May 222018

ITR Filing procedure

Can ITR be filled manually for assessment year 2018-19?

Where return is furnished in ITR Form-1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form:-

  • an Individual of the age of 80 years or more at any time during the previous year; or
  • an Individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the Return of Income.

Is it necessary to file return of income when I do not have positive income?

Income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.

Further, ​​If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date. ​​

I have salary income and income from other sources like consultancy. Which ITR form should I use?

If income is less than Rs 50 lakh, then you must use ITR-1. If it exceeds Rs 50 lakh, it’s ITR-2. If the consultancy income is of regular nature, you may need to treat this as income from profession and file ITR-3 or ITR-4 if you are a doctor, engineer, architect, etc., and wish to avail presumptive taxation scheme for professional income.

My husband has not filed his IT returns for the past three years. Can he file it now?

ITRs for FY 2014-15, FY 15-16 and FY 16-17 can’t be filed now as time for filing has gone. Only the return for FY 2016-17 can now be revised till March 31, 2019 if the original return has been filed by March 31, 2018. However, the ITR for FY 2017-18 can be filed till July 31, 2018.

I took voluntary retirement in 2015 and was paid gratuity of Rs 10 lakh. However, I had worked for nearly 28 years and my basic and DA combined exceeded Rs 1.5 lakh per month based on which my actual gratuity amount should be Rs 22 lakh-plus. Is there a cap on gratuity payment?

As per Payment of Gratuity Act, 1972, the amount of gratuity payable to an employee shall not exceed Rs 10 lakh (this limit has been increased now to Rs 20 lakh, however, pending approval by Parliament). Hence, you were eligible to receive from your an employer gratuity only upto Rs 10 lakh unless a higher amount is specified in your employment agreement.

I am claiming tax benefit on home loan for my self-occupied flat in my name. I purchased another flat in 2016 in my wife’s name, a housewife. A housing loan was taken in joint name. Under whose ITR should the second flat be shown and who can claim tax benefit on second home loan?

Since you have mentioned that you paid for the flat purchased in 2016, any income from this house would be clubbed in your income only as per clubbing provisions in Income-tax Act, 1961 and would not be considered your wife’s income. Further, even if the house is vacant, you will be required to consider the income from this house as per the prevalent market rates. However, you can claim the deduction for interest, as you are paying instalments for the same from your own income.

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