Moneycontrol

Budget 2023Budget 2023
Live Now : Nifty Banker 3.0 | India's First Retail Index Traders Online Conference.

Use the correct ITR form or else your tax returns would be invalid

Seven ITR forms are available for you to file returns. Complete disclosure of your income is not enough. Make sure you use the correct form, too

November 26, 2020 / 12:48 PM IST

One size doesn’t fit all they say. The case with tax forms is no different. There are seven different Income Tax Return (ITR) forms for assessees to file their return for the assessment year 2020-21. Out of these seven forms, five can be used by individual taxpayers, depending on their income level, sources of income and other rules. Selecting the correct ITR form is very important, as filing a return with the wrong ITR form is considered as null and void by the income tax department. Read on to know the right form that you need to use.

Also read: Putting off income tax return filing? Be prepared for heavy fines

Salary and other income upto Rs 50 lakh? Use ITR-1

ITR-1 is the most used form among the seven. Just to give you an idea of its use, during assessment year (AY) 2019-20, about 3.3 crore people used ITR-1 to file their returns, out of about 6.78 crore total returns filed – almost 50 per cent. ITR-1 can be used by a resident individual assessee and a Hindu Undivided Family (HUF) with a total income of up to Rs 50 lakh during the financial year 2019-20. This total income includes income from salaries or pension, one house property, other sources (interest on bank deposit and so on), and agricultural income of up to Rs 5,000.