Income Tax Returns (ITRs) are documents used by the Indian Income Tax Department to record gross taxable income, claim tax deductions, and declare net tax liabilities. Firms, businesses, Hindu Undivided Families (HUFs), and self-employed or salaried individuals are all required to file an ITR.
The taxpayer reports all of the income they received throughout the fiscal year by completing an ITR. Using the Income Tax Department's official website, individuals can file their taxes.
The Income Tax Department has made it necessary for all taxpayers to link their Aadhaar card with their PAN in order to file their income tax returns.
Types of ITRs
The Income Tax Department offers the ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7 forms. The application form must be filled out by the taxpayer before the deadline, which is determined by the taxpayer's category and income.
Who is eligible to file ITR-1?
A resident who fits the following requirements can file an ITR-1:
The fiscal year's total revenue does not exceed Rs. 50 lakhs.
Salary, one house property, family pension income, agricultural income (up to 5000/-), and other sources of income include:
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Savings Account Interest
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Interest in Deposits (Banks, Post Offices, and Cooperative Societies)
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Income Tax Refund Interest
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Interest in Enhanced Compensation received
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Other Interest Earnings
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Family Pension
The income of the minor or spouse is combined, except for amounts covered by the Portuguese Civil Code (only if the source of income is within the specified limits as mentioned above).
Who is not allowed to file an ITR-1?
ITR-1 forms cannot be filed by anyone who:
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Is a Non-Resident Indian (NRI) and a Resident Not Ordinarily Resident (RNOR)
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Has a total income of more than 50 lakh
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Earns money from the lottery, racehorses, legal gambling, and so on.
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Has an agricultural income in excess of 5000/-
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Has capital gains that are taxable (short-term and long-term)
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Owns and generates income from more than one residential property
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Has invested in unlisted equity shares
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Earns a living from a business or profession
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Is eligible for a tax deduction under Income Tax Act Section 194N
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Works as a Director for a company
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Has deferred income tax on ESOPs received from an eligible start-up.
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Is not covered by the ITR-1 eligibility requirements
