There is no denying the fact that nobody is unfamiliar with the term Taxes. While almost every taxpayer knows that forms are required to file the ITR, however, not everybody would be confident about which form to choose and which one to leave. Moreover, if you have just started paying your taxes, selecting the right sort of form may become even tedious.
To take you out from this hassle, read below about ITR forms and the right category that falls under it.
Types of ITR Forms
Considering that the government has issued 7 forms to File ITR, you must know which form includes and excludes what type of people. Below-mentioned is the detail you were yearning to get.
ITR-1 or Sahaj
This ITR 1 form is for those Indian residents who have a total Income comprises:
Income from pension/salary; or
Agriculture income up to Rs. 5000; or
Income from one house property; or
Income from additional sources (excluding winning from racehorses or lottery)
ITR-1 form cannot be used by:
Individuals with total income more than Rs. 50 lakhs
People with income from foreign income/foreign assets
Individuals who are non-resident (NRIs) or resident not ordinarily resident (RNOR)
ITR-2 cannot be used by the ones whose total income is sourced from a profession or a business.
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The current ITR 3 form is used by those Hindu Undivided Family or individuals who receive income from a profession or a proprietary business. Further, those who have income from below sources can use this form:
Individual director of a company
Profession or a business
Investments in unlisted equity shares during the financial year
This particular form is used by companies. However, those who have claimed an exemption under section 11, which is - Income from property held for religious or charitable purposes – are not included in this category.
Last but not the least, this form is for those companies and individuals who are filing the return under the sections 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E) or 139 (4F).
So, there you have it. That is the complete list of ITR forms, and the people included as well as excluded in these categories. Now, find your form cautiously and be prepared to file your ITR return.
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