Who can use ITR 2, ITR 3 and ITR 4?

  • December 26, 2020
  • CA Chandan Agarwal's Office

In an earlier article we have discussed about who can and cannot use the ITR 1 (Sahaj). In addition to ITR 1, ITR 2, ITR3, and ITR 4 can also be used by an Individual, so it is fit and proper for us to understand as to who can submit the   remaining ITRs. 

Form ITR 2

As far as simplicity and ease of filling up an ITR is concerned, next to ITR 1 comes ITR 2. ITR 1 cannot be used by an HUF but ITR 1 and ITR 2 both can be used both by Individual and HUFs. The ITR 2 can be used by all the persons who are not eligible to use ITR 1 and do not have any business or professional income. So you can use it even if you have more than one property or have agricultural income over Rs. 5,000/- or are a non resident or are resident  and have any asset of income outside India. You can also use ITR 2 for furnishing your income from other sources against which you wish to claim certain expenses.

All those residents who have an authority to sign  in respect of any account situated outside India can also use ITR 2.  In case you have any brought forwards losses to be set off against current year’s income or have some losses during the current years and which cannot be set off against current year’s income and therefore have to be carried forward for set off in subsequent years. For all those who are directors and any Company or own shares of listed Company  and who are ineligible to use ITR 1 can use ITR 2.

Read more on: https://taxguru.in/income-tax/itr-2-itr-3-itr-4.html

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