The July 31 deadline for filing income tax returns is approaching, but choosing the right ITR form is just as important as filing on time. Here’s a si…
1/6Who is Eligible for ITR-1 form (Sahaj): ITR-1 can be used by resident individuals with annual income up to ₹50 lakh from salary, pension and other sources such as interest or dividends. Eligible taxpayers with long-term capital gains up to ₹1.25 lakh can also use it.The form now allows reporting of two house properties rather than just one and also includes a new field for “unrealised rent.” Additionally, it has removed Section 89A relief field linked to reporting retirement savings from other countries and foreign assets. (Image: AI)
2/6Who is eligible for ITR-2 form: ITR-2 applies to individuals and Hindu Undivided Families (HUFs) who are not eligible for ITR-1. They also must not have income sources of “profits and gains from business or profession.” This form is mainly used by company directors or those holding unlisted equity shares. ITR-2 now also includes Section 89A relief field, which was eliminated from ITR-1 and 4. (Image: AI)
3/6Who is eligible for ITR 3 form: ITR-3 is for individuals and HUFs having income from salary or pension, property, business or profession, capital gains, and other sources. It is used by taxpayers not eligible for ITR-1, ITR-2, or ITR-4, especially those with business or professional income. The form now includes a field to report foreign assets or retirement income. (Image: AI)
4/6Who is eligible for ITR-4 (Sugam): ITR-4 applies to individuals, HUFs, and resident firms (other than LLPs) with presumptive business income under Sections 44AD, 44ADA, or 44AE. It also allows income from salary or pension, house property, interest, and dividends.(Image: AI)
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