Filing your income tax return (ITR) accurately and on time is crucial for managing your finances and avoiding legal trouble. One of the key steps in this process is choosing the correct ITR form. Fortunately, the Income Tax Department (ITD) has made all the return filing forms – ITR-1, ITR-2, ITR-4, and ITR-6 — available for e-filing on their portal.
Recently, the Excel utility of ITR-6 for Assessment Year (AY) 2024-25 was released, following the earlier release of Excel utilities for ITR-1, ITR-2, and ITR-4 for the same assessment year. These Excel utilities can be found under the ‘downloads’ section on the e-filing portal.
In the first month of AY 2024-25, the tax department received approximately 6 lakh returns, with a significant portion already processed.
To file your return early and avoid waiting until July 31, it's essential to know which form to use. Here's a breakdown of the ITR filing forms:
1. **ITR-1:** For individuals who are residents (excluding not ordinarily residents) with a total income of up to Rs 50 lakh. It covers income from salaries, one house property, other sources (like interest), and agricultural income up to Rs 5,000.
2. **ITR-2:** For individuals and Hindu Undivided Families (HUFs) without income from business or profession.
3. **ITR-4:** Meant for individuals, HUFs, and firms (excluding LLPs) who are residents with total income up to Rs 50 lakh and have income from business or profession calculated under sections 44AD, 44ADA, or 44AE. Additionally, the taxpayer's agricultural income should not exceed Rs 5,000.
4. **ITR-6:** For companies and entities not claiming exemption under section 11.
Choosing the correct ITR form ensures that your tax return is filed accurately and on time. Review your income sources carefully and consider consulting a tax advisor if needed to select the appropriate form for filing your return this year.
