While filing your income tax return (ITR), the most confusing part for anyone is to decide which ITR forms to fill. There are 6 ITR forms (ITR 1, ITR 2A, ITR 2, ITR 3, ITR 4S, ITR4) for individuals to choose from. How do you decide which one to fill?
The post gives you the details of how to choose the right ITR form?
Which ITR form to choose mainly depends on the source of income.
As per income tax laws there can be following types of income:
This is income that an employee receives from his employer. Pension is also treated as salary for Income tax
This is the income from any property – residential or commercial by renting/leasing it out
The profits on selling of an asset like equity, mutual funds, gold, NCDs, Bonds or real estate. The capital gains are further classified as Short Term or Long Term depending on the time frame of transactions and asset under consideration.
This is income for professional such as lawyers, doctors etc which they generate through freelancing or private practice. Income from running a business is profits that the business generates after deduction of expenses such as rent, salary to staff, etc.
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1. Which ITR form to fill for Tax Returns for AY 2015-16?
2. How to Claim Tax Exemptions while filing ITR?
3. Who needs to file Income Tax Return for AY 2015-16?
4. 4 Ways to generate EVC for e-verification of Income Tax Returns
5. ITR Form 2A – The new IT Return Form for AY 2015-16
6. Penalty for Late Filing of Income Tax Return
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All other income other than the above falls under this category. This might cover interest received on fixed deposits, gifts, winning of prize or lottery, etc
There are some categories of income which are exempted from income tax. Below is the list of exempted Income:
We list down the eligibility for all the ITR forms and also who should not fill a particular form.
You should choose this form when:
You should not choose this form when:
Change from last year:
Earlier, individuals having exempt income exceeding INR 5,000 were not permitted to use Form ITR-1 but this time only people with agriculture Income of more than Rs 5,000 cannot use ITR 1.
An individual or HUF (Hindu Undivided Family) can use ITR2 when:
You should not choose this form when:
Change from last year:
This is entirely new form.
You should not choose this form when:
An individual or HUF can use ITR3 when:
Should not use ITR3 when:
An individual or HUF can use ITR 4S when:
You should not choose this form when:
An individual or HUF who has do not qualify to fill any of the above forms (ITR 1, ITR 2, ITR 2A, ITR 3 or ITR 4S) can fill up ITR 4.
This form is most complex of all and if you have several income sources or a good business income, you might want to take assistance of professionals.
I hope the above guidelines would help you to select the right ITR Form.
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