Behavioural biases that damage your investments!

A new Income Tax Return (ITR) form has been released for FY21-22, however, no major changes were made to the forms due to the ongoing pandemic in the country. The Finance Ministry said only some necessary changes have been made in the ITR-1 to ITR-7 form due to amendments in Section 1961 of the Income Tax Act.

“No change has been made in the process of filing the ITR form. It is the same as last year. Dedicated space has been given to refer to the taxpayers’ investment in the new income tax return form,” The Central Board of Direct Taxes (CBDT) stated.

The ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are the most commonly filled ITR forms. Let’s find out how to choose and download the ITR form:

ITR Form 1

This form can be used by small and medium taxpayers, whose annual income is up to Rs 50 lakh. It is also for those who receive their income in the form of a salary, house rent or bank interests.

 ITR Form 2

This form is for those taxpayers and Hindu undivided families whose income is not generated from any business or profession. Also, they should not be eligible to fill ITR 1 form.

ITR Form 3

Individual taxpayers and Hindu undivided families who receive income from a business or profession can fill this form.

ITR Form 4

This form is filled on behalf of Hindu undivided families and companies, whose annual income from any business or profession is up to Rs 50 lakh.

ITR Form 5

Hindu undivided families, partnership companies and Limited Liability Partnerships (LLPs) can fill it.

ITR Form 6

Corporate companies can fill this form.

ITR Form 7

Trusts, political parties, and charitable trusts claiming exemption under the Income Tax Act can fill this form.

 The new ITR forms can be downloaded here: http://egazette.nic.in/WriteReadData/2021/226336.pdf