Indian income tax – Part I


Filing of Indian income tax  form for assesses in India

Forms to be used:

ITR-1 form is to be used by individuals having income from salary, pension and interest earned in the financial year.

ITR-2 is to be used when income from capital gains, income from house property and income from any other source is there apart from the details for ITR-1.

ITR-4  is to be used for all individuals having income from business or profession.

Only concerned form is to be used as per the earning details.

The above forms can be downloaded from website of income tax i.e. www.incometaxindia.gov.in/download_all.asp .

Filling of ITR -1:

This is mainly used for salaried employees and is simple. Every salaried employee will be given form no.16 in the month of May every year about the salary earned during the year with Tax deducted at source by employer. Only the details of form no.16 have to be incorporated in ITR -1. This form is to be deposited in the concerned income tax circle of income tax dept of the place where the salaried employee will be assessed. There is no need of any expert in filling the form as it is easy and simple.

Filling of ITR -2:

In this form, in addition to the details in form no.16, the salaried person has to add up capital gains/loss and also the income/loss from house properties and income from other sources like securities etc. This form is slightly complicated and may need the help of experts if numerous properties are there.

Filling of ITR -4:

If the assessee is from a business or profession, he has to use ITR-4. This form is more complicated and needs the assistance of experts like Chartered Accountant or income tax consultant.

Before Filing the ITR form:

a) Check whether any amount is payable to Income tax:

You have to check whether you have to pay any amount to income tax dept though your employer or any other tax deducting agencies missed it or you have any additional income which was not covered by any one. In this case you have to subtract your Tax deducted at source from the total tax liability as per return and arrange to pay the difference to income tax dept through form no.280. This can be paid in any bank and you will get a receipt number which has to be quoted  in the ITR form.

b) Check whether any amount is refundable by IT dept:

If you have paid excess tax to IT dept  as per the IT form, then you are entitled to a tax refund. In this case, you have to mention your bank details in the form in addition to contact details. It is also important to mention the MICR number of your bank branch. It is a 9 digit number mentioned next to your cheque number . Interest will be paid by Income tax dept for any delayed refund taking some grace time.

CR Venkata Ramani

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