Thread by @manansmehta5

ITR 1 to ITR 4 - The pain of choosing an ITR

Not sure which ITR you should use? We've got you covered.

A thread.

#ITR1 #ITR2 #ITR3 #ITR4

1/n

ITR-1 OR SAHAJ

This Return Form is for a resident individual whose total income includes:

- Income from Salary/ Pension; or
- Income from One House Property (excluding cases where loss is brought forward from previous years)

2/n

- Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
- Agricultural income up to Rs.5000.

The form will not be applicable in following cases:

- If you have had investments in unlisted equity shares at any time during the financial year

3/n

- Owning assets outside India if you are a resident, including signing authority in any account located outside India

- If you are a resident not ordinarily resident (RNOR) and non-resident

- Have foreign assets or foreign income

4/n

- If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person

- Total income exceeding Rs 50 lakh

- Agricultural income exceeding Rs 5000

5/n

- If you have taxable capital gains

- If you have income from business or profession

- Having income from more than one house property

- If you are a Director in a company

6/n

ITR-2

ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income includes:

- Income from Salary/Pension; or

- Income from House Property; or

- Income from Other Sources (including Winnings from Lottery and Income from Race Horses).

7/n

(Total income from the above should be more than Rs 50 Lakhs)

- If you are an Individual Director in a company

- If you have had investments in unlisted equity shares at any time during the financial year

- Being a resident not ordinarily resident (RNOR) and non-resident

8/n

- Income from Capital Gains; or

- Foreign Assets/Foreign income

- Agricultural income more than Rs 5,000

Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used

9/n

The form will not be applicable:

This Return Form should not be used by an individual whose total income includes Income from Business or Profession.

For declaring these types of Income, you may have to use ITR-3 or ITR-4.

10/n

ITR-3

The ITR3 Form is to be used by an individual or a Hindu Undivided Family who have income from proprietary business or are carrying on profession. The persons having income from following sources are eligible to file ITR 3:

- Carrying on a business or profession

11/n

- If you are an Individual Director in a company

- If you have had investments in unlisted equity shares at any time during the financial year

- Return may include income from House property, Salary and Income from other sources

- Income of a person as a partner

12/n

ITR-4 or Sugam

The TR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also include those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA

13/n

However, if the turnover of the business exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

The form will not be applicable:

- If your total income exceeds Rs 50 lakh

- Having income from more than one house property

14/n

- If you have any brought forward loss or loss to be carried forward under any head of income

- Owning any foreign asset

- If you have signing authority in any account located outside India

- Having income from any source outside India

- If you are a Director in a co

15/n

- If you have had investments in unlisted equity shares at any time during the financial year

- Being a resident not ordinarily resident (RNOR) and non-resident

- Having foreign assets or foreign income

16/n

Full details available on the below link

#ITR #Incometax #incometaxindia

thegalacticadvisors.com/post/which-itr…