Notably, the income tax department has released the excel utilities of ITR 1 to ITR 6 for filing tax returns for FY 2024-25.
It is important to note that the I-T Department on 16 August released the excel utilities for ITR-3 and ITR-4 for filing updated returns for FY 2021-22 and FY 2022-23. Prior to this, the excel utilties for filing updated returns were released for ITR-1 and ITR-2 on 29 July.
Here, we list the key features of the most common income tax return forms — ITR-1 to ITR-4.
ITR form: Which form should one use?
ITR-1 (Sahaj): This income tax form is meant for resident individuals who have a total income of up to ₹50 lakh. Different sources of income entail salary/pension, income from one house property (barring the cases where loss is carried forward) and income from other sources (such as interest from savings accounts and FDs ), along with agricultural income (for a maximum of up to ₹5,000).
It may be noted that you are not eligible if one of these is true: you are a director of a company and invested in unlisted equity shares during previous year, you have income from business or profession, or you are a resident owning foreign assets or foreign income or more capital gains than allowed threshold with long- term capital gains under section 112A which is more than ₹1.25 lakh or having carried forward/ brought forward losses.
ITR-2: ITR-2 can be filed by individuals or Hindu Undivided Families (HUFs) who are not eligible to file the Sahaj form. Taxpayers who do not have income from profits and gains of business or profession, and also do not have income from profits and gains of business or profession in the nature of interest, salary, bonus and commission or remuneration from a partnership firm can use this form.
This income tax return form can also be filed by those taxpayers who want the income of another person, such as their spouse or a minor child, to be clubbed with their own income, provided the income that needs to be clubbed falls in one of the specified categories.
(Source: Income Tax Department)
ITR-3: This income tax return form is meant for individuals and HUFs engaged in business or professions requiring the maintenance of elaborate books of accounts. This category also entails professionals, including doctors, lawyers, and chartered accountants, whose income is calculated based on actual profits.
ITR-4 (Sugam): This income tax form can be filed by a resident individual/ HUF/ Firm (other than LLP) who has income up to ₹50 lakh during a year, income from business and profession computed on a presumptive basis under sections 44AD, 44ADA or 44AE, income from salary/pension, one-house property, agricultural income (up to ₹ 5,000) and other sources.
For more details on income under the presumptive tax scheme, visit this link.
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