ITR Filing 2025: Employees can file returns with the help of ITR Form-1 and 2, which one is right for you?
The work of filing income tax returns has started. The Income Tax Department notified all the ITR forms earlier this month. However, employees will have to wait a few more days to file ITR. This is because the companies have not yet issued Form-16. This form will be given to the employees this month. This time many changes have been made in ITR which have been implemented after the reforms in tax slabs and capital gains tax in the budget.
If the income of a salaried or pensioner is limited and there are not many sources of income, then he can file the return through ITR-1. On the other hand, if the income of a salaried person is more and comes from many sources, then he will have to use ITR Form-2. Today we will tell you in detail which form is suitable for which employee to file the return.
Who can fill out ITR Form-1?
ITR-1 i.e. Sahaj form is for those salaried or pensioner individuals whose total income is less than ₹ 50 lakh and whose sources of income are simple. This includes salary, one house property (where loss is not carried forward), interest on a savings account or fixed deposit, dividend, family pension, and agricultural income up to ₹ 5,000. This time under a new facility, taxpayers with long-term capital gains up to ₹ 1.25 lakh can also file ITR-1, which was not possible earlier.
Who cannot file ITR-1?
If you have the following conditions, you cannot use ITR-1:
Total income is more than ₹50 lakh.
LTCG under section 112A is more than ₹1.25 lakh
Director in a company
Have unlisted shares
Received foreign income or have assets abroad
Deferred tax payment on ESOP
Any kind of past loss that needs to be carried forward
Who is ITR-2 for?
ITR-2 is for those individuals who are not earning income from business or profession but do not meet the criteria of ITR-1. That is, if you are a salaried or pensioner, but your financial situation is a bit complicated, then you will have to fill out the ITR-2 form. That is, if the income of a salaried person is more than 50 lakhs, LTCG is more than Rs 1.25 lakh per annum, then he will have to file the return through ITR-2 form instead of ITR-1.
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