WHICH ITR TO FILE??

INCOME TAX RETURN

ITR1- For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh

ITR2– For Individuals and HUFs not carrying out business or profession under any proprietorship. For Agriculture Income ITR2 is the best.

ITR3– For individuals and HUFs having income from a proprietary business or profession, Commission Income, Salaried person with Business or Commission Income. Capital Gains and Loss

ITR4- For presumptive income from Business & Profession. For thosw having income from a proprietary business or profession, Salaried person with Business Income. Capital Gains and Loss.

HOW TO SAVE TAX IN INCOME TAX??

UNDER 80C– UPTO 1.5 LAC PER ANNUM- ELSS. PPF, TD, LIFE INSURANCE POLICY

80D- MEDICAL HEALTH INSURANCE

EXEMPT INCOME- PPF INTEREST, LIFE INSURANCE POLICY MATURITY AMOUNT, GRATUITY MATURITY AMOUNT, ONLY AGRICULTURE INCOME

WHAT CAN BE THE SOURCES OF INCOME

  1. SALARY
  2. BUSINESS/ PROFESSION
  3. COMMISSION INCOME ( LIC AGENT, INSURANCE COMMISSION etc)
  4. LOTTERY INCOME
  5. MUTUAL FUND INTEREST
  6. SAVINGS AND RD TD INTEREST INCOME
  7. PENSION INCOME
  8. CAPITAL GAINS ON PROPERTY AND SHARES AND MUTUAL FUND

TAX FREE INCOME

  1. FOR INDIVIDUALS UPTO 60 YEARS AGE- INCOME UPTO 2.5 LAC PER ANNUM- NIL TAX
  2. FOR SENIOR CITIZENS UPTO 80 YEARS AGE- INCOME UPTO 3 LAC PER ANNUM- NIL TAX
  3. FOR SUPER SENIOR CITIZENS ABOVE 80 YEARS- INCOME UPTO5 LAC PER ANNUM- NIL TAX

FOR AY 2021-22, FOR SENIOR CITIZENS OF AGE 75 AND ABOVE , NO NEED TO FILE ITR FOR INCOME UPTO 5 LAC IF source of income is Pension and interest income.

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