ITR Filing season for FY 22-23 (AY 23-24) has been started after ITR1 & ITR4 forms are recently notified by the income tax department. Identifying the right form and filing it before due date is one of the most important thing to be done by any taxpayers, as filing the wrong ITR form leads to defective return and filing after the due date leads to late fee and other consequences.
In this article, let’s discuss when you can file ITR1 form and in case if such form is not for you, then what all the other ITR forms you can file.
What is ITR (Income Tax Return)
ITR is a statement in which taxpayers report their incomes and losses from various sources in a financial year to the income tax department along with the taxes paid details.
ITR1 is for whom
This form is only for Resident Individuals having either / all of the following incomes and total income from all sources should not be more than Rs. 50 Lakh:
- Income from Salaries / Pension
- Income from one House Property
- Dividend or Interest Income or Family Pension (Income from Other sources)
- Agricultural Income up to Rs. 5,000
Points to remember:
- This form should NOT be used for brought forward and carry forward of house property losses
- This form should NOT be used if you are having more one house property
Others ITR forms for Individuals
In case if ITR1 is not for you, then as an individual you may choose either ITR2, ITR3 or ITR4 depending the nature of income earned in the relevant financial year. Given below is a quick reference as to which ITR form is applicable for respective incomes.
ITR2: For Stock Market income
ITR3: For Business or Professional Income
ITR4: For Business or Professional Income under presumptive taxation
Conclusion
For most of the individuals, ITR1 form will be sufficient as their sources of incomes generally fits to ITR1. So Salaried Individuals, Retired people, Pensioners and Housewives can make use of this ITR Form provided they satisfy the above mentioned conditions.
The main advantage with ITR1 form is, anyone with basic understanding of taxes can easily file it without any assistance from tax experts. So, before filing your ITR make sure to identify the right form and file it to avoid complications from the department.
Hope you enjoyed the article, please let us know if you have any questions/doubts. Thank you for your time.
