What are the different income tax return (ITR) forms applicable to salaried people?
ITR 1 (Sahaj) — for those who have source of income from salary, pension, single house property, other sources and agricultural income under ₹5,000 and the total income is less than ₹50 lakh.
ITR2 is for those who have income from sources mentioned in ITR 1 and where total income exceeds ₹50 lakh. Those getting income from capital gains, more than one house property, agricultural income of more than ₹5,000 and casual income such as lottery or horse racing also need to file ITR 2.
What are the key details to be furnished in the forms?
Even though these are not required to be submitted, they must be kept safely by the taxpayer.
Make sure you include all incomes on which TDS has been deducted — this can be seen from Form 26AS. Unless related income is included, TDS credit cannot be claimed.
Make sure you include interest income from the savings account even though it is exempt up to ₹10,000 under section 80TTA. This exemption must be claimed via return. For residents who own foreign assets abroad, it is mandatory to file returns even if their total income is below the taxable limit (₹2.5 lakh). The most important step is the verification of your tax return once it has been submitted.
The best and fastest way is to e-verify your tax return, this way the return is processed quickly.
What are the key points to keep in mind?
If the return is filed after December 31, penalty goes up to ₹10,000 (penalty is restricted to ₹1,000 if the total income does not exceed ₹5 lakh).