Chetan Chandak
With the CBDT’s notice that tax filers have to e-file their income tax returns it has become easier for first-time taxpayers to file their tax returns. As promised by the government, the income tax department has come out with a simple one page ITR-1 Sahaj form, to be filled by people who receive a salary as income, income from other sources and one house property. There are a few more changes made in the ITR forms that the government has furnished for simplifying tax filing.
Generally, salaried individuals, having income from the following sources can file ITR 1.
=> Salary or pension
=> House property (except brought forward loss under this head)
=> Income from other sources (except winnings from lotteries or income from horse races or losses under this head)
If you are a salaried person, you are also eligible to receive Form 16. Form 16 is a certificate that indicates all the details of your Tax Deducted at Source (TDS) from your annual income. Form 16 is the premise that significantly simplifies your process of filing a tax return.
There are certain documents that are required to be submitted, or at least to be kept handy for when the need occurs, while filing your income tax return. These documents include your proof of salary income, income from other sources, proof of investments, Form 16 and several other proofs.
However, there are few conditions under which one cannot file ITR 1 even if the individual is a salaried person;
# Is resident and ordinarily resident of India and has,
- Any asset (including financial interest in any entity) located outside India; or
- Signing authority in any account located outside India; or
- Income from any source outside India.
# Has earned income from capital gains or business or profession
# Has income from more than one house property
# Has losses under the head income from other sources
# Has total income above Rs 50 lakh
# Has dividend income above Rs 10 lakh taxable under Section 115BBDA
# Has unexplained credit or investment taxable at 60% under Section 115BBE.
# Has agricultural income exceeding Rs 5000
# Has income from winning from lottery or horse race
# Has claimed any relief u/s. 90 or 90A or 91A
Those salaried individuals who can’t use Form ITR 1 will be required to file ITR-2, it can be used by all individuals not carrying out proprietary business or profession
Individuals carrying out proprietary business or profession will have to file in ITR-3 or ITR-4 (in case of presumptive taxation)
(The writer is Head of Tax research, H&R Block India)
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