ITR Update: The ITR Form is necessary while filing an Income Tax Return, which form will be perfect for you?

How to File ITR: The last date for filing an Income Tax Return is 31st July 2024. Although taxpayers have enough time to file returns.

But, if you are filing the return for the first time (ITR Filling), then you must know which ITR form is right for you.

The taxpayer must know the difference between ITR Form 1 and ITR Form 2. ITR form is selected according to the income and tax slab. A total of 6 types of ITR forms are filled in Income Tax, but ITR1, ITR2, ITR3, and ITR4 are very important in ITR form.

Let us know which taxpayer should fill out which ITR form.
ITR Form-1
ITR Form-1 is a very simple form. Most salaried persons use this form to file returns. ITR Form-1 is used by those taxpayers whose income source is salary, pension, home assets, or any other source.

Keep one thing in mind taxpayers whose salary is more than Rs 50 lakh cannot use ITR Form-1. At the same time, if the agricultural income is more than Rs 5 5,000, then also Form-1 cannot be used.

ITR Form-2
Taxpayers with income of more than Rs 50 lakh fill out ITR Form-2. This form is used by those taxpayers who have invested in non-listed equity shares or whose income comes from capital gains.

If a taxpayer's income comes from property assets or foreign assets, then also he will use this form. Let us tell you that many salaried persons and pensioner taxpayers also use this form.

ITR Form-3
ITR Form-3 is used only by those taxpayers who earn from business or any other profession. If you run a small business, then you will have to use ITR Form-3. Apart from this, freelancers also have to fill out ITR Form-3.

ITR Form-4
ITR Form-4 is used by those businessmen whose income ranges from Rs 50 lakh to Rs 2 crore. ITR Form-4 is also considered a very famous form.

What will happen if the wrong ITR form is filled?
Now the question arises what will happen if the wrong ITR form is filled by mistake? If you file a return on ITR Form 2 instead of ITR Form 1, then the work of filing the first return will not be completed.

It is also possible that an Income Tax Notice may come from the Income Tax Department. Because of this, tax experts also advise that the correct ITR form should always be selected.

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