There are four (ITR) forms applicable to a person for filing an Income Tax Return. The selection of the right ITR Filing forms is significant. “Selection of appropriate ITR form is important as wrong selection would result in a receipt of defective notice from the Income Tax Department which needs to be rectified within a specified period of time,” says Kapil Rana, founder, and Chairman, HostBooks.In the event that an individual fails to eliminate the deformity inside the predefined time, the ITR will be treated as invalid. Consequently, the individual will have to face penalties for the non-filing of ITR.
The four ITR forms applicable to an individual are ITR-1 SAHAJ, ITR-2, ITR-3, and ITR-4. Here is the suitability of these ITR forms.
Return in FORM ITR-1 can be filed by an ordinary resident individual (not HUF) having an income of up to Rs.50 lakh. Total income for this purpose incorporates – pay from salary or pension, income from one house property, income from different sources, for example, such as interest from a bank account (excluding winning from lottery and income from racehorses, income taxable under section 115BBDA or Income of nature referred to in section 115BBE) and where agricultural income is up to Rs.5,000.
Individuals and HUFs having a total salary of more than Rs.50 lakh. The income should not be from profits and gains of business or profession can file ITR-2. An individual having an income from salaries, more than one house property, capital gains and pay from different sources, having income from sources outside India, and holding assets outside India may file ITR-2. An individual holding directorship in an organization may likewise file ITR-2.
For Individual and HUF having income from business or profession, or an individual holding partnership in a firm may file ITR-3.
For Individuals, HUFs, and Firms (other than LLP) being a resident having total salary up to Rs 50 lakh and having income from business and profession which is registered under Section 44AD, 44ADA or 44AE. An individual who is a director in an organization or has invested in the unlisted equity shares or has any brought forward/ carry forward loss under house property income cannot file the ITR 4.
For more information, visit the website of All India ITR