A salaried individual can file his income tax return using ITR-1 or ITR-2 form. It is worth noting that there is a difference between these two forms. Which form will apply to an individual depends on all the sources of income of the salaried individual. Let us know about the rules laid down regarding this.
The last date for filing Income Tax Return (ITR) for the financial year 2022-23 (AY 2023-24) is July 31, 2023. This time limit is applicable for persons whose accounts are not required to be audited. In this article, we will tell you how a salaried person can file his income tax return and which form he needs to use.
How to file returns for a salaried person
A salaried individual can file his income tax return using ITR-1 or ITR-2 form. It is worth noting that there is a difference between these two forms. Which form will apply to an individual depends on all the sources of income of the salaried individual. It is important to ensure that the tax return is filed using the correct form.
Filing ITR using wrong tax return form will result in faulty ITR filing. In such a situation, the tax department will send you a tax notice asking you to file ITR using the correct form. The form you need to use to file ITR will depend on your sources of income during the financial year. Let us know about both these forms.
Who can file tax return through ITR-1 form?
If you fulfill the conditions given below, you will be able to file your tax return using ITR-1 form. However, if a salaried individual has income from any other source like capital gains, foreign income etc. or he is a non-resident individual, he cannot file tax return using ITR-1. For this you have to pay attention to the points given below.
- If your total income does not exceed Rs 50 lakh in the financial year 2022-23
- Sources of income are only salary, a house property and other sources of income.
- Normally you are a resident of India.
Who is ITR-2 form for?
A salaried individual can file his tax return using ITR-2 form if he matches the below mentioned factors-
- Is a director of a company
- Investing in unlisted equity shares
- Salary, income from more than one house property, capital gains, foreign income and other sources of income
- Holding assets outside India
- Total income is more than Rs 50 lakh
- Hindu Undivided Family (HUF)
- Is a non-resident person or resident person (ordinarily or not ordinarily)
- If TDS under section 194N was applicable to you for certain cash withdrawals made during FY 2022-23
- If agricultural income exceeds Rs 5,000 in a financial year
- If you have capital gains from selling virtual digital assets such as cryptocurrencies, non-fungible tokens, etc.
- Have signing authority on any account outside India
