How many types of ITR forms are there, know who needs which form
For the last financial year, the Income Tax Department has started the facility of filling out different forms online for filing ITR. If you are also going to file ITI, then first know which form is right for you.
The last date for filing Income Tax Return (ITR) for FY23 is July 31. For this, the Income Tax Department has given the facility of online filing of ITR 1, 2, 3, and 4. These four forms are for different persons.
If your total income from all sources exceeds the basic exemption limit, you will mandatorily need to file your ITR. But which of these four forms of the Income Tax Department are for you and what is the meaning of these forms, today we are going to tell you the same.
While filing ITR, the most important thing is to choose the form for yourself because by choosing the wrong form, your filing goes wrong, due to which your form is rejected by the Income Tax Department.
Usually, people choose the wrong form while filing ITR. Let me tell you which form is right for you, it depends on your income and how that income comes.
If you are a salaried individual then Form 1 is for you. This form can be filed by an ordinarily resident individual (not a Hindu Undivided Family) whose income is up to Rs.50 lakh. This total income includes income from salary or pension, income from house property, and income from other sources such as interest from bank accounts.
Form 2 is for you if you have both salaried income and capital gains from investments. Individuals and Hindu Undivided Families having a total income of more than Rs 50 lakh can file ITR-2.
Individuals having income from business or profession and Hindu Undivided Family, or a person having a partnership in a firm can file ITR-3.
ITR Form 4 is for a large number of small and medium taxpayers.
