Itr 1 vs itr 2

Synopsis It's important to note that ITR-2 is much more complex form then ITR-1; ITR-1 is also known as Sahaj because it is a simple ITR form that does not require much information as compared to ITR-2. Do note that if the income tax return is filed using the incorrect ITR form, then income tax department will ask you to file ITR using the correct form. c)Individual must be Ordinarily Resident Indian If any of the one condition is not satisfied, then he/she will not be eligible to file ITR using the ITR-1 form. Who is eligible to file using ITR-2?If an individual has income from the sources other than above or his/her residential status is different, then one must file income tax return using ITR-2 form. c) Is a director of a company d) Is holding an investment in unlisted equity shares e)Is holding assets outside India f)Total income exceeds Rs 50 lakh g) Is a Hindu Undivided Family (HUF) h) Is a non-resident individual or a resident individual (both ordinarily or not ordinarily) i)If there are losses that must be carried forward or brought forward under the income head 'Income from house property'. However, if an individual has further sources of income such as income from business and profession etc. then he/she cannot file ITR using either ITR-1 or ITR-2. He/she has to file ITR using different a ITR form as applicable to him/her. It is important to note that ITR-2 is much more complex form then ITR-1; ITR-1 is also known as Sahaj because it is a simple ITR form that do...

How To Pick Between ITR-1 And ITR-2 For Filing Income Tax Returns? Details Inside How To Pick Between ITR-1 And ITR-2 For Filing Income Tax Returns? Details Inside ITR-1, also known as Sahaj, is for Indian residents who earn an income up to Rs 50 lakh from salary, dividend and fixed deposit interest, and own one house. It's that time of the year when salaried professionals and businesses start approaching chartered accountants or check out online platforms to file their income tax returns. Although the deadline for filing ITR July 31st is more than a month away, doing it as early as possible is a way to avoid errors and the hassle that comes with last minute stress. But before you move ahead with filing returns, its important to know whether you need ITR-1 or ITR-2 forms, since the wrong choice could lead to a notice from tax authorities. Difference between ITR-1 and ITR-2 The Income Tax Return-1 form, also known as Sahaj, is for Indian residents who earn an income up to Rs 50 lakh from salary, dividend and fixed deposit interest, and own one house. Income Tax Return-2 forms are different as they are meant for residents and non-residents earning more than Rs 50 lakh from foreign shares, and have assets outside India as well as investments in unlisted equity shares. Who is eligible for ITR-1? For filing returns using ITR-1, the income from agriculture if any should also be below Rs 5,000. The form can be filled online through the Income Tax e-filing portal, and most informa...

ITR or All the information within the form must pertain to a specific financial year, that is, beginning from 1st April and concluding on 31st March of the next year. The Income Tax Department of India has laid down seven types of ITR forms- ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. The relevance and applicability of these forms would depend upon the nature and income of the taxpayer. To help you find which ITR form would be suitable for you, here is a complete overview of ITR forms that are relevant for individuals and ITR forms that are applicable for companies: ITR Forms for Individuals/HUFs 1. ITR-1 or Sahaj The ITR-1 or Sahaj must only be used by Indian resident individuals who fall under the following categories: • The income is earned from a salary or pension. • The income is earned from other sources, such as lottery, horse races, etc. • The income is generated from sole house property (with certain exclusions). • The aggregate income must be up to a maximum limit of INR 50 lakh. • If there is agricultural income, it must be less than INR 5,000. Who cannot choose this form? • If taxable capital gains were earned by the individual during the financial year. • If investments were made in unlisted equity shares during the financial year. • If you are an NRI or RNOR (Resident Not Ordinary Resident). • If you are a director of a company. • If you have foreign income or assets located abroad. 2. ITR-2 The ITR-2 form must only be used by individuals and Hindu U...

Income tax return is the form in which assessee files information about his/her income and tax thereon to The Filing of income tax returns: obligation by law [ ] Individuals who fulfil any one of the following conditions should by law file their • People whose gross total income (before any deductions exceeds ₹2.5 lakh in FY or ₹3 lakh for senior citizens or ₹5 lakh for super senior citizens). • Companies or firms irrespective of whether you have income or loss during the financial year. • Those who want to claim an income tax refund. • Those who want to carry forward a loss under a head of income. • Resident individuals who have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs). • Residents and signing authorities in a foreign account. (Not applicable to NRIs or RNORs). • Those who derive income from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust. • Foreign companies taking treaty benefit on a transaction in India. • NRIs, who have income that exceeds ₹2.5 lakh in FY which is earned or accrued in India, are required to file an income tax return in India. Due date for filing returns [ ] Due dates of filing income tax return for FY 2018–19 (AY 2019–20) are as under: Particul...

“The choice of the appropriate ITR form primarily depends on your sources of income. For instance, if you are a salaried individual, you can file returns using ITR Form 1. However, if you have both salaried income and capital gains from investments, you should use ITR Form 2. On the other hand, if you are self-employed with business profits as your income source, you should file your returns using ITR Form 3," said Archit Gupta, Founder & CEO, Clear 2) Interest income Another critical mistake to avoid is failing to report income from all sources. Include income from salary, business/profession, house property, capital gains, and investments. “Omitting any income can attract penalties and scrutiny from tax authorities. Likewise, make sure to claim eligible deductions and exemptions under various sections of the Income Tax Act, such as Section 80C and Section 80D, to reduce your taxable income," said Amit Gupta, MD SAG Infotech. If you have foreign assets or income, comply with FEMA regulations and disclose the necessary details. Also, disclose all bank accounts, including foreign accounts, while filing your tax return, Amit Gupta added. 3) Failure to pre-validate your bank account When If not done, the income tax department will not be able to credit the income tax refund owed to you, said Archit Gupta. 4) Selecting the wrong assessment year Many taxpayers confuse the terms "Assessment Year" and “Financial Year.". The "financial year" refers to the period during which incom...

Synopsis It's important to note that ITR-2 is much more complex form then ITR-1; ITR-1 is also known as Sahaj because it is a simple ITR form that does not require much information as compared to ITR-2. Do note that if the income tax return is filed using the incorrect ITR form, then income tax department will ask you to file ITR using the correct form. c)Individual must be Ordinarily Resident Indian If any of the one condition is not satisfied, then he/she will not be eligible to file ITR using the ITR-1 form. Who is eligible to file using ITR-2?If an individual has income from the sources other than above or his/her residential status is different, then one must file income tax return using ITR-2 form. c) Is a director of a company d) Is holding an investment in unlisted equity shares e)Is holding assets outside India f)Total income exceeds Rs 50 lakh g) Is a Hindu Undivided Family (HUF) h) Is a non-resident individual or a resident individual (both ordinarily or not ordinarily) i)If there are losses that must be carried forward or brought forward under the income head 'Income from house property'. However, if an individual has further sources of income such as income from business and profession etc. then he/she cannot file ITR using either ITR-1 or ITR-2. He/she has to file ITR using different a ITR form as applicable to him/her. It is important to note that ITR-2 is much more complex form then ITR-1; ITR-1 is also known as Sahaj because it is a simple ITR form that do...

How To Pick Between ITR-1 And ITR-2 For Filing Income Tax Returns? Details Inside How To Pick Between ITR-1 And ITR-2 For Filing Income Tax Returns? Details Inside ITR-1, also known as Sahaj, is for Indian residents who earn an income up to Rs 50 lakh from salary, dividend and fixed deposit interest, and own one house. It's that time of the year when salaried professionals and businesses start approaching chartered accountants or check out online platforms to file their income tax returns. Although the deadline for filing ITR July 31st is more than a month away, doing it as early as possible is a way to avoid errors and the hassle that comes with last minute stress. But before you move ahead with filing returns, its important to know whether you need ITR-1 or ITR-2 forms, since the wrong choice could lead to a notice from tax authorities. Difference between ITR-1 and ITR-2 The Income Tax Return-1 form, also known as Sahaj, is for Indian residents who earn an income up to Rs 50 lakh from salary, dividend and fixed deposit interest, and own one house. Income Tax Return-2 forms are different as they are meant for residents and non-residents earning more than Rs 50 lakh from foreign shares, and have assets outside India as well as investments in unlisted equity shares. Who is eligible for ITR-1? For filing returns using ITR-1, the income from agriculture if any should also be below Rs 5,000. The form can be filled online through the Income Tax e-filing portal, and most informa...

Income tax return is the form in which assessee files information about his/her income and tax thereon to The Filing of income tax returns: obligation by law [ ] Individuals who fulfil any one of the following conditions should by law file their • People whose gross total income (before any deductions exceeds ₹2.5 lakh in FY or ₹3 lakh for senior citizens or ₹5 lakh for super senior citizens). • Companies or firms irrespective of whether you have income or loss during the financial year. • Those who want to claim an income tax refund. • Those who want to carry forward a loss under a head of income. • Resident individuals who have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs). • Residents and signing authorities in a foreign account. (Not applicable to NRIs or RNORs). • Those who derive income from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust. • Foreign companies taking treaty benefit on a transaction in India. • NRIs, who have income that exceeds ₹2.5 lakh in FY which is earned or accrued in India, are required to file an income tax return in India. Due date for filing returns [ ] Due dates of filing income tax return for FY 2018–19 (AY 2019–20) are as under: Particul...

“The choice of the appropriate ITR form primarily depends on your sources of income. For instance, if you are a salaried individual, you can file returns using ITR Form 1. However, if you have both salaried income and capital gains from investments, you should use ITR Form 2. On the other hand, if you are self-employed with business profits as your income source, you should file your returns using ITR Form 3," said Archit Gupta, Founder & CEO, Clear 2) Interest income Another critical mistake to avoid is failing to report income from all sources. Include income from salary, business/profession, house property, capital gains, and investments. “Omitting any income can attract penalties and scrutiny from tax authorities. Likewise, make sure to claim eligible deductions and exemptions under various sections of the Income Tax Act, such as Section 80C and Section 80D, to reduce your taxable income," said Amit Gupta, MD SAG Infotech. If you have foreign assets or income, comply with FEMA regulations and disclose the necessary details. Also, disclose all bank accounts, including foreign accounts, while filing your tax return, Amit Gupta added. 3) Failure to pre-validate your bank account When If not done, the income tax department will not be able to credit the income tax refund owed to you, said Archit Gupta. 4) Selecting the wrong assessment year Many taxpayers confuse the terms "Assessment Year" and “Financial Year.". The "financial year" refers to the period during which incom...

How To Pick Between ITR-1 And ITR-2 For Filing Income Tax Returns? Details Inside How To Pick Between ITR-1 And ITR-2 For Filing Income Tax Returns? Details Inside ITR-1, also known as Sahaj, is for Indian residents who earn an income up to Rs 50 lakh from salary, dividend and fixed deposit interest, and own one house. It's that time of the year when salaried professionals and businesses start approaching chartered accountants or check out online platforms to file their income tax returns. Although the deadline for filing ITR July 31st is more than a month away, doing it as early as possible is a way to avoid errors and the hassle that comes with last minute stress. But before you move ahead with filing returns, its important to know whether you need ITR-1 or ITR-2 forms, since the wrong choice could lead to a notice from tax authorities. Difference between ITR-1 and ITR-2 The Income Tax Return-1 form, also known as Sahaj, is for Indian residents who earn an income up to Rs 50 lakh from salary, dividend and fixed deposit interest, and own one house. Income Tax Return-2 forms are different as they are meant for residents and non-residents earning more than Rs 50 lakh from foreign shares, and have assets outside India as well as investments in unlisted equity shares. Who is eligible for ITR-1? For filing returns using ITR-1, the income from agriculture if any should also be below Rs 5,000. The form can be filled online through the Income Tax e-filing portal, and most informa...