Last Updated : Oct 24, 2020 09:39 AM IST | Source: Moneycontrol.com

Income Tax Return for AY 2020-21: Which of the 4 ITR forms is applicable to you?

For an individual, there are four Income Tax Return (ITR) forms applicable -ITR-1 SAHAJ, ITR-2, ITR-3 and ITR-4.

Filing the correct ITR form is imperative. In case of incorrect filing, Income Tax Department will send the receipt of a defective notice to an individual and ask him/her to rectify within a specified period of time. The individual will also face penalties of non-filing of ITR and the ITR will be considered as invalid, if an individual fails to remove the defect within the specified time.

For an individual, there are four Income Tax Return (ITR) forms applicable -ITR-1 SAHAJ, ITR-2, ITR-3 and ITR-4.

ITR-1 SAHAJ: An ordinary resident individual (not HUF) having an income of up to Rs 50 lakh can file ITR-1 SAHAJ. Total income for this purpose includes-- income from salary or pension, income from one house property, income from 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) and where agricultural income is up to Rs 5,000.

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- ITR 2: ITR-2 can be filed by an individual holding directorship in a company.

- ITR 3: ITR-3 can be filed by Individual and HUF having income from business or profession, or an individual holding partnership in a firm.

- ITR 4: ITR 4 cannot be filed by a person who is a director in a company or has invested in the unlisted equity shares or has any brought forward/ carry forward loss under house property income. For Individuals, HUFs and Firms (other than LLP), being a resident having total income up to Rs 50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE.
First Published on Oct 24, 2020 09:39 am
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