USE OF INCOME TAX RETURN FORM ITR-4 (SUGAM)

Who can use this return form: -
1. Business income computed as per special provision Under section 44AD,44ADA and 44AE of the Act; and,
2. Income from Salary/Pension; or,
3. Income from one House property.(excluding where loss is brought forward from Previous Year.); or,
4. Income from Other sources. (Excluding income from lottery and winning from Race horses); or,

Note:- Further, in case where the another person income like spouse, minor child etc, is to be clubbed with the income of the assesee, this return form can be used only if the income being falls into the above income category.

Person can not use this return form if they have: -
1. Income from more than one house property; or,
2. Income from lottery and winning from Race horse; or,
3. Income under the head "Capital gain"; or,
4. Income from agriculture/exempt income more than Rs. 5000/-; or,
5. Income from speculative business and other special income; or,
6. Income from a profession as referred in section 44AA (1) or income from agency business or income in the nature of commission for brokerage; or
7. Person claiming relief of foreign tax paid under section 90,90A or 91;or
8. Any resident having any assets situated outside India or signing authority in any account located outside India; or
9. Any resident having income from outside india.

Manner of furnishing return of income

FOR INDIVIDUAL/HUF ASSESSEE

1.  Accounts are required to be audited U/s 44AB of IT Act, 1961.

•      Return filed Electronically through Digital Signature.

2. If above (1) is not applicable and,-
a. Return is furnishing in Form No. ITR-3 or ITR-4, or
b. the person, being a resident,other than not ordinarily resident within the meaning of U/s 6(6), has assets(including financial interest in any entity) located outside India; or signing authority of any account situated outside India; or Income source outside India.; or
c.any relief, in respect of tax paid outside India, U/s 90 or 90A or deduction of tax U/s 91 is claimed;  or
d. Individual/ HUF furnishing return Form ITR-1, ITR-2 or ITR-4S (excluding individual of the age 80 Yr. or more during any time of Previous year) with income exceeds Rs. five lakh or refund claimed.

• Return filed electronically through Digital Signature; or
• Return filed electronically through Electronic verification code( see note below); or
• Return filed electronically and send ITR-V to CPC, Bengaluru as prescribed manner.

 FOR COMPANY ASSESSEE

• Return filed electronically through digital signature.

FOR PERSON REQUIRED TO BE FURNISHED ITR-7

1. In case of political party

• Return filed Electronically through Digital Signature.

2. In any other case

• Return filed electronically through Digital Signature; or
• Return filed electronically through Electronic verification code( see note below); or
• Return filed electronically and send ITR-V to CPC, Bengaluru as prescribed manner.

FOR PERSON REQUIRED TO BE FURNISHED ITR-5

1. Accounts are required to be audited U/s 44AB of IT Act, 1961.

• Return filed electronically through digital signature.

2. In any other cases

• Return filed electronically through Digital Signature; or
• Return filed electronically through Electronic verification code( see note below); or
• Return filed electronically and send ITR-V to CPC, Bengaluru as prescribed manner.

Note:- 1. Electronic verification code(EVC), has been include as the new mode to verify E- return. In the EVC mode assessee not need to send ITR-V to CPC, Bengaluru.

For EVC, the Central Board of Direct Taxes (CBDT), the apex policy making body of the IT department, has introduced a new column in the ITRs for 2015-16 where an e-filer can provide his Aadhaar number which will have to be authenticated on the official website of the department via a One Time Password (OTP). 

2. Return filing through paper mode is applicable for individual filed return form ITR-1 or ITR-2 which income less than Rs. Five Lakh or not claiming refund.

3. Refer link :- https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/notification41_2015.pdf

Who can use of ITR-1 return form (SAHAJ)

Who can use ITR-1 return form: -

1. Income from Salary/Pension; or
2. Income from one house property(excluding case where loss is brought forward from previous year); or
3. Income from other sources (excluding income from race horse and winning from lottery)
Note:- Further, in a case where the income of person like spouse, child, etc. is to be clubbed in the income of assessee, this return can be used if the income clubbed falls in the above income categories.

Who can not use ITR-1 return form: -

1. Income from more than one house property; or
2. Income from winning from lottery and income from race horse; or
3. Income under the head of "Capital Gain"; or
4. Income under the head of " Business and Profession; or
5. Income from agriculture/ exempt income is more than Rs. 5000; or
6. Loss under the head of "Other Sources"; or
7. Person Claiming Relief under section 90 and/or 91; or
8. Any resident having any assets(including financial interest in an entity) located outside India or signing authority in any account located outside india; or
9. Any resident having income from any source outside India.

Income tax slab rate for individual/HUF for A.Y. 2015-2016

For Individual (Male of Female both below age of 60Yr.), HUF,AOP and BOI
Income below 2,50,000                                                           Nil
Income Exceeds 2,50,000 but up to 5,00,000                         10 per cent of the amount by which total                                                                                                         income exceeds Rs. 2,50,000
Income Exceeds Rs. 5,00,000 but up to 10,00,000                  Rs. 25,000 plus 20 percent of the amount
                                                                                                by which income exceeds Rs. 5,00,000
Income Exceed Rs. 10,00,000                                                  Rs. 1,25,000 plus 30 percent of the amount
                                                                                                 by which income exceeds Rs. 10,00,000

For Individual Senior citizens (individual Who is age of 60Yr.. or more nut less then 80Yr.)
Income below 3,00,000                                                           Nil
Income Exceeds 3,00,000 but up to 5,00,000                         10 per cent of the amount by which total                                                                                                         income exceeds Rs. 3,00,000
Income Exceeds Rs. 5,00,000 but up to 10,00,000                  Rs. 20,000 plus 20 percent of the amount
                                                                                                by which income exceeds Rs. 5,00,000
Income Exceed Rs. 10,00,000                                                  Rs. 1,20,000 plus 30 percent of the amount
                                                                                                 by which income exceeds Rs. 10,00,000


For Individual Super Senior Citizen  (individual who is age of 80 yr. or more)
Income below 5,00,000                                                           Nil
Income Exceeds Rs. 5,00,000 but up to 10,00,000                   20 percent of the amount
                                                                                                by which income exceeds Rs. 5,00,000
Income Exceed Rs. 10,00,000                                                  Rs. 1,00,000 plus 30 percent of the amount
                                                                                                 by which income exceeds Rs. 10,00,000

Note:- 1. 10% Surcharge on individual, HUF , AOP, BOI, if total income exceeds Rs. 1 Crore.
2. Education Cess 2% of income tax
3. Secondary & higher Education cess 1% of income tax
4. Tax rebate of Rs. 2000 Under section 87A of income tax Act, 1961 only for individual having total income upto Rs. 5,00,000. (This rebate not for HUF,AOP, BOI.)

Payment through A/C payee Cheque or RTGS/NEFT for transaction in real estate

W.e.f. 01 JUN 2015 any transaction in real estate including agricultural land shall be required to be made through account payee cheque or RTGS / NEFT if it is of Rs.20,000/- or more, only such farmers are free from this if both of them have agricultural income only and not any other income chargeable to income tax i.e. both of them should not have any income like interest/rent/salary etc. even of one rupee, i.e. he should not have even income of one rupee other than only agricultural income. If transaction is done in cash then penalty of an amount equal to such cash transaction will be imposed on seller who accepts cash or refund of advance is made in cash by the seller of property.

Last date of Return filing for individual and HUF

Time Limit for Filing Returns for individual and HUF is also Proposed to be Extended up to 31.08.2015;

About new ITR Form-2A and other other ITR forms

Income Tax Return Forms ITR 1, 2 and 4S Simplified for Convenience of the Tax Payers 

Respected professional colleagues
 

Income Tax Return Forms ITR 1, 2 and 4S Simplified for Convenience of the Tax Payers; 

A New Form ITR 2A Proposed which can be Filed by an Individual or HUF who does not have Capital Gains, Income from Business/Profession or Foreign Asset/Foreign Income; In Form ITR 2 and the New Form ITR 2A, the Main Form will not Contain more than 3 Pages, and other Information will be Captured in the Schedules which will be Required to be filled only if applicable;

As the Software for these Forms is under Preparation, they are likely to be available for e-filing by 3^rdweek of june 2015; Time Limit for Filing these Returns is also Proposed to be Extended up to 31.08.2015;

Only  Passport Number, if available, would be required to be given in forms Itr-2 and itr-2A. Details of Foreign Trips or Expenditure thereon are not required to be Furnished

 Forms ITR 1, 2 and 4S for Assessment Year 2015-16 were notified on 15^th April 2015 (15.04.2015). In view of various representations, it was announced that these ITR forms will be reviewed. Having considered the responses received from various stakeholders, these forms are proposed to be simplified in the following manner for the convenience of the taxpayers:-

1)         Individuals having exempt income without any ceiling (other than agricultural income exceeding Rs. 5,000) can now file Form ITR 1 (Sahaj). Similar simplification is also proposed for individuals/HUF in respect of Form ITR 4S (Sugam).

2)         At present individuals/HUFs having income from more than one house property and capital gains are required to file Form ITR-2. It is, however, noticed that majority of individuals/HUFs who file Form ITR-2 do not have capital gains. With a view to provide for a simplified form for these individuals/HUFs, a new Form ITR 2A is proposed which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income.

3)        In lieu of foreign travel details, it is now proposed that only Passport Number, if available, would be required to be given in Forms ITR-2 and ITR-2A. Details of foreign trips or expenditure thereon are not required to be furnished.

4)       As regards bank account details in all these forms, only the IFS code, account number of all the current/savings account which are held at any time during the previous year will be required to be filled-up. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished.

5)       An individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would not mandatorily be required to report the foreign assets acquired by him during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year.

6)         As a measure of simplification, it has been endeavoured to ensure that in Form ITR 2 and the new Form ITR 2A, the main form will not contain more than 3 pages, and other information will be captured in the Schedules which will be required to be filled only if applicable.

As the software for these forms is under preparation, they are likely to be available for e-filing by 3^rd week of June 2015. Accordingly, the time limit for filing these returns is also proposed to be extended up to 31^st August, 2015 (31.08.2015). A separate notification will be issued in this regard.

Sources: http://pib.nic.in/newsite/erelease.aspx