Income Tax Return – Important news for taxpayers. In fact, a new update has been released regarding ITR filing. Which is very important for you to know. If you have filled the wrong ITR form by mistake then notice can come home…
The time is coming to file income tax return for the financial year 2023-24. In such a situation, it is very important for you to choose the right ITR form. Several forms have been made available on the e-filing portal for filing ITR. Where you can fill ITR by going.
If you have not yet filed ITR, then fill it before the last date. If you are going to file the return, then it is important to know the difference between the two income tax return forms ITR 1 or ITR 2, because by mistake if you have filed wrong ITR If the form is filled, it will be called a defective return and a notice can also be issued by the Income Tax Department. Also, you can be asked to fill the correct return form in this notice.
Who can file ITR-1?
- Individuals whose source of income, a house property and other sources of income i.e. interest income, dividend etc. and agricultural income should be up to Rs.5000 only.
- The total income of a person should not exceed Rs 50 lakh.
- The person should be an ordinarily resident Indian.
- If any one of the condition is not fulfilled, then he is not considered eligible to file ITR.
Who files ITR-2?
If a person has income from sources other than the above or his residential status is different, then he should fill ITR-2 form. Who can file ITR-2 form. They are mentioned below.
- If he has income from salary, one or more house property and other sources of income, he can file ITR 2.
- He can also file ITR 2 in case of foreign income like dividend from foreign shares etc. Also, he can file ITR 2 even if he is a director of the company.
- An investor in unlisted equity shares, having assets outside India, having a total income of more than Rs 50 lakh and a Hindu Undivided Family can file ITR-2.
Know these important things before filling the form-
On the other hand, if a person has income from other sources of income such as business and profession, then he cannot file ITR using ITR-1 or ITR-2. He has to file ITR using different ITR form as applicable to him.
Also, ITR-2 is a more complex form than ITR-1. ITR-1 is also known as Sahaj, as it is a simple ITR form that does not require much information as compared to ITR-2.
What is the difference between the two?
An individual can easily file his tax return using ITR-1 on the new income tax portal. Most of the information is already filled in the ITR-1 form. At the same time, filing ITR-2 on the new income tax portal is very complicated. The portal asks for answers to certain questions such as date of purchase, unit details (in case of capital gains from shares or mutual funds) etc. before the form starts.
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