Every taxpayer is required to declare incomes earned and taxes paid, to the Income Tax Department in prescribed income tax return forms called ITR Forms. Different ITR Forms are prescribed for AY 2016-17 based on different types of incomes and taxpayers. So every taxpayer has to first determine which ITR should be filed before he can start filing.
What are the different ITR Forms?
Although the Income Tax Department has prescribed 9 different ITR forms for AY 2016-17, taxpayers have to choose the one which is applicable to them.
Following ITR Forms are prescribed for Individuals (Non corporate assessees):
| ITR-1 (SAHAJ) | The most basic ITR form for individuals having income from salary/pension, one house property and interest |
| ITR-2A | For individuals/HUF having income from salary/pension, multiple house property and interest |
| ITR-2 | For individuals/HUF having income from salary/pension, multiple house property, capital gains and interest |
| ITR-3 | Form individuals/HUF who are partner in a firm and not carrying any business or profession under proprietorship |
| ITR-4S (SUGAM) | For individuals/HUF/Partnership firms having income from presumptive business or profession |
| ITR-4 | For individuals/HUF having income from proprietary business or profession |
Following ITR Forms are prescribed for corporate assessees:
| ITR-5 | For firms, association of persons (AOP), Body of Individuals (BOI), co-operative societies and local authorities |
| ITR-6 | For companies other than companies claiming exemption under section 11 (such as charitable or religious trust) |
| ITR-7 | For trusts, political parties, scientific research organisations, colleges and universities |
Know Your ITR
| Sources of Income | Individual | Individual/ HUF | ||||
|---|---|---|---|---|---|---|
| ITR-1 (SAHAJ) | ITR-2A | ITR-2 | ITR-3 | ITR-4S | ITR-4 | |
| Income From Salary/Pension | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Self-Occupied House Property Income | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Income from multiple House Property | ✓ | ✓ | ✓ | ✓ | ||
| Agricultural Income exceeding Rs. 5,000/- | ✓ | ✓ | ✓ | ✓ | ||
| Income from Other Sources | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Winnings from lottery and racehorses | ✓ | ✓ | ✓ | |||
| Capital Gains | ✓ | ✓ | ✓ | |||
| Profit from a Partnership Firm | ✓ | ✓ | ||||
| Income from Proprietary Business/ Profession | ✓ | |||||
| Income from Presumptive Business/ Profession | ✓ | |||||
| Foreign Assets Income | ✓ | ✓ | ✓ | |||
| Tax Relief under sections 90, 90A or 91 | ✓ | ✓ | ✓ | |||
FAQs
It is not mandatory for NRI to file an income tax return in India. However, there are three conditions in which NRI must file the return.
1. Their income in India exceeds the basic exemption limit
2. If excess taxes were deducted and they wish to claim the refund
3. If they wish to carry forward capital losses
No, you are not required to file income tax return if your income is not taxable (i.e below basic exemption limit for given assessment year). However if you incurred any losses (Business or Capital), you must file income tax return to carry forward such losses.
It is very common for salaried individuals to have all their taxes deducted by their employer. Still, you must file income tax return to claim any refund and/or carry forward any losses.
If you do not file income tax return, I-T Department will send you a notice telling you to file your return. If you have an outstanding tax liability then you will incur interest penalty u/s 234A, 234B and 234C. If you have refund and you do not file returns then you will not be able to claim refund. Hence, it is always advisable to file income tax return.
It is always beneficial to file income tax return. Here are few benefits
1. You can only claim refund if you file return
2. You can avoid interest penalty and/or default
3. IT return is a documentary evidence of your incomes
4. Banks, Consulates, other Financial Institutions demand IT return
Any person under the age of 18 is considered a minor. Although income earned by minor is taxable just like any other, minor can not file their independent tax return baring few exceptions. Minor’s income is clubbed with his/her parents income under section 64(1A). However in following instances, a minor can file Income Tax Return
1. None of the parents are alive
2. When minor earns income using special skills or knowledge
Hey @TeamQuicko
Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?
Thank you!
Hey @TanyaChopra
This quarterly breakdown of Dividend Income under IFOS will help to calculate and determine penalty u/s 234C for the delay in payment of Advance Tax.
Hope this helps!
I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?
Hey @HarshitShah
After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.
Hope this helps!
Hey @HarishMehta
Yes, dividend income is now taxable from FY 2021-22 onwards and it has to be reported under the head of IFOS.
You can read more about it here:
Hi @Maulik_Padh,
You need to pay Income tax on the net taxable income, i.e. after subtracting deductions, expenses, etc.
If the net taxable income is negative i.e. if there is loss, you can carry it forward when filing the ITR
Here are some of the articles which might help
Hi @ameyj
The amount of TDS deducted shall reflect in your Form 26AS only and it will also reflect the name of the deductor.
Using the name of the deductor you can find out on which share you have received the dividend and you can also cross-check the same in your bank statement.
Yes, you are right, TDS is to be deducted when the dividend paid exceeds 5000 INR in a financial year. However, the 5,000 INR limit pertains to all the dividends an individual gets in a year, or the total dividend per shareholder that a company pays out in a year, is left to interpretation, and hence registrars and share transfer agents (RTA) are not taking any chances and are deducting TDS even on small amounts.
Hope this helps
Hi @ameyj
You can submit a grievance on Income Tax Portal mentioning the issue and also attach the 26AS.
The other option is to leave it as it is and clarify it when the tax department sends the notice.
Hi @TeamQuicko
Consider that I have 10 shares each of 10 different Indian companies. Each of the 10 companies are declaring a dividend of INR 100 before the FY ends. Now I will be recieving 1000 as dividend from each company, thereby a total of 10,000.
The 5,000 dividend limit, is it applicable to each company / total dividend recieved by me in a year. If it is applicable to each company, then I would not attract TDS of 10% for dividend.
Also pl clarify, how would the company B know that I have got shares of Company A,C,D,E so on…
@Saad_C @Laxmi_Navlani @Divya_Singhvi @Kaushal_Soni @AkashJhaveri can you help with this?