As a responsible and law-abiding citizen, it is the duty of all Indians to file their Income Tax. Not just to receive the Income Tax Returns but also to inform the Income Tax Department about their earnings and the taxability. As per the Income Tax Act, 1961, every citizen of the country should file the IT return at the end of the financial year. Filing the ITR might not be mandatory for every individual who earns but it surely has its own advantages.
As per the CBDT, Central Board of Direct Taxes, there are 9 Income Tax Forms that a taxpayer can use and file his returns such as:
Each of these forms are applicable to a certain type of assesse. Let us try and understand the different uses of ITR-1, ITR-2A and ITR-2.
In this article, we will discuss the different uses of ITR-1, ITR-2A and ITR-2. It has to be remembered that it is basically the different sources of income that make the different uses of ITR-1, ITR-2A and ITR-2.
The ITR-1 form is also called Sahaj form, ‘Sahaj’ meaning ‘Simple’. The form is filed exclusively by a single taxpayer. An individual becomes eligible for filing ITR-1 in the following conditions:
This form is for individuals who have built up an income through the sale of property or an asset or those who are earning from other countries. ITR-2 form is to be filled by an individual or by a HUF, Hindu Undivided Family, in the following conditions:
There is no need to fill ITR-2 when you are/have any of the following:
This was a new ITR Form which has been discontinued from FY 2016-17 (AY 2017-18) is for the use of an individual or by a HUF. ITR-2A form is to be filled by an individual or by a HUF, Hindu Undivided Family, in the following conditions:
Now that we have seen different uses of ITR-1, ITR-2A and ITR-2, let us take a look at ITR-2 and ITR-2A. If we compare ITR-2A and ITR-2, we will realize that ITR-2 is a more comprehensive form. In simple words, if you are using the ITR-2A you can, on the other hand, can use ITR-2 form too. The primary difference between the two is that we cannot use ITR-2A form in cases where the individual has earned an income from Capital Gains.
The difference between ITR-1 and ITR-2 will be clearer now as we have seen the different uses of ITR-1, ITR-2A and ITR-2.
| FORM | ITR-1 | ITR-2 |
|---|---|---|
| Income from Other Sources | Under Form ITR-1, the individual is not earning an income from through activities like the lottery, gambling etc. | On the other hand, in ITR-2, the individual earns through activities like a lottery, gambling etc. |
| Income from Property | The individual earns from 1 house property only. | The individual earns from more than 1 house property. |
| Tax-Free Income such as Agricultural Income | The individual earns a tax-free income like agricultural income that is below INR 5,000 | The individual earns a tax-free income like agricultural income that is above INR 5,000 |
| Losses From Property | The individual has reported losses under Income from other sources | The individual has brought forward the losses under Income from other sources |
When I file my ITR do I need to attach any documents?
Though it is not mandatory to attach any documents when filing your ITR, but it is highly recommended that you must keep all the income related documents safe and handy, as the tax authorities may ask you to present them for assessment.
Can the ITR be filed online?
To file the ITR online you can visit the official web portal of the Income Tax Department www.incometaxindiaefiling.gov.in. This facility is available for all the citizens free of charge.
My income is INR 55 lakhs a year, I need to file ITR-1 or ITR-2?
As your income is INR 55 lakhs a year, depending on the course of your income, you can file ITR-2 or even ITR-3. In case you are salaried then you can file ITR-2, if you are an entrepreneur then file ITR-3.
For an individual what are the different types of ITR forms?
There are 9 Income Tax Forms that a taxpayer can use and file his returns: ITR-1, ITR-2, ITR-3, ITR-4, etc.
What is Sahaj Form?
ITR-1 is also called Sahaj form. The form is filed exclusively by a single taxpayer.
What are capital gains?
Capital gains are the profits that arise from the sale of assets like property, precious metals like gold and silver, equities etc. that have been held as an investment.
I recently won an INR 5 lakh lottery, which ITR Form do I need to fill?
Under ITR-2, an individual earns through activities like a lottery, gambling etc., therefore you need to fill ITR-2 form.
I have a small house in Singapore, from which I receive monthly rent, can I file ITR-1?
No, if the individual has a property in any other country, he is not eligible for ITR-1, you can file ITR-2.
On the basis of property, what is the difference between ITR1 and ITR2?
Under ITR-1 the individual earns from 1 house property only whereas under ITR-2 the individual earns from more than 1 house property.
My exempted agricultural income is INR 18,000, which ITR Form do I need to fill?
You will fill ITR-2 as, when the individual earns a tax-free income that is below INR 5,000 such as agriculture income ITR-1 form is filled and if the individual earns a tax-free income, like agriculture, of more than INR 5,000 ITR-2 is filled.
