Which itr form to be used

This query is : Resolved

CA Sanjay Baheti (Querist)
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27 July 2012 My client being an Individual (Lady) has the following sources of Incomes as under:-

i) Rental Income from Commercial Shop.

ii) Interest Income & Income from Embroidery activities at small scale.

Now query is which ITR form i.e. I.T.R. No.1 (sahaj) or I.T.R.No.2 .Please confirm.

aadish

aadish (Expert)
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27 July 2012 ITR 1 can be used if someone has income from salary and income from ONLY ONE house property.

ITR2 is used if someone has income from MORE THAN one house property.

I suggest ur client should used ITR2 instead of ITR1, if ur client has income from more than one house property and if there is any loss to be carry forward under the head House Property bcz ITR1 has only row of Income from house property and nothing else.

CA Sanjay Baheti

CA Sanjay Baheti (Querist)
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27 July 2012 Dear Aadish,

please confirm whether a Commercial Shop can be considered as house Property or here only means residential House Property so ITR 1 (sahaj) is considered only for one house.

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CA CKP

CA CKP (Expert)
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27 July 2012 ITR 4 or 4S as your client have income from business ( Embroidery Business.)

aadish

aadish (Expert)
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28 July 2012 Dear Sanjy ji

If someone has rental income, it will go in house property head, and not under PGBP and u can show income from embroiderry business as income from other sources bcz it is on small scale.So itr 1 u should use.