CMA. CS. Sanjay Gupta

Prepared By

How to file Income Tax Return? Which

ITR will be applicable?

Obligation to file Income Tax Return Every individual whose total income before allowing deductions under Chapter VI-A of the

Income-tax Act 1961, exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income. For AY 2015-16 Maximum Amount not Chargeable to Tax is:

Rs 2,50,000/- (General)Rs 3,00,000/- (Senior Citizen – Age between 60 to 79 Years)Rs 5,00,000/- (Super Senior Citizen – Age 80 or Above)

All taxpayers having Income more than Rs. 5 Lakhs are now mandatorily required to submit their Income Tax Return online using appropriate ITR. Those taxpayers with Income below Rs. 5 Lakhs can either submit their Income Tax Return online or can submit the physical forms as well.

Due date of filing Income Tax Return for the AY 2015-16 has been extended by CBDT from 31st July 2015 to 31st August 2015. If you can not file the return within the due date, you can still file the belated return u/s 139(4) upto 31.03.2016 without any penalty. Return can also be filed online till 31.03.2017 but subject to a maximum penalty of Rs 5000/- u/s 271F.

Filing of Income Tax Return Simplified

Filing Income Tax Return has become very easy. CBDT has introduced simplified ITR for Salaried persons in “ITR-1 (SAHAJ)”. To make it more convenient CBDT has introduced Quick E-file option. This option is only for “ITR-1 (SAHAJ)” and “ITR-4S (SUGAM)”.

Return can be filed online @ https://incometaxindiaefiling.gov.in/ To file online return you need to Register your PAN. Registration of PAN is a simple process. Always give your own Email ID and Mobile No. during registration and remember your password. Never allow your tax Consultant to give their Email ID and Mobile No.

Maintain your Income Tax File Properly by filing your Income Tax Return regularly and keeping a record of Income and Investment declared by you in the Income Tax Return.

Other Important Facilities @ Income Tax Portal after Login You can view 26AS and keep track of TDS deducted from you. You can periodically check

whether the Income tax Deducted from you has been credited against your PAN or not. This is very Important since many times due to error in filing TDS return (Like Quoting wrong PAN) TDS does not get credited in 26AS. So by checking 26AS periodically any such case can be detected at an early stage.

From your Income Tax Login you can download all the Income Tax Return of earlier years. Only electronically filed return can be downloaded. So in case you filed Return Online and one fine day you notice that you have lost the ITRV, there is no need to worry. Just login and download the ITRV online from Income Tax Website.

You can check the status of your refund online from your login. You can also file online Rectification request u/s 154. You can check the Status of Rectification request. You can request for intimation u/s 143(1). You can also submit your response to outstanding demand, if any. You can make refund re-issue request. You can check your Pending Actions Status on the Dashboard. You can update your Address, E-mail ID and Mobile No., if required.

Know Your ITRITR-1 (SAHAJ)Who can use this Return Form?This Return Form is to be used by an individual whose total income for the assessment year 2015-16 includes:- (a) Income from Salary/ Pension; or (b) Income from One House Property (excluding cases where loss is brought forward from previous years); or (c) Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)NOTE: Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories. So if any Income is not falling in the above category then ITR1-SAHAJ can not be used.

ITR-1 (SAHAJ)Who can not use this Return Form?This Return Form should not be used by an individual whose total income for the assessment year 2015-16 includes:- (a) Income from more than one house property; or (b) Income from Winnings from lottery or income from Race horses; or (c) Income under the head "Capital Gains”; or (d) Agricultural income in excess of 5,000; or (e) Income from Business or Profession; or (f) Loss under the head 'Income from other sources; or (g) Person claiming relief under section 90 and/or 91; or (h) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or (i) Any resident having income from any source outside India

Know Your ITRITR-2Who can use this Return Form?This Return Form is to be used by an individual/HUF whose total income for the assessment year 2015-16 includes:- (a) Income from salary/ Pension(b) Income from house property(c) Income from capital gains(d) Income from other sources (including winning from lottery and

income from race horses)(e) Individuals who qualify as ordinarily resident in India and having

any overseas income/ assets etc

ITR-2Who can not use this Return Form?

This Return Form should not be used by an individual/HUF whose total income for the assessment year 2015-16 includes:-

(a) Income from Business or Profession. For Income from Business or Profession ITR-4 or ITR-4S (SUGAM) is used.

(b) Income from a Partnership Firm. Partner of Partnership Firm are required to file Income Tax Return in ITR-3.

Know Your ITRITR-2A (New ITR. Introduced from AY 2015-16)Who can use this Return Form?This newly introduced return form can be used by the individuals/ HUFs whose total income includes the following: (a) Income from salary/ Pension(b) Income from house property(c) Income from other sources (including winning from lottery and

income from race horses)

ITR-2AWho can not use this Return Form?

This Return Form should not be used by an individual/HUF whose total income for the assessment year 2015-16 includes:-

(a) Income from capital gains; or(b) Income from Business or Profession; or(c) Any claim of relief/deduction under section 90/90A/91; or(d) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India; or(e) Any Resident having Income from any source outside India.

Know Your ITRITR-3Who can use this Return Form?This Return Form is to be used by an individual or an Hindu Undivided Family (HUF) who is a partner in a firm and whose total income for the assessment year 2015-16 includes:- (a) Income from salary/ Pension(b) Income from house property(c) Income from capital gains(d) Income from other sources (including winning from lottery and income

from race horses)

Who can not use this Return Form?This Return Form should not be used by an individual whose total Income for the Assessment year 2015-16 includes Income from Business or Profession under any proprietorship. In such case ITR4 will be applicable.

Know Your ITRITR-4Who can use this Return Form?

(a) ITR-4 can be used by any Individuals or HUF who is earning Income from any Proprietary Business or Profession. Income from Salary, Income from House Property, Income from Capital gain and Income from Other Sources can also be declared in this retrurn.

(b) This Return Form can also be used by an individual or an Hindu Undivided Family (HUF) who is a partner in a firm and also carrying out a Proprietary Business or Profession.

Know Your ITRITR-4S (SUGAM)Who can use this Return Form?This Return Form can be be used by Individual/HUF whose total income for the assessment year 2015-16 includes:- (a) Business income where such income is computed in accordance

with special provisions referred to in section 44AD and 44AE (i.e. on presumptive basis)

(b) Income from salary/ Pension(c) Income from one house property (excluding cases where loss is

brought forward from previous years) (d) Income from other sources (Excluding winning from lottery and

income from race horses)

ITR-4S (SUGAM)Who can not use this Return Form?This Return Form should not be used Individual/HUF whose total income for the assessment year 2015-16 includes:- (a) Income from more than one house property; or (b) Income from Winnings from lottery or income from Race horses; or (c) Income under the head "Capital Gains”; or (d) Agricultural income in excess of 5,000; or (e) Business income where such income is computed in accordance with special provisions referred to in section 44AD and 44AE ; or (f) Person claiming relief under section 90 and/or 91; or (g) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or (h) Any resident having income from any source outside India

Some Important Changes / New Introduction in ITR

File ITR-1 even if the exempt income is more than Rs.5000From the past two years, the Tax Payers were using ITR 2 or ITR 4 if the exempt income

was more than Rs. 5000. This created a lot of debate and dilemma among Tax payers, whether to file ITR 2, even they receive exempt HRA allowance, which is normally more than Rs.5000. This year, it brought a great sigh of relief. From now onwards, any Tax Payer enjoying any amount of exempt income such as PPF Interest , House Rent Allowance etc. can file ITR-1or ITR 4S. However, Payers who are enjoying the Agricultural income above Rs.5000 are still required to file ITR 2 / ITR 4.

Introduction of Aadhar Card No. based Electronic Verification CodeA new system of verification has been rolled out which is called as Electronic verification. In this system, the Tax Payer will receive a verification code (similar to One Time Password (OTP)) on Payer’s Mobile number which is associated with Payer’s Aadhar card.The Aadhar Card number is also required to be mentioned in the ITR. Once the Payer enters the verification code), the e-filing will be verified. Therefore posting ITR-V to CPC, Bangalore is not required if the Tax Payer opted to file his tax return either through Electronic Verification System or with Digital Signature. In all other cases i.e. Aadhar Card Holders or who don’t file through Electronic Verification system are still required to follow the old mechanism of sending ITR-V to CPC, Bangalore.

Some Important Changes / New Introduction in ITR

Aadhar Card NumberThe new Income Tax Return also has field for optional information about Aadhar Card number. You have to select whether you have Aadhar Card or not. If you select yes

then you have to mention your Aadhar Card No.

Mandatory e-Filing for Income Tax RefundsTo speed up and prompt issue of Tax Refunds, e-filing of Income Tax Return has been made mandatory for those who desire any Income Tax Refund. This step will definitely ensure quick refunds to tax Payers. Secondly, it is proposed that from now onwards all the refunds will be done electronically and cheques will not be issued.Refer Notification Dated 15th April 2015 from link given below:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/notification41_2015.pdf

Some Important Changes / New Introduction in ITR

Giving Details of Multiple Bank Account No.In New ITR, details of all the bank accounts (excluding accounts that have been non operational for over three years) held in India at any time during the previous year

needs to be given.Details required are as follows:

# Total number of accounts held# IFSC code of the bank# Name of the bank# Account number# Savings/ Current account# Check box to indicate the bank account in which the taxpayer prefers to get the

refund.Introduction of efiling of Return u/s 119(2)(b)

In Return Filed under section new option “Under Section 119(2)(b)” has been newly inserted. So once delay in filing of Income Tax return is condoned, the return u/s 119(2)(b) can be filed online.