Meaning of ITR :
It’s a form to make the Income tax aware about the income earned from different sources of income and the amount of tax standing payable / due.
Based on the sources & nature of income ITR form is selected, it is very important for an assessee to file correct ITR form, non compliance can result in Income tax notices and several legal consequence.
Every tax payer is required to file their ITR within the specified time frame, non compliacnes of which can attract interest compliances, and late fee u/s 234 F upto ₹ 10,000/-
Who is required to file ITR?
Every person whose total income or gross receipt exceeds the amount not liable to tax/basic exemption limit is required to file ITR.
How many ITR forms are there?
Total of 7 ITR forms has been notified by the Income tax Laws.
ITR to be filed for individuals ITR 1, ITR 2, ITR 3 & ITR 4.
We will discuss about them one by one…
ITR 1 ( SAHAJ)
This ITR is for the resident individuals whose income consist of :
a) Salary / Pension Income
b) Income from One House property
c) Selected income from other source (other than lottery & Race Horse income)
d) Agriculture income upto ₹ 5000 (for reporting purpose)
Who are forbidden from using ITR 1 as their ITR :
a) Total Income exceeds ₹ 50 Lacs.
b) Agriculture income exceeds ₹ 5000
c) Capital Gains Income
d) income from Business and profession
e) Income from more than one house property
f) a director of the company
g) investment in unlisted equity shares
h) any foreign Assets or any signing authority outside india
i) Foreign income, etc.