Selecting the correct IT Return form

New Income Tax Return forms were notified by Government recently.  There are few changes regarding applicability of the form for tax payers as well as additional information requirement to be submitted while filing return.  In this post, we shall help you choose the correct IT return form to file the return and also discuss the additional information required to be submitted.

Correct ITR Form for you

The selection of the IT return form is based on the nature of the income earned by taxpayer.  Primarily the nature of income earned can be categorized into following categories:

1.      Income from Salary / Pension

2.      Income from House Property

3.      Capital Gains

4.      Income from Business / Profession

5.      Income from Other Sources

The following table shall assist you in choosing the correct IT return form. 

INCOME TAX RETURN FORM from Vishal Shah

How to use the above table:

1.  List down the nature of income for the year applicable from the Column titled ‘Nature of Income’

2.  Start with ITR 1 – Sahaj.

3.  If the nature of income denoted as YES matches with all your nature of income, you need to use ITR 1 – Sahaj to file the return.

4.  If not, then move to ITR 2A.  Repeat Step 3 and so on until all your nature of income matches with corresponding entries against these forms.

Additional Requirements

From this year, taxpayer needs to provide his passport details as well as details of bank accounts held (excluding dormant accounts) during the previous year.  Further, in case taxpayer holds any foreign assets or has income from any source outside India, various details are required to be furnished with regards to such income / assets. 

Further, from current year, besides normal submission of ITR Verification by way of post, there are additional ways to provide verification through electronic modes.  We shall discuss this in our subsequent post.