Income Tax Dept. enabled ITR-1 and ITR-4 for filing via Online mode at Portal

The Income Tax Department has enabled the Income Tax Returns Form ITR 1 and ITR 4 at the income tax e-filing portal in Online mode with prefilled data.

Income Tax Return (ITR) is a form that an individual submits to the Income Tax Department of India to report his income and taxes owed for the financial year. The information filed in an ITR should be appropriate for a certain financial year that runs from April 1st to March 31st of the following year.

Salary, company profit, home or property sale, dividend or capital gains, and interest earned are all examples of sources of income. The Income Tax Department will reimburse you if you paid too much tax throughout the year.

What is ITR-1 Form?

ITR-1 Form, also called Sahaj, is the Income Tax Return Form for salaried individuals (i.e. salary/pension/family pension and interest income).

An ITR-1 can be filed by a resident individual who meets the following criteria:

• Total income for the fiscal year does not exceed 50 lakh.
• Salary, income from house property, family pension income, agricultural income (up to 5000/-), and other sources of income include:
  • Savings Account Interest
  • Interest on Deposits (Banks, Post Offices, and Cooperative Societies)
  • Income Tax Refund Interest
  • Interest on Enhanced Compensation received
  • Other Interest Earnings
  • Family Pension

What is ITR-4 Form?

ITR-4 Form, which also called SUGAM, is filed by the taxpayers who have opted for presumptive taxation scheme under section 44AD, section 44DA and section 44AE of the Income Tax Act, 1961. ITR 4 can be filed by individuals, HUF as well as a partnership firm. However, if the annual turnover of business registered under presumptive taxation scheme exceeds Rs.2 crores, the taxpayer is required to file ITR-3.

Individuals whose income comes from the following sources have to file ITR 4 Form:

• Business Income under Section 44AD/Section 44AE.
• Income from a profession as per Section 44ADA.
• Income up to Rs. 50 lakh from Salary or Pension.
• Income up to Rs. 50 lakh from One house property (that does not include the brought forward loss o loss that is to be brought forward under this head)
• Income from other sources up to Rs.50 lakh (does not include winning from lottery or horse races)
• Form ITR 4 can also be filed by the freelancers if the income is not exceeding Rs.50 lakh.