2# choose the right form

Many taxpayers don’t know much about the application forms to file tax return. If you don’t choose the correct form for filing tax return, your return may get rejected. ITR 1 is the most used form but people don’t able to use it properly sometimes.

In 2013, the Central Board of Direct Taxes made it compulsory to use ITR2 for the taxpayers if their exempt income is exceeded 5000 a year. Exempt income includes the allowances for house rent, leave travel, medical and transport. So most of the salaried taxpayers need to use ITR2 instead of ITR1.

Many tax payers think that the exempt income in this context only refers to earnings like dividend and agricultural income and not the allowances from employers. Though many tax payers used ITR1 and their tax returns were accepted last year but this year it is not the same.  

It will be better if you choose private portal for filing the tax return. A private portal automatically chooses the correct form for you. The portal processes your return using the appropriate form. It will also cost you a particular amount.

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