As we know, the income tax department withdrew the ITR from 1 through 4 to make some updates and changes because of the COVID-19 pandemic. Now, the taxpayers should calculate their tax liability for the current financial year and maximize their Section 80C benefits.
Know which ITR form you come under:
ITR 1: This form, also known as Sahaj, is made for individuals whose annual salary is up to ₹50 lakhs.
ITR 2: This is for the individuals not having any extra income from gains of business professions.
ITR 3: For HUFs not having any income source from the profits of business professions.
ITR 4: This form is for individuals whose annual salary is up to ₹50 Lakhs and also has extra income from the profits of the business profession. This is also applicable for individuals who invested in equity shares in a specific company.
ITR 5: This is applicable for individuals, HURs, and companies filing the ITR 7 form.
ITR 6: For companies not included under section 11.
ITR 7: For individuals and companies required to furnish under section 139(4A),(4B),(4C), or (4D).
Changes and noticeable updates in the ITR forms
- If an individual has a taxable income through domestic companies, then he/she isn’t eligible to file ITR 1.
- Those having joint ownership of property not eligible to file ITR 1 and ITR 4.
- In the wake of the Covid-19 pandemic, the income tax department allowed taxpayers to make some exceptions until June 30th, 2020.
Nirmala Sitharaman recently extended the last date to file for forms to November 30th. This is done due to the lockdown imposed.