What is the Difference Difference Between ITR 1 and 2?

Here are the key differences between ITR 1 vs ITR 2:

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ITR-1 is applicable to individuals being a resident (other than not ordinarily resident) having total income up to INR 50 lakh, having income from salaries, one house property, other sources (interest, etc.), and agricultural income up to INR 5,000.

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• Income from salary/pension

• Income from one house property (excluding cases where loss is brought forward from previous years)

• Income from other sources (excluding winnings from lottery and income from racehorses)

• Agricultural income up to INR 5,000

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• Capital gains

• Income from more than one house property

• Income from business or profession

• Income from speculative business

• Income from lottery or horse racing

Individuals who have income from salary, one house property, and other sources. Individuals with agricultural income up to INR 5,000.

ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains of business or profession.

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• Income from salary/pension

• Income from multiple house properties

• Income from capital gains

• Income from other sources (including lottery winnings and racehorses)

• Foreign assets/income

Income from profits and gains of business or profession (including presumptive income under Sections 44AD, 44ADA, and 44AE) Individuals with income from business or profession must use ITR-3, ITR-4, or other applicable forms.

I hope this helps you give a thorough understanding of ITR 1 and ITR 2 differences.

Individuals and HUFs who do not have income from profits and gains of business or profession but have other complex income sources such as capital gains, multiple house properties, or foreign assets/income. This is all about

ITR 1 vs ITR 2.

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ITR1 vs ITR2 are two different types of Income Tax Return (ITR) forms used for filing income tax returns by individuals. 

What is the Difference Between ITR 1 and 2?

Here are the key ITR1 and ITR2 differences:

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ITR-1, also known as Sahaj, is meant for individuals who have income from salary, one house property, and income from other sources such as interest income, family pension, etc.

Who Can File ITR1?

• Individuals eligible to file ITR-1 are typically salaried employees, pensioners, and individuals with income from other sources such as interest, dividends, etc., provided the total income does not exceed ₹50 lakh.

• ITR-1 cannot be used by individuals who are either directors in a company or have investments in unlisted equity shares or have income from more than one house property.

• It's a relatively simple form and is suitable for individuals with straightforward income sources.

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Who can file ITR 2? 

• ITR-2 is meant for individuals and Hindu Undivided Families (HUFs) who do not qualify to file ITR-1 but have income from more than one house property, capital gains, foreign assets/income, agricultural income exceeding ₹5,000, or income from business or profession.

• Individuals with income from capital gains, multiple house properties, foreign income/assets, or income from business/profession are required to file ITR-2.

• Unlike ITR-1, ITR-2 allows individuals to report income from various sources and is suitable for those with more complex income structures.

• It requires more detailed information compared to ITR-1, such as details of foreign assets and foreign income, if applicable. 

This is ITR1 vs ITR2.

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