This is how you can save on income tax Image credit source: Unsplash
The last date for filing ITR is July 31, 2024. This means that now taxpayers do not have much time to think about which form to fill. If you are a working person who pays taxes to the government or are thinking of filing ITR even if you do not fall into the tax bracket, then you should gather important information as early as possible before filing the return. Especially, one should know the difference between ITR Form 1 and ITR Form 2. In total, the Income Tax fills 6 types of ITR forms. All of them have different features, of which ITR1, ITR2, ITR3, and ITR4 are very important for ordinary taxpayers.
Don’t make mistakes even by mistake.
Such cases are often seen where taxpayers select the wrong form due to lack of information. By mistake, if you file the return in Form ITR 2 instead of Form ITR 1, you may face problems. The work of filing your return will not be completed. In such a situation, you may also be sent a notice from the Income Tax Department. You will be asked to select the correct form in this notice. Generally, you will face some problems. If you want to avoid problems, understand this rule.
Salaried taxpayers should take this into account
Form ITR-1 is also called as the simple form. Most of the employees use Form ITR-1 to file their income tax return. This is the most frequently filed form. Form ITR-1 is for those individual taxpayers whose sources of income are salaries, pensions, house property and other sources.
However, certain conditions must be fulfilled for filing Form-1 of ITR. Individuals whose income exceeds Rs 50 lakh cannot use Form-1. Also, the income must be derived from house property only. Apart from this, agricultural income must not exceed Rs 5,000. If even one of these conditions is not fulfilled, such a person cannot fill Form-1. If his income exceeds Rs 50 lakh, he must file Form ITR-2.
Let us tell you that if you are a director of a company or have invested in unlisted shares during the financial year, you can file the return in Form ITR-2. Also, those who have capital gains income, who earn money from more than one property in the house, who have income from abroad or own properties abroad, can also file the return in Form ITR-2. However, people with salary and pension also fall under this.
