Applicability of Income Tax Return (ITR) 1, 2 & 4

Who Can File ITR 1?

-Resident Individuals & HUF can File this form.

-Having Income from Salary or Pension, Other Income like Bank Interest, interest from IT Refund, Agricultural income up to Rs.5000/.

–Income from one House Property.

-Income from the above shall not exceed Rs. 50 Lakhs for filling this Form.

Who can not File ITR 1?

• An assessee having income more than 50 lakh or having agricultural income whose value exceeds 50,000.
• An assessee Having income other than salary I.e assesses having taxable capital gain, or income from business or professional or assessee having more than one house property income.
• Other than one residential status.
• An assessee is a director of a company.
• Assessee having income from foreign consideration or having foreign assets.

Who Can File ITR 2?

• Individuals & HUF’s can File this form.
• Income to be filed in this ITR’s are Salary, Multiple house property Income, Capital Gains, Agricultural Income more than 5000.
• Income from other sources like Bank Interest, interest from IT Refund, Gifts.
• Losses from the above Income can also be set off from this Income & carried forward.

Who can not File ITR 2?

• An assessee being an individual whose income includes income from business or profession.

Who can file ITR 4?

• ITR 4 is only applicable to Individual who is a resident, HUF, and Firms (other than LLP) having total income does not exceed Rs.50 lakhs in the financial year and this total income is earned from the following heads given below :

i) Business Income earned from any of the following :

• Business income computed under section 44AD on a presumptive  basis (Gross Turnover under which not exceeds Rs. 2 Crores )
• Professional income computed under section 44ADA on a presumptive basis (Total professional income does not exceed Rs. 50 lakh ) 
• Business income computed under section 44AE on a presumptive  basis (Income from goods carriage vehicles up to 10 vehicles)

ii)  Income from House property

iii) Income from salary or Pension

iv) Income from other sources

Who can not file ITR 4?

• Assessee having income more than 50 lakh.
• Assessee having income from foreign consideration or having foreign assets.
• An assessee having earlier years brought forward loss under any head of income.
• An assessee who has invested in unlisted equity shares even for one day in a financial year.
• If the assessee is authorized to do the sign for any of your account located outside India.
• If assessed income includes income related to another person for whose tax is already deducted in hands of that other person.