Don’t Let the Deadline Sneak Up on You! Your Guide to Choosing the Right ITR Form

Don’t Let the Deadline Sneak Up on You! Your Guide to Choosing the Right ITR Form

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Don’t Let the Deadline Sneak Up on You! Your Guide to Choosing the Right ITR Form

With fewer than 30 days left until the September 15 deadline for filing your income tax return (ITR) for FY 2024-25, it’s crucial to make sure you’re using the correct form. Using the wrong one could get your return rejected.

To make things easier, the Income Tax Department has already released the necessary utilities for ITR forms 1 through 6. Here’s a quick guide to help you pick the right one.

Which ITR Form Should You Use?

ITR-1 (Sahaj)

This is the simplest form, designed for resident individuals with a total income of up to ₹50 lakh. You can use this form if your income comes from:

  • Salary or pension
  • One house property (unless you have a loss to carry forward)
  • Other sources like interest from savings accounts and fixed deposits
  • Agricultural income up to ₹5,000

Do not use this form if you:

  • Are a company director or have invested in unlisted shares.
  • Have income from a business or a profession.
  • Have foreign assets or income from abroad.
  • Have capital gains (with some exceptions for long-term capital gains under Section 112A).

ITR-2

This form is for individuals and Hindu Undivided Families (HUFs) who aren’t eligible to file ITR-1. It’s the right choice if you have income from:

  • Salary, pension, or more than one house property.
  • Capital gains.
  • Foreign assets or income.
  • Lottery winnings or other gambling income.

You can also use this form to club the income of a spouse or a minor child with your own, as long as that income fits within the categories allowed for ITR-2.

ITR-3

Use this form if you are an individual or HUF with income from a business or profession. This includes professionals like doctors, lawyers, and chartered accountants, as well as business owners who need to maintain detailed books of accounts. This form covers all sources of income, including salary, house property, and capital gains.

ITR-4 (Sugam)

This simplified form is for resident individuals, HUFs, and firms (excluding LLPs) with a total income up to ₹50 lakh. It’s primarily for those who calculate their business or professional income on a presumptive basis under sections 44AD, 44ADA, or 44AE.

You can use this form if your income is from:

  • A presumptive business or profession.
  • Salary or pension.
  • One house property.
  • Other sources.
  • Agricultural income up to ₹5,000.

Remember to choose your form carefully to ensure a smooth filing process. If you’re unsure, it’s always a good idea to consult a tax professional.

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