Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Itr 1 or itr 2

jayaparvathi ammal (student) (34 Points)

29 July 2013

one of friend has file his return in itr1. he has conveyance allowance exempt income (more than Rs. 5000). does he need to file itr2 instead of itr1? does conveyance allowance is included in exempt income under itr 2. what is the process of revising the return?

Reply
Follow
Share

12 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 29 July 2013

ITR-2 will be applicable.

You can revise your IT return if you have file your returns before due date ie 31st july.

You are required to fill in the acknowledgement number from ITR-V into the revised return.

Upgrade to CAclubindia Pro. Subscribe Now!

manoj (student) (5205 Points)
Replied 29 July 2013

he has to file itr 2 only

show the exempt income separately in schedule

Akash (CA Final (2nd Group Pending)) (876 Points)
Replied 29 July 2013

I am using software and it is showing net value only and generating itr1.

Akash (CA Final (2nd Group Pending)) (876 Points)
Replied 29 July 2013

I don't think revision is required. If revision is required you can revise before 31st march 2015 or before completion of assessment whichever is earlier

(Guest)

fill itr 1 . there are lot of misconception about using itr 1 and itr 2.

if there are exempt income under section 10 more than 5000 , itr 2 is required to be filled.

now question is which exempt incomes under section 10.

let take case of net agriculture income.if net agriculture income is more than 5000 , itr 2 is required to be filled. reason if net agriculture income is more than 5000 , it is included in total income to determine tax rate ( 10% , 20% , 30% ) is applicable

in itr 1 there is no provsion for inclusion of net agriculture income above 5000. so itr form 2 is to be filled.

salary income includes conveyance allowance , hra , leave encashment etc which are deducted up to exemption from gross salary to arrive at gross total income from salary. Even if these incomes are more than 5000 (exempted portion ), then it is not required to fill itr 2 . fill itr 1.

Upgrade to CAclubindia Pro. Subscribe Now!

Grv Bst (Service) (125 Points)
Replied 30 July 2013

Well answered by CA Rajiv. I strongly support his reply.

CA Parul Saxena (CA) (8488 Points)
Replied 30 July 2013

Mr. Rajiv amendment says that if exempt income under section 10 is more than Rs.5000 then ITR-2 is to be filled......and Transport allowance, Leave encashment,Gratuity etc. come under section 10.

CA Parul Saxena (CA) (8488 Points)
Replied 30 July 2013

Mr. Rajiv amendment says that if exempt income under section 10 is more than Rs.5000 then ITR-2 is to be filled......and Transport allowance, Leave encashment,Gratuity etc. come under section 10.

ABHILASH KASLIWAL (CHARTERED ACCOUNTANT) (58 Points)
Replied 30 July 2013

Conveyance Allowance is not an exempt income for the requirements of ITR-1.Because it can even be taxable in some cases. Exempt income for this section includes incomes which are always exempt like agricultural income, dividends etc. So if conveyance allowance exempt is more than Rs. 5000 you need to file itr1 only and not ITR-2. But if you want you can file ITR-2( its not an obligation).