Going bonkers over which form to use to file tax returns for assessment year 2015-16. Here’s our easy guide with examples on which form would you have to fill in.
The deadline for filing tax returns for the money earned in 2014-15 is fast approaching. In a hurry to meet the deadline don’t just fill the same form that you did last year around. One needs to select the form based on the money you have earned and the sources where it came from.
Your income earned last year, may be different than that earned in 2014-15. This apart, a new tax return form of ITR 2A has been introduced by the Income Tax Department. While return forms relevant to salaried individuals and pensioners were notified earlier, the set of forms for self-employed, business men and professionals too have been notified on August 1, 2015. Read on to know which form would be relevant for you this assessment year.
Ramiklal, who earns merely pension money and interest on his hard earned money for retirement, would have to fill this form ITR 1, which is easy to fill just like its name suggests SAHAJ. But his friend, Hasmukh will have to fill another form as his agricultural income is above Rs. 5,000.
Suresh, who is earning salary from his employer, has earned interest on his investments and would have to fill ITR 1, provided he has only one house property. If he holds more than one house then he will have to fill in the new form ITR 2A.
Similarly, if Yashish has income from salary, one house, but also has capital gains (either via mutual fund, share, debt fund investing or through selling a property), then he won’t be able to use the ITR 1.
Sarita too cannot use this form as she had built up foreign income and assets during her stay in Australia. This year onward the Income Tax Department has made it mandatory to disclose details of foreign assets and even accounts where she is a signing authority overseas. She has also bagged some losses in income from other sourcesand hence will have to skip this easiest form among all.
Nishtha, who is earning salary and has two houses to her name will have to use ITR 2A, which is a new form introduced this year.
Amit too has two house properties, cannot use this form as he has business income to declare. But his brother Nimit, who has salary income and made some quick money on lottery, can use this form. Even Amit and Nimit, who are a part of an HUF can use this form to file the returns of the HUF.
Yashish and Sarita, cannot use this form again and will have to graduate to the next form as they have capital gains and foreign assets and income, which cannot be declared here. If you have claimed relief on taxes paid overseas then too you will have to avoid this form.
Vansh has been earning salary and had made some losses in the past in stock market investments, which he could carry forward. Now that he wants to notify those losses brought forward he will have to use the form ITR 2.
Yashish can declare his capital gains and other income through this form. Sarita too can use this form as she has foreign income. If Nimit, who had won in lottery, has capital gains too then instead of using form ITR 2A, he will have to resort to form ITR 2. Amit cannot use this form as well as it isn’t mean for those having earnings from business or profession.
The entrepreneurship fever seems to have gripped India. Many are running business along with a partner, apart from earning their regular salary while being employed. If you are one such person, then you will have to fill in ITR 3 to declare both your salary income as well as profits earned by your venture started in partnership.
Mahesh too will have to fill this form ITR 3 as he is running a partnership firm for years and the good news is he can declare his capital gains and losses brought forward in this same form. His neighbor Aditi cannot use this form as she is the sole individual owning the business.
Aditi will have to fill in the form ITR 4 as she has a proprietorship business. Her investment advisor, who has been earning commission on the investments made too will be using the same form as commission can be declared via this form.
Advocate Ulhas and Doctor Subodh, who have been earning income by way of practicing their profession will have to use this form ITR 4.
Amit, who had business income couldn’t use the earlier form as he had presumptive business income. So, he will have to use form Sugam.
Recollect Hasmukhbhai who had agricultural income of more than Rs. 5,000, he will have to use for ITR 4S. Those having foreign income and assets and those who have an overseas account where they are the signatory will have to use this form too.