The Income Tax Department notified all the ITR forms for returns filing earlier this month. With this, the Income Tax Return season has started. However, people working will have to wait until they get Form 16. Employees issue their employees Form 16. This includes the educational salary in income, TDS and tax savings in the last financial year. The information given in it is used to file income tax returns.
When will I issue Form 16?
Next month of Employers or in the second week Form-16 It is expected to be issued. By June 15, it is mandatory for all employees to issue Form-16. Tax experts say that people doing jobs ITR Preparations to file should be started now. This is also important because this time the Income Tax Department has made some changes in ITR forms. Tax slabs have also changed.
Who can use Form-1?
These changes can be understood with the help of an example. For the last year, ordinarly resident could only use the ITR-1 (Sahaj) form when his income source included only salary/pension, a house (property), savings/fixed deposits from interest, dividends and an agricultural income of less than 5,000. This year, ITR Form-1 can be used even if there is a long-term capital gence (LTCG) on selling units of shares and mutual funds. The only condition is that this LTCG should not exceed Rs 1.25 lakh in FY 2024-25.
People working can use one of the ITR Form-1 and ITR Form-2. Let us know what is the difference between the two.
The easiest filing of returns from ITR form
ITR-1 is also called spontaneous form. It is evident from the name that this is the easiest form to file income tax returns. It can be used by people who get salary or pension, whose sources of income are limited and they do not include very different sources. In this form, personal information will be seen before you. The details of income and information of financial transactions will also be filled in it. This has been done to make the process of filing income tax returns for taxpayers easier.
Need to keep these things in mind
ITR Form-1 can be used by individual taxpayers, whose income is not more than Rs 50,000,00. This income may include salary/pension, income from home, agriculture income, savings/fixed deposits can include income, dividend and family pension. From this year, this form can also be used by taxpayers, whose long -term capital gains (from the sale of share or mutual funds) up to 1.25 lakhs.
Who can use ITR-2?
If the income of a salary taxpayer is more than Rs 50 lakh annually, the capital gains (from the sale of the share or MF) is more than Rs 1.25 lakh, the taxpayer is a director in the company, the taxpayer has shares of the Anilisted Company, the Income from abroad, deduction or tax has been defined on ESOPS or has been lashed in any income head Have to use.