How to File ITR‑1 and ITR‑2 Before July 31: Guidelines for Taxpayers

Taxpayers who do not require a tax audit have until July 31 to submit their income‑tax returns. The most common forms are ITR‑1 (Sahaj) and ITR‑2, each catering to different income structures.

ITR‑1 is designed for individuals whose total income comes from salary or pension, one house property, and other sources such as interest, with total earnings not exceeding ₹50 lakh. No business income, capital gains, or multiple house properties are allowed. Most salaried employees with simple finances use this form.

ITR‑2 applies to individuals and Hindu Undivided Families (HUFs) who earn income beyond salary—such as capital gains from share or mutual‑fund sales, income from multiple house properties, foreign assets, or other complex sources. Those with capital‑gain transactions, foreign holdings, or intricate income streams should opt for ITR‑2.

Before filing, the department advises taxpayers to verify all documents: match Form 16 with the AIS, confirm tax deducted at source through Form 26AS, and reconcile bank statements. Accurate data entry reduces the chance of revisions later.