vk (ca) (134 Points)
24 June 2009An Individual has only interest income from Bank Deposits. There is no salary income or any exempt income. What form is to be used? ITR 1 or ITR 2? Is it necessary that there necessarily should be salary income for using ITR 1? The table in the income tax directorate site is ambiguous in this respect.
Mannurkar
(Accountant)
(159 Points)
Replied 24 June 2009
ITR 1 is suitable for individuals having Salary/pension and Interest income and who donot have income from house property.
MANOJ ANCHLIA
(Service)
(29 Points)
Replied 24 June 2009
BALASUBRAMANYA B N
(CCI STUDENT....)
(44668 Points)
Replied 24 June 2009
you will get in income tax web site all the forms...see the link below
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 24 June 2009
ITR 1 you can fill.
copy paste from Income tax website
For Individuals, HUF
| S.No | For Þ | Individual | Individual, HUF | ||
| Source of Income ß | ITR-1 | ITR-2 | ITR-3 | ITR-4 | |
| 1 | Income from Salary/Pension | • | • | • | • |
| 2 | Income from Other Sources (only Interest Income or Family Pension) | • | • | • | • |
| 3 | Income/Loss from Other Sources | • | • | • | |
| 4 | Income/Loss from House Property | • | • | • | |
| 5 | Capital Gains/Loss on sale of investments/property | • | • | • | |
| 6 | Partner in a Partnership Firm | • | • | ||
| 7 | Income from Proprietary Business/Profession | • | |||
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9058 Points)
Replied 24 June 2009
ITR 1 to file thanx for the table Mr. Praveen
vk
(ca)
(134 Points)
Replied 25 June 2009
ITR 1 seemed to be the obvious choice. I also tried filling in the electronic ITR 1 form without salary detail. There was no error message when generating the xml. So obviously the salary fields need not necessary be filled. But the department may later raise an issue that just because a electronic form doesnt give an error, this is no reason to file the wrong form (An interesting debate can be rasied on this issue too).
I had already mentioned the table in the Incometax website was ambiguous. The reason I raised the question in the first place and which I mentioned in my query was:
a) Is it absolutely necessary that there should be salary income for one to use ITR 1? Please note the use of the words "income from salary/pension AND interest".
b) Why is ITR 2 not applicable?
Is the table mentioned above clear in this case or is it ambiguous? And before ayone raises it, I did write to ask @ incometaxgov.in about this. There is no reply. There was no response when i tried the the contact phone number.
The practical way is of course to file ITR 1 because its simpler. However there is a caveat from the IT Department that filing of a wrong form means that the return is not filed at all. (Though I seem to have aread a tribunal decision wherein the filing of a wrong form was requested to be condoned).
vk
(ca)
(134 Points)
Replied 25 June 2009
ITR 1 seemed to be the obvious choice. I also tried filling in the electronic ITR 1 form without salary detail. There was no error message when generating the xml. So obviously the salary fields need not necessary be filled. But the department may later raise an issue that just because a electronic form doesnt give an error, this is no reason to file the wrong form (An interesting debate can be rasied on this issue too).
I had already mentioned the table in the Incometax website was ambiguous. The reason I raised the question in the first place and which I mentioned in my query was:
a) Is it absolutely necessary that there should be salary income for one to use ITR 1? Please note the use of the words "income from salary/pension AND interest".
b) Why is ITR 2 not applicable?
Is the table mentioned above clear in this case or is it ambiguous? And before ayone raises it, I did write to ask @ incometaxgov.in about this. There is no reply. There was no response when i tried the the contact phone number.
The practical way is of course to file ITR 1 because its simpler. However there is a caveat from the IT Department that filing of a wrong form means that the return is not filed at all. (Though I seem to have aread a tribunal decision wherein the filing of a wrong form was requested to be condoned).
vk
(ca)
(134 Points)
Replied 25 June 2009
vk
(ca)
(134 Points)
Replied 03 July 2009
I went back to basics and read up Rule 12. Sub rule 1(a) now seems clear that there first has to be salary income for using ITR 1. Therefore in the present case ITR 1 will not apply.
ITR 2 is for individuals (and HUFs) for whom ITR 1 does not apply and who have income other than income from Business or Profession (Sub rule 1(b)). Therefore in th present case, ITR 2 will apply.
As an aside, ITR 1 will also not apply when there is exempt income or when there is clubbing of income. It struck to me that as professionals we have to ask a client who has only salary and interest income if the deposits on which interest is earned are in his own name or in the name of 'wife/minor children'. If the latter we will have to file ITR 2. What a complicated life we have been led to. :)
Krishnan
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