Income Tax | Returns Filing - Step 2 [b] : Filling-up Form ITR-2, for Individual / HUF with Additional Income [other than TDS1 & TDS2]

ITR-2 is for Individual / HUF with additional source of Income, other than the standard deductibles under TDS1 [Salary] & TDS2 [Renumerated].

• Who CAN use this Return Form?
• This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2013-14 includes:-
• (a) Income from Salary / Pension; or
• (b) Income from House Property; or
• (c) Income from Capital Gains; or
• (d) Income from Other Sources (including Winning from Lottery and Income from Race Horses). 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 where such income falls in any of the above categories.
• Who CANNOT use this Return Form?
• This Return Form should not be used by an individual whose total income for the assessment year 2013-14 includes Income from Business or Profession.

This is much more complicated than the ITR-1, it is advisable to be left to the professionals or to be filed under professional guidance. For complete help click here, and for professional help, click here.

Read more ...

Income Tax | Returns Filing - Step 2 [a] : Filling-up Form ITR-1, For Salaried Employee [under TDS1 or TDS2]

For Individuals / HUF having Income from Salary / Pension / Income from One House Property [excluding loss brought forward from previous years] / Income from Other Sources [Excluding Winning from Lottery and Income from Race Horses]

ITR-1 is for salaried individual or HUF  [with TDS1 accumulation], with no other income sources other than salary or renumeration contract employee [with TDS2 accumulation] or both.

It is also one of the most simple Income-Tax Returns-Filing, with very few fields, with just 4 pages to fill up. Lets do it in the traditional step by step process.

1. Income Details: In the First page, it is the basic information [like, name, DoB, PAN, IT Ward & Section, Annual Salary/Pension, Income from One House,  etc].
2. TDS: In the Second page, the TDS details from Form 16, Form 16A & any Advance Tax Paid or Self Assessment Tax paid/payable details are to be filled.
3. Taxes Paid and Verification: 
4. Section 80G Deductions: [Refer article Section 80] There are 4 different sub sections under 80G, which are explained in the before said page-link.

If you are still unsure and need professional help, feel free to contact us for our extended [payable] services.

Read more ...

Income Tax | Returns Filing - Step 1 : Selecting ITR Form

A Guide to Choosing the 'Correct' ITR Form for an Assessee.

• This page helps to identify the right ITR form for an Assessee.
• To choose the right ITR Form, first identify the 'Status of Assessee'.
• If you are not able to Identify the correct 'Assessee Status', visit Know Your PAN page..

After Identifying the Status, Select the Form referring the table below:

Sr #	Status of Assessee	ITR Form(s)
1.	Individuals	ITR-1, ITR-2, ITR-3 or ITR-4
2.	Hindu Undivided Family	ITR-1, ITR-2, ITR-3 or ITR-4
3.	Firms	ITR-5
4.	Association of Person	ITR-5
5.	Body Of Individuals	ITR-5
6.	Company	ITR-6
7.	Trusts	ITR-7

Now, you must be wondering why there are 4 ITR forms for Individuals and HUF. Visit "Why Four ITR Forms for Individuals / HUF?" Page for more details.

If you know your correct ITR form, then download the latest from the official site [here] and proceed to Step 2.

Read more ...

Income Tax | Filing Returns - Why Four ITR Forms for Individuals / HUF?

The 4 forms are designed on a hierarchical order and the forms should be referred as below. The 'Assessee' with lower form relevance should not go for higher one.

Case #	Income from Salaries and Interest under head “Other Sources”	Any income other than “Partnership”, and/or “Proprietorship”	Income from Partnership in business	Income from Proprietorship business	ITR Form
Case 1.	Yes	X	X	X	ITR - 1
Case 2.	Yes / No	Yes	X	X	ITR - 2
Case 3.	Yes / No	Yes / No	Yes	X	ITR - 3
Case 4.	Yes / No	Yes / No	Yes / No	Yes	ITR - 4

Sr.#	Sources/Details of Income	Individual	Individual, HUF
		ITR-1	ITR-2	ITR-3	ITR-4	ITR-4S
1	Income from Salary/Pension	Yes	Yes	Yes	Yes	X
2	Income from Other Sources (only Interest Income or Family Pension)	Yes	Yes	Yes	Yes	X
3	Income/Loss from Other Sources	X	Yes	Yes	Yes	X
4	Income/Loss from House Property	X	Yes	Yes	Yes	X
5	Capital Gains/Loss on sale of investments/property	X	Yes	Yes	Yes	X
6	Partner in a Partnership Firm	X	X	Yes	Yes	X
7	Income from Proprietary Business/Profession	X	X	X	Yes	X
8	Income from Presumptive Business	X	X	X	X	Yes
9	Details of Foreign Assets	X	Yes	Yes	Yes	X

Sr.#	Details	ITR Form No.
1	For Firms, AOPs and BOIs	ITR 5
2	For Companies, other than companies claiming exemption under section 11	ITR 6
3	For person required to furnish return under section 139(4A)/ (4B) / (4C)/ (4D)	ITR 7

Read more ...

Income Tax | Know Your 'PAN'

Permanent Account Number or simply PAN  is a ten-digit alphanumeric number, issued in the form of a printed plastic [earlier days, it was paper printed & laminated] card, by the Income Tax Department [Government of India], to any “Indian-national applicant” who applies for it or in some cases to whom the department allots the number without an application.

An example of how a PAN card looks like.

PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS / TCS credits, returns of income / wealth / gift / FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.

PAN was introduced to facilitates linking of various documents, including payment of taxes, assessment, tax demand, tax arrears etc. relating to an assessee, to facilitate easy retrieval of information and to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for detecting and combating tax evasion and widening of tax base.

A typical PAN, for example looks like this. AFZPK7190K.

• First three characters i.e. 'AFZ' in the above PAN are alphabetic series running from AAA to ZZZ
• Fourth character of PAN i.e. 'P' in the above PAN represents the status of the PAN holder. 'P' stands for Individual, 'F' stands for Firm, 'C' stands for Company, 'H' stands for HUF, 'A' stands for AOP, 'T' stands for TRUST etc. [refer the table below for better understanding]
• Fifth character i.e. 'K' in the above PAN represents first character of the PAN holder’s last name/surname.
• Next four characters i.e. '7190' in the above PAN are sequential number running from 0001 to 9999.
• Last character i.e. 'K' in the above PAN is an alphabetic check digit.

	Status of Assessee	Fourth Character of PAN
1.	Individual Person	P
2.	Hindu Undivided Family	H
3.	Firm	F
4.	Association of Persons [AOP]	A
5.	Body Of Individuals[BOI]	B
6.	Company	C
7.	Trust [AOP]	T
8.	Local Authority	L
9.	Artificial Judicial Person	J
10.	Government	G

Read more ...