Filing the Right Tax Returns

With the deadline for filing income tax returns approaching, here is an overview of tax-return forms for individuals
     Print Edition: July 2013

Friction, which causes wear and tear, is a necessary evil that helps us move. So are taxes, which keep a country's economy running. It's that time of the year again when you have to file tax returns and clear all annual tax liabilities.

The income tax department requires all taxpayers to file returns using the appropriate income tax return (ITR) form based on their status (individual, company or trust) and income sources. For the current assessment year (for income in financial year 2012-13), taxpayers with income above Rs 5 lakh have to file returns online. Though most online tax payment services have applications which file returns in the appropriate form based on your inputs, it is helpful to know which ITR form is for you.

ITR-1 SAHAJ INDIVIDUAL INCOME TAX RETURN (AY 2013-14)

Individuals Who Have:

  • Income from salary or pension
  • Income from one house property (excluding cases where losses have been brought forward from previous years)
  • Income from other sources, excluding lottery and race horses

Individuals Cannot Use It If They Have:

  • Capital gains not exempt from tax
  • Tax-free agriculture income or allowances such as conveyance and rent above Rs 5,000
  • Income from business or profession
  • Assets outside India or signing authority in any account outside India


FORM ITR-2 (AY 2013-14)

Individuals Or Hindu Undivided Families Who Have:

  • Income from salary or pension
  • Income from house property
  • Capital gains
  • Income from other sources, including lottery and race horses

**Taxpayers with assets outside India or those who are signing authority in any account outside India are required to fill the section for foreign assets


FORM ITR-3 (AY 2013-14)

Individuals Or Hindu Undivided Families Who Have:

  • Partnership in a firm
  • "Profits or gains of business or profession" do not include any income other than interest, salary, bonus, commission or remuneration from the partnership firm

Taxpayers Cannot Use It If They Have:

  • Income from a proprietary business or profession with sole ownership


ITR-4 (AY 2013-14)

  • Individual or HUFs who are carrying out a proprietary business or profession, maintain its books and get them audited.In case income of another person such as spouse or minor child is to be clubbed with that of the assessee, the tax return should be appropriate for all income sources.


ITR-4S SUGAM PRESUMPTIVE BUSINESS INCOME TAX RETURN (AY 2013-14)

Individuals Or Hufs Who Have:

  • Presumptive income from a proprietary business or profession (calculated on turnover of the previous financial year)
  • Income from salary/pension
  • Income from one house property (without losses from previous years)
  • Income from other sources, excluding lottery and race horses

It Cannot Be Used If The Taxpayer Has:

  • Income from more than one house
  • Capital gains not exempt from tax
  • Tax-exempt income in excess of Rs 5,000
  • Income from speculative business
  • Income from agency/brokerage
  • Income from legal, medical, engineering or architectural profession; or accountancy, technical consultancy, interior decoration or any other notified profession
  • Assets outside India
  • Signing authority in any account outside India
  • Claimed relief for foreign tax paid

Source: IncomeTaxIndiaEfiling.gov.in

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