As the deadline for filing your ITR 2022 is around the corner, it is important for the taxpayers to know the correct type of Income Tax Return (ITR) form applicable to them.
EJ Biz explains which form to choose while filing income tax return:
ITR1 Form Sahaj is for salaried individuals having a total income of up to Rs 50 lakh. You can also file a return in ITR 1 if you earn income from other sources such as interest from bank deposits, house property and agriculture income up to Rs 5,000.
There is no earning limit prescribed for ITR-2 and the Form is suitable for the taxpayers having following incomes:
ITR 3 form is for individuals or Hindu Undivided Families (HUFs) who earn from a business or any other profession (not salaried). Those who are partners at a company, must opt for ITR 3 while filing income tax return for AY 2022-23.
Those who are filing business or professional income on presumptive basis and if the taxable income exceeds Rs 50 lakh and have income under the head ‘capital gains’, must go for ITR 3.
ITR-4 can be used by both resident individuals, firms, and HUFs (Hindu Undivided Family) who had income either from profession or business and whose total income includes:
However, Limited Liability Partnerships (LLPs) cannot opt for this form.
Individuals who have also chosen the presumptive income scheme according to Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act 1961, should also opt for this form.