Know How To Choose ITR Form To File Returns For FY 2019-20 Income Tax Return
November, 03rd 2020
The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to like individuals, HUF, company, etc.
In order to mitigate the difficulties faced by tax payers due to ongoing pandemic, the Central Board of Direct Taxes (CBDT) has extended the deadline for filing income-tax returns (ITR) for FY 2019-20 (AY 2020-21) by a month till 31 December, 2020. "The due date for furnishing of Income Tax Returns for the taxpayers [for whom the due date (i.e. before the extension by the said notification) as per the Act was July 31, 2020] has been extended to December 31, 2020," said CBDT. Also Read: NPS Account Opening Form: Check Benefits Of The Pension Scheme & Step By Step Guide To Open An NPS Account Online
The dates have been extended several times since lockdown was enforced.
What is ITR?
Income Tax Return (ITR) is a form in which the taxpayers file information about the income earned and tax applicable to the income tax department. Every taxpayer should file his ITR on or before the specified due date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to like individuals, HUF, company, etc.
Which income tax return form should you fill?
Firstly make sure that you have collected all the necessary documents besides knowing the right ITR form to be filled. Check the link here to find out the requisite documents before filling the ITR form. Currently, the I-T department provides seven ITR forms, but you have to pick the relevant one which depends on the source of your income.
Also note that if you use the wrong form to file your ITR, it will be become invalid. Individuals can use ITR-1, ITR-2, ITR-3 and ITR-4 along with ITR-5,6,7.
Which are the types of ITR forms?
ITR-1 also known as Sahaj, is the most basic form used to file returns for most salaried individuals. It is meant for individuals who have income from salary, income from one house and income from other sources such as lottery and horse race. Also remember that the income should not exceed ₹50 lakh. The new ITR forms require a separate table to disclose tax saving investment made in Q1 2020 for availing them in FY 2019-20.
What income source makes you eligible to file Form ITR-1?ITR-1 form should only be filed by individuals having an income of up to Rs. 50 lakh from mentioned sources below:
An ordinary resident individual (not HUF) can file Form ITR-1 if the total income includes salary or pension.
Income or loss from one house property (excluding brought forward losses and losses to be carried forward)
Income other Sources such as interest from Bank Account (excluding winning from lottery and income from Race Horses, Income taxable under section 115BBDA or Income of the nature referred to in section 115BBE)
It is to be noted that in cases where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this return Form can be used only if the income being clubbed falls into the above income categories.
Who can file Form ITR-2 and other forms?
In case you don’t fulfil the above conditions and cannot use ITR 1 then you can use ITR 2 provided there is no business / professional income. Individuals and HUFs who have income from salary or pension (even if it exceeds Rs 50 lakh), and/or income from house property (one or more) in the previous financial year. Also, you can use ITR-2 to file returns if your income includes winning a lottery or there is income from owning and maintaining a race horse or income taxable at special rates.
The ITR-3 form is for individual businessmen and professionals. If you are filing ITR under Presumptive Taxation Scheme (PTS), you can use the ITR-4 form.
Hence, it is important to check which ITR form is applicable to you collect the documents and can file your returns after visiting the income tax department website: www.incometaxefiling.gov.in. Make sure to go through the details of the form and cross check for any errors. In case there is a mismatch, you can make the change. Once you have filled it, you can submit it and e-verify it.