Difference Between ITR-1 and ITR-2: The date of filing income tax is getting closer. Currently, the last date for filing ITR is 31st July. If you do not want to pay any kind of charge or fee, then file income tax before 31st July. Let us know what is the difference between ITR-1 and ITR-2?
If you are thinking of filing ITR in the near future, then get all the information related to income tax filing. Today we will know what is the difference between ITR-1 and ITR-2. Along with this, under which form should you file ITR.
Let us try to understand the difference between these two from the eligibility criteria set under it.
What is the eligibility for ITR-1?
- Eligibility for ITR-1 can be something like this. It is considered simple and easy.
- If the person’s income is Rs 50 lakh or less, then he can choose this form.
- If the income received is coming from salary or pension.
- This does not include income from gambling, lottery or equity shares.
- If a person has only one property.
- Along with this, there should be no income from abroad. At the same time, one should be a citizen of India.
Eligibility for ITR- 2
- The director of the company can file ITR under ITR-2.
- The person’s income should be more than Rs 50 lakh.
- Agricultural income should be more than Rs 5000.
- There should be foreign earnings and profits from shares.
- A person may have more than one property.
- Income from gambling, lottery or other sources is included in this.
What is better for you
Under which ITR form you should file ITR, it depends on eligibility. If you want to avail the benefit of section 90 or 91, then also you will have to choose ITR-2. With this, every taxpayer will get the option to choose between New Income Tax Regime and Old Tax Regime.
In the new tax regime, there will be no tax on income of Rs 12.5 lakh. However, benefits like Section 80C will not be available in this. Under Section 80C, a tax exemption of Rs 1.5 lakh is available. If you want to take advantage of Section 80C, then you can choose the old tax regime.
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