Updated: Nov 19, 2020
First of all, What is ITR?
ITR stands for Income Tax Return. As a responsible citizen, we are all bound to pay a part of our income beyond certain slab rates to the Government, right? ITR is simply a summarized form wherein we file information about our income, expenses and correspondingly how the calculation of income tax paid by us for the particular year has been arrived. EVERY TAXPAYER SHOULD FILE THE ITR WITHIN SPECIFIED DUE DATES.
Should every person earning income pay taxes and file ITR?
Well, the flowchart below illustrates that..
Now, if you are required to File as per the above chart, read more….
What are the types of Income?
Typically, The Income Tax Act of 1961 segregates all the income earned by you into 5 different categories:
· Income from Salary
· Income from House Property
· Income from Business or profession
· Income from Capital Gains
· Income from Other sources
Why is knowing this important?
There are 7 different types of ITRs, and you have to know your type of income to figure out which ITR is applicable to you.
What are the types of ITRs?
Now that you know the type of income you have earned in the particular year, please look at the table below to identify the right ITR for you: