Know About Choosing The Correct Form While Filling ITR

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Income Tax Return (ITR) Filling

Most salaried individuals wait to get Form-16 from their employer, which is important for filing their ITR. To avoid any last minute problem due to high traffic on the income tax website, one should file ITR early.

ITR Filing

Necessary Documents

After receiving Form-16 from one’s employer, an individual should gather and organise all the documents required to file his/her ITR. One should also match the details of Form 26AS and Annual Information Statement (AIS).

Documents

How to Choose The Right Form

Salaried taxpayers should choose either ITR-1 or ITR-2. The first form can only be used by resident Indians and ordinarily resident Indians whose annual income is less than Rs 50 lakh.

Forms

ITR Form 2

People who do not generate income from business or profession should opt for ITR-2. For instance, if an individual holds a foreign bank account or any other asset outside India, then he/she has to use ITR-2 instead of ITR-1.

Form 2

Things To Keep In Mind

If the employer has calculated tax under the new tax regime and the taxpayer wants to switch to the old tax regime and claim tax deduction, he/she might face inquiries from the income tax department due to a mismatch in Form-16 and the ITR.

Keep in mind

Tax Deduction Claim

If one does not have sufficient documentary evidence to support any tax deduction claim, then one should avoid making a claim.

Compiled by Syed Muskan

deductions

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