It can be confusing knowing which form you need to utilize when filing your return. Read on to see which form is valid for whom as well as a few tips on filing your returns.
Let's start with the basic Form 16. If you are a salaried individual, it will be handed over by your employer and will cover virtually all ground. It contains all the information regarding your total income, taxable income, tax-saving investments made and amount of tax deducted. In other words, Form 16 is the proof for your income and tax paid to the government before you file your returns. Proofs of supporting deductions like investments in equity linked savings schemes (ELSS) and public provident fund (PPF), premium paid towards life insurance etc would have been submitted by you to your payroll department.
Do remember that charitable donations will not be included in Form 16. Donations to charities approved under Section 80G of the Income Tax Act obtain a tax exemption but need to be claimed separately at the time of filing returns.
Form: ITR-1 (SAHAJ)
For individuals who have
o Income from salary/pension
o Income from one house property, excluding loss brought forward from previous years
o Income from other sources, barring winnings from lottery or income from race horses
For individuals and HUFs not having income from business or profession. This is similar to ITR-1 except:
o HUFs cannot fill ITR-1
o The individual has income from house property and has brought forward loss from previous years
o The individual has income from house property and owns more than one house property
o Earnings in the form of winnings from lottery and race horses
For individuals and HUFs being partners in firms and not carrying out business or profession under any proprietorship
Business income tax return: For individuals and HUFs having income from a proprietory business or profession.
Author: Content Team, Fundsupermart.com
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