CBDT notified the ITR or Income Tax Return Forms AY 2017-18 (FY 2016-17). There are few major changes in these forms. Let us see in detail these changes and understand which form you can use.
There is no change in the manner of filing of ITR Forms as compared to last year. All these ITR Forms are to be filed electronically. However, where return is furnished in ITR- 1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form-
# An individual of the age of 80 years or more at any time during the previous year; or
# An individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.
Income Tax Slabs for FY 2016-17 (AY 2017-18)
Before understanding the Income Tax Return Forms AY 2017-18 (FY 2016-17), let us first understand the taxation for FY 2016-17 or AY 2017-18.
Below is the chart about Capital Gain Tax for FY 2016-17 (AY 2017-18)
Now you might have got the clarity about in which tax slab you fall and how much is your tax liability.
Income Tax Return Forms AY 2017-18 (FY 2016-17) -Which form to use?
Before jumping to know about the forms, let see the new changes in Income Tax Return Forms AY 2017-18 (FY 2016-17).
# Launch of new SINGLE PAGE ITR Form-1(Sahaj). This initiative will benefit more than two crore tax-payers who will be eligible to file their return of income in this simplified Form.
# The number of Income Tax Return Forms AY 2017-18 (FY 2016-17) have been reduced from the existing nine to seven forms.
# The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalized and a single ITR-2.
# ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam) respectively.
# There is no change in the manner of filing of ITR Forms.
# Return is furnished in ITR- 1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form:- (i) an individual of the age of 80 years or more at any time during the previous year; or (ii) an individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.
# Quoting your Aadhaar number while filing IT Return is now mandatory.
# Linking Aadhaar number as of now is not mandatory (due to some hiccups in errors), but future is Aadhaar linked ITR only.
# A new column introduced in all ITR Forms to report on cash deposited of Rs.2 lakh or more by taxpayers in their bank accounts during the demonetization period, i.e., from 9th November 2016 to 30th December 2016.
# A new field has been provided in new ITR Forms under Schedule VI-A deductions to claim home loan interest under Section 80EE (Section 80EE allows deduction on home loan interest for first time home buyers. This deduction is over and above the Rs 2 lakhs limit covered under Section 24(b)).
Now let us see the new Income Tax Return Forms AY 2017-18 (FY 2016-17) one by one.
ITR 1 (Sahaj) Form For Assessment Year 2017-18
This form can be used only for the income generated during FY 2016-17.
You can use this form in case-
# Your Income is from Salary or Pension;
# If you have income from One House Property (excluding cases where loss is brought forward from previous years);
# If your income from Other Sources (excluding winning from lottery and income from Race Horses, Income taxable under section 115BBDA (As per Section 115BBDA the dividend received from domestic company is taxable at rate of 10% if aggregate amount of such dividend exceeds Rs. 10 lakh) or Income of the nature referred to in section 115BBE (As per Section 115BBE any unexplained credit or investment attracts tax at 60% (plus surcharge and cess, as applicable), irrespective of the slab of income.);
# In a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.
You can’t use this form in case-
# If your total income for the assessment year 2017-18 exceeds Rs.50 lakh;
# Income from more than one house property;
# Income from winnings from lottery or income from Race horses;
# Income taxable under section 115BBDA;
# Income of the nature referred to in section 115BBE;
# Income under the head “Capital Gains”;
# Agricultural income in excess of ?5,000;
# Income from Business or Profession;
# Loss under the head ‘Income from other sources’;
# Person claiming relief under section 90 and/or 91;
# Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India;
# Any resident having income from any source outside India.
Download the new ITR 1 (Sahaj) Form For Assessment Year 2017-18
ITR 2 Form For Assessment Year 2017-18
You can use this form in case-
# Can be used by an individual or a Hindu Undivided Family (HUF)
# Income from Salary / Pension;
# Income from multiple House Property;
# Income from Capital Gains;
# Income from Other Sources (including winnings from lottery and income from race horses).
# An asset in foreign country or income from a source outside India
#Agricultural income of more than Rs 5,000
Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this Return Form can be used if income to be clubbed falls in any of the above categories.
You can’t use this form in case-
# If your income for the year includes income from Business or Profession.
Download ITR 2 Form For Assessment Year 2017-18
ITR 3 Form For Assessment Year 2017-18
# The old ITR 4 now renamed as ITR 3.
# This ITR3 can be used by individuals and HUFs.
# You can use this form if you have income source from proprietary business, profession or having income as a partner in a Partnership firm.
# You can report the incomes like income from salary, multiple house properties, lottery winnings, capital gains, speculative income i.e. horse race along with your business or professional income.
Download ITR 3 Form For Assessment Year 2017-18
ITR 4S Sugam Form For Assessment Year 2017-18
You can use this form in case-
# It can be used by an individual/ HUF/ Partnership Firm.
# Business income where such income is computed in accordance with special provisions referred to in sections 44AD and 44AE of the Act for computation of business income.
# Income from Profession where such income is computed in accordance with special provisions referred to in sections 44ADA.
# Salary/ Pension
# Income from One House Property (excluding cases where loss is brought forward from previous years).
# Income from Other Sources (excluding Winning from Lottery and Income from Race Horses).
You can’t use this form in case-
# Income from more than one house property
# Income from Winnings from lottery or income from Race horses
# Income under the head “Capital Gains”, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.
# Income taxable under section 115BBDA
# Income of the nature referred to in section 115BBE
# Agricultural income in excess of Rs.5,000
# Income from Speculative Business and other special incomes
# Income from an agency business or income in the nature of commission or brokerage
# Person claiming relief of foreign tax paid under section 90, 90A or 91
# Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India
# Any resident having income from any source outside India.
Download ITR 4 Sugam Form For Assessment Year 2017-18
Hope this much information is sufficient for you in choosing the Income Tax Return Forms AY 2017-18 (FY 2016-17).
390 Responses
Dear Sir,
Which ITR to file in case of :
Assessee (individual)having income from pension and income from working as a contractual unskilled labour staff (TDS deducted u/s 194c)
Total income < 4 lakhs
ITR 1 or ITR 3 ?
Dear Deepak,
Use ITR1.
Sir,
I am a senior citizen. Am I eligible for deduction u/s 80TTB (upto Rs. 50000) for the FY 2018-19 from my SAVINGS BANK INTEREST ?
Dear Bikas,
Sec.80TTB not provide provision for senior citizens to claim a deduction from the interest income earned from savings bank interest. It provides Rs.50,000 deduction from the interest income Bank FDs and Post Office FDs.
what is nature of business in case i m doing amway business
Dear Shujaat,
Service Sector.
I AM RUNNING A SERVICED APARTMENT WITH A TURNOVER OF 30LAKHS.CAN I AVAIL 44AD?
Dear Bala,
As per me NO.
Dear Sir,
Client carrying sole proprietership business and having business profit around 2%.
Further, his turnover is less than 1cr. A/y 2016-17.
Is he liable to get audited u/s 44ab mandatory, if he do not choose for 44ad.
Regards
Deepak Agarwal
Deepak-I am not an expert to guide a business entity.
HI Basu,
I am a trader in FnO. In FY 2016-17 my income was bank interest and FnO trading. In FnO trading I was occured in losses. My Total income was below 2.5 L. thats why I did not filed returned last year. But now I come to know even though losses I need to file a return to caary forward the losses before due date. Now i want to file a return, which ITR form I need to submit ITR3 or ITR4?
Can u please help me to file the tax returns online? Required Urgent help.
Thanks,
Deepa
Deepa-ITR3.
Thanks for your help.
I read somewhere, if u have occured losses in FnO (i.e. below 6% of total turnover OR turnover exceeds 1 Cr.)
u require audit.
Do i need to do audit and submit Form ITR3?
Deepa-If profit or loss is more than 8% or the turnover exceeding Rs.1 Cr, then you have to do audit.
Sir,
I am a consultant in a medical research field & My TDS was deducted under 194J . Annual income was 2lakh for fin year 2016-2017. I have wrongly filed returns using ITR1 under the salary income. Is there any way i can correct that? can i put it under income from other sources in ITR1 itself considering that is my only income. Also please confirm whether i need to file it with ITR -4?
BLJ-You have to use ITR3. You can revise and file it.
I am a govt. Contractor. C.my annual income is Rs.60000. Isang to file income tax return .Kindly tell me which type of ITR .ifilled
Vijaykumar-Use ITR3.
Sir I am not a registered Home Tutor. Income is less than 275000. I filled ITR 4S FY2015-16 . I filled Column 44AD and Tax rebate U/S 87A.
Now for FY2016-17 I choose ITR 4 and I am confused to opt 44AD or 44ADA…because I have not books maintained.
Kamaljeet-Refer THIS.
SIR MY FRIEND WANTS TO SHOW HIS WIFE INCOME RECEIVED FROM OTHERS SOURCES IE SHE WANTS TO SHOW INCOME BUT DOESNOT HAVE ACCOUNT OR SOURCES EARNINGS ARE FROM INVESTMENTS WITH PRIVATE PERSONS
CAN SHE SHOW INCOME FROM OTHER SOURCES IN FORM NO1 ALONG WITH INTEREST PLEASE ADVICE
Rajiv-It is hard for me to guide anything blindly. Contact any tax expert of your area.
Sir,
I’m a salaried employee in a private Pharma Company having a total annual income of 5 lakhs, and I’m also LIC agent.
TDS was done at both, I have received two Form-16. But, i have not yet filed my returns for FY16-17/AY 17-18 because of confusion which ITR should I use to file!
Could you please suggest me in this regard.
Raghava-Yes, you can file it. If you are unable to do it on your own, then take the help of any tax expert of your area.
Sir,
Which ITR form should I use for this?
Thanks and Regards
Raghava
Raghava-ITR3.
Hi,
Please guide me.
Which ITR I have to fill for incomes of below nature (total from all income around 2LAC only), filing ITR to get TDS back.
1. Brokerage income (as share broker) – TDS already deducted under 194H on FORMA26AS
2. Short capital gain from F&O trading of shares
3. Fixed deposits interest
Should file ITR-3? where should i put Brokerage income under? which line? I do not want to create P&L or Balancesheet. I do not want to deduct expenses.
Please help. Thanks!
Sangita-ITR3. It is hard to handhold with commenting here. If you have confusion, then better to take a help of a tax expert of your area.
Hi Sir,
I have filed ITR for FY 2016-17 but now i am getting mails from IT dept to file for AY2017-18.
Pls confirm me : i need to file ITR-1 and i draw salary from private company. What to do in this case ?
pls help
Jatin-If you filed ITR and it is also processed, then inform the same to IT Dept.
Sir, i have confirmed from IT helpline number and they said system is not showing your ITR for 2016-17. want to know if i go to IT online site and select ITR-I , fill all details and then submit — will that work for me and IT dept also ?
Jatin-First check yourself whether you filed or not.
Sir, For claiming Tax relief under I.T Section 89(1), is it necessary that I should have filed Income Tax returns for all the
previous (relevant) years ?
Prasanna-As per me YES.
Hello sir,
I am vijeta and i want to fill ITR and this is my firest ITR. I am a part time tutor and my earning comes under tax payable. Which ITR form should i fill ?? Help me sir.
Vijeta-ITR3.
Thankyou sir,
And please tell me in which column should i fill my income in ITR3 ??
Vijeta-Which column means? There are enough sources available online to proceed in that. Please refer the same.
Sir,
My sister has filled ITR-4S for 2017-18 to claim his TDS and choose category of profession as “General commission agent (0301)”, as she has an income from LIC .
She got a email from income tax department, Notice u/s 139(9) of Income Tax Act, 1961.–
Error – “As per Section 44AD(6) of the Income Tax Act, 1961, the provisions of Sec.44AD are not applicable to – (1) persons carrying on professions that are referred to in Sec.44AA(1), (2) persons earning income in the nature of commission or brokerage, and (3) persons carrying on any agency business. As seen from the return of income filed, the nature of business code mentioned is 00301 General Commission Agents, which falls in the categories mentioned above. Hence, the provisions of Sec.44AD are not applicable, in your case.”
Solution – “As the provisions of Section 44AD are not applicable, in your case, the claim of computing profits and gains of business on presumptive basis, under this special provision is not allowable. Hence, the above defect has to be corrected by way of computing the profits and gains of business under the normal provisions and not under Sec.44AD and offering the same.”
Please guide me she has to filed which ITR and get his claim for TDS. Also please let me know where Commission received from LIC received has to be mentioned in ITR form.
Thanks
Sumit Wadhwa
Sumit-She has to revise the IT return with ITR3.
Hello Sir
which ITR should be filed for Beauty Parlour Income.
should we filed ITR-4 under 44AD
Hello Sir
One of my friend is a civil contractor, actually he is a sub-contractor and his TDS is deducted u/s 194C.
should he filed ITR4 under 44AD?
Durgesh-Refer the eligibility to file the ITR4.
Hi Basavaraj
I had filed Income tax returns this year in June 2017 and have successfully e-verified. I did this through an Auditor. However its been 6 months and I haven’t received the claim amount yet. Would you help me to know why is this. Last year I got the amount within 32 days.
Rajani-Either check your auditor or the AO.
SIR, I M LAWYER PRACTICING IN COURT I FILED RETURN IN FORM NO.3 Showing
no books in 44ada 720000 net 701340 gave full details in balance sheet while in p and l gave details in col omen 53 shown 0603 as legal profession,shown not applicable to audit
still receive notice u/s.139(9) in it it states not filled balance sheet ,pand l acc i could not find separate column for maintenance of account .Do i have to show professional income at sales of services in A REVENUE FROM OPERATIONS instead 53. please help
Rajiv-Better you consult an auditor or tax expert in your area. It is hard for me to guide anything blindly.
I has been filed ITR 4 for the financial year 2016-17 AY 2017-18 for Income from LIC commission. Now i received defective status from CPC. kindly suggest now i can refiled ITR under 3 or 5.
Soumya-It is ITR3. But check what is defective before jumping into revising.
Sir,
It is mentioned that Taxpayer is requested to furnish correct Return Form
type,i.e.ITR- 3 or ITR- 5 as applicable. If the Income has been
disclosed under incorrect Section, the correct Section of
the Schedule BP may be filled.
and one more is ITR 3 , 5 is asking to attach audited report. Kindly suggest in this regard
Soumya-In that case use ITR3. Yes check with your tax consultant for eligibility of audited report.
Sir my friend Prabir has filled ITR-4S for 2017-18 to claim his TDS and choose category of profession as”General commission agent (0301)”, he is an investigator for different insurance company, income receive as professional fees. He got a email from income tax department, Notice u/s 139(9) of Income Tax Act, 1961.–
Error – “As per Section 44AD(6) of the Income Tax Act, 1961, the provisions of Sec.44AD are not applicable to – (1) persons carrying on professions that are referred to in Sec.44AA(1), (2) persons earning income in the nature of commission or brokerage, and (3) persons carrying on any agency business.As seen from the return of income filed, the nature of business code mentioned is 00301 General Commission Agents, which falls in the categories mentioned above. Hence, the provisions of Sec.44AD are not applicable, in your case.”
Solution – “As the provisions of Section 44AD are not applicable, in your case, the claim of computing profits and gains of business on presumptive basis, under this special provision is not allowable. Hence, the above defect has to be corrected by way of computing the profits and gains of business under the normal provisions and not under
Sec.44AD and offering the same.”
I want to know as per the above Error, which ITR should he submit to rectify his 2017-18 return and get his claim for TDS.
Thanks
Shankar-I replied to your email.
Hello Basavaraj,
I too have the same problem. Can you email me the steps to resolve this.
I have filed IT4 and mentioned income from commission as I am LIC agent.
Regards
Antony-Sorry I can’t do such service for each individual.
Sir thanks for your reply. I want to know that do i have to submit ITR-3 in response of the defective return, for the case given of my friend Prabir. As in my case i have not submit my ITR and asked as which ITR is suitable for me ITR-4 or ITR-3, but as my friend has already submitted the return and he gets a notice from incometax department, so i want to clarify in his case, as which ITR should he submit or any other process to rectify his problem. Thanks.
Shankar-In my view, he has to revise the return using ITR3.
I am post office agent . My tax was deducted under section 194 h . I have filed itr 4 under section 44AD . But it was found defective. Which itr or section is applicable for post office agent
Yogesh-In my view you must use ITR3 not ITR4. Not sure why you used ITR4.
I am AMWAY BUISENESS OWNER.TDS deducted under 194H. No other income.Which ITR form should I use?
Barun-ITR3.
Sir, I am a Home Tutor. I had filled up a ITR4(sugam) form. Yesterday, I received notice from Income tax office. They have asked me to fill either ITR-3 or ITR-5 as applicable.
Please tell me which form should I fill?
I would also like to know in which Section of the Schedule BP should I disclose my income from home TUTION?
Also tell me the nature of business Code (Sch NOB ) for the same.
Thanks in advance.
Nancy-ITR3.
Sir, by profession i am a investigator for insurance company. Should i choose “0301 General Commission Agents” as nature of business or profession in IT return file, and which IT return file should i submit for FY-2017-18 ? ITR-3 or ITR-4 ?
Shankar-Whether the nature of earning is like a commission?
Thanks sir for your reply. My work describe as to verify any death and accident claim of the insurance company, and i get my professional fee as well as expenses of travelling fee to inspect the claim. Company do cut TDS from my earning, and i want to claim TDS refund for the FY-2017-18. So which ITR should i submit for my TDS claim.
Shankar-Then it is professional income not commission income. You can use ITR3.
Hi Basu,
I have sold a property in Aug 2016. I have made a capital gain (sold a residential building) of 8 Lakh after incorporating the indexation.
I have not filed my return yet for FY2016-2017. I am in process of purchasing a residential plot for which I have completed sale agreement in Sept 2017. The amount of purchase of plot is 36 lakh.
1. Can I claim relief from long term capital gain tax by purchasing residential plot? (I have no intention of constructing house in next 5 years)
2. If answer to your first question is yes, can I claim the LTCG tax benefit now by filing a late IT return as I have missed the deadline of 5th Aug 2017?
Thanks
Yesvant-1) No, as you planned not to construct the property for next 5 years.
Hi Basavaraj,
Nice to see your articles with exhaustive discussions and materials on tax.
I am an Engineer and I have worked for 1 month as permanent employee of company A & 3 months in contract basis in Company B during finacial year 2016-17.
I have also rental income from one house and also interest income through interest from FDs.
Can I use ITR 4 for tax filing using section 44ADA?
Thanks in advance,
ksp
KSP-Use ITR3.
Thanks for the quick response.
Just want to know is there any specific reason why itr 4 cannot be used in my case.
Thanks,
Ksp
KSP-Refer my above post and also search about presumptive income eligibility.
Thanks for he reply.
My income is less than 15 lacs pa. Cleartax website says itr 3 is applicable if income exceeds 50 lacs.
Any advise?
KSP-I am not sure about their reply. As per me, I follow of what I have written above.
Hi Sir
Assessment year 2015-16 financial year 14-15 not filing of tds refund.
Last date is over.
What solution of tds refund?
please suggest.
Santishi-You have to approach your AO for non-refund of TDS.
ARE I USE ITR 1 FORM FOR LIC COMMISSION AGENT?
DP-Use ITR3.
Can i file ITR 1 where my TDS is deducted under sec 195j and form 16 A was provided to me and I have no other income.
sorry that was 194j
Anil-You have to use ITR3.
Dear Sir, Do you advise about GST rules/registration also? I am an Mechanical engineer and have retired from a public sector company as GM in March,2010. From 2012 to 2015 I had worked as Technical consultant to a Pvt Ltd company operating from SEZ at Bangalore which had their customer’s at Europe. In 2013 my Income rose just more than 10 lakhs and had to register for Service Tax.. The income was less than 10 lakhs in 2014 and ultimately stopped working as Tech advisor from Oct 2015. Since I didn’t get any offer for consultancy work I requested for surrender of my ST registration in Oct 2016. Now I have been re-hired by SEZ company for 3 months and my income for this period would be Rs 1.2 lakhs(Total) and even if they renew my contract as freelancer the income is not going to reach Rs.10 lakhs. The nature of advise is to provide technical clarifications to the employees of the company mostly engineers on technical subject related to generation of technical documents /concept to manufacture Aero engine parts/tools etc. and teach on manufacturing engineering. Could you kindly advise me in above scenario is it obligatory to get GST registration?
Regards-Kushal
Kushal-I am not an expert in GST to guide you (I know the basics).
My income is > 50L. On income tax e filing website, I have tried to use ITR1. When I am putting my salary income, it gives an error that this form can not be use as income is more than 50L. What should I do?
GSD-ITR2.
Hi Basavaraj,
My query as follows,
As I am working as HR Consultant on “Contract” in the organization from June 2017 to March 2018 with lump sum pay of Rs. 100000/- & TDS @ 10% deducted every month
but earlier 2 months i.e. April & May 2017 I have worked as regular employee hence kindly advise on the same ….
1.Which ITR to used for filling returns for fy 2018-19?
2.If my income falls under sec. 194 J then I will get quarterly Form 16A
– then how to save my income tax under what expenses heads?(any limit under each head) at the end of the year
– or could you suggest any way out to reduce /save around Rs.10000/- TDS deduction per month.
Best Regards…Pankaj
Pankaj-Use ITR3. Sec.194J deals with TDS. Do remember that avoiding TDS does not mean avoiding tax.
Hello Basavaraj,
Thanks a ton… for your quick revert much appreciated. Here I wish to clarify myself that I don’t wish to avoid tax but wish to avoid /reduce excess deduction of TDS and wait for refund to come .
Hence requested you to suggest any ways & means of save my tax or get maximum refund on submission of any investment proofs, or any expenses details.
Best Regards…Pankaj
Pankaj-But what I am pointing is that let them deduct TDS at whatever rate. The ultimate proof is how and in what way you show your income.
Hi Basavaraj,
Ok fine I am good with the TDS @ 10% flat , but the issue here is I will get Form 16A with only income but no exemptions shown like salaried employee.
Also what are the list of expenses heads which is valid & same is acceptable under IT act ??
Hope not bothering you much.. 🙂
Best Regards…Pankaj
Pankaj-Refer the IT portal for expenses heads and other details. I can’t explain whole things in the comment field.
Great!! thanks Sir, I know I am bothering you much but if you could please let me know the URL or path to access the said information portal & to find out more on the expenses heads to save tax , that would be great help to me.
Regards…Pankaj
Pankaj-You can get all information in IT Portal.
Sir, I have submitted wrong e- return at website due to some wrong calculations and e verified also. Can I fill revised ITR. If yes, then which form to submit.
Upadhyay-Yes. Refer my post “How to file revised income tax return?“.
Sir Thank you very much for this prompt reply first. I have read the link how to file revised return. I want to know weather any excel sheet is required to fill and send it to CPC Bangalore for revised return as mentioned in your blog. Can’t this be done online.
Upadhyay-Now you no need to send to CPC. E-Verification is enough.
Thankyou Sir.
Hello Basavaraj Tonagatti,
This is Kabir. Thank you for the informative post and the replies to each comment. We all appreciate it very much. I have a query regarding my taxation. I’ve been getting different opinions from a lot of people. Please help me make a sense of my situation.
FY 2016/2017: Freelance Income from Web Dev 4.8L approx
Capital gains: INR 20, yep just 20
So is it ITR 3 for me or can I take a leap of faith with ITR 4 Sugam? Actually it’s 17 Rs something 🙂
FY 2017/2018: In case I decide pay advance tax
Freelance will be about 6.5L-7L I guess
Capital Loss: 80K
Can I avail ITR 4 Sugam next year since I don’t have any Capital gains.
Thanks again for the post and taking out time to go through this!
Cheers!
Just a quick update, a friend suggested me to file under ITR 3 for profession and capital gains. He said I should use #53, No account case and pay 50% for profession and list 18rs as capital gains under appropriate section.
Your input will be appreciated!
Cheers!
Kabir-Go ahead.
Kabir-Use ITR3 for both FY.
Hello Basavaraj Tonagatti!
Thanks, I see no option in ITR3 new form which says anything like 44ada. Do I just list 50% income from profession in ‘No accounts case’ in profit?
Kabir-It is wrong to disclose that way. If you are unable to find, then better take the help of any tax expert of your area.
HI Under ITR 2, Asset Liability section can you confirm if the amount of insurance premium needs to be added for money back policy or even term insurance. Do we need to declare the premium paid for all years put together till now or for the last FY only
Also, do we show PPF deposit over last years in this as well under Asset liability
and do we reflect the liability of loan with interest due for next few years as well.
Thanks
Kumar-Your Life Insurance premium you paid are neither asset nor liability. Also, the premium you paid last year is only eligible to show.
Thanks Basavraj.
However Asset section mentions insurance policies. What do we mention there in ITR 2 in that case.
Also do we need to mention PPF deposit as well in Assets in ITR2
Kumar-In my view mentioning your insurance or PPF is not required.
hi sir
I wanted to know where do i show exempted interest of GPF/PPF in ITR 1
Dharmendra-You have to show in exempt income field.
thanks and is it compulsory? as i have already filed the return without mentioning it.
Dharmendra-Not compulsory as you are claiming they are exempt. But better to show them.
thanks a lot…
Hi Sir,
Which ITR should I choose between ITR 1 and ITR3 for Unskilled Contract employee (individual) for A/y 2017-18.
As per form 16a TDS deducted u/s 194c.
Please Advice.
Deepak-ITR1.
Thank you.
Hi
I have two plots one for which I had made 95% of the plot amount and paid back my home loan. The possession is still awaited from the builder since last 6 years. Am I Required to declare it under Assets. Reg 2nd plot, it is a government allotment however, I have paid the full amount by taking a loan and the possession is expected in next 1-2 years. Shall I declare that as well
Kumar-It is not yet registered in your name. Hence, you no need to declare as you are not the rightful owner of the property.
Thanks Basavraj. Can you also confirm if the amount of insurance premium if for money back policy or even term insurance. Do we need to declare the premium paid for all years put together till now or for the last FY only
Kumar-You have to show the premium which you have paid for the last FY ONLY.
Dear Sir,
I am a Technical Consultant, and am eligible for section 44ADA from AY2017-18.
But, I also have Capital Gains tax.
Which form should I use for filing my returns, to take the 44ADA benefits.
Thanks, Vinay
Vinay-In that case you can’t take benefits of presumptive income. Hence, use ITR3.
Thank you very much Sir.
Sir, Please guide on the 2 queries
1) In Assets and liabilities schedule of ITR-2, am I required to show the EPF amount (Employee provident fund)
2) In Assets and Liabilities schedule , am I required to show the installments paid towards buying a flat whose possession is still not received
Vinitha-NO.
Sir,
LIC Comission should be shown in which head in ITR 3, Business or profession income
I mean UNDER NO ACCOUNT CASE , 53(i) assessee carying business or 53(ii) assessee carying out profession
Thanks
Sameer-YES.
Thanks Sir,
But under the same in ITR 3 2017-2018 there are two separate columns one is 53(i) business and 53(ii) profession.
So in this case LIC agency should be considered as Business or profession???
Thanks
Sameer-You have so many basic questions, which I can’t answer to each individual and handhold them. If you have difficulty, then take the help of tax consultant of your area.
Basavaraj Sir,
I am post office agents and i have alreaddy filled the details under section No Acccount Case of Balance Sheet and Profit and Lost Sheet. and checked no in section 44 AA And 44 AB INGeneral firm. But still facing error while uploading and getting this message
“The XML Schema is invalid. Please upload the XML in the correct schema.
At Line Number 59 : The content of element ‘ITRForm:AuditInfo’ is not complete. One of ‘{“http://incometaxindiaefiling.gov.in/master”:AuditAccountantFlg,
“http://incometaxindiaefiling.gov.in/master”:AuditReportFurnishDate, “http://incometaxindiaefiling.gov.in/master”:AuditorName,
“http://incometaxindiaefiling.gov.in/master”:AuditorMemNo, “http://incometaxindiaefiling.gov.in/master”:AudFrmName, “http://incometaxindiaefiling.gov.in/master”:AudFrmRegNo,
“http://incometaxindiaefiling.gov.in/master”:AudFrmPAN, “http://incometaxindiaefiling.gov.in/master”:AuditDate, “http://incometaxindiaefiling.gov.in/master”:LiableSec92Eflg}’ is
expected.”
Please guide me sir
Manoj-Refer THIS IT Dept Guidance. Otherwise, download the file freshly and try to fill once again.
there are only 2 forms available online Income tax site ITR1 & ITR-4… for salary >50lacs which form to use
Rohit-Check properly. All forms are available.
Basuji, I am filling ITR 2 form but the aadhar field is grayed. Can you pl. help
Aditi-Grayed means?
Dear Sir,
I have income from “Salary” & interest from FD and my gross income is around 30 lacs with my employer having deducted the entire tax under “Salary”. TDS has been deducted from the interest at 10% by the Bank. Do I have to now pay an additional 20% (30-10) on the above interest at the time of filing returns for AY 2017-18 ?
Ravi-Yes, you have to pay additional tax based on your slab.
Sir,
I have income from pensioin and fd intrest and expenses like house rent, LIC premium payment & children college tution fees.
I need to know type of form to be used to file IT return and about expenses exemptions if any.
Vasa-You can use ITR1. For deductions, refer my latest post “Tax Savings options other than Sec.80C for FY 2017-18“.
Hello Sir,
Am out of job from Aug, 2015 and not earning any sort income . In order to file nil returns for this year , can I use ITR -1? Please let me know.
Thanks!
Depthi-YES.
Hello Sir!
Thanks for the quick reply! Can you please help me on the below –
1) Employer category- as am not working can I choose Not applicable on general information tab?
2)I have a FD from past 2 yrs which gives me an interest of 17, 200 and I did declared form 15 G in the bank. This rightly pops in details of tax deducted from other sources of income section (on tax details tab) with tax deducted being zero.Do I again need to mention the same in exempt income on taxes paid and verification tab?
Please do let me know.
Deepthi-1) Yes. 2) It is not exempt income. It is income from “Income from Other Sources”. Hence, you must show it. However, based on your total income, you will get refund of the same.
Hello Sir!
Thanks for clarifying my doubts. One last one –
For the interest on my fd , it is already popping on the Income From Other Sources section, Does that suffices?
Thanks!!
Deepthi-Yes.
Thanks a ton!! for your guidance sir !
Kushal says:
July 24, 2017 at 9:14 PM
Dear Sir,
Kindly advice which ITR for AY 2017-18 are suitable for :
1. If income source is from part time teaching in an University and FD interest. Total income less than 5.5 lakhs for senior citizen.
2. A person earning income as assistant director in movie industry . A woman earning about 2.6 Lakhs as an individual.
Thanks in advance,
Kushal
Kushal-1) ITR1.
2) ITR3.
Hi Sir,
Which form to be used for Income exceeds INR 50 Lakh?
Thanks & Regards
Vikas
Vikas-Nothing like that. It again depends on the source of income rather than the how much income.
Sir,
Income from Salaries and one house property.
Regards
Vikas
Vikas-ITR2.
Thank you so much sir.
For Assessment year 2017-2018, i have FD interest as 80K and bank already detected 8K (approximately). Let me know, where do i need to declare 80K in ITR-3 form. pl assist
For ASSESSMENT YEAR 2016-17, I am expecting Rs 1900 as tax refund.
I had raised a service request 2-3 months back asking for cheque to be sent to my home address. Haven’t received cheque so far. I don’t see any status updated.
Pl let me know how to proceed on the next steps.
For last year, i have around 2.4lakhs as short term capital gains and 1.7 lakhs as long term capital loss.
Short Term Capital gains will be @ 15% tax, what about long term loss. How it will be considered for tax calculation ?
Deduct 1.7L long term capital loss from gross salary (Say i got 7.5Lkakhs worked as freelancer) ? pl explain.
Many Thanks,
Kumar
Dear Sir,
Kindly advice which ITR for AY 2017-18 are suitable for :
1. If income source is from part time teaching in an University and FD interest. Total income less than 5.5 lakhs for senior citizen.
2. A person earning income as assistant director in movie industry . A woman earning about 2.6 Lakhs as an individual.
Thanks in advance,
Kushal
If one sell a flat in 2016 /May, and invests in the LTCG ( rural Electrification Bond), to get tax exempt, then is there a need to declare this in the IT returns ?
thanks,
I have income form two house and salary income but total income is less than 50 lac. I am filling ITR2 form. In ITR-2 there is sheet to provide Asset. shall I provide asset details, what is your recommendation.
Navin-Use ITR2 and yes you can mention your asset details.
Thank you Sir. As asset details are not mandatory for income less than 50 lac so is it OK if I do not mention it.
Navin-YES.
Sir, I want to know that my employer is adding allowances coming under sec 10 (14) (i) & (ii) of IT act 1961, like conveyance allowance, special compensatory allowances etc. etc. in my gross income. So can I deduct these allowances from my gross income of the FY2016-17 while filing ITR 1. If yes then, in which column/filled I should reflect/fill the details of sec 10 (14) while filing online ITR1 of AY 2017-18. Or Simply can I deduct the amount of these allowances from my gross salary and fill the remaining amount in column B1(income from salary) of online ITR.
DP-In my view, you have to deduct these allowances from gross salary and then calculate your net taxable income.
Sir,
I have income from Bank fixed deposit and income from buying and selling of shares – both short term gains and long term gains in shares transactions.
Which ITR I should use for filing IT return for Financial Year 2016 – 17
and also for Financial Year 2015 – 16
Sumitra-For current AY, you have to use ITR3 and for earlier AY it is ITR4.
Sir- My employer has deducted 10% TDS under 194J-Which ITR form should I use.Morover is there a way to save tax under 194J
Siddiqui-If you have only salary income, then use ITR1.
Thanks
LIC agent with annual commission of Rs. 2.3 Lacs plus other incomes, which ITR to be filled for the AY 17-18
Chandan-LIC agents commission is considered as a business or professional income. Hence, they must use ITR3 for filing IT Return for FY 2016-17.
sir is it requirement Balance Sheet and P & L Account for ITR 3 if Income is more then 120000 but less then 500000
Parameshwar-Not required in your case.
Dear Sir,
In FY 2014-15, I had loss about 5 lakhs from intraday share trading and less than 1 lakh income from Salary + Bank Interest. I filled ITR4 form against which I got IT notice under section 143(2) for Limited Scrutiny. I have submitted my proof of loss but this is pending from IT dept side.
In the FY 2015-16, my total income is around Rs. 5 Lakhs including consulting fee under 194J. I filled the ITR4 for this year as well but I got Notice u/s 139(9) in absence of entries in balance sheet. I replied to notice with “Not Agree” citing reason that I have no consultancy firm and it is single job which I am doing and getting salary but under 194J. Further response from IT dept is still pending.
Now in the FY 2016-17, my income which is around 7 lakhs, is again under 194J. So can fill ITR 4 now (ITR 4S in previous year)? In that form can I show total earning as 7 lakhs and some amount e.g. 1-2 lakhs as expenses for providing consultancy?
Can the question arise that why you are showing expense when in last year ITR I have given explanation that I am not working as consultancy firm but kind of salaried employee??
What best should I do with good intention?
Thanks for your time and possible reply.
Amit-Question arising is purely left with AO. But you have to use ITR3.
Thanks for reply.
But Sir, in last financial year consultancy fee (under 194J) can be submitted with ITR4 only and this it can be under ITR4( previously ITR4s). Also I can say last year there was no expense but this year I made some expenses which I mentioned. Shouldn’t it be OK?
Also for last 2 years ITR, update from IT dept is pending. I am following both but no update. Should I do anything else from myside?
Amit-I am not sure of what went wrong earlier. But for this year, I am saying use ITR3.
Dear Sir
I work as Data processing, answering emails , calls and IT related work for an overseas client. Income directly comes to my Banks which about 13-14 lacs per annum. I am planning to use presumptive tax Section 44ADA for this year.
1) So I understand I have to compute 50% say 7 lacs as my profit and pay according to the tax slab. I am aware no deductions like purchase , rent , internet etc is allowed but am i correct in thinking the usual deductions ie basic exempt limit of 1 lac plus 1.5 lacs (PPF or ELSS etc) is allowed. Which would further bring down my taxable income to 7 lacs less 2.5 lacs = 5.5 lacs please?
2) What is the last date for tax please. I am confused when it says 15th March. Does that meany for financial year 2017-2018, I have to pay my tax by 15th March 2018? I will get to know my actual income only in the month of March 2018 ie when the last payment comes in. Am I getting it correct please?
Thanks
Vikas
Vikas-1) No, a person who adopts the presumptive taxation scheme is deemed to have claimed all deduction of expenses. Any further claim of deduction is not allowed after declaring profit @ 50%.
2) Refer THIS for better understanding.
Dear Sir
Thank you so much for the link.
I think regarding last date , my assumption of paying tax by 15th March 2018 is correct for the financial year 2017-2018. Can you please review this once again with your expert eyes, though simple, it is governments wordings, just want to make sure I am on the right side . Below is the excerpt from the link you provided me. Thanks
QUESTION
?If a person adopts the presumptive taxation scheme of section 44AD, then is he liable to pay advance tax in respect of income from business covered under section 44AD?
ANSWER
?Any person opting for the presumptive taxation scheme under section 44AD is liable to pay whole amount of advance tax on or before 15th March of the previous year. If he fails to pay the advance tax by 15th march of previous year, he shall be liable to pay interest as per section 234C.
Note: Any amount paid by way of advance tax on or before 31st day of March shall also be treated as advance tax paid during the financial year ending on that day.
Thanks
Vikas
Dear Sir
I have been reading the link you provided for ITR4 S. It says for those who have Capital Gains, they cannot use ITR 4S. I have recently done churning of my Mutual Fund Portfolios. Some of the funds I switched to better performing funds while for some I had to redeem and then again invest in performing ones.
My query is since I have switched and redeemed funds, it is considered LTCG so am I not eligible to file my returns through ITR 4 S.
Can you please put in your valuable inputs on this please.
Thanks
Vikas
Vikas-ITR4S can be used in case of presumptive income. Yes, MF redemption is always considered for capital gain (based on type of MF you are holding and the period of holding).
Dear Sir
Thank you for your response.
Since I can use ITR4S where do i report the redemption of Mutual Funds in the return form. There seems no columns to mention that.
All funds which have been redeemed are Growth Equity Mutual Funds and are well past one year which means LTCG and exempt from tax.
Once again thank you for all your help.
Regards
Vikas
Vikas-You have to show it under exempt income. Please check once again.
I have purchased IRFC tax free bond 2013 (200000/-) on 18/2/14 and sold(241000/-) on 21/9/16. To avoid tax on this C.G, (41000) where can I invest this amount?. Can I deposit this capital gain in C.G.A.and avoid declaring in ITR.?
I have other income of pension and interest as 480000/-(80C deposit 150000). Rent earning from one house 15000/- for year F16-17. I have received 800000/- from sell of this rented house on dec 2016. After indexing I have deposited 4.5L in C.G.Account. do I need to declare this house sell amount in my ITR. If I am able to invest these CG properly can I fill ITR1. Which ITR form I need to fill.
HARDHAN-Such profit is considered as long term capital gain and taxed at 10%. CGA is meant only for property sold and there is a capital gain but not for bond holders. Regarding your real estate dealing, yes you have to mention it in your IT Return. Refer above post properly for choosing the right ITR Form.
Hi Sir,
I have income from Salary and also 194H. Which ITR form should I file for AY2017-18.
Surya-ITR3.
dear sir,
i have income from fixed deposit income and brokerage/comission income from textile inspection.
which itr form should i fill? and is this considered income from other sources? and form 1 or form 2?
AUM-ITR3.
Sir i am getting rent from 2 house property..
Jd i m also getting business uncone and i want to. Get benefits of Sec 44AD ..
So can i file my return in ITR4 form..
Bcoz i dnt want to maintains my books of account..
Is there any alternative solution for that ??
Jyoti-As you are getting income from your second house property, you can’t use ITR4. Hence, you must use only ITR3 and presumptive income claiming not eligible for you.
Hi Basavaraj ,
I am salaried person, unfortunately I have made a Short term loss of rs 70,000 (approx), in buying/selling shares (delivery based), and around Rs 20K loss from FNO.
I do not have any books of account maintained. Can i create them now for previous years transactions?
I read that Loss from FNO can be offsetted by income from salary. Is it True ?
Which ITR form should I use ? if.
1. I wish to carry both losses ?
2. I Wish to carry only ST losses ?
Thanks in advance for your answer.
Ganesh-Your F&O Loss is not a capital loss but such activity is considered as professional or business loss. You have to us ITR3. You can set off your loss to other sources of income EXCEPT for salary income.
I am pensioner working as employee in an organisation attached to the Delhi High Court, on year to year contractual basis on the orders of the Hon’ble High Court at a consolidated salary of Rs.35,000/- per month. The organization has issued Form No,16A for the tax deducted at 1% of the total income. I have, therefore, filed ITR 4 in the AY 2016-17. While calculating the income as contract employee I deducted a sum of Rs.1 lacs as Expenses from the total income for Travelling expenses,telphone, maintenance of computer etc. But no account has been maintained as I was told that I am not required to maintain books of accounts.
The IT Department had intimated me that my return filed has been considered as defective as Part A B/s and Part B P&L has not been filled. I replied to them that it is a No account case and it was not required. But they have not accepted this reply and pointed out that I should get the defective Return set right within 15days
what is the option now left with me. I did not keep any books of accounts for the last year.
M S Bose
Bose-Please be in touch with any CA of your area.
Hello Basavaraj,
I am a salaried employee, Last year I have sold my equity mutual funds and made some gains. My holding period was more than 2 year. I believe the gains are tax-free as holding units more than a year and I don’t have to pay any tax but which ITR form needs to be filled? Which section of ITR form will reflect this details?
Ankit-Use ITR1. You have to show this income as exempt income.
pls provide vedio how to fill up itr 2
Sanjay-Check in google.
Hello, thanks for your informative blog. I am a partner in partnership firm getting salary from the firm as partner. In addition I have income as an independent technical consultant which will come under income from profession.
From my understanding I will have to file ITR 3 in this case for AY 2017-18. Am I right?
Also, my income from profession is under 10 lacs, so can I use Section 44ada for the income from profession component and pay full tax on the salary component?
Also, where in the ITR 3 should the salary from firm be mentioned, as I do not see any schedule for it to be mentioned, schedule IF mentiones share of profit and capital balance of partner but no salary from firm for partner.
Thanks and Warm Regards 🙂
Joshi-Yes, you have to use ITR3. Regarding filling the form, if it is confusing you, then better take the help of tax expert of your area. I can’t explain all in this comment section.
OK, Thanks. What about the section 44 ada, can I use the Section 44ada for the income from independent profession component and pay tax on the salary as partner from firm component in the normal way?
Regards,
Joshi-Have you checked the eligibility rules of Sec.44ADA? If you are eligible, then you can and in that case, you have to use ITR4.
Yes, I am eligible for Section 44ada, but as a partner in a firm too from which I get salary, I believe I cannot use ITR 4, will have to use IT3 even if I use 44ada for the independent profession component, correct me if I am wrong?
Joshi-In that case I dont think you are eligible for using that presumptive income option.
I have two components of income.
1. Salary from Firm
2. Independant Professional Income
For the independant professional income component I believe I can use Section 44 ADA as long as it is below 50 lacs. Correct me if I am wrong.
Joshi-Check the eligibility before jumping into using presumptive income option and then go ahead. If you use presumptive income, then you have to use ITR4.
Hi,
I have salary income, plus income from freelance work (less than 50 Lacs). I also have some long & short term gains from sale of shares. I wanted to take benefit of the presumptive scheme Sec 44ADA for the proceeds from my freelance work. Can I use ITR-4 to submit my returns?
Is there a provision to show capital gains from shares in ITR-4 along with presumptive business income declaration and normal salary income?
P.S: Thank you for answering questions for people and spreading knowledge. Much appreciated!
Thanks
Karan-Please read properly. If you have any types of capital gains, then you can’t use ITR4.
I did read your article properly, plus other posts as well. I see no reason for you to be condescending about it. All I wanted to know was if there is a way through which this can be done, by either treating capital gains income as income from other sources and clubbing it under normal tax slabs.
Karan-How can you wrongly treat one head of income and push into other head of income??
Presumptive benefits under 44ADA and capital gains can not be clubbed. You made your point, thanks.
Hi Basu, my wife has been working as a management consultant in a private sector diversified conglomerate since January 2017 on contract (as opposed to an employee with benefits like medical insurance pf etc) and has received a total sum which is less than 2 lakh for fy 2016. The company has been deducting TDS @ 10% and has issued form 16A.
In addition, she also has interest income from fd.
Should she file ITR 3 or 4 please? I understand that some professionals can claim presumptive taxation under 44ADA and hence the confusion between 3 or 4.
Supratik-She can use ITR3.
I have to file ITR 2. Section AL gives me trouble in online filing. Even though my income is less than Rs 50 Lakhdir, I am asked to fill details of properties failing which the error message prevents me from uploading. Is that a software hitch? Is there any solution for this?
Please advise
Ramanathan-I am not sure about this. Just try after some time.
sir, i have rental income on building and interest on bank FD.which ITR i have to use for AY17-18 ?
Merin-Whether this is your single property or you are owning more than one property?
Dear Basav,
Thanks for your lovely article.
Last two assessment years, I was filing ITR 4 as I had a proprietory business.
This assessment year, I also started a private limited company in 2016 June, where I am getting salary for being managing director as well as income in the form from the same company/business. Now which ITR shall I file for personal return – I am confused because I am getting salary as well as income from company business. Please advise.
Vikas-You have to use ITR3.
Dear Basu,
Thanks for your quick input.
I also noticed somewhere it said that ITR3 can not be used for incomes from proprietor business. The confusion is that I still have proprietor business as well a private limited company.
Please advise.
Vikas-I am not sure about your source of that knowledge. But as per me you can use ITR3.
Dear Basu,
Only to share, I found it here..
https://cleartax.in/s/itr3
Thanks,
Vikas-Don’t believe on me or on the source of this post. But refer IT Dept clarification. In that link, it clearly states “This Return Form is to be used by an individual or a Hindu Undivided Family who is carrying out a proprietary business or profession.”.
sir,it is not the question of form,it is the employer address in my i t return as bank has shown me their employee in form 16,where as my employer should be navy,they have given their TAN and PAN as deductor
regards
Yashpal-Sir it is wrong and bank has to rectify it.
dear Basavaraj,i am retired from navy and getting pension,in my form 16 bank has shown itself as a employer and shown PAN and TAN as deductor.who i show as employer in my tax return
regards
Yashpal-Sir pension income is treated as salary income. Hence, you can consider using ITR1.
Dear Sir,
Thanks for your reply. I am now facing a new problem as mentioned below.
I am filling ITR-2 after downloading excel utility from income tax website and converted into xml file but when I tried to upload xml it gives error of “uploading xml in latest utility”.Can you please help.
Warm Regards
Yashpal-Try using excel utility than Java Utility. However, I am not sure what technical glitch you are facing.
Hello Sir,
I am salaried employee. As per this year 26AS, I can see EPF amount that I had withdrawn and also the 10% tax deducted (I had withdrawn it before 5 year). My doubt is, shall I show it in ITR1 as income from other sources(B3)?
Anuj-Yes you have to.
Sir,
Thanks for clearing the doubt.In that case it will be clubbed with my yearly salary income and then will I have to pay extra tax on top of that 10% all ready deducted on the EPF withdrawn amount as per the slab of income tax for 2017. Sir, Is my understanding correct sir?
Anuj-YES.
Hello Basu,
I have couple of questions.
1. My wife’s salary was revised from back date (Nov 2012) and she received it as Arrears in (Nov 2016). In order to claim relief under Sec 89, she will have to fill form 10E. In for 10E, there is a column for Previous Year(s) Income (before Arrears). In Previous Year(s) (ie from 2012-2016) she had capital gains and income from other sources as well Should these be included while filling form 10E? Or only the salary income for that year should be mentioned in that column
2. We have opened a savings account for our daughter. Both of us (me and my wife) transfer Rs 10,000 in to her account which goes into a sweep-in FD. When I report my Daughters income, should I only take into account interest earned on the FD and Savings Account? or the money which we have transferred will also be treated as income for my daughter? Ideally, it should only be the interest income as the money which we are tranferring into her account is from our income which is already taxed. But I read somewhere that even the amount transferred will be treated as income. Please clarify
: Hello sir,
I contractual salary person in health department.
Salary received electronic system in account.
Tds deduction 10% in section 194j.
No other income source.
Tds certificate 26as received.
What income show in itr form 4.
Section 44ad?
Section 44ada?
Gross receipt ?
Any suugest please.
Gaffar-Why using ITR4? As per me, you have to use ITR1.
Tds form 16a received, never 16.
Can I fill itr 1 Assessment year 17-18
Gaffer-“ds form 16a received, never 16” means?
Sir
Received tds 16a, 26as section 194j form after TDS deduction of salary.
194j business or professional.
Can I fill itr 1 form?
Gaffer-Sec.194J stands for TDS in relation to Professional or Technical Fees. Hence, you can’t use ITR1 but ITR3.
Sir
ITR3 form in Balance sheet and Profit loss making problem, my salary income whose show in form.
Please solve.
Gaffer-Not getting. If you have issues, then take the help of tax consultant of your area.
Hello i am lecturer in a college and i take tuition as well for my extra income. Which itr should i file
Srikanth-ITR3.
I am an independent consultant (IT Project Manager). Worked for 6 months for AY 2016-2017 (from march to sep 2017). I got around 3L of income as consultant, capital gains for AY 2016-2017 is 45,000. Pl let me know, which form i need to select for the current year filing. Previously i used to select ITR-4.?
Kumar-ITR3.
Tnx basavaraj, can you please make a video for ITR-3
Selva-Let me see.
Many thanks
Did u get time to prepare video on ITR-3, basically I am looking how to fill up capital gain and loss sheet
Selva-Let me try. Creating video involves lot of time consumption.
Pl provide an example, how to showcase
1. short term capital gains
2. short term capital loss
3. long term capital gains/loss
thanks,
selva
Kumar-It can be shown easily if you go through the form fully. I can’t guide the whole thing here in comment section. If you still have confusion, then better to take the help of a CA or tax consultant of your area.
Hi Sir,
I am a sleeping partner / investor in a partnership firm, also earn tuition fees. I haven’t files ITR of last 2 years.
Could you please let me know the appropriate ITR form for FY 2015-16 & 2016-17?
Rekha-ITR3.
At present I am on LOP due to illness and my only income for the year 2017 is interest income approx 50000 rs but I had received approx 1 lakh rupees from my father for my medical expenses. I am filling IT as there is tds from deposits which I can claim refund. My question is
1. Whether I can consider the 1 lakh rupees received from my father as gift and not include it as income so I can consider this as exempt income for gifts from relative.
2. Is it required to show this 1 lakh as exempt income in others category or need not show that. My father is a pensioner and does not file IT so only am worried to show it in exempt income.
Please clarify my point.
Ranjan-1) Better you have to show this as a gift from your father and also create a gift deed (in a simple plain paper) for future safety.
2) You have to show it under exempt income.
Thank you for your reply
Even if I add the 1 lakh as income my total income shall be 1.5 lakh approx and will be below the 2.5 lakh category so can I add the 1 lakh to my income from other sources or shall show as exempt income. Please clarify which is the best option.
Ranjan-You can do in that way also.
Hi basu sir,
I am contractual employee.
I fill itr 4 form previous year.
This year EPF deduction 12%.
Tds deduction 10% section 194j tds2 26as form.
Can choose form itr 4?
Assessment year 2017-18 whose column fill itr4 form. Section 44ada fill mandatory.
please practice me, itr4 form.
Gaffar-If you have only salary income, then why ITR4 than ITR1?
I received cheque payment of Rs 5 lakhs from a friend in repayment of cash loans he took from me over the last 7 years. Is this income taxable? I think it is. Can I show it as “other income” in my ITR-1 form? Since the amount is large, I am keen to submit an explanation with full details. Is there any provision for submitting an explanation while submitting returns online?
Bhaskar-If there is any interest income from this, then you have to show that income under the head of “Income from Other Sources”. Regarding his repayment (in a case of you lend money without any interest), then you can ignore. If they raise the issue, then you have rights to show that when you lend the money and when you received (without any interest income).
Nand Shouche says:
June 20, 2017 at 9:12 pm
Dear Basavaraj ,
I was impressed with your knowledge and the way you guide people. Please tell me about Schedule AL in ITR-2 FY 15-16. Are we supposed to reflect only assets acquired during the FY or total assets as on date. I mean for example I am dealing in MFs and invest about Rs 12 Lakhs per annum. As on todat I have a portfolio of about Rs 40 Lakhs. So what I am to show in Shares and securities? Rs 40 Lakhs or Rs 12 Lakhs invested in the FY?
Please revert
Regards
Nand Shouche
Nand-As long as you are not going to liquidate the equity asset, I don’t think it is required to show in ITR.
Thanks Mr Basavaraj. I am still not clear.
But then what is supposed to be shown in “security and shares ‘column. After all you have purchased shares through MFs at a certain cost during the year.This is very confusing. Needs further clarification. Like example I have purchased MF units worth Rs 12 L, build a PMS of Rs 25 Lakhs and further directly purchased equity shares worth 50000/- during FY 16-17. Do you mean to say that none of this is to be reflected in Asset & Liabilities “security and shares ‘column
Nand-Taxation will come into picture when you liquidate and book profit/loss but not while holding.
Dear Basavraj,
I am referring to the Schedule Assets and Liabilities in ITR-2 for those with Total income above 50 Lakhs per annum. Maybe I missed out telling you that initially. Sorry for that.
Now would your answer change or remain same
I am explicitly referring to this schedule and my doubt was whether one needs to reflect the Total assets as on 31 Mar 17 at cost price or only the assets which have been procured in the FY 16-17.
Rgds
Nand
Nand-Sorry for even I too missed. In ITR2, while declaring the assets for an individual whose income is Rs.50 lakhs or more, the assets which you have to declare should be the “COST OF ASSET” but not the current market price. Hence, let us say you invested in MF or Stocks, then the purchase price of all such assets you have to declare rather than the current market price.
Thanks Basavraj for your prompt reply.In short whatever assets I hold as on 31 Mar 17 irrespective of date of purchase will hace to be shown at cost/purchase price.So even if I have purchased MFs of Rs 12 Lakhs during the FY 15-16, but as on 31 Mar 17 hold lets us say MFs at Rs 30 Lakhs cost / purchase price, then I must shoe Rs 30 Lakhs as MFs held as on 31 Mar 17.
Please confirm that I am right and that would end my querry
Nand-You again misunderstood. Here the COST OF ASSET means the cost of purchase. In your example, it is Rs.12 lakh but not the current value of that (which you mentioned as Rs.30 lakh).
Sorry sir, my mistake again. Now I will put it in a better format
a) Cost of MFs purchased in FY 16-17- Rs 12 Lakhs
b) Earlier balance of previous years MFs at cost Rs 18 Lakhs
c) Total MFs held at cost as on 31 Mar 2017- Rs 30 Lakhs(a+b)
So I am saying I need to show total MFs held at cost as on 31 Mar 2017 as Rs 30 Lakhs in the schedule”Assets and Liabilities” in Financial Assets( Biv)(b)-shares and securities.
Once again sorry for oversight. But hope there is no doubt now.
So please do confirm
Nand-Yes, now it is correct.
Thanks Basavraj for your prompt replies
Hi Basu,
Can u plz provide your thoughts on the below query?
I have taken a home loan and interest paid during F.Y. 2016-17 is 1,30,000 Rs. So I have loss from house property is 1,30,000 Rs. I have a short term capital gain on selling the equity shares. Is it possible to set off the STCG from equity shares against the loss from property? If yes, in which schedule need to show it?
Tarun-Can you elaborate the Loss from House Property?
I assume home loan interest (1,30,000 Rs.) that I paid in F.Y. 2016-2107 is Loss from House Property?
Thanks
Tarun-How?
Hi Basu,
Actually I dont know. This is just my understanding. Please correct me.
Tarun-It is not a loss. Hence, you are eligible to claim deduction under Sec.24B. If as per IT rules was loss, then how can they be allowed for deduction?
Thanks Basu
Dear Basavaraj,
I am a salaried class employee. Last year i received compensation for my Agricultural Land from District Collector for National Highway project for an amount of 1 lakh.
For AY 2017-18, which ITR form i have to use for filing tax returns. Also please let me know under which head this income comes under i.e. Agricultural Income or Some other head.
No where in the ITR forms for AY 2017-18, i could find the heads for Agricultural Land compensation from Government
Please let me know these 2 things for filing of Tax Returns . Thanks
Pandu-If the land is rural agricultural land, then there is no question of capital gain. Refer THIS post for further reading on such income.
Thanks Basavaraj for your info.
Since this land compensation has been credited to my SB account from Govt, just for accountability purpose, is it required to be shown any where in IT returns under “Exempted Income”?. If so under which head in ITR1/2 it has to be shown.
Pandu-You have to show under exempt income field.
Hi Basu,
My wife is working as a medical consultant and her employer deducted the TDS at 10% under sec 194J. Which ITR form needs to be fill for medical consultant?
Thanks
Tarun-Is she getting the payment as a salary of professional consultancy fee?
Yes Basu, she is only getting the payment when there is a patient and she treats them in the ratio of 70 (employer):30% of total treatment charges.
HI Basu,
Can you plz confirm which ITR form to use?
Tarun-Sorry to miss. If the remuneration payable as if salary, then she has to use ITR1. However, if it is like professional consultancy fee, then ITR3.
Thanks Basu
If an individual have Salary income of 10 lakhs + Income from one house Property + income from short term capital Gain. Is form ITR 2 is correct to file return online?
If yes, in ITR 2 excel utility, in tab house property there are option of two houses, how can we reduce that to one?
XYZ-Why can’t use ITR1? As per me, you have to use ITR1.
Individual with Income from short term capital can also ITR 1 , then which head will it be charged?
XYZ-In that case you have to use ITR2.
In ITR 2 excel utility available at income tax website there are option of two houses In tab Hosuse Property, how can we reduce to one because without adding data for second excel validations are not working
XYZ-Not sure about that. But for you ITR2 is applicable.
HI.
SIR ,
I’m having agriculture income say rs 300000 and income from other source.
which itr should i file ?
Akshay-ITR2.
Namaskar. I am a commission agent (031 ) . My annual commission is. Around 8 lakes plus other source of income. I do not maintain any books of account. Which. Income tax form I should submit. for 2017-18. Am I required to. Submit. Profit & loss account. &. Balance. Sheet.
Regards,
Balasubramaniyam-You have to use ITR3.
LIC COMMISSION AGENT’S INCOME IS OF WHICH CATEGORY. BUSINESS INCOME OR PROFESSIONAL INCOME
Rita-Why you are differentiating when both are considered under one head of income (Business or Professional Income)?
Hello sir
I am working in private firm, my salary is around 5lakh rupees , I want to know maximum how many rupees I can save from tax and which under sec.
Hitesh-It is hard to say blindly without knowing much about your salary break up and financial life.
ITR 3 UPLODE RETURN PROBLEM THE XML SCHEMA IS INVALID PLEASE UPLODE THE XML IN THE CORRECT SCHEMA . AT LINE NUMDER 2491 INVALID CONTENT WAS FOUND STARTING WITH ELEMENT ITR FORM MOVABLE- ASSET ( Hi, Thanks for the information. I have a question. I am a lic agent and earn commission. Which form should i use?)AY 2017-18
Rita-You have to use ITR3. I think it may be some technical error. If you are unable to find it, then take the help of the tax expert of your area.
I see a similar error on uploading my ITR2 form:
*********************************************************************
The XML Schema is invalid. Please upload the XML in the correct schema.
At Line Number XXXX : Invalid content was found starting with element ‘ITRForm:MovableAsset’. One of ‘{“http://incometaxindiaefiling.gov.in/master”:ImmovableFlag}’ is expected.
*********************************************************************
I have performed all the required steps to generate the XML file without any errors: I validated each excel sheet, clicked “Compute Setoff” on |CYLA-BFLA” sheet, clicked “Calculate Tax” on “PARTB – TI – TTI” sheet and finally clicked “Calculate Tax” and “Generate XML” on “PART A – GENERAL” sheet.
I cannot figure out the issue error. Can someone please help?
Problem SOLVED:
There seems to be issue with the excel utility. It was generating invalid XML files for me. I filled the entire form again with the Java utility and it worked perfectly fine.
Hope this helps others who are stuck at similar errors.
Amit-Thanks for sharing this information. I think it will help others.
I tried the above steps suggested but still I’m getting the same error through Java Utility as well. Pls suggest to resolve this issue.
Amit-This is the second doubt someone asked me while uploading the form. Better you be in touch with IT Dept. I am not sure what went wrong.
Please try this, it worked for me.
Fill the sheet AL in the end. If nothing then plz select ” No ” if there isn’t anything.
C A Varoon Dubal
Hello Basavaraj, Great Article!
I have a question. I am a Software professional and my main income is through Salary. Apart from that I have interest income, income from 2 houses, Capital Gains and a small income from Profession working as a consultant. My guess is that I will have to file ITR 3. My question is that can I use Section 44 ADA for my income against profession? My Gross Receipts is around Rs 1,75,000 for my professional income.
Pallav-Yes, you are right that you must use ITR3. You can use the Section 44ADA, but you loose the option of claiming deductions related to this profession. Also, you have to pay the advance tax. Think the possibility of profits in your personal case and accordingly act.
Thanks for the reply! One more question. If I choose not to use section 44ADA, will I have to maintain the books for my profession?
Pallav-Yes as per the eligibility criteria of managing the books and all stuff.
Hi, Thanks for the information. I have a question. I am a lic agent and earn commission. Which form should i use?
Rita-ITR3.
thanks
IS IT MANDATORY TO FILE A RETURN WHEN WE R NOT COMING UNDER TAX i.e pensioner with handicapped exemption etc
I have sold a house property in Dec2016 in joint name of me and my wife. This house was on rent till Oct2016. After indexation, LTCG amount have been kept in separate C.G.A account(Bank) of me and my wife. I have paid full amount of my CGA to a developer for flat which will be handed over to me on Jan2018. CGA of my wife will be used to pay for another flat which will be handed over in Feb2018. I have one house property in my name for last 6 yrs residing there. Me and my wife are filing separate IT return. My income is less than 10L. My wife income is less than 2L Which IT form should me and my wife should file for FY16-17. Do I and my wife need to pay any tax for LTCG / CGA of sell of house property.
Haradhan-As the momey is invested in CGA (in your case) and re-invested to purchase the second property, then you are exempt from paying tax on capital gain. However, you have to show the proof of these investments to avail the tax exemption from LTCG. You have not mentioned what other sources of income you both have. Hence, it is hard for me to guide. Refer the above post properly.
In the FY2016-17 I and my wife both have income of rent from the house we sold. I have income from Pension, interest. and share trading. My wife has income from interest.
Pl guide which IT return from me and my wife should file separately.
Haradhan-Whether the income from the house is from first property or second property? Share trading in your case is considered as business income. Hence, you must use ITR3.
Thanks. Basavaraj Tonagatti.
I have sold a house property in Dec2016 in joint name of me and my wife. This house was on rent till Oct2016.I have earning from this house. I have one more house property in my name for last 6 yrs residing there. More detail information is given in previous two posts by me.
Haradhan-As your income constitute pension and business (share trading), you have to use ITR3. For your wife, she can use ITR 2 (Because for her also this is second property I think).
Thanks Basavaraj Tonagatti.
For guidance on ITR.
The first house which we sold in DEC2016 was in joint name of me and my wife. The second house is in my name only. We are residing in 2nd house for last 6 years. My wife has booked another house which will be delivered in FEB2018. I have booked a hose which will be delivered in JAN2018. More detail is given in last two posts. Which ITR form my wife need to fill.
Haradhan-If for your wife, the house she is owning is not second one, then she can use ITR1 (as she has only the interest income and her first property income).
My mother is a house wife .She has some FD and she received Rs45000/- as interest on that FD..Now which form is to be used to file ITR.
Sir I am a salaried person. I have sold few ELSS Mutual fund last year after the completion of lock in period. Sir, now please guide me which ITR form to fill as income from selling mutual fund will come under capital gains or income from other sources ?
Regards,
Adhiraj-ELSS redemption profit is tax-free.
Hi Sir,
My father is retired teacher.Can he claim HRA while declaring IT?
Thank you.
Raj-If you are paying rent to your father, then you can claim HRA. But you must show the income while filing your father’s ITR.
Basavaraj,
Thanks for your response.
How can my father claim HRA if he is filing ITR himself.
Thank you
Raj-I am saying that he has to show your rent claim as his income. I think you are showing in your ITR that you are paying rent to your father. Then that rent should be your father’s income right?
Basavaraj,
Actually,Both of us are not living in same home,we are at different cities,I use my rental agreement with the landlord for my ITR and for the rent house where my parents stay in a different town my father wants to claim HRA for IT exemption.As he is a pensioner is he able to do that?
If am wrong please correct me.
Thanks for your time.
Basavaraj,
Actually,Both of us are not living in same home,we are at different cities,I use my rental agreement with the landlord for my ITR and for the rent house where my parents stay in a different town my father wants to claim HRA for IT exemption.As he is a pensioner is he able to do that?
If am wrong please correct me.Kindly respond.
Thanks for your time.
Raj-You mean to say your father want to claim his HRA?
Yes sir,he wants to claim his HRA.Can he do that being a pensioner?
Raj-Yes, why not (If he is still staying in rented home)?
Thank you sir for your help.
I would want to file ITR 3 for AY 2017-18 IMMEDIATELY. This is needed for me to go for a bank loan and Visa as well.
What is the earliest date I can file this online ( Right now, the software doesn’t seem to be in place for this). Any indications/notifications from govt regarding the earliest dates for filing ?
MP-You can file it NOW. Which software you are pointing?
Hi, Thanks for the information. I have a question. I am a mutual fund distributor and earn commission. Which form should i use?
Vinay-ITR3.
Hi, Thanks. But only ITR-1 & 4 are available in the dropdown menu in my login. What should I do?
Dear sir,
my query is relating to updation of aadhar no with it dept.As my spouse having different
surnames while comparing with pan to aadhar. what to do?
Nagesh-Simple, use your PAN card to update name correction in Aadhaar. Then link it to PAN.
Is it mandatory. I want to keep both ids,As we have some assets and liabilitiea on both names.
Nagesh-Linking is now mandatory. Hence, better you do it.
Very well researched and detailed article as usual. Thank you.
I have a question. I gave up my job to build mobile apps (crazy me!). As a result, in the financial year, I made only some pocket money and no salary. I don’t have my company (if you call that) registered per se. Also I have some short term capital gains to declare. Now, I am not sure which ITR form to go for.
From your article, I understand that ITR 2 is for Salary, Capital Gains and ITR 3 is for Salary, Capital Gains, Business of Professional Income)
ITR 3 is too complicated for me to report this pocket money I got. My tax calculation would be NIL anyway. So I wonder whether I should bother with ITR 3 at all. Would be great to hear your opinion.
Ragu-Better you file IT return by showing all sources of income. Pocket money in what sense?
Hi Basu, By pocket money I meant that the earning on my app is not more than 20k for the whole FY. For this, I wonder if I must use ITR 3 if we consider this as business or professional income.
Ragu-In that case it is ITR3.
Thank you!
I WANT TO FILE ITR 4 FOR MY CLIENT BUT ONLY ITR 4S IS AVAILABLE. WHAT SHOULD I DO.
Shailesh-Please refer above post. Earlier ITR4 is now replaced with ITR3. You can download the ITR3 either from eFiling portal or from above post.
THANK YOU.THANKS ALOT.
Dear Basu
I have income under 194J and 194H and do not have salary income. Which ITR shall I use? Will ITR-4 serve the purpose?
Thanks
Atul
Dear Basu,
It would be good if you could respond to my query. Just a small correction – I have TDS under 194J and 194 H. I am not sure if can use ITR4 for filing. Should I show the income related to TDS 194H as “income from other sources”?
Thanks
Atul
Atul-Both Sec.194J and 194H deals with TDS or profession and commission. You can’t show such income under the head of “Income from other sources”. Both are considered as your business or professional income.
Thank You.
Thank you for this website! My question is not related to this topic.
My father (60+ year old) has 2 sources of income: Pension+FDs. Every year, he submits Form 15H since his net tax liablilty (after investing in Section80C) comes out be NIL.
My question is while filling Form15H, there is a column of income from FDs. How can we know in advance how much interest his various FDs (of different tenures & ROI) are going to earn in the coming Financial Year for the purpose of filling Form 15H?
Generally at the end of Financial year, we ask the bank to give us a certificate mentioning the interest earned from FDs. So, is that (asking from bank) the only way?
Thx in advance!
Varun-You have to mention the approximate amount.
Thx!
I always get useful information when I come to this blog and again a very helpful article from you Mr. basu. Thanks for keeping us up to date with latest financial norms.
Suresh-Pleasure.
Dear Basu, another great article from you!
I had Google Adsense income, eBay seller income, salary income, FD and NSC income in FY 2016-17. Which form should I use in AY 2017-18?
And I’ve declared my ebay+FD+Adsense income under “income from other sources” using ITR-1 in previous 3 FYs, as they are not my primary income. Should I re-submit the ITR for that previous FY? I didn’t hide my income, just declared using ITR-1 sahaj.
Raju-Your eBay and AdSense earns will be considered as the business or professional income rather than income from other sources. In your case, you have to use ITR3.
The article was very useful.Thanks and keep updating us with the recent amendments and return filing requirements.
Kshitija-Pleasure.
Is there a verification form to be sent to CPC for the new Sahaj?
Frank-If you eVerify it, then no need to send to CPC.
Sir Good Afternoon, we are working in CENTRAL GOVT DEPT as a CASUAL WORKERS from 5 years . We dont have any EPF OR ESI BENFITS. We TOTAL 65 member s planning to have Savings and insurance protection and Good Savings in our future.
Sir we Request please do favour to us and give Advice which is the best for us . POST OFFICE SAVINGS OR BANK SAVINGS OR INSURANCE SAVINGS OR ANY OTHER SAVINGS YOU ADVICE SIR PLEASE SIR WE ARE VERY GRATEFUL TO.
Jagdish-Buy pure term life insurance to protect your life at first (with the company or your choice). Rest of the amount to invest, you have to identify your financial goals. Based on that start investing. It is hard for me to guide without much knowledge of your financial life.
Good information. The particulars in my Aadhaar card (full name, date of birth) was generated from my Income tax PAN card. But when I tried to link my aadhaar with through the link in the e-filing of Income tax, an error ‘the aadhaar database is not tallied. What can I do
Murthy-As of now, quoting PAN number is made mandatory but not linking. Hence, don’t worry as IT Dept also know the hiccups in this issue.
when i checked on it dept site itr1 in efiling then there it’s still showing 4 page form?
Dev-Either you download the form from above post or visit THIS ITR link.
Hello
I am salaried person, my annual salary are more then Rs.51,00,000/- Which ITR form should I file for AY2017-18. And i can also declare assets. kindly suggests.
Anil-ITR1.
But Sir, As per IT deptt ITR 1 (Sahaj) Form For Assessment Year 2017-18 You can’t use this form in case-
# If your total income for the assessment year 2017-18 exceeds Rs.50 lakh;
# Income from more than one house property;
# Income from winnings from lottery or income from Race horses;
# Income taxable under section 115BBDA;
# Income of the nature referred to in section 115BBE;
# Income under the head “Capital Gains”;# Agricultural income in excess of ?5,000;
Kindly read point number 1 of IT deptt, So im confused.
Kindly advise me again.
Sir Kindly advise clearly Which ITR form should I file for AY2017-18 ITR 1 or ITR 4
Kindly advice
Anil-I already replied.
Anil-Sorry…You have to use ITR2.