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Which ITR should you file for AY20-21

The due date for filing Income Tax Returns for Assessment Year 2020- 21 is fast approaching. In order to avoid last minute hassles and resulting errors, it is very important to start preparation for filing Income Tax Returns.

The first step for filing Income Tax Returns is to identify the appropriate Income Tax Forms applicable to you or your entity. Incorrect forms selected, might result in providing incorrect information or spending double time for refiling the correct form.

The below article specifies the criteria for selecting appropriate Income Tax Returns for Assessment Year 2020- 21 (Previous Year 2019-20)



ITR 1

ITR 1 shall be filed by 
  • Individuals being a Resident (other than Not Ordinarily Resident); 
  • Having Total Income upto Rs.50 lakhs; 
  • Having Income from Salaries, 
  • One House Property, 
  • Other Sources (Interest etc.), and
  • Agricultural Income upto Rs.5 thousand

However ITR 1 is not Applicable for 
  • Individual who is either Director in a company or 
  • Has invested in Unlisted Equity Shares)

ITR 2

ITR 2 shall be filed by
  • Individuals and HUFs; 
  • Not having income from profits and gains of business or profession

ITR 3

The same shall be filed by
  • Individuals and HUFs;
  • Having income from profits and gains of business or profession



ITR 4

ITR 4 is applicable for 
  • Individuals, 
  • HUFs and 
  • Firms (other than LLP) 
  • Being a Resident 
  • having Total Income upto Rs.50 lakhs 
  • And having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE

ITR 5

ITR 5 is applicable for persons other than:-
  • Individual,
  • HUF,
  • Company and
  • Person filing Form ITR-7



ITR 6

ITR 6 shall be filed by Companies other than companies claiming exemption under section 11  

Disclaimer 
The blog post is only for educational purpose and author is not responsible for any action taken by the readers basis information shared in the post. Readers are advised to consult the experts before taking any action basis the blog. Readers can reach out to author at contact@finance-updates.co.in 

Thank you and happy learning


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