Things to Know about the New Income Tax Return Forms

There are a number of new income tax return forms that have been furnished by the IT department and which you need to be aware of in order to understand which form to use at the time of filing your taxes. Most of the forms are quite uncomplicated and are not meant to baffle tax users in any way.

The income tax return forms are available in three different formats namely in Excel, PDF and in the Java Utility format. If you are looking to file your taxes online then you should make use of the form that comes in Java Utility format.

ITR Form 1 – Sahaj – Meant for Salaried Individuals

If you are a salaried individual then of all the income tax return forms this is the one that applies for you. This is a form that you can use for filing taxes in the assessment year 2016 – 2017 and includes the income that is earned from a salary or a pension, income that is earned from the sale of a house unless are losses are presented from previous years and income from various other sources, excluding wins from lottery and horse racing.

This is not a form that you can use if your income comes from the sale of more than one property or house, income from lottery and horse racing activities, income from capital gains that are not exempt from taxation, income from agriculture that is more than 5000 INR in value, income from profession or business and other sources.

If you claim double taxation relief that is provided under Section 91, 90A and 90, then you will not be able to use this form to file your taxes either.

ITR Form 2A – Also for Salaried Individuals

This is one of the income tax return forms that you can use if your income comes only from your salary, or from a house or property or from other sources. The first form cannot be used by you if you have more than one property while this second form is what you can easily use if you have income from more than one property.

ITR Form 2 – For HUF and Individuals without Income from Profession or Business

This is one of the New Income Tax Return Form that you can use to file taxes if your income comes from a pension or salary, from a house or property, from capital gains and from other sources.

This is of course not a form that you are going to be able to use if you do receive a steady income from your profession or if you get a regular source of i

ncome from your business.

ITR Form 3 – For HUF and Individuals being Partners in a Form but Not carrying out Business under Proprietorship

This is a form that you may use for tax filing only if you are a partner in a particular form. You cannot use this form if you are earning an income from a proprietorship firm.

ITR Form 4 – For Income from Proprietorship

When you earn money from proprietary businesses or professions you can easily use this form to file tax returns. It is a form that can be downloaded from the internet quite easily and contains schedule AL that requires mandatory disclosure of all assets on the part of tax payers whose income runs into more than 50,00000 INR.

ITR Form 4S – Sugam – Form for Presumptive Income Tax

Of all the new income tax return forms this is one that you are going to have to use when get an income from salary or pension, home or property, from other sources, and business income which is computed according to specific provisions mentioned in Section 44 AE and Section 44AD.

Thus, there are quite a few income tax return forms that you can select from depending on how you earn your income in the course of a financial year. Most of these forms are quite easy to comprehend and fill out and you will seldom ever require the assistance of a tax agent to do so.