Which ITR form should a salaried person use to file income tax return? However, to know which ITR form is applicable to you, one must know all the sources of income during the financial year. Filing ITR using an incorrect ITR form will lead to defective ITR filing. Know how to know which form is applicable to you
If a salaried individual has income from any other source such as capital gains, foreign income etc., then he/she cannot file a tax return using ITR-1.The last date for filing income tax return (ITR) for FY 2021-22 (AY 2022-23) was July 31, 2022. This deadline is applicable for individuals whose accounts are not required to be audited. Missing the ITR filing deadline has monetary and non-monetary consequences.An individual can file ITR even if the July 31, 2022 deadline of filing ITR is missed. The income tax return filed after the deadline is called belated ITR. One will have to pay a late filing fee when filing a belated ITR. C lick here to fine out what to do if you have missed income tax return filing deadline of July 31.
A salaried individual can file his/her tax return either using ITR-1 or ITR-2. It is important to ensure that tax return is filed using the correct form. Filing ITR using an incorrect tax return form will lead to defective ITR filing. The tax department will send you a tax notice asking you to file ITR using the correct form. The form you will have to use to file ITR will depend on your sources of income during the financial year.
Who can file tax return using the ITR-1 form?
Salaried individuals can file their tax return using the ITR-1 form if they satisfy the following conditions:
a) The total income of an individual must not exceed Rs.50 lakh
b) His/her source of income must be salary, one house property and other sources of income, i.e., interest income, dividend etc. and agricultural income up to Rs.5,000 only.
c) Individual must be Ordinarily Resident Indian
If a salaried individual satisfies the above conditions, then he/she can file a tax return using the ITR-1 form. However, if a salaried individual has income from any other source such as capital gains, foreign income etc. or is a non-resident individual, then he/she cannot file a tax return using ITR-1.
Also Read: Who cannot file income tax return using ITR-1?
Who can file tax return using the ITR-2 form?
A salaried individual can file his/her tax return using the ITR-2 form if he/she:
a) Is a Director of a company
b) Is holding an investment in unlisted equity shares
c) Has income from salaries, more than one house property, capital gains, foreign income and other sources of income
d) Is holding assets outside India
e) Total income exceeds Rs 50 lakh
f) Hindu Undivided Family (HUF)
g) Is a non-resident individual or a resident individual (both ordinarily or not ordinarily)
h) If there are losses that must be carried forward or brought forward under the income head 'Income from house property'.
Thus, if a salaried individual has income from salary and capital gains, then he/she will be required to file an income tax return using the ITR-2 form.
Also Read: Which ITR form is applicable to you for FY 2021-22?
( Originally published on Jul 26, 2022 )
This story originally appeared on: India Times - Author:Tax Cognition
