. Means if you have any income in the form of Profit or gains from business this form can’t be used.
  • Agricultural Income can be reported in this form only till the extent of Rs  5000/-

Please be aware that if you are Director in the company then you can’t use ITR 1 for your ITR Filing. Form applicable to you will be ITR 2.

ITR 2- This ITR utility is applicable for Individuals and HUF’s not having income from Business and Profession. Likewise this form can be used

  • Where Total Income > Rs 50 lacs . The income may consist of various forms like Salaries, Interest Income etc. Property owners deriving income from one or multiple properties can  use ITR 2 form.
  • This form can be used by both  Residents and Non Resident Indians.
  • Where Agricultural income exceeds Rs 5000
  • If you are a Director in a registered company , this is the appropriate form for your ITR Filing.

ITR 3 – This comparatively complex ITR utility is applicable for Individuals and HUF’s  having income from Business and Profession. Likewise this form can be used

  • Individuals and HUF’s having income from Business or Profession.
  •  By both Residents and Non Resident Indians.
  • This form being extensive has the functionality to capture all sources of income in it.

ITR 4-This is one of the most important and simple forms introduced by the IT department . It is applicable to

  • Resident Individuals , HUF’s and Firms deriving Total Income upto Rs 50 lacs from all sources
  • The income is offered for Taxation u/s 44 AD , 44ADA or 44 AE on presumptive basis
  • This form comes in very handy and simple for small business owners , shopkeepers and professionals who satisfy the turnover /sales limits mentioned in the above sections and are ready to offer income to tax at specified percentage of turnover.
  • Please be aware that if you are Director in the company then you can’t use ITR 4 for your ITR Filing. But if you want to take advantage of Presumptive sections you can do the same by using ITR 3 form