Welcome to another video on tax-filing insights! As a salaried individual, you might face the question—should you file ITR-1 or ITR-2? Let’s try and find an answer!
First, let’s discuss ITR-1, usually suitable for salaried individuals with straightforward income sources. ITR-1, also called the Sahaj form, is for individuals whose annual income is below ₹50 Lakhs. We'll also discuss the income types included here. These include salary or pension, rent from one property, other sources like interest, etc.
Next, you’ll understand that if your finances are more complex, you may need ITR-2. This form can be ideal for individuals and Hindu Undivided Families (HUFs) with more diverse income streams or an income exceeding ₹50 Lakhs. ITR-2 allows you to report income from multiple properties, capital gains, agricultural income over ₹5,000, etc.
Then, the video will also explore other earnings that come under ITR-2. These include profit from lottery, gambling, as well as income for company directors. Finally, you’ll go through other cases requiring ITR-2, such as NRIs filing income from India, foreign payments, or income sources outside India.
Hence, it’s crucial to choose the right form based on your income structure. This could help you enjoy a smooth tax filing process.
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