Are you investor/traders? have confusion to File ITR? ITR1, ITR2, ITR3 और ITR4 मे क्या अंतर है?

In the Indian Income Tax system, different Income Tax Returns (ITRs) cater to various categories of taxpayers based on their income sources and nature of income. Here’s a breakdown of the key differences between ITR-1, ITR-2, ITR-3, and ITR-4:

1. ITR-1 :

• Eligibility:
  • For resident individuals.
  • Income from salary/pension.
  • Income from one house property.
  • Other sources of income (e.g., interest).
  • Total income should not exceed ₹50 lakh.
• Not Eligible:
  • If you have income from capital gains, business or profession.
  • If you hold directorship in a company or have investments in unlisted equity shares.
• Features:
  • Simplified form for individuals with straightforward financial scenarios.
  • Suitable for salaried individuals, pensioners, and those with minor investments.

2. ITR-2:

• Eligibility:
  • For individuals and Hindu Undivided Families (HUFs).
  • If you have income from salary/pension.
  • Income from more than one house property.
  • Capital gains (short-term or long-term).
  • Income from other sources (e.g., interest, dividends).
• Not Eligible:
  • If you have income from business or profession (you need ITR-3 or ITR-4 in such cases).
• Features:
  • Suitable for individuals with multiple sources of income and those who need to report capital gains.

3. ITR-3:

• Eligibility:
  • For individuals and HUFs.
  • If you have income from a business or profession. (F&O traders treating their income as business income)
  • Also applicable if you have income from salary/pension.
  • Income from more than one house property.
  • Capital gains.
  • Income from other sources.
• Not Eligible:
  • If you wish to opt for the presumptive taxation scheme under section 44ADA, then ITR-4 would be more appropriate.
• Features:
  • Suitable for professionals like doctors, accountants, or anyone running a business.
  • Requires detailed reporting of business income and expenses.

4. ITR-4 :

• Eligibility:
  • For individuals, HUFs, and firms (other than LLP).
  • If you have income from a business or profession and opt for the presumptive taxation scheme under section 44AD, 44ADA, or 44AE.
  • Income from salary/pension.
  • Income from one house property.
  • Other sources of income.
• Not Eligible:
  • If your income exceeds the presumptive limit or if you have income from capital gains.
• Features:
  • Designed for those who opt for a simplified taxation scheme, meaning they can declare income on a presumptive basis rather than keeping detailed accounts.

Summary:

• ITR-1: Simple, for salaried individuals with basic income.
• ITR-2: For those with more complex income sources like capital gains or multiple house properties.
• ITR-3: For those running a business or profession along with other income.
• ITR-4: For those opting for presumptive taxation, including small businesses and professionals with simplified accounting.

Choosing the correct form is essential for compliance and ensuring accurate reporting of income.