Answer: The Forms that are currently available for e-Filing for A.Y. 2007-08 are ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, & ITR-8. For A.Y. 2006-07 For A.Y. 2006-07, the e- return could be filed for FORM NO. 1.2.2F,3 & 3B. Taxpayers can avail the facilities provided in the website to e-File their returns. ITS Form 2D is available for e-filing through e-return intermediary.
2. Who should use which form for A.Y. 2007-08?
Answer: Following table may be used for selecting the right type of form. The type of FORM depends on the status of the assessee and his source of income
1. Is it mandatory for certain classes of assessees to submit the Income tax returns electronically for AY 07-08 ?
Answer: Yes, it is mandatory for Companies and the Firms who have to get their accounts audited u/s 44 AB of the Act to file their return electronically for A.Y. 2007-08.
2. What is the Return of Fringe Benefits?
Answer: An employer who has paid or made provision for payment of fringe benefits to his employees during the previous year is required to furnish a return of fringe benefits in the prescribed form and manner to the Assessing Officer before the due date.
In the case of a company or an employer other than a company whose accounts are required to be audited, the due date is the 31st of October of the assessment year.
1. In the case of any other employer, the due date for filing the return of fringe benefits is the 31st of July of the assessment year.
2. After the due date, the Assessing officer may issue a notice to the assessee requiring him to furnish a return in the prescribed form and manner within a period of thirty days.
For further details on Fringe Benefit Tax please refer to CIRCULAR NO.8/2005: EXPLANATORY NOTES ON THE PROVISIONS RELATING TO FRINGE BENEFIT TAX.
3. Whether the address given in the PAN card is to be quoted or the current address which may be different from the PAN card address can also be quoted?
Answer: The assessee has to quote the current address on the returns forms.
4. Which form of return would be applicable to the persons who are carrying on proprietorship business and also partnership business?
Answer: The relevant form would be ITR-4.
5. What will be the status of audit report under section 44AB as now it is not required to be furnished along with the return of income?
Answer: This issue has already been clarified by Circular no. 9 dated 10.10.2006 issue by CBDT. As clarified therein, the new annexure less forms are not to be attached with any documents.
6. In ITR-4, there is no separate requirement for mentioning the trade name of the proprietary firm; disclosure of trade name is essential as most of the proprietors carry their businesses in the proprietorships firm name only.
Answer: Under the heading "Nature of Business" in "Part A General", column has been provided to disclose the trade name of the proprietorship.
7. In case the assessee desires to convey something by the way of separate note which may be essential, no separate space has been provided for that?
Answer: This is already been clarified by Circular no. 9 of the Board.
8. Which Form of returns would be applicable in case an assessee wants to file return for earlier years? In such a situation can he file the return in physical form?
Answer: For earlier years, paper returns could be submitted except for corporate. For the companies, filing of e-return is mandatory for A.Y. 2006-07 onwards. The facility to e- file returns for A.Y. 2006-07 in FORM No. 1, 2, 3, 2F & 3B is available.
9. Can the stand-alone form on Fringe Benefits be used by companies and firms as well?
Answer: If they are not required to file return of income tax.
10. If an individual has loss from house property, can he use ITR-1?
Answer: No, he has to use form no. ITR-2.
11. What is purpose and implication of ITR-V?
Answer: This is to simplify the filing of return electronically without digital signature. Last year, the taxpayer was required to take a printout of e- return and submit it in the Income Tax office after verification. To further simplify this procedure ITR-V form has been introduced. This is a single page acknowledgement cum verification form. The assessee has to put his signature and submit it in I.T.office. The requirement of submitting a copy of the return has been dispensed with.
12. What form of return should be filled by a salaried class person having housing loan also?
Answer: ITR-2
13. In case filing is done online with digital signatures, no stamped acknowledgement would be available. This would create problems for the assessee for obtaining visa, loan etc. Is there any system to verify online whether IT returns of a particular year has been filed
Answer: We would be offering this facility shortly through web. The assessee would be able to view this under the head `MY ACCOUNT'.
14. What would be the status of a person who is having more than one type of businesses? He would have to prepare a consolidated balance sheet and profit and loss, to quote figures in the new forms. This would unnecessarily increase the workload of the assessee who already has to prepare the financial statements in different format for different purposes i.e MCA-21,VAT return , bank loan purposes etc.
Answer: Every person carrying on the business or profession has to prepare a consolidated balance sheet and profit and loss account. This is a legal requirement under income tax act. The assessee may minimize his efforts by choosing to file the return electronically.
15. A situation where the property could be "deemed to be let out" has not been considered. Kindly clarify.
Answer: The deemed house property income is to be disclosed in schedule HP in column in 3(b) which deals with arrears of rent receipt u/s 25 B of the income tax act.
16. In ITR - 4 the requirement relating to statutory reserves in case of individual or HUFs carrying on proprietorship business or profession does not appear to be in place.
Answer: No, it is not correct. In Part A - BS, under the column 1 (b) (iii), statutory reserves could be disclosed.
17. ITR-4 requires the assessee to mention the amounts debited to profit and loss account to the extent disallowable under section 40A(2)(b). Under this section the amount is disallowed only if the payment made is excessive in the opinion of the assessing officer. Now the question arises as to how can the assessee step into the shoes of the assessing officer and fill this information.
Answer: The assessee may provide the figures as per his understanding.
18. Are the details required under Annual Information Report mandatory to be filled in by all assessee?
Answer: As provided in the Instructions for filling the forms that these are applicable who fulfill the criterion.
19. Which return form has to be used by a person who has only exempt share income from a firm?
Answer: FORM NO. ITR-3. For the assistance of taxpayer, a functionality is in the web site to select the appropriate type of form.
20. If an individual has loss from house property, can he use ITR-1?
Answer: No.
21. If AOP/BOI do not have taxable income, can they use ITR-8 instead of ITR-5? What about a firm? Can they also use ITR-8 instead of ITR-5?
Answer: If they are not required to file return of income tax.
22. What forms have to be used to file returns of A.Y.2006-07?
Answer: Returns for A.Y. 2006-07 will continue to be filed in old forms as were applicable last year.
23. What is the Status of Form 2F introduced last year, which included cash flow statement?
Answer: It is no more applicable for a.y.2007-08.
24. Is it necessary to file these returns in duplicate for getting acknowledgement?
Answer: As explained above , if it is filed electronically without digital signature , only ITR- V form is to be submitted. If the return is filed with digital signature , nothing needs to be submitted , not even form ITR-V.
25. ITR-1 is return for individual having income from salary/pension/ family pension and interest. An individual having only salary income and no interest income may use this form or he has to go for ITR-2?
Answer: He may use ITR-1 form.
26. ITR-2, 3 and 4 require detailed breakup of salary income like exempt allowances; perquisites etc, whereas ITR -1 requires only a single figure for salary. Is there any specific reason for such differential treatment?
Answer: This is for the convenience of small taxpayer.
27. Many schedules and notes to accounts form part of the financial statements of any entity. The return forms do not provide for this information. This deprives the assessing officer of the basic tool to understand the financial statements. Many items contained in the notes to accounts may have revenue implications. It would difficult for the department to pick up important cases for scrutiny on random basis and call for details?
Answer: This issue has been clarified in circular no. 9 dt 10/10/2006. The will have this opportunity if the case is selected under scrutiny. At the processing stage, the A.O. is not supposed to look into these matter. The selection of cases is an internal matter which is objective and risk based.
28. A person is proprietor of two different proprietary concerns having different business each having turnover more than 40 lacs and audited u/s 44AB by different chartered accountants which data he has to fill in form no.ITR 4, as the space provided for the profit & loss account and balance sheet is for only one proprietary concern. It is suggested that the separate sheet to be allowed to be inserted in the same format for the each proprietary concern.
Answer: The taxpayer has to provide consolidated balance sheet / profit and loss account.
29. If a person wants to file the personal balance sheet where can he do so.
Answer: It is not required under the Act. In ITR - 4, the Assessee has to give the of his proprietory business and not of his personal assets and liabilities.
30. What is to be filled in part A - QD that is the quantitative details if the persons is under tax audit and not having quantitative details of the goods as he is in a business which is comprising of thousands of small commodities where none of the commodity is having a turnover of more than 10% of the total turnover e.g. Grocery shop, Hardware & Paint dealer, Stationery Shop, other retailers.
Answer: He may not fill these columns.
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