Income Tax Returns (ITRs) are forms used by the Income Tax Department in India to declare net tax liabilities, claim tax deductions, and report gross taxable income. An ITR must be filed by firms or corporations, Hindu Undivided Families (HUFs), and self-employed or salaried individuals. ITR filing is the process by which a taxpayer records his or her total income earned during the fiscal year. Individuals can file their taxes through the official portal of the Income Tax Department.
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For Income Tax Return filing, the Income Tax Department has made it mandatory for all taxpayers to link their Aadhaar card with their PAN.
Types of ITRs
ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7 are all forms provided by the Income Tax Department. The taxpayer must complete the applicable form before the due date, which is determined by the taxpayer’s income and category.
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Who is eligible to file ITR-1?
An ITR-1 can be filed by a resident individual who meets the following criteria:
-Total income for the fiscal year does not exceed 50 lakh.
– Salary, one house property, family pension income, agricultural income (up to 5000/-), and other sources of income include:
1)Savings Account Interest
2)Interest on Deposits (Banks, Post Offices, and Cooperative Societies)
3)Income Tax Refund Interest
4)Interest on Enhanced Compensation received
5)Other Interest Earnings
6)Family Pension
– The income of the spouse (other than those covered by the Portuguese Civil Code) or the minor is combined (only if the source of income is within the specified limits as mentioned above).
Who is not allowed to file an ITR-1?
ITR-1 forms cannot be filed by anyone who:
– Is a Non-Resident Indian (NRI) and a Resident Not Ordinarily Resident (RNOR)
– Has a total income of more than 50 lakh
– Has an agricultural income in excess of 5000/-
– Earns money from the lottery, racehorses, legal gambling, and so on.
– Has capital gains that are taxable (short term and long term)
– Has made an investment in unlisted equity shares
– Earns a living from a business or profession
– Works as a Director for a company
– Is eligible for a tax deduction under Income Tax Act Section 194N
– Has deferred income tax on ESOPs received from an eligible start-up.
– Owns and generates income from more than one residential property
– Is not covered by the ITR-1 eligibility requirements
