Are you ready for the filing of ITR for FY 2022-23/AY 2023-24?
The annual tax-filing season is about to start, and it could be much messier than usual as the recent budget announcements are being confused about the current filing of returns.
The FM in budget 2023 said that the government wants to make the filing and processing of returns to be quick and seamless.
But remember, the selection of the right ITR form number is important to avoid unnecessary delays in processing and conflicts later on.
Quicko auto selects your ITR form number upon entering the income details, knowing the basics of tax on business in India is essential.
Let’s answer some common questions and understand which ITR form number to be filed under different income situations. (Considering the individual is a resident)
- “I have a salary income of ₹10 lakhs, interest from FD of ₹50,000. Which ITR should I file?”
Ans: ITR 1 is applicable if the total income from salary, one house property, and interest in a financial year are up to 50 lakhs.
- “I have traded in the capital markets for the first time and made a gain of ₹50,000. I also have a rental income of ₹3 lakhs from 2 let-out properties and made a profit of ₹25000 from online gaming (Dream 11). Which ITR should I file?”
Ans: ITR 2 is applicable if you have income from salary, multiple house properties, LTCG & STCG, and interest. Also, a partner’s income from the partnership firm is reported in ITR 2.
- “My clothing business has a turnover of ₹50 lakhs and a profit of ₹20 lakhs. I have also traded in FnO and made a loss of ₹1 lakh. I have received savings account interest of ₹40,000 as well. Which ITR is applicable to me?”
Ans: ITR 3 is applicable if you have income from salary, multiple house properties, LTCG & STCG, business & profession, and interest. Both FnO and clothing are business incomes, so ITR 3 is applicable.
- “I am a doctor. My gross receipts for this FY amount to ₹48 lakhs. I am opting for the presumptive scheme. I have no other source of income, which ITR should I file?”
Ans: ITR 4 must be filed if you have opted for the presumptive taxation scheme and you have no other source of income except business & profession and the income is up to ₹50 lakhs.
But wait, have you also traded in the trending crypto? If yes, read about the New ITR Forms for AY 2023-24: Tax on Crypto & Minor Changes for ITR filing.
These ITR Forms will be applicable for a particular financial year. Hence one needs to select the correct ITR Form before filing it.
Have questions? Shoot’em here!