If you have still not filed your Income Tax Return (ITR), you have already reached the slog over and you cannot waste a bit longer. But choosing the correct form for you is the first step that you must perform in order to properly file the ITR.
If you miss the deadline of July to file your return, you have to pay a fine of Rs 5,000.
The Income Tax Department has notified as many as 7 types of forms marked ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7. Every taxpayer is covered by one of these forms.
The applicability of these forms depends on the sources of income, the quantum of income and the category of taxpayer individual, company, HUF etc.
ITR-1
If you are a resident Indian with an income of less than or equal to Rs 50 lakh a year, and the income is either from a salary or pension, or one house property or other sources, you should choose this form to submit ITR.
Remember profits from business and professions, capital gains, income from more than one house property, lottery prize, etc cannot be reported in ITR-1.
ITR-2
If your income exceeds Rs 50 lakh, if you have more than one house, if your have capital gains to report, if you have earnings from foreign sources or assets abroad, if you are a director of any company and possess unlisted equity shares, you should opt for ITR-2.
ITR-3
If you are in any business or profession, if you have income from crypto assets or if you are a partner in any firm, this is the ITR form for you.
ITR-4
Applicable to individuals and HUF (Hindu undivided family) with total annual income up to Rs 50 lakh with every income from ITR-1, salary/pension, one house property and presumptive income.
ITR-5
This form is appropriate for Firms, LLPS (limited liability partnership), AOPs (association of persons) and BOIs (body of individuals).
ITR-6
Companies which don’t claim exemption under section 11 of the Income Tax Act 1961 should go for this one (mostly those in charitable or religious activities).
ITR-7
Persons or firms under sections 139(4A), 139 (4B), 139(4C), 139 (4D) of the Income Tax Act 1961 should choose this form.
The first step for filing Income Tax Returns lies in selecting which form is appropriate for you? Choosing an incorrect form can result in rejection of the ITR? Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
