Last Updated: March 29, 2023, 08:34 IST
Know which type you should use to file your ITR
In order to make submitting returns simpler, the Income Tax Department has put out a number of completely different varieties that a person taxpayer can use
While submitting their earnings tax returns (ITR), the query that first comes into many individuals’s minds is which type they should use. In order to make submitting returns simpler, the Income Tax Department has put out a number of completely different varieties that a person taxpayer can use, as per their kind of earnings and different standards. If you’re confused about which type you should use whereas submitting your ITR, we now have acquired you coated. Read beneath to know the several types of tax returns varieties and which one you must file.
ITR-1 (SAHAJ): This is for a person resident having whole earnings as much as Rs 50 lakh from wage, one home property, different sources of earnings like curiosity, household pension and so forth. and agricultural earnings of as much as Rs 5,000. The type can’t be used if the individual has earnings from exterior India, any asset (together with monetary curiosity in any entity) situated exterior the nation, or has tax deducted u/s 194N. Individuals who’re administrators in an organization or have held unlisted fairness shares at any level through the earlier yr will not be eligible for submitting returns utilizing ITR-1.
ITR-2: This is for Individual and Hindu Undivided Family (HUF) who will not be eligible to file returns beneath ITR-1. The individual/HUF will use ITR-2 if they don’t have earnings beneath the top Profits, Profession or Gains of Business.
ITR-3: This type is relevant for HUF and people who’ve earnings beneath the top “Profits or Gains of Business or Profession”, as per the Income Tax Department. These persons are not eligible to file returns utilizing ITR-1, 2 or 4.
ITR-4 (SUGAM): According to the Income Tax Department, this way is relevant for any Hindu Undivided Family (HUF) or particular person, “who is resident other than not ordinarily resident or a Firm (other than LLP) which is a Resident having Total Income up to Rs 50 lakh and having Income from Business and Profession which is computed on a presumptive basis and income from salary/pension, other sources (interest, dividend etc.), one house property and more”.
There are three different varieties aside from these- ITR-5,6 and seven. These are utilized by firms, partnerships or trusts.
The deadline to file the tax returns for AY 2022-2023 is July 31. If you fail to file your tax returns by then, you’ll have time until December 31 to file belated returns, and pay a penalty of Rs 5,000.
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