Major Difference Between ITR-1 & ITR-4 for Taxpayer
ITR-1 and ITR-4 have been released by the Income Tax Department for the process of ITR filing on an e-filing portal online with pre-filled data.
So, eligible taxpayers can now use ITR-1 and ITR-4 forms to file income tax returns online.
But if you are wondering what you should choose between ITR-1 and ITR-4 then let’s take a look further.
The ITR-1 form is for all individuals who are a resident of India as per the Income Tax Department.
To utilise ITR-1 Form, an individual's income should be up to ₹50 lakhs.
For ITR-1, the income should be generated from salary, property, and other sources that offer interest rates.
This also includes agricultural income of up to ₹5,000.
Now, for ITR-4 Form, it is for all resident individual taxpayers as well as firms, HUFs and other LLPs.
For ITR-4 Form also, the income should be up to ₹50 lahks, generated from business or profession.
The income is computed under Section 44AD, 44ADA or 44AE. Which also counts agricultural income up to ₹5,000.
The last date to file ITR is July 31 for taxpayers whose accounts need not be audited.