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Decoding different types of I-T returns forms

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CIOL Bureau
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BANGALORE, INDIA: The entire process of filing tax return starts from Form 16. It contains almost 90 per cent of the details asked in the income tax return(ITR) form, the individual just needs to identity the correct value and then fill it as per the instructions in the ITR form.

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Yes, we are not talking about the SARAL forms because this so-called simple and one-page Saral form was replaced by the form 2F from August 1, 2006, which was a four-page form and later on with ITR forms.

Basic information

There are around nine types of ITR forms, depending on the type of tax payer and the sources of income that is to be declared namely ITR 1-8 and ITR-V. It is really important for the tax payer to recognize the right form. It is mandatory for all the tax payers to submit the acknowledgement slip along with the ITR form, without which the entire process is incomplete.

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Like, ITR V is the form where the data of return of income/fringe benefits in form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 is transmitted electronically without digital signature.

ITR-1 is applicable for the the individuals having income from salary/ pension/ family pension and interest, ITR-2 is for the individuals and Hindu undivided family (HUF) not having income from business or profession. Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship are supposed to fill up the ITR-3 form, while individuals & HUFs having income from a proprietary business or profession fill ITR-4.

Similarly, firms, associations of persons (AOP), body of individuals (BOI), local authority, companies, trusts have to fill up the ITR-5.

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ITR-6 is applicable for companies other than companies claiming exemption under section 11. Persons including companies seeking return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) have to fill up the ITR form no.7, and companies seeking return for Fringe Benefits fill form no ITR-8. However, with the abolishment of fringe benefit tax, companies may get a relief.

Process of form filling



Taking an example of a salaried person, the individual is required to download the ITR-1 and the acknowledge receipt from the government website of income tax-http://www.incometaxindia.gov.in/download_all.asp.

The form starts with personal details, after which comes the section of income chargeable under the Head Salaries(salary/pension). The individual needs to mentioned the family pension and the salary as mentioned in the Form 16 in the serial no. 6 of the details.

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The amount of Item no.3 (Gross Total Income) in the ITR-1 form, is mentioned in the Form16 in the serial no 8 or can also be calculated by adding the amount in item 1 with the amount in item 2C of the ITR-1.

Item no 4. in the ITR-1 asks about Deductions under chapter VI A (section), which is mentioned in the Form16 at serial no 9. Next item (Item no.5) is for total income (3-4). The amount can be taken from the Form16 or calculated by subtracting the value of item 4 from that of item 3. (item no-6 and 7 are for the individuals from agricultural sector.)

Item no.8, 'tax payable on aggregate income', can be calculated from tax liability on the income which includes the agricultural income. In other words, there are various income slabs mentioned by the government; the individuals need to identify the slab they belong to and then calculate the value from the percentage mentioned in the slab.

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Similarly, they need to calculate the amount of rebate.

Item no.9 is a simple calculation of 'tax payable on total income' and, as the form itself says (8a-8b), otherwise this value can also be obtained from the serial no 12 of the Form16 stating 'Tax on Total Income'. Since surcharge is exempted from this year, individual could keep the item box 9b empty. While in item box 9C, the value is 3 per cent of 9a+9b. These details are also mentioned in the Form16, under serial no. 12, 13 and 14.

Item no.10 is to claim relief, if any, allowable under Section 89 in respect of arrears or advances of salary received during the year.

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The values of Item no.11, Section 90/91 can be taken at Form16. Item no. 12 again is a calculation, which can be easily computed.

Moving on to Item no.15, the details of Advance tax, TDS and Self Assessment tax are mentioned in the Form16, and can also be filled in boxes mentioned there. 15D can be calculated by adding the three values under box 15.

Item no.16, the value of tax payable, can either be taken form the Form16 or calculated by subtracting the value of 15D by 14. Similarly, the individual can calculate the value of Item no.17 but this time subtracting the amount in 14 by 15D.

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For item. No 18 , 19 and 20 the individual can choose the mode of refund, by cheque or direct transfer to the account and mention the respective bank details.

Item no. 21. In this we have either columns, the information of each columns can be taken from the Form16. But individuals have to keep in mind that the company is the deductor while, they are the employer.

In case the individual faced tax deduction at other ends other than the employer like banks or financial firm, the individual needs to feed in the details in the Item no. 22 as per the Form16A issued to them.

Item box 23 and 24 are normally not applicable for salaried employees. Individuals who are assessees and have paid advance tax for that matter are supposed to fill this section. Finally, the last item, 26, as mentioned in the form. If the return has been filled by Tax return Preparer, then the person concerned is supposed to fill in his details in the box provided.

With this the process of form filling is complete, but not all. After this, individuals are supposed to fill the acknowledgement form, again by taking help from the Form16.

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