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Choose the right itr

Harshit (Arbitrager) (215 Points)

28 July 2013

Hi, My friend is salaried person and falls under itr1. He has taken a personal loan from one of his relative for a down payment on a flat. There is no section in ITR1 wherein we can mention about the LOAN & about the investment.what should we do.. should we file ITR2?

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7 Replies

CMA Ramesh Krishnan (Cost & Management Accountant) (71489 Points)
Replied 29 July 2013

Personal loan cannot claim deduction in any section. as salaried person ITR-1 can be filed

Incase you have any other repayment for housing loan principal payment can be claimed under sec.80C

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Harshit (Arbitrager) (215 Points)
Replied 29 July 2013

Hi, We dont want to claim any deduction for the personal loan, just want to disclose about it... but in ITR1 there is no section wherein I can mention about it..but in ITR2 we can do that.. so can I file ITR2.

Harshit (Arbitrager) (215 Points)
Replied 29 July 2013

Hi.. can someone pls reply to the query?

CMA Ramesh Krishnan (Cost & Management Accountant) (71489 Points)
Replied 29 July 2013

Can i know ,What is the purpose of showing the Personal loan in ITR? There is no requirement in Income tax also to show the same.

Incase your friend is doing business then he can show the loan in the balance sheet. but as salaried person there is no requirement of balance sheet also.

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Harshit (Arbitrager) (215 Points)
Replied 29 July 2013

Hey Ramesh,

Well Thanks for Clarifying about the Personal Loan, Just one more thing query..

Confued between what ITR to file, He is Salaried, SB interest is less than 10K & Also has some income of 15K from odd TUTIONS he took for one month... Should we File ITR1 or ITR2 ?

Thanks Once Again.