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Itr1 or itr2?

piknoo (none) (72 Points)

13 August 2015

Hi Experts,

I am a salaried class person. In the AY 2014-15 ITR 1 it was mentioned that if exempt income is more 5000 then we have to fill ITR 2 .However in AY 15-16 ITR 1 form under the head exempt income if agriculture income ,more than 5000 then file ITR 2 is mentioned.I have exempt income my PPF is Rs 12000/-.

Plz help me to identify whether i have to fill ITR1 or ITR2 for assesment year 2015-16( I have no income from capital gain)

Thanks

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5 Replies

Z ( ) (2965 Points)
Replied 13 August 2015

That 5K limit is for aggriculture income only, you may proceed with ITR 1

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Suren (ASE) (117 Points)
Replied 13 August 2015

ITR 2 should be return you should choose. User Z can you please share the relevant section of IT act , as far as i could remember if the exempt income is more than 5000 then ITR 2 should choosen so that the AO understand how much is your exempt income and of what type ?

Thnx

Z ( ) (2965 Points)
Replied 13 August 2015

Sir that was prior to 1.4.2015

1. Its specifically mentioned in instructions that "Use ITR-2 or 2A, as applicable, if agricultural income exceeds Rs. 5,000"

Source

2. Extract from https://incometaxindiaefiling.gov.in/

3. Relevant rule is Rule 12

12. (1) The return of income required to be furnished under sub-section (1) or sub-section (3) or sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) or sub-section (4E) of section 139 or clause (i) of sub-section (1) of section 142 or sub-section (1) of section 148 or section 153A relating to the assessment year commencing on the 1st day of April, 14 2015 shall,—

[(a)

in the case of a person being an individual where the total income includes income chargeable to income-tax, under the head,—

(i)		"Salaries" or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or
(ii)		"Income from house property", where assessee does not own more than one house property and does not have any brought forward loss under the head; or
(iii)		"Income from other sources", except winnings from lottery or income from race horses [and does not have any loss under the head],

		be in Form [SAHAJ] (ITR-1) and be verified in the manner indicated therein:]
		[Provided that the provisions of this clause shall not apply to a person who,—

(I)

is a resident, other than not ordinarily resident in India within the meaning of sub-section (6)* of section 6 and has,—

(i)		assets (including financial interest in any entity) located outside India; or
[ (ii)		signing authority in any account located outside India; or
(iii)		income from any source outside India; ]

(II)		has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; or
[ (III)		has agricultural income, exceeding five thousand rupees; ]

On side note

Clause (III) substituted by the Income-tax (Eighth Amendment) Rules, 2015, w.r.e.f. 1-4-2015. Prior to its substitution, said clause read as under :

"(III) has income not chargeable to tax, exceeding five thousand rupees;"

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