ITR Forms: Are You ‘The One’ For Me?
July 25, 2017 . 176 views
First things first: Do you even know your ITR Forms, bro?
Don’t worry. There’s no negative marking if you don’t!
Just read up what follows and you should be fine for Step 1 of Getting Your Tax Returns Sorted!
Are you ‘The One’ for me?
Now, there are a number of ITR forms available to you. And choosing the right one can be a bit confusing. Not to mention, you don’t want to default on your taxes, do you?
So how about we get to know each form by getting a little up close and personal?
Things, they are a-Changing!
Here’s a little trivia: These forms are not what they were last year.
The current ITR-2 is, in fact, ITR 2+2A+3. Confused? Don’t be. It actually makes things simpler. You’ll see.
Furthermore, you’ll notice a separate column has been added in all forms to disclose aggregate cash deposited in excess of Rs. 2 Lakhs during demonetisation.
1) ITR -1 (It’s quite Sahaj, literally)
ITR-1 or Sahaj lives up to its name. It’s quite a simple formula, really.
Your Income = Salary/Pension below 50 Lakhs + Rent from only one House Property + Income from Other Sources (like if you won a lottery!) + Agricultural Income of less than Rs. 5000
If this equation stands true for your income, then go ahead and fill up this baby!
However, if you have
i) any foreign income,
ii) taxable capital gains, or
iii) rent from more than one house,
iv) income from business or self-employment
then the next one’s probably more up your alley.
2) ITR -2 (A little more… shall we say… accommodating?)
ITR-2 revisits the aforementioned equation and takes it up a notch. This one is for individuals as well as Hindu Undivided Families (HUFs)
So, if your total income includes
ii) Agricultural Incomes above Rs.5000
iii) Income from other sources (still chances of winning that lottery, eh?)
iv) Taxable capital gains
v) Foreign income
vi) Rent from House Property, and
vii) Income from partnership in a firm (but not proprietorship),
then ITR-2 is the one for you! (Totally intended for it to rhyme this time!)
But yet again, conditions apply, my friend.
If your income includes the moolah you earn via business or self-employment, then sorry, you’ve got to go a little further down the line to ITR Form 3.
Yep, this is the one.
This form is for individuals or HUFs who are self-employed or running their own businesses.
Although, it can still include all the usual suspects like your salary and rent from house property and income from other sources (just win that lottery already!).
There you go. That’s it!
Now if you will, please go fill! (Killing it with the rhyming, aren’t we?)
Get unlimited investment tips.