ITR-1 or ITR-2 – Which One Do You Have to File?

For salaried individuals, choosing the right ITR filing form is crucial for accurate tax filing. The decision to file ITR-1 or ITR-2 depends on your income structure. ITR-1 is suitable for those with a single income source, one house property, and limited deductions. However, if you have multiple properties, capital gains, foreign income, or exceed ₹50 Lakhs, ITR-2 is the way to go, allowing you to report diverse income streams and claim applicable deductions.

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Key Takeaways

ITR-1 is ideal for salaried individuals with a single income source and minimal deductions 

ITR-2 is suitable for those with diverse income streams, multiple properties, capital gains, or income over ₹50 Lakhs

ITR-2 is mandatory for reporting lottery/gambling winnings, foreign income, and directorship income

For NRIs filing Indian income, foreign assets, or overseas account authority, ITR-2 is required

Provide basic details and income proof for ITR-1; report diverse sources and claim deductions in ITR-2

Choosing the right ITR form ensures accurate tax compliance and a smooth filing process

ITR-1 simplifies filing for straightforward cases, while ITR-2 accommodates complex financial situations

Frequently Asked Questions
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ITR-1 is for individuals with income from salary, pension, and other sources totalling up to ₹50 Lakhs, while ITR-2 is for individuals and Hindu Undivided Families (HUFs) with a total income exceeding ₹50 Lakhs.
ITR-1 can be filed by individuals with income from salary, pension, and other sources, with a total value of up to ₹50 Lakhs. It is designed for those with straightforward income and minimal deductions.
ITR-2 can be filed by individuals and Hindu Undivided Families (HUFs) with a total income exceeding ₹50 Lakhs. It is designed for those with multiple income streams and complex financial situations.
ITR-2 is applicable for income from multiple house properties, capital gains, agricultural income over ₹5,000, and other miscellaneous sources.
ITR-2 is applicable for lottery and gambling winnings, income from foreign assets, and income from sources outside India.
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