Having selected the type of tax return Form, the next step would be to collate the information/documentation required for completing the same. Once the correct tax return Form is identified, it is important to bear certain issues in mind before filing the tax return the key are summarised below: a. These individuals should also not be directors in companies nor should they have invested in unlisted equity shares. This category of resident taxpayers (being individuals, HUFs and firms other than Limited Liability Partnerships) can use ITR 4 provided their total income is less than or equal to Rs 50 lakhs. There is also a dedicated return Form for taxpayers using the presumptive tax methodology wherein the tax percentages are fixed in relation to income. Individuals and HUFs with business or professional incomes can file their returns using ITR 3 designed to capture details of the profit and loss of the business / profession, besides the balance sheet values.

If any of the above conditions are not satisfied, the taxpayer cannot use ITR 1 and has to use ITR 2 provided there is no business / professional income. The taxpayer should not be a director in a company or have investments in the nature of unlisted equity shares. However, there are additional checks one has to do before selecting ITR 1, which relate to the level of total income (upto Rs 50 lakhs and agricultural income upto Rs 5,000) and type of income (salaries, income from one house property and other sources such as interest). ITR 1, more commonly referred to as ’SAHAJ‘, is to be used by individuals who qualify as ‘ordinarily resident’ during a tax year (1st April to 31st March). The return Forms have been designed to capture information based on the category that a person falls into (individual with or without business /professional income, HUF, company, etc.), residential status of a taxpayer and so on.

For the tax year ended 31 March, 2020, there are seven notified tax return Forms (ITRs 1 to 7) that taxpayers can use to file their return of income, depending on what applies to them.

Itr 1 form download