ITR form is necessary while filing income tax return, which form will be right for you?

How to file ITR: The last date for filing income tax returns is July 31, 2024. However, taxpayers have enough time to file returns.

But, if you are filing return (ITR filling) for the first time, then you must know which ITR form is right for you.

Taxpayers must know the difference between ITR Form 1 and ITR Form 2. ITR form is selected according to the income and tax slab. A total of 6 types of ITR forms are filled in income tax, but among the ITR forms, ITR1, ITR2, ITR3 and ITR4 are very important.

Let us know which taxpayer should fill which ITR form.
ITR Form-1
ITR Form-1 is a very simple form. Most salaried individuals use this form to file returns. ITR Form-1 is used by those taxpayers whose source of income is salary, pension, house property or any other source.

One thing to keep in mind is that taxpayers whose salary is more than Rs 50 lakh cannot use ITR Form-1. At the same time, if the agricultural income is more than Rs 55,000, then also Form-1 cannot be used.

ITR Form-2
Taxpayers with income of more than Rs 50 lakh fill ITR Form-2. This form is used by taxpayers who have invested in unlisted equity shares or whose income comes from capital gains.

If a taxpayer has income from property or foreign assets, he will still use this form. Let us tell you that many salaried and pensioner taxpayers also use this form.

ITR Form-3
ITR Form-3 is used only by those taxpayers who earn from business or any other profession. If you run a small business then you will have to use ITR Form-3. Apart from this, freelancers also have to fill ITR Form-3.

ITR Form-4
ITR Form-4 is used by those businessmen whose income ranges from Rs 50 lakh to Rs 2 crore. ITR Form-4 is also considered a very popular form.

Now the question arises that what will happen if the wrong ITR form is filled by mistake
?If you file return in ITR Form 2 instead of ITR Form 1, then the process of filing the first return will not be completed.

It is also possible that you may receive an income tax notice from the Income Tax Department. For this reason, tax experts also advise that one should always choose the correct ITR form.