Which individuals are required to file ITR and which ITR form is to be used?

Varsha Nayyar , Last updated: 25 September 2021
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Which individuals are required to File ITR for AY 21-22?

Any individual or HUF whose total income before deducting CH VI A deductions and Sec 54/54B/54D/54EC/54F/54G/54GA/54GB is more than the basic exemption limit as specified below-

For individuals below 60 years - Rs 2.5 Lakh
For individuals above 60 years but below 80 years - Rs 3 Lakh
For individuals above 80 years- Rs 5 Lakh

Also, you are mandatorily required to file ITR even if his income is below the basic exemption limit but you Satisfy one of the following conditions:

Have deposited an aggregate amount of more than Rs.1 crore in one or more current bank accounts; or
Have incurred an aggregate expenditure of more than Rs 2 lakh on foreign travel for self or any other person; or
Have incurred an expenditure aggregate of more than Rs.1 lakh towards electricity consumption.

Which individuals are required to file ITR and which ITR form is to be used

Also, it is mandatory for residents and ordinary residents person if a beneficial owner or beneficiary of any foreign assets (including any financial interest in any entity) during the FY.

Few voluntary reasons to file ITR

To Claim an income tax refund from the department.
To apply for a visa or a loan

Which ITR form is required to be filed?

ITR-1

Used by Resident Individual Whose Total Income is less than 50 Lakhs and have income under following heads

Income from Salary/ Pension
Income from One House Property (excluding cases where loss is brought forward from previous years)
Income from Other Sources (excluding Lottery Income and Race Horses Income)
Agricultural income up to Rs.5000.

ITR 2

It is for the use of an individual(Being a resident not ordinarily resident (RNOR) and non-resident) or a Hindu Undivided Family (HUF) who cannot file ITR 1 (Including individual whose Total income from the above should be more than Rs 50 Lakhs) and has income under following heads

Income from Salary/Pension
Income from House Property
Income from Other Sources
If you are an Individual Director in a company or had Investments in unlisted equity shares at any time during the financial year
Income from Capital Gains
Foreign Assets/Foreign income
Clubbing of income needs to be done

ITR 3

Can be filed by an individual or a Hindu Undivided Family who cannot file ITR 1 and 2 as they have income from proprietary business or are carrying on profession including Income of a person as a partner in the firm.

This form can be filed if you have presumptive income along with capital gain

ITR 4

ITR 4 is used by individuals and HUFs, Partnership firms (other than LLPs), which are residents and who cannot file ITR 1 and 2 due to the following income: