What is ITR?
An income Tax Return (ITR) is a structure where the citizens document data about their pay acquired and charges relevant to the personal expense office.
The office has advised 7 different structures for example ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 to date. Every citizen ought to record his ITR at the very latest the predetermined due date. The relevance of ITR structures differs relying upon the types of revenue of the citizen, how much the pay is acquired, and the classification of the citizen like people, HUF, organization, and so forth.
Why Should You File ITR?
It is obligatory to record income tax return (ITR) in India on the off chance that any of the circumstances referenced underneath are appropriate to you:
- On the off chance that your gross yearly pay is more than the essential exception limit as indicated below-
|For individuals below 60 years
|Rs 2.5 Lakh
|For individuals above 60 years but below 80 years
|Rs 3.0 Lakh
|For individuals above 80 years
|Rs 5.0 Lakh
- If you have any desire to guarantee an annual expense discount from the office.
- On the off chance that you have procured from or have put resources into unfamiliar resources during the FY.
- On the off chance that you wish to apply for a visa or an advance
- On the off chance that the citizen is an organization or a firm, regardless of benefit or misfortune.
Additionally, you are compulsorily expected to document ITR regardless of whether your pay is beneath the essential exception limit however you meet one of the accompanying circumstances:
- Have stored a total measure of more than Rs.1 crore in at least one current ledger; or
- Have brought about a total use of more than Rs 2 lakh on unfamiliar travel for self or some other individual; or
- Have brought about a use total of more than Rs.1 lakh towards power utilization.
Which ITR To File?
The accompanying infographic will assist you with figuring out which sort of annual expense form is material to you for FY 2020-21 as well as earlier years FY 2019-20.
ITR-1 Or SAHAJ
This Return Form is for an inhabitant person whose absolute pay for the AY 2021-22 incorporates:
- Pay from Salary/Pension; or
- Pay from One House Property (barring situations where misfortune is presented from earlier years); or
- Pay from Other Sources (barring Winning from Lottery and Income from Race Horses)
- Rural pay up to Rs.5000.
ITR 2 is for the utilization of an individual or a Hindu Undivided Family (HUF) whose all-out pay for the AY 2021-22 incorporates:
- Pay from Salary/Pension; or
- Pay from House Property; or
- Pay from Other Sources (counting Winnings from the Lottery and Income from Race Horses).
The Current ITR3 Form is to be utilized by an individual or a Hindu Undivided Family who has paid from an exclusive business or is carrying on calling. The people who have paid from the accompanying sources are qualified to document ITR 3 :
- Carrying on a business or calling
- Assuming that you are an Individual Director in an organization
- Assuming that you have had interests in unlisted value shares whenever during the monetary year
- The return might incorporate pay from House property, Salary/Pension, and Income from different sources
- Pay an individual as an accomplice in the firm.
ITR-4 or Sugam
This ITR 4 applies to people and HUFs, Partnership firms (other than LLPs), which are inhabitants and whose all-out pay includes:
- A business pays as indicated by the possible pay conspire under segment 44AD or 44AE
- Proficient pay as indicated by possible pay conspire under segment 44ADA
- Pay from compensation or annuity up to Rs.50 lakh
- Pay from one house property, not more than Rs.50 lakh (barring how much presented misfortune or misfortune to be conveyed forward)
- Pay from different sources having to pay not more than Rs.50 Lakh (barring pay from lottery and race-horses).
ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Persons (AJP), Estates of perished, Estates of indebted, Business trusts, and venture reserves.
For Companies other than organizations guaranteeing exclusion under area 11 (Income from property held for beneficent or strict purposes), this return must be documented electronically as it were.
For people including organizations expected to outfit returns under section 139(4A) or section 139(4B) or section139(4C) or section 139(4D) or section 139(4E) or section 139(4F).