Income Tax Return Forms AY 2021-22 (FY 2020-21) – Which forms to use?

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Recently CBDT notified the Income Tax Return Forms AY 2021-22 (FY 2020-21). There are various forms. Which one to use for filing ITR?

Income Tax Return Forms AY 2021-22 (FY 2020-21)

Before jumping into the discussion on the ITR forms, I want to share you the income tax slab rates applicable for AY 2021-22 (FY 2020-21).

Income Tax Slab Rates FY 2020-21 AY 2021-22

As per the Income Tax Act 1961, if the person’s income exceeds the basic limit prescribed by the income tax department in a financial year (currently it is Rs.2,50,000), needs to file the income tax return. Usually, the due dates to file ITR are 31st July for salaried individuals and non-auditable firms. For companies and auditable firms, it is 30th September. However, the IT Department may extend these deadlines.

Income Tax Return Forms AY 2021-22 (FY 2020-21) – Which form to use?

Now let us one by one discuss who can use these forms for filing Income Tax Return Forms AY 2021-22 (FY 2020-21).

# Sahaj ITR 1 for AY 2021-22 (FY 2020-21)

You can use this form if you are –

  • Salary or pension income.
  • Income / Loss from one house property (excluding cases where loss is brought forward from previous years).
  • Agricultural income less than Rs 5,000.
  • Income from other sources like FD interest, interest on small saving schemes, Post Office interest etc., (excluding Winning from Lottery and Income from Race Horses).
  • Resident Indians, who are not ordinarily resident with income up to Rs 50 Lakhs.

Who can’t use Sahaj ITR1?

  • Total income exceeding Rs 50 lakh
  • Agricultural income exceeding Rs 5000
  • If you have taxable capital gains
  • If you have income from business or profession
  • Having income from more than one house property
  • If you are a Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Owning assets (including financial interest in any entity) outside India) if you are a resident, including signing authority in any account located outside India
  • If you are a resident not ordinarily resident (RNOR) and non-resident
  • Having foreign assets or foreign income
  • If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.

# ITR 2 for AY 2021-22 (FY 2020-21)

You can use this form –

  • Income from Salary/Pension; or
  • Income from House Property; or
  • Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
  • (Total income from the above should be more than Rs 50 Lakhs). If you are an Individual Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Being a resident not ordinarily resident (RNOR) and non-resident
  • Income from Capital Gains; or
  • Foreign Assets/Foreign income
  • Agricultural income more than Rs 5,000

You can’t use this form if –

This Form should not be used by an individual whose total income for the AY 2020-21 includes Income from Business or Profession.

# ITR 3 for AY 2021-22 (FY 2020-21)

You can use this form if –

  • Carrying on a business or profession
  • If you are an Individual Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Return may include income from House property, Salary/Pension and Income from other sources
  • Income of a person as a partner in the firm.

# ITR 4 or Sugam for AY 2021-22 (FY 2020-21)

The current ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also include those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

You can’t use this form if –

  • If your total income exceeds Rs 50 lakh
  • Having income from more than one house property
  • If you have any brought forward loss or loss to be carried forward under any head of income
  • Owning any foreign asset
  • If you have signing authority in any account located outside India
  • Having income from any source outside India
  • If you are a Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Being a resident not ordinarily resident (RNOR) and non-resident
  • Having foreign assets or foreign income
  • If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.

Hope this much information is enough to udnersatnd which ITR forms to use while filing ITR for AY 2021-22 (FY 2020-21).

Refer our lastest posts:-

More To Explore

complexity
Investment Planning

How to beat a Nobel Prize Portfolio?

When it comes to investing, we always try to look for COMPLEXITY than SIMPLICITY. Because we are always in doubt that such a simple strategy

19 Responses

  1. Hi Basu,
    I am a professional, filing ITR 4 with presumptive income benefit (44 ADA).

    In financial year (2020-21),
    a) I have some short term capital gain in Debt mutual funds and
    b) Long term capital gain ELSS Redemption.

    I could not find capital gain in, Income from other sources of ITR 4.

    Kindly give your opinion.

    1. Dear Pappu,
      Refer this instruction of IT Dept, it is clearly mentioned that if you are having capital gains and income from other source, you can’t use it.

  2. Sir,
    I my friend is a contractual worker in govt department and his 10% TDS is being deducted u/s 194J.Along with this,he has income from online lottery games, for which he got the prize money after his TDS was deducted on that.
    Which ITR form to be used for AY 2021-22

  3. A person having only short term capital gains (stock market), intraday stock selling (No F&O), FD interest and loss occurred during previous years. Which ITR form is to be used during AY 2021-22. ITR 4 is not having any provision for entering these type of details. ITR 2 does not support intraday stock selling details.

    Request to provide the information.

  4. Hi,

    I’m Resident but not ordinary resident(RNOR). In last year, I have business income as well, but not exceeding 50 lakh. Please let me know which ITR I need to file.

  5. Dear Basu
    Hi
    Very informative article and the assessee can very easily download the required ITR Form. You have not written about ITRs 5, 6 & 7?
    Thanks.
    RK Bhuwalka

  6. Hello Sir,
    Nice article.
    I have doubts sir.

    For senior citizen, whose income is less than 2L.
    Income -> from LIC pension plan (annuity) + Bank FD + Debt mutual Fund (total less than 1.5L)
    L/T Capital gain -> Non taxable gain (less than 1L) from equity mutual fund/direct stocks

    In above scenario,

    1. Is it mandatory to file income tax return ?
    2. Which ITR form should be submitted ? ITR1 or ITR2 ?

    Looking forward to your response.

    Thanks sir.

      1. Thank you sir for the prompt response.

        In case, one wants to file an ITR in this scenario, which form should be used ?

        Thanks.

Leave a Reply

Your email address will not be published. Required fields are marked *

Looking for Unbiased, Simple and Conflict-Free Financial Planning Service?

We neither SELL any product nor represent any Insurance or Mutual Fund Companies.

We offer you an unbiased Fee-Only Financial Planning Service.