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  • Category: Tax Planning

    Query about income tax return form

    Have a query about income tax return form? Wondering which form to fill while getting income from salary, LIC commission and mutual funds and shares? Find advice from experts here.

    I have salary income, income from LIC Commission and Capital gain from shares & mutual fund.
    Which income tax return form submission is required?
  • Answers

    11 Answers found.
  • You have to use form ITR-2, because you are getting regular taxable capital gains from shares and mutual fund.
    For general information,
    ITR-1 is to be used when your income in the financial year is less than 50 lakhs, your source of income is Income from Salary/ Pension; or Income from one House Property &
    Income from Other Sources (lottery win, horse racing etc not included).

    ITR-2 is to be used when all the clauses for ITR-1 is there and also Income from Capital Gains; or
    Income of a person as a partner in the firm, Agricultural income more than Rs 5,000 etc are there.

    Thus in your case ITR-2 is to be used.

    However you may also take help of a'tax preparer 'income tax practitioner or chartered accountant if you are not sure of things, or you are worried about mistakes happening.

  • Please find below the details regarding filing an ITR form by an individual as per the mentioned category:
    Filing of ITR form 1:
    This form is to be used by individuals whose total income for the assessment year 2017-18 includes the following:
    Income from Salary or Pension
    Income from One House Property (excluding cases where the loss is brought forward from previous years)
    Income from Other Sources (excluding winning from lottery and income from race horses, etc.)
    This form cannot be used by individuals whose total income for the assessment year 2017-18 exceeds Rs 50 lakh.
    It is to be noted that where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, then in such cases this return form can be used, but only if the income which is being clubbed falls into the mentioned income categories thereon.

    Filing of ITR form 2
    This ITR form is to be used by individuals or HUF's (Hindu Undivided Family) who are not eligible to file Sahaj ITR-1 and also, whose income is chargeable to income-tax under the head – Profits or gains of business or profession is in the nature of interest, bonus, salary, commission or remuneration, due to, or received by them from a partnership firm.
    One should know that this ITR should not be used by individuals whose total income for the assessment year 2017-18 includes Income from Business or Profession under any proprietorship.

    Filing of ITR form 3
    This ITR form is to be used by individuals or HUF's (Hindu Undivided Family) who is carrying out a proprietary business or profession. The return can be filed with the I-T Department in any of the following ways:
    By providing the return electronically under digital signature
    By transmitting the data in the return electronically under electronic verification code
    By transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V

    Filing of ITR form 4 (SUGAM)
    This ITR form can be filed by either individuals or HUFs or any Partnership Firm whose total income for the A.Y 2017-18 includes
    Salary or Pension.
    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.
    Income from One House Property (excluding cases where the loss is brought forward from previous years).
    Income from Other Sources (excluding winning from lottery and income from race horses).
    You can use SUGUM for filing your ITR. But you will have to understand the total provision of tax and hence it is better to take the help of a professional who will help you in saving some tax and the amount he charges will be very negligible when compared to the benefit you get.

    always confident

  • From the query, I feel that you have to fill up ITR-2 form. The applicability of ITR-2 has been made more clear in this year as it is made applicable for the individuals and HUF having income other than income under the head "Profits and Gains from Business or Profession".

    "If you are killed in action, you go to Heaven. If you win, you rule this Earth (as beautiful as Heaven). That is why, O son of Kunti, take a firm resolve and fight!"-- Shrimad Bhagwad Gita

  • For salaried people having income from other sources like commissions on LIC, post office and mutual fund etc the ITR-2 is a suitable option for the filing of Income Tax return. Most of the people falling in this category will be having annual income below 50 lakh so there is no problem on that account also.

    However one should consult the Income Tax practitioner in this regard and sometimes what happens is due to variety and versatility of Income Tax return forms, even two type of forms are suitable for a person and he can choose one of them.

    So experienced Incone Tax practitioner can give a suitable opinion in this regard.

    Another aspect is while filling the form itself one will know that certain fields are not there. That may give the idea whether to go ahead or switch to another form.

    Thoughts exchanged is knowledge gained.

  • ITR form applicable in your case is ITR 3. Most memebers have told you about ITR 2 but that would be a wrong form and your ITR will get rejected if incorrect form is used for filing return.
    ITR 2 would have been applicable if, LIC commission income was not there. LIC commission or brokerage is considered under head "Inform from Business and Profession"
    In ITR 3 all heads of income will be covered and in your case you have actually earned from all possible sources of income except Income from House Property.

    Also to let you know that in case of LIC commission income you can claim expense also which are attributable to generation of the same. Even TDS must have been deducted and deposited against your PAN by LIC, so please check your Form 26AS also before filing the return. You can claim refund or tax or pay less tax as TDS is already deducted @10% by LIC.

    Live before you leave.

  • Still confused as I have already said I am full time private service for the year 2016-17 salary income around 3.30 lakh , Short term capital gain Rs. 17000 & LIc commission 3172 no tds is deducted .So Which Income tax return for required to submit.

  • You have added another confusion by saying that the income is for year 2016-17. Please confirm whether it is financial year or assessment year?
    Financial year is the year in which you earn income and assessment year is the year next in which your return is assessed for correctness once filed within due date.
    E.g. if it is financial year 2016-17 then assessment year will be 2017-18.
    So please revert with correct detail for exact answer.

    Live before you leave.

  • Financial year 2016-17

  • Since the return pertains to F.Y. 2016-17, the time limit for same is over. Last date for filing return for F.Y. 2016-17 was 31/07/2017 and in case the same was missed them belated return by 31/03/2018.
    Since both dates have gone, so you cannot file your return anymore. However there is an exception to it that you request the Income Tax officer under whose jurisdiction you fall, for condonation of delay and the same may be accepted or rejected.
    It can be accepted if there is a refund of tax and there was some genuine hardship in filing the return in time. So the Income Tax officer may allow you to file your return in special case, but the chances are very less.

    I don't want to scare you, but in case of bad luck the taxmen can send you notice for non filing of return and in worst case they can even prosecute you for non compliance. Although the chances are remote but the provisions have changed in last 2 years a lot and the penalty and prosecution sections have been very strictly invoked these days.

    Since you have also disclosed your income and if I add up all of them the tax is computed on the same which you must pay alongwith interest under Section 234A, 234B and 234C even if the return cannot be filed.

    Again I would like to ask you that if you have any savings in form of PPF investment or LIC in your name or 5 year tax savings deposit then, deduction under section 80C can be availed to bring down your income to non taxable threshold..

    In case you have the savings then there will be no tax on your income and you may escape paying interest alongwith taxes, but this I can confirm only if there are savings, or else you are in trouble.

    I have no intention to alarm you or scare you but just an advice for the last financial year i.e. 2017-18 the last date of filing the return is 31/07/2018, so please file your return within time to avoid any non-compliance and attract penalty in form of interest.

    If you have never filed your return then better skip the F.Y. 2016-17 return and begin filing with the F.Y. that just passed by i.e. 2017-18.

    Live before you leave.

  • Thanks all of you for your reply,
    I have already filled Income tax return ITR 2 for the Finanacial year 2016-2017 on 23.07.2017, but missed to show Rs.3172 Lic commission income. I have received notice from income tax for the same. Now I want to file revise return for Salary Income Rs. 330000, Short term Capital Rs. 17000 & Lic Commission Rs. 3172. for this income criteria which INcome Tax return form should be required to submit ?
    Note : TDS Rs. 1500 deducted by employer for salary Income & No TDS is deducted on LIC Commission Income.


  • You are asking questions one by one and expecting answer at one go which is not possible for anyone to respond without complete information.

    Now you say that you received a notice from Income Tax department, now my question is when? Whether it is received recently or much earlier, because time for revised return is over as already told you in my previous response.

    Since you have received a notice from Income Tax department then in such case you can revert to them online only. But before you revert to them you must recompute your total income and see that what tax liability is arising.
    Since you have skipped mentioning the LIC commission income hence your income is underreported and consequently less tax is paid as TDS dedtbyvthe employer is only in the salary income and not other income.
    Now you get the total recomputed and take the deductions under section 80C and then see what exactly is the tax you need to pay. Out of total tax computed reduce the TDS amount and pay the balance tax along with interest.
    After paying the interest you need to revert to the Income-tax department with reference to the notice received along with the proof of submission of tax and interest challan.
    While paying tax also you need to ensure that you pay tax under correct head or else the credit if same will not be given to you and another notice will be on its way.

    Live before you leave.

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