ITR1:

Income Tax Return (ITR) 1, also known as ITR-1 Sahaj, is a form provided by the Income Tax Department of India for individuals having income from salaries, one house property, and other sources. It is a simplified form primarily designed for salaried individuals and pensioners. Here are the key details about ITR-1:

Eligibility for ITR-1:

1. Individuals with income from salary or pension.
2. Income from one house property (excluding cases where loss is brought forward from previous years).
3. Income from other sources (excluding winnings from lottery and income from race horses).

Exclusions from ITR-1:

1. Individuals having income from business or profession.
2. Individuals holding directorship in a company.
3. Individuals with more than one house property.
4. Individuals with total income exceeding ₹50 lakh.
5. Individuals having foreign assets.

Key Components of ITR-1:

1. Personal Information:
   • Basic details such as name, address, PAN, Aadhaar, and filing status.
2. Income Details:
   • Details of income earned from salary, pension, and one house property.
3. Other Income:
   • Details of income from other sources, such as interest income from savings accounts.
4. Deductions:
   • Eligible deductions under sections like 80C, 80D, and others are reported.
5. Tax Calculation:
   • Computation of total income, deductions, and taxable income.
   • Calculation of tax liability and available rebates.
6. Details of Advance Tax and Self-Assessment Tax Payments:
   • Information about any advance tax or self-assessment tax paid during the financial year.
7. Bank Details:
   • Bank account details for receiving tax refunds.
8. Verification:
   • Declaration and verification by the taxpayer.

Filing Mode:

• ITR-1 can be filed electronically on the official income tax e-filing website.

Important Points:

• The taxpayer needs to report all bank accounts held during the financial year, even if they are dormant.
• Any exempt income must be reported, such as agricultural income exceeding ₹5,000.
• It is mandatory to link Aadhaar with PAN for filing ITR.

ITR2:

is a form provided by the Income Tax Department of India for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It is designed to accommodate a broader range of income sources and is suitable for taxpayers with more complex financial situations. Here are the key details about ITR-2:

Eligibility for ITR-2:

1. Individuals and HUFs with income from sources other than business or profession.
2. Individuals with income from more than one house property.
3. Individuals with capital gains.
4. Individuals who are non-residents or not ordinarily residents.
5. Directors of companies.

Key Components of ITR-2:

1. Personal Information:
   • Basic details such as name, address, PAN, Aadhaar, and filing status.
2. Income Details:
   • Details of income from salary, house property, and other sources.
3. House Property Details:
   • Information about all house properties owned, including deemed rent.
4. Capital Gains:
   • Detailed reporting of short-term and long-term capital gains.
5. Income from Other Sources:
   • Any income not covered under salary, house property, or capital gains.
6. Deductions:
   • Eligible deductions under various sections, including 80C, 80D, and others.
7. Foreign Income and Assets:
   • Details of foreign assets and income for non-resident individuals.
8. Schedule TCS (Tax Collected at Source):
   • If applicable, details of TCS on certain specified transactions.
9. Details of Advance Tax and Self-Assessment Tax Payments:
   • Information about any advance tax or self-assessment tax paid during the financial year.
10. Verification:
    • Declaration and verification by the taxpayer.

Filing Mode:

• ITR-2 can be filed electronically on the official income tax e-filing website.

Important Points:

• Taxpayers need to report all foreign assets and income, including details of foreign bank accounts.
• Individuals with income from capital gains, multiple house properties, or foreign assets must use ITR-2.
• The form requires detailed information about the cost of acquisition and sale consideration for capital assets.

For more details contact mylegaltax
follow us @mylegaltax
Website : https://mylegaltax.com/
Email: mylegaltax@gmail.com
swati@mylegaltax.com
Phone : +91 9999 66 7262,
+91 8750394151