Science & Environment
ITR Filing FY 2023-24: Which is the correct Income…
The correct form for assessment year 2024-25 depends on the level of your income and a host of other factors.Do remember that from financial year 2023-24, the new income tax regime is the default income tax regime. If you want to file your ITR under the old income tax regime, you will have to opt for it.
Who should file tax return using ITR-1?
According to an ET report, salaried individuals should file ITR using ITR-1 if they satisfy the following conditions:
Total Income: The total income does not exceed Rs 50 lakh for the financial year.
Sources of Income: The income must be derived from:
- Salary
- Income from one house property
- Family pension
- Agricultural income up to Rs 5,000
- Other sources, including:
- Interest from savings accounts
- Interest from bank, post office, or cooperative society deposits
- Interest from income tax refunds
- Interest on enhanced compensation
- Any other interest income
- Income of a spouse (excluding those covered under the Portuguese Civil Code) or minor, provided it falls within the specified limits mentioned above.
Salaried individuals meeting the specified requirements can use the ITR-1 form to file a tax return. However, a salaried person cannot use ITR-1 if they are a non-resident or have income from other sources, such as capital gains or foreign income.
Also Read | ITR filing FY 2023-24 deadline extension: Will Income Tax Department extend the July 31, 2024 deadline for filing tax returns?
List of documents required to file ITR-1 and how to obtain them
To file ITR-1, you need to gather the following documents:
- Annual Information Statement (AIS): Download and review your AIS.
- Form 16: Obtain this from your employer.
- House Rent Receipt: Required if you are claiming house rent allowance (HRA).
- Investment Payment Receipts: Collect receipts for any tax-saving investments.
- Premium Receipts: Keep receipts for insurance premiums, if applicable.
ITRs are annexure-less forms, meaning you are not required to attach any documents (such as investment proofs or TDS certificates) when filing your return, either manually or electronically. However, it is important to keep these documents handy for situations where they may need to be produced before tax authorities, such as during assessments or inquiries.
Who should file returns using ITR-2?
A salaried individual can file their tax return using the ITR-2 form if they meet any of the following criteria:
- Is a Director of a company
- Holds investments in unlisted equity shares
Income Sources
- Has income from salaries
- Has income from more than one house property
- Has capital gains
- Has foreign income and other sources of income
- Has capital gains from selling virtual digital assets such as cryptocurrency
Asset Holdings: Holds assets outside India
Income Threshold: Total income exceeds Rs 50 lakh
Additional Categories:
- Hindu Undivided Family (HUF)
- Is a non-resident individual or a resident individual (both ordinarily or not ordinarily)
Specific Situations:
- Has losses that must be carried forward or brought forward under the income head ‘Income from house property’
- TDS under Section 194N was applicable for certain cash withdrawals made during FY 2022-23
- Agricultural income exceeds Rs 5,000 in a financial year
Also Read | ITR Filing FY 2023-24: What happens if I file income tax return after deadline? Check penalties, consequences for late filing
Is Verification of ITR Mandatory?
Yes, according to the Income Tax department FAQs, verifying your ITR after submission is mandatory. The return must be verified within 30 days of successful submission, either through EVC mode or DSC.
You can also download the ITR-V receipt from the “View Filed Return” section after logging into the portal and send it to CPC via speed post within 30 days for verification. However, it is recommended to complete the verification online to avoid any postal issues.
