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Business News/ Money / Personal Finance/  Income tax return: Which form should you opt for? MintGenie explains
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Income tax return: Which form should you opt for? MintGenie explains

Based on the income bracket you fall under and the sources of income, you have to decide the ITR form you have to opt for

The income department has recently released income tax return form 2 (ITR-2) with prefilled data on its portal Premium
The income department has recently released income tax return form 2 (ITR-2) with prefilled data on its portal

As the last date to file your income tax return (ITR) looms closer, taxpayers are expected to be busy while arranging the necessary documents needed to file their returns in time.

The last date to file income tax return for the financial year 2022-23 is July 31, 2023. The financial year (22-23) is also referred to as assessment year 2023-24. Those taxpayers who will file their returns after the last date will be made to pay penalty and interest charges.

The income tax department has recently released the income tax return (ITR) form 2 i.e., ITR-2 with prefilled data.

However, before you file your income tax return, you must apprise yourself of the correct form that you need to choose.

These are the common income tax return (ITR) forms:

1. ITR-1: Also known as Sahaj, this income tax return (ITR) form is meant for the individuals having total income up to Rs 50 lakh, having income from salaries, one house property, other sources (interest) and agricultural income up to Rs 5,000.

This can be filed by a resident individual whose total income does not exceed Rs 50 lakh during the financial year.

Primarily, tax payers’ income should be from salary, one house property, family pension income, agricultural income and other sources which include interest from savings accounts, interest from deposits, interest from income tax refund, interest received on enhanced compensation, and any other interest income, family pension.

To be able to file return under ITR-1, you need Form 16, house rent receipt (if applicable) and investment payment premium receipts (if applicable)

2. ITR-2: This income tax return (ITR-2) form is meant for individuals and Hindu Undivided Families (HUFs) not having income from profits and gains of business or profession.

ITR-2 can be filed by those who are not eligible to file ITR-1, and also those who do not have income from profits and gains of business or profession in the nature of interest, salary, bonus and commission or remuneration due to, or received from a partnership firm.

To be able to file income tax return-2, you need a number of documents which include form 16, form 26AS, rent paid receipts, summary of profit or loss of capital gains transactions, bank passbook to compute interest income, copy of ITR-V to claim previous year's loss and documents to claim tax saving deductions.

3. ITR-3: For individuals and HUFs having income from profits and gains of business or profession, and who are not eligible to file Form ITR‐1 (Sahaj), ITR‐2 or ITR‐4 (Sugam).

4. ITR-4: Also known as Sugam, this form is meant for individuals, HUFs and firms being a resident having total income up to Rs 50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA and 44AE.

You can download income tax department forms on the official website of Income Tax India.

The income tax return can be filed with the income‐tax department on the e‐filing portal of the income‐tax department.
 

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On tax saving FD, you can save tax up to Rs 1.5 lakh in a year.
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On tax saving FD, you can save tax up to Rs 1.5 lakh in a year.

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Published: 04 Jun 2023, 11:49 AM IST
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