Income Tax Return / What is the role of ITR forms in the tax system? It is important to keep these things in mind

Income Tax Return: The last date for filing ITR is 31 July 2024. That is, now taxpayers do not have much time to think about which form they should fill. If you are a salaried person and you pay tax to the government or are thinking of filing ITR even after not coming under the tax net, then you should get some important information as soon as possible before filing. Especially the difference between ITR Form 1 and ITR Form 2 must be known. A total of 6 types of ITR forms are filled by Income Tax. All of these have different features, out of which ITR1, ITR2, ITR3 and ITR4 are very important for common taxpayers.

Do not make a mistake

Many times such cases are seen that taxpayers select the wrong form due to lack of information. If you accidentally file a return on ITR Form 2 instead of ITR Form 1, then you may face a problem. Your return filing work will not be completed. In such a situation, you can also be given a notice by the Income Tax Department. You will be asked to select the correct form in this notice. Overall, you will have some trouble. If you want to avoid trouble, then understand this rule.

Salaried taxpayers should take care of this

ITR Form 1 is also called Simple Form. Most of the employed people use ITR Form-1 to file income tax return. This is the most filed form. ITR Form-1 is for those personal taxpayers whose source of income is salary, pension, home assets and other sources.

However, some special conditions have to be fulfilled to file ITR Form 1. People whose income is more than Rs 50 lakh cannot use Form 1. Also, the income should be from home assets only. Apart from this, agricultural income should not exceed Rs 5 thousand. If even one of these conditions is not met, then that person cannot fill Form-1. If your income is more than Rs 50 lakh, then you should file ITR-2 form.

If you are a director of a company or have invested in non-listed equity shares during the financial year, then you can file return on ITR Form-2. Also, those who have income from capital gains, who earn money from more than one house property, who earn from abroad or own foreign property, can also file return on ITR Form-2. However, people with salary and pension are also included in this.