Income Tax Return filing last date is 31st july 2014 for non- Audit cases. There is lot of confusion among tax payers, which is the correct income tax form. Whether I should use ITR 1 or ITR 2.
Who can use ITR 1
ITR–1 Form is to be used by an Individual having income from following sources:
- Income from Salary/ Pension
- Income from One House Property (not being brought forward losses from previous years)
- Income from Other Sources (not being income from lottery or race horses)
(Please note that ITR 1 is only for indivduals , HUF’s can not use the ITR1)
Moreover, in case any income of spouse, minor child, etc. gets clubbed with the income of the assessee, then ITR–1 can be used only if the clubbed income falls into the above income source.
Who cannot use the ITR–1 Form
ITR–1 Form should not be used by an Individual if his total income consists of:
- Income from more than one house property
- Income from Winnings from lottery or income from Race horses
- Income ( not exempt from tax) under Capital Gains
- Income exceeding Rs. 5,000 from agricultural business
- Income exceeding Rs. 5,000 from Exempt Income ( In other words, if assessee claims exemption in respect of any income under sections 10, 10A, 10AA, etc.)
- Income from Business or Profession
- Losses which has to be carried forward
- Person claiming relief of foreign tax paid under section 90, 90A or 91
- An individual who is a resident having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India. In these cases, Income tax Assessee has to use either ITR 2 or ITR4.
Who can use Income Tax Return form- 2 for filing income tax return for Previous Year 2014-2015 ( AY 2015-2016) ?
ITR 2 is used by an individual or a Hindu Undivided Family whose total income comprises following income:
- Income from Salary / Pension
- Income from House Property
- Income from Capital Gains
- Income from Other Sources
- Income from Winning of Lottery
- Income from Race Horses
Moreover, if the income of spouse, minor child, etc. is to be clubbed with the income of the assessee, then ITR 2 can be used if such income falls in any of the above categories.
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Who cannot use Income Tax Return Form- 2 for Previous Year 2014-2015 ( AY 2015-2016) ?
ITR 2 is not to used by
- An Individual/ HUFs if his total income includes any income taxable under the head “Profit or Gain from Business or Profession. In other words, business or professional income does not form the part of ITR-2.
- A Partnership Firm having exempt income by way of shares (& not earning any income by way of interest, salary, etc.).
Please note important points for the current year:
- No Documents to be attached with the Income Tax Return
- Efilling of tax return is compulsory is income exceeds Rs 5 lacs.
- 31.07.2015 is due date for filing Income tax return
- Once Income tax return is filed , make sure that ITR V is sent to Bangalore ITR V within 120 days.
- Make sure that you view 26As form before filing your tax return.
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