ITR New Form: Taxpayer should file ITR by choosing between ITR-1 or ITR-2?, know details

ITR Filing: If you are a salaried taxpayer, then this news is special for you. This taxpayer can file his ITR using ITR-1 or ITR-2. Now know which taxpayer should file ITR under ITR-1 and who should file ITR-2 under ITR-2. Know full details about it…

More than 3 crore Income Tax Returns have been filed till July 25, 2022 for the financial year 2021-22 and assessment year 2022-23. The last date for filing Income Tax Return is 31st July 2022. In such a situation, the Income Tax Department has advised the taxpayers to file the return as soon as possible.

Recently, the Finance Ministry had clarified that the last date for filing ITR will not be extended this year. If you have not yet filed your ITR Return, it is important that you do so before Sunday, that is, 31st July. If you miss the deadline for filing ITR, you may have to suffer a loss.

A salaried individual can file his tax return using ITR-1 or ITR-2. It is important to ensure that the tax return is filed using the correct form. Filing ITR using wrong tax return form will result in faulty ITR filing. After which the Income Tax Department can send you a notice for income tax. In which you will be asked to file ITR using the correct form. The form you need to use to file ITR will depend on your sources of income during the financial year.

Who can file ITR-1?

  • Total income should not exceed Rs 50 lakh
  • The source of income should be salary, a house property and other sources of income, i.e. interest income, dividend etc. and agricultural income only up to Rs.5,000.
  • Person should ordinarily be resident Indian
  • If a salaried person fulfills the above conditions, then he/she can file tax return using ITR-1 form.
  • If a salaried person has income from any other source such as capital gains, foreign income etc. or is a non-resident individual, he cannot file tax return using ITR-1.

Who can file ITR-2?

A salaried person can file his tax return using ITR-2 form if he-

  • is a director of a company
  • Investing in unlisted equity shares
  • Income from salary, more than one house property, capital asset, foreign income and other sources of income
  • holds assets outside India
  • Total income is more than Rs 50 lakhs
  • Hindu Undivided Family (HUF)
  • is a non-resident person or a resident person (both in the ordinary or not in the ordinary course)
  • If there are losses which should be carried forward or carried forward under the head ‘Income from house property’.
  • Thus, if a salaried person has income from salary and capital gains, he/she has to file income tax return using ITR-2 form.