It is time to file your income tax return (ITR) & in move to make the tax filing process more convenient, The Central Board of Direct Taxes (CBDT) has redesigned the ITR forms for financial year 2016-17.
All ITR forms would have a dedicated column seeking details of any cash deposit exceeding Rs. 2 lakh during the demonetization drive between November 9, 2016 and December 30, 2016. For those claiming Home Loan interest deductions under Section 80EE, there is a new field added in all ITR forms under Schedule VI-A.
The government also mandated quoting of Aadhaar number while filing the tax return .
Here is all that you need to know to file your tax returns successfully.
ITR -1 – SAHAJ: FOR SALARIED INDIVIDUALS
This form can be used if you have
- Salary or Pension Income having total income up to 50 lakh.
- Income from One House Property (excluding cases where loss brought forward from previous year)
- Agriculture income which is less than R.5000
- Income from Other Sources like FD/Shares/NSC etc (excluding Winning form Lottery and Income From House Race)
One significant change this year is that the new ITR Sahaj form is compressed into a single page with dedicated sections for deductions under section 80C, 80D, 80G and 80TTA.
ITR- 2: FOR INDIVIDUALS AND HUF NOT HAVING INCOME FROM BUSINESS OR PROFESSION
The ITR 2, ITR 2-A and ITR-3 forms have all been converted into 1 single form and renumbered as ITR 2.
- Salary or Pension Income
- Income from Multiple Houses
- Income from Capital Gains
- Income from other sources (Including Winning from Lottery and Income form Race Horses.)
- Income of a person as a partner in the firm.
- An asset in foreign country or income from a source outside India.
- Agriculture income which is more than Rs.5000.
Further, in a case where the income of another person like one’s spouse, child, etc. is to be clubbed with the income of the assesses, this return form can be used where such income falls in any of the above categories.
ITR-2 A: FOR INDIVIDUALS AND HUF NOT HAVING INCOME FROM BUSINESS OR PROFESSION AND CAPITAL GAINS AND WHO DO NOT HOLD FORIGN ASSET
This tax return form has been discontinued in FY 2016-17.If you have filed ITR 2A in FY 2015-16, then you should file ITR 2 now for FY 2016-17.
ITR- 3: FOR INDIVIDUALS AND HUF BEING PARTNERS IN FIRM BUT NOT CARRING BUSINESS UNDER PROPRIETIRSHIP.
The old ITR-4 tax form has been renamed ITR-3.
ITR – 4: FOR INDIVIDUALS AND HUFs HAVING INCOME FROM A PROPRIETORY BUSINESS OR PROFESSION.
The old ITR-4S tax form has been renamed ITR-4. If you’ve e-filed an ITR-4 for FY 2015-16, then you must file an ITR-3 now.
The current ITR 4 is applicable to individuals and HUFs having income from a business and profession and who have opted for the presumptive income scheme as per section 44AD, Sec 44ADA and Section 44E of income Tax Act. However, if turnover of business exceeds Rs 2Cr, the tax payer will have to file ITR 3
ITR- 4S (SUGAM) : FOR INDIVIDULAS /HUF/PARTNERSHIP FIRMS HAVING INCOME FROM PRESUMPTIVE BUSINESS
This tax return form has been discontinued in FY 2016-17.If you have filed ITR 4S in FY 2015-16, then you should file ITR 4 now for FY 2016-17.
ITR-5: FOR FIRMS, AOP’s, and BOI’s
This forms can be used by Firms, Co-operative Banks, Co-operative Societies, Limited Liabilities Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI), Artificial Judicial Persons.
Applicable for all sources of Incomes.
ITR-6: FOR COMPANIES OTHER THAN COMPANIES CLAIMING EXEMPTION UNDER SECTION 11
Companies other than companies claiming exemption under section 11 are those whose income from property is held for charitable or religious purposes.
ITR -7: FOR PERSONS INCLUDING COMPAIES REQUIRED TO FURNISH RETURN UNDER SECTION 139(4A) 0R 139(4B) OR 139(4C) OR 139(4D) OR 139 (4E) 0R 139(4F)
139(4A) – To be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purpose.
139(4B)- To be filed by a political party it the total income without giving any effect to the provisions Section 139 A exceeds the maximum amount that is not chargeable to income tax.
139(4C) – To be filed by every scientific research association, news agency, association or institute referred to in Section 10(23A), Section 10 (23B).fund or institution or university or educational institution or any hospital or other medical institution
139(4D)- To be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.