Query 1]
I shall be grateful if you can guide me about which ITR is to be used in the following condition.
- I am Government employee. I have income from salary, borrowed interest on House Property-Income on HP loan to be shown, small amount on interest from RD/FD account & interest of over 5000/- on saving bank a/c. (to be shown under 80TTA). I shall be thankful if you can guide me on which form (ITR-1 / ITR- 2) is to be used by me since ITR-1 says that if exempt income is more than Rs. 5,000/-, ITR2 should be used?
- Is deduction under 80TTA is considered as exempt income?
Kindly guide us all. [gmm1955@yahoo.com]
Opinion:
Choosing the right Income Tax Return form is very important as filing the return in wrong ITR will render the income tax return defective. Whenever the due date of filing income tax return approaches nearer, I am flooded with the query on the return forms to be used for filing income tax return. For the benefit of masses, I am elaborating about the ITR forms to be used by different classes of tax payer while filing Income Tax Returns for the AY 2014-15 (FY: 2013-14).
- ITR-1 (SAHAJ)Form is to be used,
in the case of a person being an individual where the total income consists of the following income:
I) “Salaries” or income in the nature of family pension or
II) “Income form house property”, where assessee does not own more than 1 house property and does not have any brought forward loss under the head; or
III) “Income from other sources”, except winnings from lottery or income from race horses and does not have any loss under the head.
It is Provided that the form cannot be used by the person who:
(a) Is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has
i) Assets (including financial interest in any entity) located outside India; or
ii) Signing authority in any account located outside India;
(b) Has claimed any relief of tax u/s 90 or 90A or deduction of tax under section 91; or
(c) Has income not chargeable to tax, exceeding Rs. 5,000/- - ITR-2 Form is to used:
in the case of a person being an individual [not being an individual referred to in 1 above] or a HUF where the total income does not include any income chargeable to income-tax under the head “ Profits or gains of business or profession”. - ITR-3 Form is to used:
in the case of a person being an individual or HUF who is a partner in a firm and where income chargeable to income tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. - ITR-4S (SUGAM) Form is to used:
in the case of a person being an individual or HUF deriving business income & such income is computed in accordance with special provisions referred to in section 44AD/44AE of the Act for computation of business income.
It is Provided that this form cannot be used if a person:
(I) Is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has,—
(i) Assets (including financial interest in any entity) located outside India; or
(ii) Signing authority in any account located outside India;
(II) Has claimed any relief of tax under sections 90 or 90A or deduction of tax u/s 91; or
(III) Has income not chargeable to tax, exceeding Rs. 5,000/-. - ITR-4 Form is to used:
In the case of a person being an individual or HUF other than the individual or HUF referred to in item 1 or 2 or 3 or 4 above and deriving income from a proprietary business or profession. - ITR-5 Form is to used:
In the case of a person not being an individual or a HUF or a company or a person covered by clause (8) below. - ITR-6 Form is to used:
In the case of a company except companies covered by clause (8) below. - ITR-7 Form is to used:
In the case of a person including a company whether or not registered under section 25 of the Companies Act, 1956, required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) of section 139.
It may further be noted that
- Report referred to in section 10(23C)(iv)/(v)/(vi)/ or (via), 12A, 10A, 44AB, 92E or U/s 115JB etc are required to be furnished electronically.
- Every person other than a company & those who required to file return in form ITR-7 shall file return electronically either under digital signature or by uploading return electronically followed by ITR-V if their total income exceeds Rs. 5,00,000/-
- A person claiming any relief of tax u/s 90 or 90A or deduction of tax u/s 91 of the Act, or a person who is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 with Assets located outside India or Signing authority in any account located outside India have to furnish the return for assessment year 2014-15 electronically either under digital signature or by uploading return electronically followed by submission of ITR-V to CPC, Bangalore.
- A person required to furnish the return in Form ITR-7 shall furnish the return either in paper form or electronically either under digital signature or by uploading return electronically followed by ITR-V submission subsequently at CPC, Bangalore. (If however such assessee are required to furnish the audit report as mentioned in (a) above, then they would not be eligible to file the return manually in paper form i.e., e-filing would be mandatory in such case.)
- Individual/HUF who are covered by 44AB audit provision are under compulsion to file the return of income electronically with digital signature.
- Firm who are required to file the return of income in ITR-5 and not covered by 44AB audit provision are also required to file the return of income electronically either under digital signature or by uploading return electronically followed by ITR-V submission subsequently at CPC, Bangalore.
- Companies who are required to file the return in ITR-6 have to file the same electronically with digital signature only.
In your specific case, it may be noted that deduction u/s 80TTA is in the nature of deduction (& not exemption). If you own only one house property, you can file return of income using ITR-1.
Query 2]
I have some queries. I purchased a plot in FY 2000-01 and sold it in Fy2013-14.
- What are the indices for the above years for calculating capital gains tax?
- Which ITR form I will have to fill for filing IT return?
- The income tax rebates of Rs. 2000/- is available under which section?
- Is this rebate available to everybody or is there any limitation to it?
I will be thankful to you if you clarify the above points. [SSB- Trishnajit Kaur Bhogal – trishgur@gmail.com]
Opinion:
- Cost Inflation Index (CII) for the relevant FY 2000-01 & 2013-14 are “406” & “939” respectively. Other readers may note that CII for the FY 2014-15 has also been notified & it is “1024”.
- You can refer the query No. 1 about the ITR forms to be used for filing IT returns.
- A tax rebate under section 87A is provided to an individual resident tax payer whose total income doesn’t exceed Rs. 5 Lacs. The rebate shall be equal to the amount of income tax payable on the total income or Rs. 2,000/- whichever is lower.
Query 3]
Please clarify the below query:
I am a NRI & staying in Bahrain. I have a NRO account in SBI & my fixed deposit transactions shows cess & tax deduction amount. Whether I am qualify to fill 15G form to avoid above mentioned deductions? [Anand Kale-anand_hinga@hotmail.com]
Opinion:
A person who is resident in India can only submit form No. 15G. Non Resident Indian under the Income Tax Act-1961 cannot submit form No. 15G.
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