Which individuals are required to file ITR and which ITR form is to be used?

Which individuals are required to File ITR for AY 21-22?

Any individual or HUF whose total income before deducting CH VI A deductions and Sec 54/54B/54D/54EC/54F/54G/54GA/54GB is more than the basic exemption limit as specified below-

• For individuals below 60 years - Rs 2.5 Lakh
• For individuals above 60 years but below 80 years - Rs 3 Lakh
• For individuals above 80 years- Rs 5 Lakh

Also, you are mandatorily required to file ITR even if his income is below the basic exemption limit but you Satisfy one of the following conditions:  

• Have deposited an aggregate amount of more than Rs.1 crore in one or more current bank accounts; or
• Have incurred an aggregate expenditure of more than Rs 2 lakh on foreign travel for self or any other person; or
• Have incurred an expenditure aggregate of more than Rs.1 lakh towards electricity consumption.

Also, it is mandatory for residents and ordinary residents person if a beneficial owner or beneficiary of any foreign assets (including any financial interest in any entity) during the FY.

Few voluntary reasons to file ITR

• To Claim an income tax refund from the department.
• To apply for a visa or a loan

Which ITR form is required to be filed?

ITR-1

Used by Resident Individual Whose Total Income is less than 50 Lakhs and have income under following heads

• Income from Salary/ Pension
• Income from One House Property (excluding cases where loss is brought forward from previous years)
• Income from Other Sources (excluding Lottery Income and Race Horses Income)
• Agricultural income up to Rs.5000.

ITR 2

It is for the use of an individual(Being a resident not ordinarily resident (RNOR) and non-resident) or a Hindu Undivided Family (HUF) who cannot file ITR 1 (Including individual whose Total income from the above should be more than Rs 50 Lakhs) and has income under following heads

• Income from Salary/Pension
• Income from House Property
• Income from Other Sources
• If you are an Individual Director in a company or had Investments in unlisted equity shares at any time during the financial year
• Income from Capital Gains
• Foreign Assets/Foreign income
• Clubbing of income needs to be done

ITR 3

Can be filed by an individual or a Hindu Undivided Family who cannot file ITR 1 and 2 as they have income from proprietary business or are carrying on profession including Income of a person as a partner in the firm.

This form can be filed if you have presumptive income along with capital gain

ITR 4

ITR 4 is used by individuals and HUFs, Partnership firms (other than LLPs), which are residents and who cannot file ITR 1 and 2 due to the following income:

• Business income under presumptive income scheme (Section 44AD or 44AE)
• Professional income under presumptive income scheme (section 44ADA)

This ITR cannot be used if you have capital gain Income.

Due Dates for FY 20-21

• Non-Audit ITR - *31.12.2021*
• Audit ITR - *15.01.2022*
• Belated/ Revised ITR - *31.03.2022*