What are ITR forms comfortable and easy? Know these things before filing income tax returns
Income tax return (ITR) time has come to file and taxpayers will start filing their returns as soon as Excel utility is released. The tax department has already notified various tax forms, including ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. Meanwhile, the tax department is also running an awareness campaign to make taxpayers aware of various nuances of filing returns. In the recent post of ‘Let’s Learn Tax’, the Income Tax Department answered these questions – who should file returns, why should I file returns, when to file and how to file. Let us know about various ITR forms.
ITR-1 (spontaneous)
It can be admitted by a resident person, whose total income during the financial year does not exceed ₹ 50 lakh. This can contain a person’s income salary, house property, family pension income, agriculture income (up to ₹ 5,000) and other sources, including interest from savings accounts, interest from deposits in bank or post office or co-operative societies, interest from income tax refund, interest on increased compensation, any other interest income and family pension. ITR-1 can also be admitted by a person whose spouse (except those coming under the Portuguese Civil Code) or a minor’s income is clubbing (only when the source of income is within the specified limit mentioned above).
ITR-4 (Sugam)
ITR-4 can be admitted by a resident person, whose income during the financial year does not exceed ₹ 50 lakh. Also, the person has income from business/profession, which is calculated on an estimated basis under Section 44AD, 44ADA or 44AE. This return is also filed by a person whose income is from salary/pension, house property, agriculture income (up to ₹ 5,000) and other sources, including interest from savings account, interest from deposit, income tax refund interest, family pension, interest received on increased compensation and any other interest income.
But ITR-4 cannot be filed by a person who is a resident but not an ordinary resident (RNOR), or an non-resident Indian, whose total income is more than ₹ 50 lakh. Whose agriculture income is more than ₹ 5,000, which is a director in a company and who has income from more than one house property.
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