Can Directors & Investors of Unlisted Companies File ITR Sahaj and Sugam?

The ITR Filing Online is a point of stress not only for the common persons but for the directors and investors also who are associated with the unlisted companies. The Income Tax Act clearly depicts that a director or investor cannot file ITR Sahaj or Sugam if they belong to any unlisted company.

So, before proceeding with the rule and strategy, let's have a look at who is called a director, and an investor. The article will also make you aware of what is an unlisted company as well as about ITR Sahaj and ITR Sugam.

What is ITR Sahaj?

ITR 1 or ITR Sahaj is for the salaried persons or individuals whose income is a maximum of Rs. 50 lakh. The ITR 1 or ITR Sahaj eligibility also includes persons who have one house property and so on. For IT Return Filing with ITR 1 or ITR Sahaj form, the primary requirement is the PAN card details and the Aadhaar card details.

What’s the Brief on ITR Sugam?

Three sections that are important for ITR Sugam are Section 44AD, Section 44ADA, and Section AE. The individuals, partnership firms, and HUF (Hindu Undivided Family) can file the ITR 4 or the ITR Sugam. However, filing the ITR 4 or Sugam may not be possible for you if the person’s monthly turnover is more than 2 crore. These points about ITR 4 or Sugam cannot be ignored if you are proceeding with ITR e filing online regarding ITR 4.

What is the Definition of Director and Investor?

In legal terms, the investor is the person or a company that invests capital in a company with the purpose of making a profit. Just like the investors invest a large amount of money in a particular company for profit-making purposes; the director also holds an important position in a company for managing the regular company affairs. The company shareholders select the director to manage the company on behalf of the shareholders.

These are the overall definition of director and investor as both of them take an important position while running the company.

Does a Director have to File a Tax Return?

As per the rule that is stipulated by the Income Tax department, the directors and investors can file ITR 2 by providing DIN (Director Identification Number) and the PAN number. So, all the directors and investors who are searching for how to file ITR online for salaried persons should remain careful about these particular matters.

Can a Director in a Company File ITR 1 and 4?

The Income Tax department has stipulated a rule that directors and investors cannot invest in unlisted companies. The IT department rule aims to prevent the processing of black money in the market.

For this reason, the directors and company investors should remain careful about how to file ITR online as investing in black money companies and shell companies may prevent their chances of filing ITR 1 Sahaj and ITR 4 Sugam.

Conclusion

This is, overall, a brief description of directors and investors of unlisted companies and why they cannot e-file ITR 1 and ITR 4.

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