Senior Associate, Direct Tax
As you all know, income tax return (ITR) Filing season has started for ITRs’ to be filed for AY 2023-2024, i.e., FY 2022-2023.
Let us go through some important aspects of ITR through the following Questions:
Nature of income | ITR 1* | ITR 2 | ITR 3 | ITR 4* |
Salary Income | ||||
Income from salary or pension (for an ordinarily resident person) | ✓ | ✓ | ✓ | ✓ |
Income from salary or pension (for not ordinarily resident and non-resident persons) | ✓ | ✓ | ||
Any individual who is a Director in any company | ✓ | ✓ | ||
If payment of tax in respect of ESOPs allotted by an eligible start-up has been deferred | ✓ | ✓ | ||
Income from House Property | ||||
Income or loss from one house property (excluding brought forward losses and losses to be carried forward) | ✓ | ✓ | ✓ | ✓ |
An individual has brought forward a loss or losses to be carried forward under the heading House Property. | ✓ | ✓ | ||
Income or loss from more than one house property | ✓ | ✓ | ||
Income from Business or Profession | ||||
Income from business or profession | ✓ | |||
Income from a presumptive business or profession covered under sections 44AD, 44ADA, and 44AE (for a person resident in India) | ✓ | |||
Income from a presumptive business or profession covered under Sections 44AD, 44ADA, and 44AE (for not ordinarily resident and non-resident persons) | ✓ | |||
Interest, salary, bonus, commission, or share of profit received by a partner from a partnership firm | ✓ | |||
Capital Gains | ||||
Taxpayer has held unlisted equity shares at any time during the previous year. | ✓ | ✓ | ||
Capital gains or losses on the sale of investments or property | ✓ | ✓ | ||
Income from Other Sources | ||||
Family Pension (for an ordinarily resident person) | ✓ | ✓ | ✓ | ✓ |
Family Pension (for not ordinarily resident and non-resident persons) | ✓ | ✓ | ||
Income from other sources (other than income chargeable to tax at special rates, including winnings from the lottery and race horses or losses under this head) | ✓ | ✓ | ✓ | ✓ |
Income from other sources (including income chargeable to tax at special rates, including winnings from the lottery and race horses or losses under this head) | ✓ | ✓ | ||
Total Income | ||||
Agricultural income exceeding Rs. 5,000 | ✓ | ✓ | ||
Total income exceeding Rs. 50 lakhs | ✓ | ✓ | ||
The assessee has any brought forward losses or losses to be carried forward under any head of income. | ✓ | ✓ |
* An ITR-1 can be filed by an individual who is ordinarily resident in India.
* ITR-4 can be filed only by an Individual or HUF who is ordinarily resident in India and by a firm (other than an LLP) resident in India.
(a) | He has deposited more than Rs. 1 crore in one or more current accounts maintained with a bank or a cooperative bank; |
(b) | He has incurred more than Rs. 2 lakh for himself or any other person for travel to a foreign country; or |
(c) | He has incurred more than Rs. 1 lakh towards the payment of his electricity bill. |
(d) | If total sales, turnover, or gross receipts of the business exceed Rs. 60 lakh during the previous year, |
(e) | If total gross receipts in the profession exceed Rs. 10 lakh during the previous year, |
(f) | If the total tax deducted and collected during the previous year was Rs. 25,000 or more. The threshold limit shall be Rs. 50,000 in the case of a resident individual of the age of 60 years or more; or |
(g) | If the aggregate deposit in one or more savings bank accounts of the person was Rs. 50 lakh or more during the previous year. |