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ITR-1 vs. ITR-4: Understanding the Key Differences and Eligibility

ITR-1 vs. ITR-4: Understanding the Key Differences and Eligibility

Introduction:

Filing Income Tax Returns (ITR) is a mandatory requirement for individuals and businesses in India. However, choosing the correct ITR form that suits your income and nature of business is crucial. In this article, we will explore the key distinctions between ITR-1 and ITR-4 and provide insights into who can file each form. For expert assistance in filing your ITR, consider consulting TaxFillingIndia, the leading ITR Filing Consultant in Hyderabad.

ITR-1: Who Can File?

ITR-1, also known as Sahaj, is applicable for individuals with income from salary, pension, or one house property, and who have earned income from other sources (excluding winnings from lottery or horse racing). Individuals falling under the following categories can consider filing ITR-1:

  1. Salaried Employees: If you are a salaried individual with income from a single source of employment, ITR-1 is the right form for you.
  2. Pensioners: Retired individuals receiving pension can file ITR-1, provided they have no other types of income.
  3. House Property Income: Individuals who own a self-occupied house or receive rental income from a single property can file ITR-1.
  4. Income from Other Sources: Individuals earning income from interest, dividends, or family pension can opt for ITR-1, provided the total income does not exceed Rs. 50 lakh.

ITR-4: Who Can File?

ITR-4, also known as Sugam, is suitable for individuals, Hindu Undivided Families (HUFs), and partnership firms with presumptive business income. Individuals meeting the following criteria can consider filing ITR-4:

  1. Small Business Owners: If you have a small business with presumptive taxation under Section 44AD, 44ADA, or 44AE, ITR-4 is the appropriate form.
  2. Professionals: Freelancers, consultants, and professionals with presumptive taxation under Section 44ADA can file ITR-4.
  3. HUFs and Partnership Firms: HUFs and partnership firms with presumptive taxation can also file ITR-4.

Contact TaxFillingIndia – The Best ITR Filing Consultant in Hyderabad:

Filing your ITR accurately and efficiently is crucial to comply with tax regulations. For expert guidance and support, consider reaching out to TaxFillingIndia, the premier ITR Filing Consultant in Hyderabad. Their team of experienced professionals ensures seamless ITR filing and adherence to all tax-related requirements. Whether you need assistance with ITR-1 or ITR-4, TaxFillingIndia offers top-notch consultancy services tailored to your specific needs.

Conclusion:

Choosing the correct ITR form is essential for accurate and smooth tax filing. While ITR-1 is suitable for salaried individuals, pensioners, and those with income from a single house property, ITR-4 is ideal for small business owners, professionals, HUFs, and partnership firms with presumptive business income. To ensure error-free and hassle-free ITR filing, seek the expert assistance of TaxFillingIndia, the best ITR Filing Consultant in Hyderabad. Their professional guidance will help you navigate the complexities of tax filing, saving you time and effort.

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