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

ITR for salaried person

CA. Bhabani , FCA, DISA, DIRM (Chartered Accountant) (205 Points)

14 June 2007

Which ITR form is applicable for a person having only salary income?Is it ITR 1 or ITR 2?

Reply
Follow
Share

47 Replies

Kaustuv (Practicing CA) (1778 Points)
Replied 15 June 2007

for only salary income it would be ITR 1

Upgrade to CAclubindia Pro. Subscribe Now!

Anita (Service) (27 Points)
Replied 15 June 2007

ITR forms in excel format required urgently

saravanan (proprietor) (71 Points)
Replied 15 June 2007

ALL ITR NEW FORMS ALREADY PUBLISHED IN EXCEL FORMAT

CA. Gurdeep Singh Chawla (C A) (7080 Points)
Replied 15 June 2007

For salaried person having only interest income then ITR-1. If other income except business income then ITR-2. If business income also, then ITR-3(being partner) or ITR 4(being proprietory business), as the case may be

CA. Bhabani , FCA, DISA, DIRM (Chartered Accountant) (205 Points)
Replied 15 June 2007

Thanks for early reply.But my doubt is a person has only salary income and no other income.I think he should use ITR 2.Pl share your views.

Upgrade to CAclubindia Pro. Subscribe Now!

CA. Bhabani , FCA, DISA, DIRM (Chartered Accountant) (205 Points)
Replied 15 June 2007

Thanks for early reply.I think ITR 1 applies for a person having salary and interest income.But if one has only salary income then probably he should use ITR 2.Pl share your views.

Kaustuv (Practicing CA) (1778 Points)
Replied 16 June 2007

according to Rule 12 :-

(a) in the case of a person being an individual where the total income includes income chargeable to income-tax under the head “salaries” or
income in the nature of family pension as defined in the Explanation to clause (iia) of section 57 but does not include any other income except income by way of interest chargeable to income-tax under the head
“income from other sources”, be in Form No. ITR-1 and be verified in the manner indicated therein;

(b) in the case of a person being an individual [not being an individual to whom clause (a) applies] or a Hindu Undivided family where the total income does not include any income chargeable to income-tax under the head “Profits or gains of business or profession”, be in Form No. ITR-2 and be verified in the manner indicated therein;

Dear Sir, I think that ITR 2 would be used by an individual/HUF NOT having sec. 28 income but having income in ANY other head. but ITR 1 is essentially limited to INDIVIDUAL ONLY having salary and/or family pension and/or interest and nothing else. so I think that an individual having only salary income would be using ITR 1 and not ITR 2.

please share your views on this matter.

with regards
Kaustuv

CA. Bhabani , FCA, DISA, DIRM (Chartered Accountant) (205 Points)
Replied 16 June 2007

Thanks for your reply.As I understand ITR1 is for a person having Salary and Interest (Not salary or interest).So still I think that for a person having only salary income ITR 2 should be used.Pl reply.

Amlesh Singh (Student) (42 Points)
Replied 16 June 2007

ITR 1 is applicable for persons having income from salaries and interest.

Amlesh Singh (Student) (42 Points)
Replied 16 June 2007

Hi Mr. Mahapatra ur interpretation in incorrect in respect of individual only having income from salaries should fill in ITR2 AS BECAUSE ITR 2 is applicable in case of individual having income from all the heads of income expect business & profession. ITR 1 should be filled in case of salaried employees as itr 1 is specifically introduced for individual having income from salaries and interest.

Upgrade to CAclubindia Pro. Subscribe Now!

Kaustuv (Practicing CA) (1778 Points)
Replied 16 June 2007

I'm also echoing the views expressed by Mr. Amlesh Singh.. ITR 1 is expressly intended for people having salary income. I think ITR 1 is PRIMARILY for an individual having salary income only. ADDITIONALLY its ok to have family pension and interest but nothing else. Express mention of something excludes others. please share your views also.

CA. Bhabani , FCA, DISA, DIRM (Chartered Accountant) (205 Points)
Replied 16 June 2007

When a person has salary income alone we can say that he comes under the category" individual having income from any source except from business or profession".So logically ITR 2 should apply.On the other hand the same person does not come under the category"individual having salary and interest income."So again logically ITR 1 should not apply.Hence I feel that ITR 2 should be used in the given case. Your valuable suggestions please.

Kaustuv (Practicing CA) (1778 Points)
Replied 16 June 2007

Dear Sir,I would also like to invite your attention to point no. 3 of respective ITRs titled " who should use this form". instruction point no. 3 of ITR 2 mentions that a person entitled to use ITR 1 shall not use ITR 2, and vice versa in instructions appended to ITR 2. and Sir I believe ITR 1 is primarily for salary, additionally family pension or interest. please enlighten..

CA. Bhabani , FCA, DISA, DIRM (Chartered Accountant) (205 Points)
Replied 17 June 2007

Sir,you have rightly pointed out that a person entitled to use ITR2 shall not use ITR1 and I do agree with you.In the given case when the person is using ITR2, obviously he shall not use ITR1.The wholesome confusion appears to be in the title of ITR forms which needs more clarification.I look forward to your views in the matter.