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.

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

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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.

Bajaj Finserv Direct Limited ("Bajaj Markets") offers to its customers, various financial products and services through its digital platform as a registered Corporate Agent with IRDAI, registered Investment Adviser with SEBI, registered Third-Party App Provider (UPI payments), and as DSA or Digital lending platform of its Partners. Further, Bajaj Markets also offers a marketplace e-commerce platform to facilitate transactions between customers and sellers on-boarded on the platform. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522 Corporate Agency (Composite) Registration no.CA0551 (valid till 10-Apr-2027) Investment Adviser, SEBI registration: INA000016083 (Validity - Aug 11, 2021 - Perpetual)

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

Key Takeaways

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