Itr1 or itr2 if exempt income us10 is more than rs. 5000

Dear Vaibhav,

You have to file ITR 1. However if you filed ITR 2 there is no problem at all. Travelling allownce is the part of salary. If you have other source of income which have more than Rs. 5000(e.g. Interest on SB A/c) then you should file ITR 2.

Originally posted by : sushil kumar
	Dear Vaibhav, You have to file ITR 1. However if you filed ITR 2 there is no problem at all. Travelling allownce is the part of salary. If you have other source of income which have more than Rs. 5000(e.g. Interest on SB A/c) then you should file ITR 2.

Thank you Sushil for the answer.

However, SB A/c interest comes under section 80 tta as per my understanding and not in section 10. So is it necessary to file ITR2 even if the interest is more than Rs. 5000?

Regards,

-Vaibhav

Dear vaibhav, 

i agree with you that Intt on SB A/c upto 10000 is exempt u/s 80TTA. However i didnt tell you that amount are exempt in section 10. However I have mentioned by mistake SB intt instead of FD intt.

Dear Vaibhav

Strictly speaking, even the allowances are "Exempt Income" or "Income Not included in Total Income" as they fall under Sections 10 - "Income not included in Total income".

Now for ITR filing purpose, i feel as far your income from sources such as "Exempted Interest income, Exempted dividend income, exempted LTCG, Agricultural income" is Rs.5,000 or less (which we normally declare in the Schedule EI of ITR-2 or for that matter, other ITRs), you can use ITR-1 even if the exempt allowances (normally disclosed in the Salary Sheet) is more than Rs.5000.

The reason I feel so is that the instructions for ITR-1 SAHAJ give option to fill Salary income as per TDS Certificate which would have already considered Exempt Allowances to arrive at the Taxable Salary. Whereas Instruction for Item D22 asks to fill in details of exempt income like dividend income, agri income etc. but specifically asks to use ITR-2 if the exempt income is more than Rs.5000. 

Regards

Ajay

Thanks for the detailed explanation, Ajay. It has convinced me to go with ITR1 this time.

I just hope it will not create any problems for me that I had filed ITR2 in the last year and ITR1 in this year.

Regards,

-Vaibhav

Dear experts,

PPF interest created a question in my mind w.r.t. item 29 in ITR1 form.
Item 29 says if exempt income is more than Rs. 5000, use ITR2.

Here is the question: does PPF interest come under this exempt income?

It is only on accrual basis, because you cannot withdraw it at least for the first 6 years, I think.
So, is it required to declare this accrued interest as exempt income? If yes (& more than Rs. 5000) then I guess ITR2 will be appropriate form for most salaried people.

Thanks & regards, 

-Vaibhav

Dear Sir

I am Salaried person and i have loss from share trading this year Rs.30000/- and income tax deduct on my share transcation is 8491/- but my total taxable income is nill.Can i claim for this amount in my itr return and which itr is better for this nature itr2 or itr 4

Hi

I have got more than 5K exemption under section 10 under my net salary. Under which section should i declare this exemption while filing ITR online ?

Is exempt income clause of Rs 5000 limit still applicable on AY 2018-19? i.e. if EI is more than Rs 5000 (interest including PPF) then one need to file ITR2.

Currently ITR1 itself is taking the value of Any Other in Line 27 (d) (1) where I enter more than 5000 as PPF interest, it is taking without any error. The ITR1 alone does not stop me from reporting EI more than 5000 (except Agriculture income).

So if a assessee has PPF interest more than Rs 5000 and all other sources of income is interest and other source, should ITR2 be filed or ITR1 can be filed this AY?