Choosing the right Income Tax Return (ITR) form is of utmost importance for individuals and businesses alike. By selecting the appropriate form, taxpayers can ensure compliance with tax laws and regulations, mitigating the risk of penalties or legal consequences. Each ITR form is tailored to specific types of taxpayers, such as individuals, businesses, or organisations, and captures relevant information regarding income, deductions, exemptions, and tax liabilities.
Moreover, it allows taxpayers to take advantage of tax benefits and deductions specific to their income sources and category, potentially lowering their tax liability and maximising their savings. Additionally, using the right form ensures streamlined processing by tax authorities, minimising delays and queries. It also helps in expediting the issuance of any eligible tax refunds.
Today, we bring here the difference between ITR 1 Sahaj and ITR 4 Sugam. You can check other ITR Forms details here
Income tax return forms have already been notified for Assessment Year 2023-24 (for income earned in 2022-23). As per the modified norms, individuals on whom search and seizure operations have been carried out by tax officials can now file revised returns under section 153 C on the basis of self-assessment of their undisclosed wealth in ITR-1.
(Also Check: Effortless ITR Filing: A Step-by-Step Guide To Register On Income Tax Portal)
In February, CBDT also made certain changes in ITR-1 form with regard to disclosure under Section 139 (1), which is filed voluntarily by persons having annual taxable income of less than Rs 2.5 lakh. These individuals will not be required to intimate in their ITR forms even if their fixed deposits exceed Rs 1 crore.
ITR-1 and ITR-4 are simpler forms that cater to a large number of small and medium taxpayers.
Even though the income tax department is yet to release the online ITR forms, it has released the offline ITR-1 and ITR-4 forms for filing the income tax return (ITR) for AY 2023-24 or financial year 2022-23.
The offline ITR-1 and ITR-4 forms came after the CBDT notified the same in February.
ITR 1 Sahaj
ITR-1 can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property and other sources (interest, etc). ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh and having income from business and profession.
Who is eligible to file ITR-1 Sahaj?
According to the IT department, ITR-1 can be filed by a resident individual whose:
- Total income does not exceed Rs 50 lakh during the FY
- Income is from salary, one house property, family pension income, agricultural income (up to Rs 5000), and other sources, which include:-Interest from Savings Accounts-Interest from Deposits (Bank / Post Office / Cooperative Society)-Interest from Income Tax Refund-Interest received on Enhanced Compensation
- Any other Interest Income
- Family Pension
- Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).
What Documents Do You Need To File ITR-1?
You would need Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable). However, ITRs are annexure-less forms, so you are not required to attach any document (like proof of investment, TDS certificates) along with your return (whether filed manually or electronically). However, you need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc..
ITR 4 Sugam
Who is eligible to file ITR-4?
ITR 4 is for resident individuals, HUFs and firms (other than LLP) having total income up to Rs 50 lakh and having income from business and profession which is computed under Sections 44AD, 44ADA or 44AE and agricultural income up to Rs 5,000.
ITR-4 can be filed by a Resident Individual / HUF / Firm (other than LLP) who has:
- Income not exceeding Rs 50 Lakh during the FY
- Income from Business and Profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE
- Income from Salary/Pension, one House Property, Agricultural Income (up to Rs 5000/-)
- Other sources which include (excluding winning from Lottery and Income from Race Horses):-Interest from Savings Account-Interest from Deposit (Bank / Post Office / Cooperative Society)-Interest from Income Tax Refund-Family Pension-Interest received on enhanced compensation-Any other Interest Income (e.g., Interest Income from unsecured loan)
What documents do you need to file ITR-4?
You will need to keep the below documents ready (as applicable) to file ITR-4:
For more details taxpayers can check the official portal of the IT department (https://www.incometax.gov.in/iec/foportal/help/e-filing-itr4-form-sugam-faq).
How To File ITR Online?
To file your ITR, you will need to gather all the necessary documents and information. You can then visit the Income Tax Department’s e-filing website (https://www.incometax.gov.in/iec/foportal/) and follow the step-by-step instructions to file your return online.
You can file an income tax return on your own. However, if you are not comfortable with filing your ITR, you can also seek help from a tax professional. However, it is important to note that there may be a fee for using these services.
Taxpayers should keep a record of all the documents filed with the tax authorities for future reference. Once you have all the necessary documents and information ready, you can file your ITR either offline or online through the Income Tax Department’s e-filing website (https://www.incometax.gov.in/iec/foportal/).
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