The due date for filing your income tax returns for the financial year 2021-22 (i.e., assessment year 2022-23) is quickly getting closer. For individuals who do not need to get their accounts audited, the due date is July 31, 2022. Filing your ITR on time helps you get your refund sooner, if any. Additionally, it is also important to know which ITR form you should file, based on your income sources. In fact, filing the wrong income tax return forms can get you in trouble with the income tax authorities and may even lead to penalties or prosecution.
In case you are wondering what the different types of ITR forms are, and if you’re finding it tough to determine the one applicable to you, continue reading to find out.
ITR forms applicable for Individuals for AY 2022-23
For individuals, there are four different ITR forms available - ITR-1, ITR-2, ITR-3, and ITR-4. Here’s a brief overview of the various ITR forms available and their applicability for the assessment year 2022-2023.
ITR Form |
Applicability |
|---|---|
ITR-1 |
This form is applicable to only resident individuals whose total income doesn’t exceed Rs. 50 lakhs in a financial year. This form should be used by individuals whose income is derived from -
|
ITR-2 |
This form is applicable to residents, not ordinarily resident, and non-resident individuals. ITR-2 should be used by individuals whose income is derived from sources other than ‘Profits and Gains from Business or Profession’. This includes sources like salary, house property, capital gains, and income from other sources. Individuals eligible to file ITR-1 should continue to use ITR-1 and are not permitted to file ITR-2. |
ITR-3 |
This form is applicable to residents, non-residents, and not ordinarily resident individuals. Individuals who derive their income from their business or profession should file ITR-3. In addition to ‘Profits and Gains from Business or Profession’, if individuals also derive their income from sources like salary, pension, capital gains, house property, and other sources, they will still be eligible to use ITR-3. |
ITR-4 |
This form is applicable only to resident individuals with total income not exceeding Rs. 50 lakhs. Individuals opting to compute their income from business or profession on a presumptive basis according to sections 44AD, 44ADA, and 44AE of the Income Tax Act, 1961. Such aforementioned individuals, who also derive their income from sources like salary, pension, house property, capital gains, and other sources can also use ITR-4 as long as their total income doesn’t exceed Rs. 50 lakhs. |
Conclusion
This should give you a better idea of the kind of ITR form that you need to use when filing your ITR this year. That said, before you start filing your ITR, you can use an income tax calculator to get a better idea of the amount of tax that you would have to pay. This way, you can make informed decisions with respect to tax planning and tax filing.
Also, if you haven’t started preparing to file your ITR yet, it is advisable to start as soon as this financial year comes to a close. That will give you more time to obtain a clarity on your taxable income and the deductions you are eligible for.
BJAZ-WEB-EC-00290/22
