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Know which ITR Form to choose as Income Tax Return due date approaches soon

In order to avoid fines and paying additional interest on any unpaid taxes as well as to take advantage of a number of other benefits, taxpayers must complete their income tax returns by the end of the month, unless the deadline is postponed further. With the Income Tax Return (ITR) filing deadline of July 31 fast approaching,
one could be confused about which ITR Form to choose when it comes to completing their income tax return because there are so many options available to taxpayers.

ITR-1 
For those who are residents (both residents and ordinarily residents) who have total annual income up to Rs. 50 lakh from the following sources:

  • Salary / Pension
  • Up to one House Property
  • Income from Other Sources such as Interest, Family Pension, Dividend etc.
  • Agricultural Income up to Rs 5,000

ITR-2

ITR-2 has no predefined earning cap and is appropriate for taxpayers with the following incomes:

  • Salary / Pension
  • One or more House Properties
  • Income from Other Sources such as Interest, Family Pension, Dividend etc.
  • Capital Gains – both short-term and long-term gains including gains from intraday trade and Future & Options (F&O)
  • Agricultural Income of over Rs 5,000

ITR-3

The assessees with income from business and profession may also use ITR-3 in addition to the aforementioned sources of income.

  • Salary / Pension without any limit
  • One or more House Properties
  • Income from Other Sources such as Interest, Family Pension, Dividend etc.
  • Capital Gains – both short-term and long-term gains including gains from intraday trade and Future & Options (F&O)
  • Agricultural Income of over Rs 5,000
  • Income form Business and Profession

ITR-4

Taxpayers who meet ITR-1’s requirements but have income from a presumed business or profession may use ITR-4 instead.

  • Salary / Pension
  • Up to one House Property
  • Income from Other Sources such as Interest, Family Pension, Dividend etc.
  • Agricultural Income up to Rs 5,000
  • Income from Presumptive Business or Profession