Income tax return filing 2024: How to choose the right ITR form

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The Indian Income Tax Department provides various income tax return (ITR) forms tailored to different taxpayer scenarios. Selecting the appropriate form ensures precise and streamlined reporting of your income. 

The Central Board of Direct Taxes (CBDT) released seven ITR forms for FY 2023-24 (AY 2024-25). The determination of which ITR form to use depends on factors such as individual income sources, taxable earnings, and taxpayer categories, including individuals, Hindu Undivided Families (HUFs,) companies, etc. It can be challenging to determine the correct form to use. 

Here’s a brief overview of when to use several common ITR forms:

Resident and ordinarily resident individuals can file ITR-1. Their total income from all sources must not exceed ₹50 lakh, and their income should originate from

The following individuals cannot file ITR-1:

— Non-resident Indians (NRIs)

— Resident Not Ordinarily Resident (RNOR) taxpayers

— Individuals with income exceeding ₹50 lakh

— Individuals with income from business or profession

— Individuals with agricultural income exceeding ₹5,000

— Individuals with income from capital gains (short-term or long-term)

— Individuals with investments in unlisted equity shares

— Directors of companies

— Individuals claiming tax deduction under Section 194N of the Income Tax Act

— Individuals with deferred income tax on ESOPs received from eligible startups.

The ITR-2 form applies to a broader spectrum of taxpayers in comparison to ITR-1. Here’s an overview of individuals who can file ITR-2:

Individuals and Hindu Undivided Families (HUFs): This category encompasses the majority of individual taxpayers and family units.

ITR-2 is suitable for individuals with income from diverse sources,