Answer: He has to give these figures from primary records.
32. If a persons is receiving as a partner interest, remuneration from a firm and is also proprietor of a concern can he show the share of interest and remuneration received from n schedule BP (computation of income for Business or Profession) in item no. 23 as any other income not included in profit and loss account or in item no. 22 any other item or items of addition under section 28 to 44DA.
Answer: Yes.
33. If a person is leaving India for good (i.e. permanently) during the accounting year 07-08 and his assessment is to be made for the income of the period from 01.04.2007 to the date of his departure from India u/s 174 (i.e. for the A.Y. 08-09), which return he has to filed as form no. ITR 1 to ITR 8 have been prescribed only for assessment year 07-08.
Answer: He may use ITR forms notified for A.Y. 2007-08.
34. How the income from house property is to be shown if the property is partly self occupied and partly rented.
Answer: It is to be shown on proportionate basis.
35. Income from self occupied property has loss after deduction of interest on borrowing in which column should if be mentioned.
Answer: It should be mentioned in schedule in HP and set off up of the loss from the current years income should be carried out in schedule CYLA.
36. Many professionals have only one savings account and all professional income is in the same account. For him there may not be any balance sheet of his business. What should he fill up in the Balance Sheet part?.
Answer: This is a legal requirement. One has to fill up the details in the balance sheet which may be worked out from the bank account or from other records maintained by the Assessee.
37. The profit and loss account contained in the forms require the assessee to furnish complete details of different types of duties paid or payable in respect of goods and services purchased. In majority of cases this may not be practically possible.
Answer: It is provided in the instructions that in such situations one can show the purchases inclusive of duties and taxes.
38. 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 issue has been clarified by the Board in its Circular no. 5/2007 dtd 26-07-2007 and Circular no. 9 dtd 10.10.2006. As stated therein , one can make such disclosures in scrutiny assessment after the receipt of notice u/s 143(2) of the Act.
39. The structure of the profit and loss account is such that it suits manufacturing or trading business only. It does not suit the service providers like hotel, transport agents, professionals etc. It is likely that the assessees in the service industry will have to recast or reframe its profit and loss account. Please clarify as to how service sector requirements could be factored in.
Answer: The balance sheet and profit and loss account are trade independent. These are the part of accounting systems. One has to follow these system which are standardized. Some amount of re-casting/re-framing may be required.
40. 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 one has to use old forms. For A.Y. 2006-07. facility to e- file exists for Form no1 , Form no2F. Form no. 3 and Form no. 3B.
41. Are the details required under Annual Information Report mandatorily to be filled in by all assessee?.
Answer: This is mandatory requirement for those to whom it is applicable. Please read instructions given with the return in this regard.
42. Can the stand-alone form on Fringe Benefits be used by companies and firms as well?.
Answer: Form no. 8 is only for those assessees who are not supposed to file I.T. ve to file return of FBT.
43. If an individual has loss from house property, can he use ITR-1?.
Answer: No, he has to used to ITR-2 form.
44. 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: It is the requirement of filing the return of income which would decide the issue and not the amount of taxable income. ITR-8 is to be used if the taxpayer is not required by the law to file income tax return but has FBT liability.
45. What form of return should be filled by a salaried class person having housing loan also?.
Answer: Form no. ITR-2.
46. As the returns now are annexure less, it is difficult to comprehend as to how the Assessing Officer is going to verify the veracity of various claims made in respect of investments not reflected in Form 16.
Answer: At the processing stage no verification is required under the Act. The cases which are picked up under scrutiny could be verified during scrutiny proceedings.
47. As per Section 50 the Income-tax Act, there is no need to disclose sale of fixed assets made during the year out of purchases for a period of 180 days or more, or purchases for a period less than 180 days. The details asked in the Schedule DPM are against the provisions of Section 50?. Please clarify the same.
Answer: The form has been designed keeping in view the provision in the Act. The interpretation given above is not borne out by the Act. The details in schedule DPM are in conformity with section 50.
48. The Income-tax Act requires the following to be attached with return:(a) proof for interest for housing loan.(b) certified copy of the deed in the case of new firm or in the year of change in constitution. (c) form 30 in the case of refund But the return is annexure less; How one can comply with the requirement under the Act ?
Answer: The Act has been amended and in view of S139C, 139D ,amended Rule12 and Circular no. 5/2007 dtd 26-07-2007, the requirement of documents with the return has been dispensed with.
49. Individuals/HUF who are self employed doing brokerage, commission, CA practice, doctors, architects, beauty parlour, etc. and does not maintain their accounts related to the business but maintains personal accounts in the form of profit & loss and balance sheet.Please let me know: Which ITR form to be used. If ITR 4 is to be used whether the personal accounts to be treated as accounts of proprietory business and accordingly to be loaded in the form.
Answer: ITR-4 would be the applicable form. Personal accounts or assets/ liabilities are not required to be shown. Only business assets/ liabilities are to be mentioned.
50. In case of ITR-4 PART A BS under application of funds S. No. 3(b) captioned as loans and advances there is no column to show loans given to business associates or others. Please advice.
Answer: They are to be shown in column 3b(i) of schedule PartA-BS.
51. In case of salaries how to incorporate details of more than one employer.
Answer: In the software facility exists to use dynamic rows to take care of more than one employer.
52. Whether return in paper form is necessarily to be submitted to the jurisdictional assessing officer or it may be submitted to any income tax office in India.
Answer: No. Paper return is not to be submitted in the office in case of e- filing. This has been once again clarified by the CBDT in its Circular no. 5/2007 dtd 26-07-2007. If an e- return is filed with digital signature , the tax payer gets an instant acknowledgement and he does not have to file any further document any where. In case the return is filed without digital signature, the taxpayer gets an instant ITR-V form which is an acknowledgement cum verification form. A copy of this is to filed with in 15 days of e- filing with the income tax office. Instructions have been issued by the CBDT to receive ITR-V forms centrally in the I.T. office. In case of any inconvenience in this regard, please contact local CCIT/CIT.
53. Whether all types of pension viz. under Superannuation scheme, Family pension Fund, Employees pension Scheme, pension from LIC under Jeevan Suraksha etc is to be shown under the head "Salary" or all/any of the above is to be shown under the head "Income from other sources".
Answer: NO, this has to be shown as income from other sources.
54. What is the manner in which the note(s) required to be submitted along with the return is to be furnished since no document is to be attached to the return. In absence of the said note(s), different view may be taken by the tax department while assessing the income.
Answer: This matter has been clarified by CBDT vide its Circular No. 5/2007 dt 26-07-2007. Pl download the circular from the website for reference.
55. Whether new ITR-2 can be used at the option of the assessee for filling return for A.Y. 2006-07 and earlier year (s) or should old form be necessarily used for such return.
Answer: No. For earlier years , one has to use old forms.
56. A partnership firm engaged in retail trade declares net profit @ 5% of gross turnover. As such it is not required to maintain books of accounts. It pays salary and interest to its partner in accordance with law. Consequently its net profit as well as taxable income is reduced to nil. How can the above be filled up in ITR 5 so as to reflect that the profit declared complies with the provisions of section 44AF and also the computational provisions of the I.T. Act?
Answer: If the assessee does not maintain books of accounts , he has to fill in column no. 52 of Part A- P&L. The business profit is to shown as per column 52d of schedule P&L. It is provided in schedule BP also in the same manner.
57. 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: It is provided in Part A-BS 1 (b) iii.
58. ITR form no. 8, why tax auditor details are required when income tax return is not required to be filed.
Answer: The audit is a mandatory requirement of the law. What has been relaxed is only its non submission at the time of filing of return. Therefore , the details are required as a check against misuse.
59. The proprietor is having personal set of books in addition to business books. How to accommodate two balance sheet in ITR-4.
Answer: Personal balance sheet is not called for in the return. Only business details are required.
60. Is circular 9/2006 still valid for AY 2007-2008?
Answer: Yes, its provisions have been reiterated in the recent Circular no. 5/2007 dtd 26-07-2007 of the Board.
61. An assessee earns income from Salary + Interest + Dividend. Dividend is exempt u/s 10. Which form to be used? Form 1 or Form 2?
Answer: Form no ITR-2. Exemption of income is not the criterion.
62. In schedule of AIR of all ITRs relating to financial transactions whether the limit fixed is for aggregate or single in each category as shown in the following transactions.(a) saving account with more than on Bank. (b) credit card with more than one Bank. (c) purchase of units of mutual funds. (d) bonds or debenture of more than one company or institution. (e) equity shares issued by more than one company. (f) purchase or sale of more than one property.
Answer: This limit is the aggregate value for all transactions except property value where it is the value of a single transaction.
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