Which ITR Form to choose & Mistakes to avoid while Filing Income Tax Return

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Which Income Tax Return Form to choose & Mistakes to avoid while Filing Income Tax Return

Which Income Tax Return Form to choose & Mistakes to avoid while Filing Income Tax Return

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  • 1. www.choksitax.com
  • 2. The most of the confusion about income tax forms is choosing the correct income tax form / ITR for one’s income. It is very important to choose the correct form because choosing the wrong form will lead to your returns getting rejected. Applicability of these forms depends on tax payer’s source of income. It is thus important to know the relevance of each of these forms. www.choksitax.com
  • 3. USED FOR: Individual USE IF HAVING INCOME FROM - • Salary, Pension • Interest Income • One House Property (excluding cases where loss is brought forward from previous years) DON’T USE IF – • Exempt income is more than Rs 5,000 a year • Earning other income from lottery or horse-racing • Incurred loss under income from other sources • Have any assets in a foreign country • Claim tax benefit under foreign treaty www.choksitax.com
  • 4. USED FOR: Individual, HUF USE IF HAVING INCOME FROM - • Salary, Pension • Capital Gains • Rental income from more than one house • Income from interest, other sources including lottery, horse- racing. DON’T USE IF – • Total income includes Income from Business or Profession. www.choksitax.com
  • 5. USED FOR: Individual, HUF being partners in a Partnership Firm. USE IF HAVING INCOME FROM - • Salary, Pension • Capital Gains • Rental income from one or more houses, carried forward losses • Income from interest, other sources including lottery, horse- racing. • Partnership Firm DON’T USE IF – • For sole proprietorship firms www.choksitax.com
  • 6. USED FOR: Individual, HUF USE IF HAVING INCOME FROM - • Proprietary business or profession www.choksitax.com
  • 7. USED FOR: Individual, HUF USE IF HAVING INCOME FROM – • Presumptive Business covered under presumptive tax laws. DON’T USE IF – • Self-employed • Made capital gains • Made gains from lottery or horse-racing • Earn commission from agency business • Income less than 8% of the turnover of your business • Income from speculative business etc…. www.choksitax.com
  • 8. USED FOR: Firm, AOP, BOI, Local Authority www.choksitax.com
  • 9. USED FOR: Companies DON’T USE FOR – • Companies claiming exemption under section 11 www.choksitax.com
  • 10. USED FOR: Trusts USE FOR – • This Form can be used by persons including companies who are required to furnish return under section 139(4A) or under section 139(4B) or under section 139(4C) or under section 139(4D). www.choksitax.com
  • 11. It is an Acknowledgement form for all ITR- Forms www.choksitax.com
  • 12. For Individuals, HUF Sources of Income ITR-1 ITR-2 ITR-3 ITR-4 ITR-4S Individual Individual, HUF 1 Income from Salary/Pension ▪ ▪ ▪ ▪ ▪ 2 Income from Other Sources (only Interest income or Family Pension) ▪ ▪ ▪ ▪ ▪ 3 Income/Loss from Other Sources ▪ ▪ ▪ ▪ 4 Income/Loss from House Property ▪ ▪ ▪ ▪ 5 Capital Gains/Loss on sale of investments/property ▪ ▪ ▪ 6 Partner in a partnership Firm ▪ ▪ 7 Income from Proprietary Business/Profession ▪ 8 Income from Presumptive Business ▪ www.choksitax.com
  • 13. For Firms, Association of Persons (AoP), Body of Individuals (BoI), Local Authority(LA), Companies, Trusts, Fringe Benefit Tax (FBT) Return Sources of Income ITR-5 ITR-6 ITR-7 ITR-8 Firms, AOP, BOI, LA Companies Trusts Only FBT # See Note 1 Income/Loss from Other Sources ▪ ▪ ▪ 2 Income/Loss from House Property ▪ ▪ ▪ 3 Capital Gains/Loss on sale of investments/property ▪ ▪ ▪ 4 Income/Loss from Business ▪ ▪ ▪ 5 Fringe Benefit Tax ▪ ▪ ▪ ▪ # ITR-8 is discontinued for e-filling from AY 2010-11 onwards, still continued for AY 2007-08,2008-09,2009-10 www.choksitax.com
  • 14. Choose correct ITR Form Provide correct contact details i.e. Postal address, contact no. and E mail id Provide correct bank details as refund will come through ECS only. Report all sources of Income (Don’t forget to report EXEMPT INCOME) Check 26AS while filing Return Do not ignore interest income: Interest earned on your savings account is allowed deduction up to Rs 10,000 but interest earned on bank deposits is taxable www.choksitax.com
  • 15. File returns at the earliest: E-filing websites can get blocked closer to July 31/September 30 and refunds also come faster if filed on time Send ITR-V post filing: Just e-filing isn't enough; you have to post signed ITR-V within 120 days of uploading the return to the CPC, Bangalore Read ITR-V instructions: ITR-V should be sent by speed post. Also, it should be printed in black and signed in original www.choksitax.com
  • 16. (T) 09909015009 info@choksitax.com www.choksitax.com www.facebook.com/choksitax Thank You & Have a Happy Tax Return Filing www.choksitax.com