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Dread filing tax returns? Forms you need to file to claim I-T refund

There are total 7 ITR forms available for e-filing

Archit Gupta 

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There are total 7 ITR forms available for e-filing. Out of theses 7 forms, only ITR 1, 2, 3 and 4 are applicable for the salaried and individuals

Though filing of income is a process to be done every year one should be aware of changes made by the government in the return forms in order to minimize the chances of error and rework. This year a lot of changes have been made in the forms. For instance, taxpayers who have filed 4 last year are now required to file 3 this year. So one must be aware of these changes in order to file the correct form applicable to you. The department will not consider your as valid if you file the wrong Form. 

There are total 7 forms available for e-filing 

Out of theses 7 forms, only 1, 2, 3 and 4 are applicable for salaried class and individuals. 5,6 and 7 are applicable to partnership firms, Limited liability partnership(LLP), Association of persons and companies.

Here we will discuss the forms applicable to salaried and business individuals

For Salaried Individuals

1 Sahaj and 2 are available for the salaried individuals and your sources of income will decide which form to use. 1 sahaj is a simplified one-page form introduced by the government to ease the process of by salaried individuals. It is applicable for the salaried individuals having income up to Rs 50 lakh.Income can be from salary, pension, house property, interest income or agricultural income up to Rs 5,000. So suppose your salary income is less than Rs 50 lakh but you have income from two house properties, then you cannot use this form. In this case, you need to file Form 2 only.

2 is applicable for all those salaried individuals who are not covered in 1. It covers income from salary, pension, interest income, income from capital gains, foreign income, agricultural income more than Rs 5000. You also need to disclose the details of your assets and liabilities in the Schedule AL of this form, if your salary income exceeds Rs 50 lakh. 2A which was applicable last year has been discontinued this year and has been merged into 2 only.

For Business individuals

There have been changes in the form applicable for business individuals this year.3 and 4 Sugam are available for business individuals and HUF for filing the tax return for FY 2016-17.One must be aware of these changes as last year 4 and 4S were applicable for business individuals and HUF.

3 is applicable for the individuals and HUF having income from business or profession. If you have any other source of income then you should disclose in the same 3.You may include income from House property, salary/pension, capital gains, foreign income and income from other sources in this form. 4 Sugam is applicable for individuals and HUF having income from business and profession and declaring their profits as per presumptive tax scheme. Under presumptive tax scheme, eligible businesses and professionals can declare their profits at a prescribed rate.The turnover of such business should not exceed Rs 2 crore and in case of professionals, the receipts from such profession should not exceed Rs 50 lakh.You can include income from House property, salary/pension, capital gains, foreign income and income from other sources in this form.

The author is founder & CEO ClearTax.com


Disclaimer: Views expressed are personal. They do not reflect the view/s of Business Standard.

First Published: Fri, June 23 2017. 14:27 IST
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