Confused? Which ITR Form to File? This might help!

Some Important FAQs which will help you in Deciding which ITR form to File.

1. What if a salaried Taxpayer is having Income from Share Trading?

Delivery-Based Trading: This will result in Capital Gains. In this case, the Taxpayer is required to file ITR-2.

Futures & Option: This is considered as Bussiness Income (Non-Speculation Based). In this case, the taxpayer is required to file ITR-3. The Taxpayer can also opt for the Presumptive Taxation scheme and File ITR-4.

Intra-Day: This is considered Bussiness Income (Speculation Based). In this case, the taxpayer is required to file ITR-3. The Taxpayer can also opt for the Presumptive Taxation scheme and File ITR-4.

2. Mr. A is having only a salary Income of Rs. 16 Lakhs. But he is a director of company ABC Ltd. Which ITR Form he is required to file?

Although Mr. A is having Salary Income only, but ITR-1 cannot be filed by an individual who is Director in a company. So, Mr. A is required to file ITR-2.

3. Mr. X is having a salary of Rs. 62 Lakhs. His Taxable Income is more than Rs. 50 Lakhs. Which ITR Form he is required to file?

ITR-1 can be filed by individuals being a resident (other than not ordinarily resident) having a total income of upto Rs. 50 lakh. So, Mr. X is required to file ITR-2.

4. Mr. A is having only a salary Income of Rs. 16 Lakhs. But he has sold certain equity mutual funds. Which ITR Form he is required to file?

Mr. A is having Income from Capital gain. He is required to file ITR-2.

5. Mr. A is having only a salary Income of Rs. 16 Lakhs. But he is holding shares of Reliance Ltd. Which ITR Form he is required to file?

Mr. A can file ITR-1.

6. Can we use ITR-4 if we have commission Income?

ITR-4 can be used by Taxpayers who have opted for a presumptive Taxation Scheme. Taxpayers cannot opt presumptive Taxation scheme for commission Income, hence ITR-4 cannot be used. For disclosing commission Income one should use ITR-3.

7. What is a salaried Taxpayer is working as a Freelancer?

The Taxpayer can file:

ITR-3: If he is maintaining Books of Accounts

ITR-4: If the Taxpayer has opted for the Presumptive taxation scheme.

8. I need to carry forward the loss. Can I file ITR-1?

No ITR-1 cannot be filed in case you need to carry forward Loss.