Salaried Individuals may have to file ITR-1 or ITR-2 based on certain criteria as detailed below:
Form ITR-1 must be used when the source of income is limited to Salary/Pension, One House Property and other sources (Excluding winning from lottery and race horses).
Form ITR-1 should not be filed for below cases:
- Income that exceeds Rs. 50 Lakhs
- Assessee has Taxable Capital Gains
- Assessee has any of the below sources of income
- Income from foreign assets
- Agricultural income that exceeds Rs. 5000
- Income from Business or Profession
- Income from more than one house property
Form ITR-2 must be filed by individuals who are not eligible to file ITR-1, because of following reasons:
- Income exceeding Rs. 50 Lakhs
- Having foreign assets / income
- Having agricultural income which is more than Rs. 5,000
- Having taxable capital gains
- Having income from business or profession as a partner
- Having more than one house property
Form ITR-2 should not be filed by any individual who has income under the head of Business or Profession from a proprietorship. ITR-2 form can also not be filed by a company or LLP or other types of legal entity.
Important information required to file ITR
- PAN card is mandatory for all the assessees
- Aadhaar card has now been made mandatory for individual tax filers. In case of non-individual tax payers, the Aadhaar card of the authorized person is required to be provided
- Income from salary, agriculture, other sources, house property, profession, capital gains
- Personal details like name, mobile number, address, type of employment
- Deductions under chapter 10, chapter VI-A and many other sections like Section 80U, 80C, 80D
- Complete bank account details including branch, IFSC number along with account number
- Self-assessment tax paid, advance tax paid, TCS and TDS will be updated automatically
- Details of cash deposited of the old, demonetized notes made between 9th November to 31st December 2016 and exceeding Rs. 2 lakh
Why Should Individuals File Income Tax Return?
Under the Income Tax Act, all individuals below the age of 60 years are required to file income tax return if total income exceeds Rs. 2.5 lakhs. In the case of individuals over the age of 60 years, but below 80 years, income tax filing is mandatory if total income exceeds Rs.3 lakhs. Individuals over the age of 80 years are required to file income tax return if the total income exceeds Rs.5 lakhs.
Due Date for Filing Income Tax Return for Salaried Individuals
The income tax return of a salaried individual is due on 31st July.