Want to file income tax returns? Know which ITR form is applicable to you

• February 28, 2021
• CA Chandan Agarwal's Office

Though the last date of filing your income tax returns has passed, you can still submit a late ITR which is known as a belated return. There are four types of Income Tax Returns (ITR) forms applicable to an individual. A person has to file the correct ITR form in order to save himself from consequences.

The Income Tax department issue a defective notice against the person who submitted the wrong ITR form. The defect is also needed to be rectified within a specific time. If someone fails to rectify the defect, then the ITR will be considered invalid by the IT department. It will further result in penalties for non-filing of ITR by the income tax department.

So, to file an ITR, you must have to know about the different types of ITR forms. There are four types of ITR forms known as, ITR-1 SAHAJ, ITR-2, ITR-3 and ITR-4. Here’s which ITR form will apply to you:

ITR-1 (SAHAJ)

The ITR 1 Sahaj can be filed by a resident individual, who is not included in the Hindu Undivided Family (HUF), and have an income of up to Rs 50 lakh. Total income for this purpose includes– income from salary or pension, income from one house property, income from other sources 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.

ITR-2

The ITR 2 can be filed by individuals and HUFs who have an income of more than Rs 50 lakh. The income should not be from profits and gains of business or profession. An individual having income from salaries, more than one house property, capital gains and income from other sources, having income from sources outside India and holding assets outside India may file ITR-2. An individual holding directorship in a company may also file ITR-2.

ITR-3

The ITR 3 is filed by an individual and HUF whose income is from business or profession, or an individual holding partnership in a firm may file ITR-3.

ITR-4

For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs 50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE.

Source: https://english.jagran.com/business/want-to-file-income-tax-returns-know-which-itr-form-is-applicable-to-you-10023934