PremiumNEW DELHI : Before you set out to file your income tax return (ITR) for assessment year 2019-20 for income earned during financial year 2018-19, it is imperative to understand which ITR form you are supposed to fill up.
The Income Tax department has issued seven ITR forms -- ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. Choosing a wrong ITR form can lead to trouble later on as the tax department may reject your income tax return later on.
The forms have been segregated by the income tax department based on sources of income. Most salaried individuals are required to file ITR-1.
Who is eligible to file ITR-1 form:
All resident individuals whose primary source of income is salary are supposed to file ITR-1 form also known as SAHAJ. The total income during the assessment year 2019-20, however, should not be more than ₹50 lakh.
ITR-1 form is also meant to be used for assesses who earned money through pension, one house property or income from other sources during the financial year.
However, ITR-1 form is not meant for you if you are the director of a company, have held unlisted shares during the previous year, or have income/asset outside India.
E-filing mandatory:
From this year, it is mandatory to file ITR electronically. Only super senior citizens, above the age of 80 years, are allowed to file ITR in paper form. The Income Tax department has already extended the last date to file income tax returns to August 31 from July 31.
How to fill ITR-1 form:
A lot of information that you are required to fill in ITR-1 form will be pre-filled already, as announced by finance minister Nirmala Sitharaman in her Budget speech.
Details about your profile, salary, TDS, etc will be auto-populated in the ITR-1 form. Do remember that you are still required to verify on your own all those pre-filled details in the ITR form.
From this year, the Income Tax department wants to know a more detailed break-up of your salary. You need to mention details of perquisites and allowances exempt under Section 10.
You are also required to fill details on income or rent from house property and income from other sources like interest on savings account, bank deposits, etc.
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