ITR - Income Tax Return 2014-15 (A.Year 2015-16) Explained

All about Income Tax Returns (ITR) updated for Financial Year 2014-15 (Assessment Year 2015-16) and Frequently Asked Questions relating to filing of Online Income Tax Return and Manual ITR

Income Tax Return has to be filed by an individual who has total taxable income exceeding Rs. 2.5 lakh as taxable income in the assessment year 2015-16 (Financial Year 2014-15). CBDT has prescribed various types of Income Tax Returns viz., ITR-1, ITR-2, ITR-2A, ITR-3, ITR-4, ITR-4S, ITR-6 and ITR-7, for declaring taxable income and Income tax paid in respect of a tax payer.

Out of these ITRs, ITR-1, ITR-2, and ITR-2A will be applicable for Salaried Employees and the remaining types are pertaining to Tax Payers who have income from sources other than salary.

The following information relating to Income Tax Returns are provided in the form of Questions and Answers for easy understanding

1. What is Income Tax Return (Short Form ITR) ?

It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income. These forms can be downloaded from www.incometaxindia.gov.in

2. What are the forms of return prescribed under the Income-tax Law?

Under the Income-tax Law, different forms of returns are prescribed for different classes of taxpayers. Applicability of each ITR for the assessment year 2015-16 (i.e., financial year 2014-15) are as follows.

ITR 1 (Sahaj):

Who can use ITR-1?

This Return Form is to be used by an Individual whose total income for the assessment year 2015-16 includes :-

Income from Salary/Pension; or
Income from One House Property (excluding cases where loss is brought forward from previous years); or
Income from Other Sources (excluding winning from Lottery and Income from Race Horses) and does not have any loss under the head

Note:

Further, 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 under the above income categories

Who cannot use ITR-1?

This Return Form should not be used by an Individual whose Total Income for the assessment year 2015-16 includes:-

a) Income from more than one House Property; or

b) Income from winnings from Lottery or income from Race Horses; or

c) Income under the head “Capital Gains” ,e.g., short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or

d) Agricultural income in excess of ₹ 5,000; or

e) Income from Business or Profession ;or

f) Loss under the head ‘Income from other sources’; or

g) Person claiming relief under section 90 and/or 91;or

h) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or

i) Any resident having income from any source outside India

ITR 2:

Who can use ITR-2?

This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year
2015-16 includes :-

a) Income from Salary / Pension; or

b) Income from House Property; or

c) Income from Capital Gains; or

d) Income from Other Sources (including Winning from Lottery and Income from Race Horses).Further, 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 where such income falls in any of the above categories.

who cannot use ITR-2?

This Return Form should not be used by an Individual or a Hindu Undivided Family whose Total Income for assessment year 2015-16 includes Income from Business or Profession,

ITR 2A:

Who can use ITR-2A?

This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year
2015-16 includes :-

a) Income from Salary / Pension; or

b) Income from House Property; or

c) Income from Other Sources (including Winning from Lottery and Income from Race Horses).Further, 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 where such income falls in any of the above categories.

Who cannot use ITR-2A?

This Return Form should not be used by an Individual or a Hindu Undivided Family whose Total Income for assessment year
2015-16 includes :-

a) Income from Capital Gains; or

b) Income from Business or Profession; or

c) Any claim of relief/deduction under section 90, 90A or 91; or

d) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India; or

e) Any resident having income from any source outside India.

ITR 3:

Who can use ITR-3?

This Return Form is to be used by an individual or an Hindu Undivided Family for the assessment year 2014-15 who is a partner in a firm and where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, he shall use this form only and not Form ITR-2.

Who cannot use ITR-3?

This Return Form should not be used by an individual whose total income for the assessment year 2014-15 includes Income from Business or Profession under any proprietorship.

ITR 4S (Sugam)

Who can use ITR-4S?

This Return Form is to be used by an individual/HUF whose total income for the assessment year 2015-16 includes :-

a) Business income where such income is computed in accordance with special provisions referred to in section 44AD and 44AE of the Act for computation of business income; or

b) Income from Salary/Pension; or

c) Income from One House Property (excluding cases where loss is brought forward from previous years); or

d) Income from Other Sources (Excluding winning from Lottery and Income from Race Horses)

Note:

1. The Income computed shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income Tax Act.

2. Further, 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 either of the above income categories

Who cannot use ITR-4S?

This Return Form cannot be used to file the following incomes

a) Income from more than one House Property; or

b) Income from winnings from Lottery or income from Race Horses; or

c) Income under the head “Capital Gains”, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or

d) Agricultural income in excess of ₹ 5,000; or

e) Income from Speculative Business and other special incomes; or

f) Income from a profession as referred to in sub-section (1) of section 44AA or income from agency business or income in nature of commission for brokerage; or

g) Person claiming relief of foreign tax paid under section 90,90A or 91;or

h) Any resident having an asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or

i) Any resident having income from any source outside India.

ITR 4:

This Return Form is to be used by an individual or a Hindu Undivided Family for the assessment year 2014-15 who is carrying out a proprietary business or profession.

ITR 7:

This Form can be used by persons including Companies who are required to furnish return under section 139(4A) or 139(4B) or 139(4C) or 139(4D).

3. What are the different modes of filing the return of income?

The return of income can be filed with the Income-tax Department in any of the following modes

By furnishing the return in a paper form (if total income not exceeding Rs. 5 lakh)
By furnishing the return electronically with or without Digital Signature

Who should file ITR online this year on the basis of Total Income ?

4. If I am allowed to file paper form of ITR (Manual ITR), where can I download it and submit the filled up ITR?

The return form can be downloaded from the site http://www.incometaxindia.gov.in or http://incometaxindiaefiling.gov.in. The manully filled up ITR has to be submitted at the nearest Income Tax Office / Ward. After submitting paper form ITR, get the acknowledgement seal in the print out of filled up ITR-V, for having filed the ITR.

Download ITR-1, ITR-2, ITR-2A 2014-15 for Salaried Employees released by IT Dept

5. I want to file Income Tax Return online (E-fling of ITR). What are different methods of filing ITR online?

Income Tax Return can be filed online either with Digital Signature or without Digital Signature. ITR filing with Digital Signature would involve applying separately for public key encrypted digital code with govt approved Digital Signature granting and certifiying agencies such as TCS, E-Mudra, NIC etc (Click here to know how to get digital signature in India).

In the case of e-filing of ITR without digital signature return can be submitted online electronically and thereafter tax payer can be verified online using EVC in which case signed copy of ITR-V need not be submitted (What is EVC? Click here get the details of EVC). If EVC could not be verified following procedure has to be followed.

If the return of income is electronically filed without digital signature and in the case when tax payer could not verify himself online using EVC, then the taxpayer should take two printed copies of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer, has to be sent within120 days by ordinary post or speed post to
Income Tax Department – CPC,

Post Bag No. 1, Electronic City Post Office,

Bengaluru–560100 (Karnataka)
The other copy may be retained by the taxpayer for his record.

6. For whom e-filing of return is mandatory?

Following taxpayers shall file their returns of income only through e-filing mode:

(1) Every company shall furnish thee return of income electronically under digital signature. In other words, for corporate taxpayer e-filing with digital signature is mandatory.

(2) A firm or an individual or a Hindu Undivided Family (HUF) whose books of account are required to be audited under section 44AB shall furnish the return of income electronically under digital signature. In other words, in such a case, e-filing with digital signature is mandatory.

(3) A resident and ordinarily resident individual/HUF having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India shall furnish the return of income electronically with or without digital signature.

(4) Taxpayers [other than covered under (1) and (2) above] having total income of more than Rs. 5,00,000 shall furnish the return of income electronically with or without digital signature.

(5) Taxpayers claiming relief under section 90, 90A or 91 shall furnish the return of income electronically with or without digital signature.

(6) A person who is required to file ITR-5 shall file the same electronically with or without digital signature. However, a firm liable to get its accounts audited under section 44AB shall furnish the return electronically under digital Signature

(7) A taxpayer who is required to furnish a report of audit under section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC , 80-ID, 80JJAA , 80LA, 92E, 115JB or 115VW shall furnish the return of income electronically with or without digital signature.

(8) A political party who is liable to file return of income shall file the same electronically with digital signature.

7. Is it necessary to attach any documents along with the return of income?

ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

8. What are the due dates for filing returns of income/loss?

The due dates for filing return of income are as follows:

Companies	30th September
Any person (other than companies), whose accounts are to be audited and the working partner of a firm whose accounts are to be audited	30th September
In all other cases	31st August

In case of an assessee having an international transaction or specified domestic transaction(s) who is required to furnish a report in Form No. 3CEB the due date is 30th November.

9. If I fail to furnish my return within the due date, will I be fined or penalized?

Yes, if you have not furnished the return within the due date, you will have to pay interest on tax due. If the return is not filed up to the end of the assessment year, in addition to interest, a penalty of Rs. 5,000 shall be levied under section 271F.

10. Can a return be filed after the due date?

Yes, if one could not file the return of income on or before the prescribed due date, then he can file a belated return. A belated return can be filed within a period of one year from the end of the assessment year or before completion of the assessment, whichever is earlier. Return filed after the prescribed due date is called as a belated return. A belated return attracts interest and penalty as discussed in previous FAQ.

E.g., In case of income earned during FY 2013-14, the belated return can be filed up to 31st March, 2016. However, if return is filed after 31st March, 2015, penalty under section 271F (as discussed in previous FAQ) can be levied.

8. If I have paid excess tax how will it be refunded to me?

If excess amount of Income Tax has been paid, the same will be have to be mentioned properly in the ITR in the manual return. In the case of E-filing of Income Tax Return, excess amount of income tax paid will be calculated automatically by the system and amount refundable will be mentioned in the Refund field. While filing online ITR, verify the Income Tax deducted by Employer or any TIN holder in respect of your PAN at the Income Tax Department’s Web Page for verifying FORM 26 AS. Also check whether the Income Tax amount in respect of your PAN is getting populated in the in the relevant field for Income Tax deducted by employer (TDS) in the online ITR filing interface. In the case of Excel E-filing utility, Income Tax deducted by Employer will have to be filled up by the Tax Payer along with other Data.

Click here to reach Income Tax Dept’s web page for verifying Form 26 AS

9. If I have committed any mistake in my original return, am I permitted to file a revised return to correct the mistake?

Yes, provided the original return has been filed before the due date and the Department has not completed the assessment. It is expected that the mistake in the original return is of a genuine and bona fide nature and not rectification of any deliberate mistake. However, a belated return (being a return filed after the due date) cannot be revised.

Return can be revised within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier.

E.g., In case of income earned during FY 2013-14, the due date of filing the return of income (considering no audit) is 31st July, 2014. If the return of income is filed on or before 31st July, 2014 then the return can be revised upto 31st March, 2016 (assuming assessment is not completed by that date). However, if return is filed after 31st July, 2014, then it will be a belated return and a belated return cannot be revised.

10. How many times can I revise the return?

Theoretically a return can be revised any number of times before the expiry of one year from the end of the assessment year or before assessment by the Department is completed, whichever event takes place earlier.

11. Am I required to keep a copy of the return filed as proof and for how long?

Yes, since legal proceedings under the Income-tax Act can be initiated up to four or six years (as the case may be) prior to the current financial year, you must maintain such documents at least for this period. However, in certain cases the proceedings can be initiated even after 6 years, hence, it is advised to preserve the copy of return as long as possible. Further, after introduction of the e-filing facility, it is very easy and simple to maintain the copy of return of income.

12. There are various deductions that are not reflected in the Form 16 issued by my employer. Can I claim them in my return?

Yes, it can be claimed if you are otherwise eligible to claim the same.

13. Why is return filing mandatory, even though all my taxes and interests have been paid and there is no refund due to me?

Amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing of the return of income. Only then the Government assumes rights over the taxes paid by you. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.

14. Am I liable for any criminal prosecution [arrest/imprisonment, etc. if I don’t file my Income-tax return, even though my income is taxable?

Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).

15. What is Form 26AS?

A taxpayer may pay tax in any of the following forms:

(1) Tax Deducted at Source (TDS)

(2) Tax Collected at Source (TCS)

(3) Advance tax or Self-assessment Tax or Payment of tax on regular assessment.

The Income-tax Department maintains the database of the total tax paid by the taxpayer (i.e., tax credit in the account of a taxpayer). Form 26AS is an annual statement maintained under Rule 31AB of the Income-tax Rules disclosing the details of tax credit in his account as per the database of Income-tax Department. In other words, Form 26AS will reflect the details of tax credit appearing in the Permanent Account Number of the taxpayer as per the database of the Income-tax Department. The tax credit will cover TDS, TCS and tax paid by the taxpayer in other forms like advance tax, Self-Assessment tax, etc.

Income-tax Department will generally allow a taxpayer to claim the credit of taxes as reflected in his Form 26AS.

16. What to do if discrepancies appear in actual TDS and TDS credit as per Form 26AS?

Every person deducting tax at source has to furnish the details of tax deducted by him to the Income-tax Department. The details will cover the name of the deductee, Permanent Account Number of the deductee, amount of tax deducted, amount paid to the deductee, date of payment of TDS to the credit of Government, etc. On the basis of the details of TDS provided by the deductor, the Income-tax Department will update Form 26AS of the deductee.

Many times the actual amount of TDS and TDS credit as appearing in Form 26AS may differ and it may happen that the TDS credit appearing in Form 26AS may be less as compared to actual TDS, this may happen due to reasons like non-furnishing of TDS details to the Income-tax Department by the deductor, deducting the tax in incorrect Permanent Account Number, etc. In such a case the deductee should approach the deductor and request him to take the necessary steps to rectify the discrepancy due to above reasons.

The Income-tax Department updates the TDS details in Form 26AS on basis of details provided by the person deducting the tax (i.e., the deductor), hence, if there is any default on the part of deductor like non -furnishing of TDS details (i.e., TDS return) to the Income-tax Department, deducting the tax in incorrect Permanents Account Number, etc. then Form 26AS will not reflect the actual TDS. In such a case, the taxpayer may not be able to claim the credit of correct TDS. Hence, the taxpayers are advised to confirm the tax credit appearing in Form 26AS and should reconcile the difference, if any.

17. What precautions should be taken while filing the return of income?

Following is the list of few important steps/points/precautions to be kept in mind while filing the return of income:

The first and foremost precaution is to file the return of income on or before the due date. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income :

Loss (other than house property loss) cannot be carried forward.
Levy of interest under section 234A.
Penalty of Rs. 5,000 under section 271F can be levied.
Exemptions/deductions under section 10A, section 10B, 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE are not available.
Belated return cannot be revised under section 139(5).

Taxpayer should download Form 26AS and should confirm actual TDS/TCS/Tax paid. If any discrepancy is observed then suitable action should be taken to reconcile it.
Compile and carefully study the documents to be used while filing the return of income like bank statement/passbook, interest certificate, investment proofs for which deductions is to be claimed, books of account and balance sheet and P/L A/c (if applicable), etc. No documents are to be attached along with the return of income.
The taxpayer should identify the correct return form applicable in his case.
Carefully provide all the information in the return form.
Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.
If any tax is payable as per the return of income, then the same should be paid before filing the return of income, otherwise return would be treated as defective return.
Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.
After filling all the details in the return of income and after confirmation of all the details, one can proceed with filing the return of income.
In case return is filed electronically without digital signature but the tax payer could not be verified online using EVC, do not forget to post the acknowledgement of filing the return of income at CPC Bengaluru.

Want to know more about filing Income Tax Return Online ? = Check out following links.

Who should file ITR online this year on the basis of Total Income ?

How to register at Income Tax Online ITR filing website ?

How to file your income tax Return online ? – Procedure for offline filling up data and uploading the filled up data in E-Filing Site

Step by Step procedure to file ITR-1 online – New E-filing facility for filing ITR by filling up data in online form (Available only for ITR-1 and ITR-4S as of now)

Online ITR filing simplified – No need for signed copy of ITR-V to be sent if EVC followed

E-filing of Income Tax Return – Frequently Asked Questions – Part-1

E-filing of Income Tax Return – Frequently Asked Questions – Part-2

Click here to file your income tax return online

Want to file ITR manually this Year (provided your taxable income is not exceeding Rs. 5 lakh) ?