The last date to file Income Tax Return (ITR) for assessment year 2024-25 is July 31. In such a situation, taxpayers still have a lot of time. Those who are going to file income tax return for the first time, then they should have complete knowledge about the ITR form. Total 6 types of ITR forms are filled by Income Tax.
The bugle for the financial year 2024-25 has been sounded. All the taxpayer warriors are preparing to jump into the battle of ITR with their respective weapons of income. If you are also planning to jump into this battle or have already decided, then you should first know how many doors there are in this Chakravyuh and which one will be best for you. If you file ITR without knowing this method, you may suffer loss. It is also possible that you may have to pay more tax.
Now is the time to think…
The last date to file Income Tax Return (ITR) for assessment year 2024-25 is July 31. In such a situation, taxpayers still have a lot of time. Those who are going to file income tax return for the first time, then they should have complete knowledge about the ITR form. Especially the difference between ITR Form 1 and ITR Form 2 must be known. Total 6 types of ITR forms are filled by Income Tax. All of them have different features, out of which ITR1, ITR2, ITR3 and ITR4 are very important for common taxpayers.
What is the harm?
Because if by mistake you file return on ITR Form 2 instead of ITR Form 1, then you may face problems. The work of filing your return will not be completed. In such a situation, a notice may also be served to you from the Income Tax Department. You will be asked to select the correct form in this notice.
ITR Form-1
ITR Form 1 is also called Simple Form. Most of the working people use ITR Form-1 to file income tax return. This is the most commonly filed form. ITR Form-1 is for those individual taxpayers whose sources of income are salary, pension, home assets and other sources.
However, certain conditions have to be fulfilled to file ITR Form 1. People whose income is more than Rs 50 lakh cannot use Form 1. Also, income should come only from home assets. Apart from this, agricultural income should not exceed Rs 5 thousand. If even one of these conditions is not fulfilled then that person cannot fill Form-1.
ITR Form-2
People earning more than Rs 50 lakh can use ITR Form 2. If you are a director of a company or have invested in unlisted equity shares during the financial year, you can file return on ITR Form-2. Also, those who have income from capital gains, who earn money from more than one house property, who have income from abroad or own foreign property, can also file return on ITR Form-2. However, people with salary and pension also come in this.
ITR Form-3
To file income tax return, ITR Form-3 can be used only by those people whose income is from business or any profession. If you do even a small business, you can file return on ITR Form-3. Apart from this, if you are a freelance artist and consultant, you can also use ITR Form-3.
ITR Form-4
ITR Form-4 is famous by the name of Sugam Form. A person whose business turnover is more than Rs 50 lakh and up to Rs 2 crore can use ITR Form-4. He can file income tax return on ITR Form-4.