ITR 1 and ITR-2 for A.Y 2021-22

ITR 1 and ITR 2 filing for A.Y 2021-22 :

Hello readers, my friends requested to write an article on ITR 1 and ITR 2 filing as we all know we have to file our Income tax returns till 30.09.2021-

It is very important to choose correct form based on our income, exemptions, residential status etc. We all know there are five sources of Income as follows-

1. Income from Salary

2. Income from House Property

3. Profits and Gains of business or profession

4. Income from Capital gains

5. Income from other sources

Further, ITR 1 or ITR 2 depands upon –

• • Who has earned Income- Individual or HUF.
  • Residential Status – NRI or Resident.
  • Types of Income –Five heads discussed above.
  • Carry forward of losses.

ITR -1 need to be filled if –

1. You are an Individual

2. You have Income from Salary/Pension

3. You have Income from one House property (excluding cases where loss brought forward from previous years)

4. You have Income from other sources (excluding winning from lottery and horse races)

5. Taxable Income up to Rs 50 lakh

6. Resident and Resident but also ordinarily resident.

7. Exempt Income up to Rs 5000.

8. Taxpayers cannot file itr-1 if TDS deducted u/s 194N.

9. Individual taxpayers who meet the criteria of (a) making cash deposits above Rs 1 crores with a bank or (b) incurring expense above Rs 2 lakh on foreign travel or (c) expenditure above Rs 1 lakh on electricity should also file ITR-1. The taxpayer should indicate the amount of the deposit or expenditure.

ITR -2 –

a. You are an Individual or a HUF.

b. You have Income from Salary /Pension

c. You have Income from more than one house property.

d. You have brought forward losses.

e. You have Income from capital gains.

f. You have Income from other sources (Including winning from lottery ,horse races etc)

g. Foreign Assets/Foreign Income

h. Exempt Income more than Rs 5000

i. Resident not ordinarily resident and Non Resident.

Important points to remember-

> An Individual or HUF who have business or profession cannot file ITR-2

> A Director of any company and an individual who is invested in unlisted equity shares of a company will be required to file their returns in ITR-2.

> From A.Y 2021-22, you have option to file ITR under Old Scheme or New Scheme. So any body that have confusion which scheme to adopt can mail at [email protected] . Our team surely helps you in choosing scheme and file your ITR with in due date at minimum charges.

In addition to above information you need following documents to file your ITR-

> A BANK STATEMENT

> 26 AS (TAX CREDIT STATEMENT)

> TAX –SAVING CERTIFICATES

> COPY OF LAST YEAR ITR FILED

Queries /doubts can be mailed at [email protected] or contact me at 9813458638.