Which Income tax Returns should I file for the Asst Year 2015-16?

Central Board of Direct Taxes (CBDT) has notified new Income Tax Return (ITR) forms for Assessment Year 2015-16 (means Financial Year ending 31^st March 2015). Compared to the forms of the previous year, a few changes have been made in new set of form. We have compiled the key changes in new forms.  Please note that the due date of filing income tax return for certain class of taxpayers (i.e, salaried employees, income from rental income, capital gain, etc.)  is 31^st August 2015.

 
From ITR 1 Sahaj : For Salaried Individual

Who can File ITR 1 SAHAJ?

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

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Who can’t use ITR I SAHAJ?

This Return Form should not be used by an individual whose total income for the assessment year 2015-16 includes:

• Income from more than one house property; or

• Income from Winnings from lottery or income from Race horses; or

• 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

• Agricultural income in excess of 5,000; or

• Income from Business or Profession; or

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

• Person claiming relief under section 90 and/or 91; or

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

• Any resident having income from any source outside India

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Form ITR 2 :  For Individual/HUF not having Business or Professional Income

Who can use Return Form 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:-

• Income from Salary / Pension; or

• Income from House Property; or

• Income from Capital Gains; or

• 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 can’t use Return Form 2?

This Return Form should not be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2015-16 includes Income from Business or Profession.

ITR 2A : Newly introduced Form for Individual/HUF who does not have capital gains, income from business/profession

Introduction of ITR 2A :

At present individuals/HUFs having income from more than one house property or capital gains are required to file Form ITR-2. It is, however, noticed that majority of individuals/HUFs who file return in Form ITR 2 do not have capital gains.

With a view to provide a simplified form for these individuals/HUFs, a new Form ITR 2A has been introduced which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income or have not claimed relief under section 90/90A/91.

ITR 2A includes almost all fields as were contained in ITR 2, except information relating to capital gains, foreign asset/foreign income and relief under section 90/90A/91.

Who can file Form 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:-

• Income from Salary / Pension; or

• Income from House Property; or

• 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 Form ITR 2A?

 This Return Form should not be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2015-16 includes,-

• Income from Capital Gains; or

• Income from Business or Profession; or

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

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

• Any resident having income from any source outside India.

Other noteworthy changes in the revised form for the Asst Year 2015-16

1. Claiming Refund: Till assessment year 2014-15, individuals or HUFs, who were otherwise not liable to file return of income electronically, could claim tax refund by filing return of income in physical form. However, Rule 12 as notified on 15-04-2015, has made it mandatory for every taxpayer to file return of income electronically so as to claim refund of tax from the department.

2. Filing of Return by Super Senior Citizen: Under the extant Rules all taxpayers including super senior citizen (being an individual of 80 years or more) are required to file return of income electronically, if their total income exceeds five lakh rupees. Now an option has been given to the super senior citizens whose total income exceeds five lakh rupees or who is claiming income-tax refund, to file return of income in physical form, provided return is furnished in ITR- 1 or ITR- 2.

3. Compulsory e-Filing: As per the new provision (as notified on 15-04-2015) every individual or HUF whose total income exceeds five lakh rupees or who is required to file return in Form ITR-3 or ITR-4 shall have to file return of income electronically.

4. Details about the foreign assets and foreign income If an individual (not being a citizen of India) is in India on a business, employment or student visa purposes and he acquires any asset during the previous year in which he was a non-resident, such asset shall not be required to be reported in Schedule FA – Details of foreign assets and income if no income is derived from that asset during the current previous year. The ITR forms seek more details about the foreign assets and income from any source outside India. Schedule FA is substituted which requires assessee to provide detailed information about such foreign assets and income.

5. Details of all bank accounts: Under new ITR form, an assessee is required to furnish details of all bank accounts held by him in India at any time during the previous year except those savings and current account which have not been operational for more than 3 years.

Following details shall be reported in respect of each bank account held by assessee in India:

• IFSC Code of the Bank
• Name of the Bank
• Account Number
• Nature of the bank account, i.e., current account or saving account

6. Passport No: If assessee has travelled overseas, the details about such travelling is not required to be furnished in the new return forms. However, the individual should furnish his Passport number, if available.

7. Aadhaar Number: The ITR forms require assessee to provide his Aadhaar Number (if assessee has obtained the same).

8. Reporting of amount that has remained unutilized in capital gains account: New ITR form require to mention  unutilized capital gains if any on asset transferred during the previous years (FY 2011-12 and FY 2012-13) which was deposited in the Capital Gains Accounts Scheme. Also ITR requires to mention details (for each FY 2011-12 and 2012-13) of utilization of amount deposited in capital gain account scheme along with other information such as details of deduction claimed, amount utilized to purchase or construct new asset, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.

Download Forms:

• Forms SAHAJ (ITR-1)
• ITR-2
• ITR-2A for the asst year 2015-16
• SUGAM (ITR-4S)

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