Hello and welcome to penultimate part, Part 25 of the Income Tax education series brought to you by H&R Block, the global leader in
filing Income Tax Returns.
Today we will understand the difference between form ITR 1 and ITR 2
If the person earns income from any other sources, capital gains or has an exempt income or agriculture income of more than Rs.5,000 he cannot use ITR 1. Hence the applicability of ITR 1 is for a very minor group of people.
ITR 2, a more widely used form is to be used by persons who have
- Income from salary/pension
- Income/loss from more than one house property
- Income from capital gains or losses to be carried forward
- Income from other sources including lottery, race horses etc
- Income from foreign assets
In case you want to club the income of your spouse or children in your income then ITR 2 is the form applicable to you.
I hope you found this series useful. We at H&R Block are committed to help you file your returns accurately and this series was made with the intention to get you ready for your taxes. We hope you enjoyed it. As always please feel free to ask us anything you want to know about Income Tax using #AskBlock.