What
is Total Income as per Income Tax Provisions ? – Income Tax 2014-15
(Assessmentt Year 2015-16)
We all know that relevant Income Tax
Return (ITR) forms are to be filed with Income Tax Department by all Salaried
Employees including Central Government Employees and Pensioners on or before
31st August 2015. Recently on 23rd June 2015, income tax department has
released simplified ITR forms such as ITR-1, ITR-2, ITR-2A etc.
Income Tax has also given
instructions for filing of Paper form Income Tax Returns (manual ITR) on the
basis of Total Income of tax payer (Read Instructions issued by Income Tax Department along with
release of ITRs for the Year 2014-15)
Who
has to file Income Tax Return 2014-15 online only?
As per these instructions, an
individual (other than the individual who have attained 80 year of age and
above) having refund claim in the ITR on account excess payment of Income Tax
over and above actual Income tax payable, or having total income exceeding Rs.
5 lakh during the year 2014-15.
How Total Income for the Year 2014-15
is calculated for the purpose of determining filing of ITR online ?
Illustration:
|
Income from salary
|
Rs.
|
|
Add / Less Income / Loss from from
house property
|
Rs.
|
|
Add Capital gains if any
|
Rs.
|
|
Add Income from other sources
|
Rs.
|
|
Gross Total Income
|
Rs.
|
|
Less : Exempted Income such as
LTC, HRA, Transport Allowance, etc subject to eligibility under Section 10 of
IT Act
|
|
|
Less : Deductions under
Chapter VI-A (i.e. under section 80C to 80U)
|
Rs.
|
|
Total Income (i.e., taxable
income)
|
Rs.
|
As per the above illustration, Total
Income for the purpose of filing ITR online will be Taxable Income taken for
determining Income Tax viz., Gross Total Income less all eligible exemptions
and deductions. Hence, if Taxable Income of a Salaried Employee is more than
Rs. Five lakh (Rs.5,00,000), then he / she has to file relevant Income Tax
Return online. If taxable Income is not more than Rs. 5 lakh but
exceeding Rs. 2.5 lakh, then Income Tax Return can be filed either manually at
the Income Tax Offices or through Online.
How to file Income Tax Return – ITR
Online ?
Which Income Tax Return (ITR) should
I file ? – Difference between ITR-1, ITR-2 and ITR-2A
Source:www.gconnect.in
