How to file an Income Tax Return (ITR)?

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It’s that time of the year again when the common man is buzzed with the question of how to file an Income Tax Return (ITR).And to make Income Tax Return Filing simpler, the Central Board of Direct Taxes (CBDT) has notified 2 new Income Tax Forms – Sahaj and Sugam which would be applicable from the Assessment Year (AY) 2011 onwards.

Which Income Tax Form to Fill?

  • ITR-1 or Sahaj for Taxpayers who have Income either from Salary or Pension, or from 1 House property or from other sources.
  • ITR – 2 is for those who have Income from more than 1 House Property or have Capital Gains.
  • Sugam – For those individuals with income under presumptive method. Under India’s presumptive taxation, person carrying on business will not be required to get his accounts audited if the annual total sales, turnover or gross receipts is less than Rs 60 lakh. The limit was increased by Finance Minister Pranab Mukherjee in 2010-11 budget from Rs 40 lakh.

Where to get the Income Tax Forms from?

Both Sahaj and Sugam are coloured forms, with standard features such as Registration Marks and Bar Codes. You can download them from the Income Tax Website – www.incometaxindia.gov.in or you can collect them from your nearest Income tax Office, Tax Melas, Tax Return preparers (TRP’s) at no extra cost. If you are using photocopies, ensure that they are coloured copies.

How to fill the Income Tax Return (ITR) Form

Shade the circle which is valid for you and leave the other options blank. For example – while indicating the taxpayer’s category, if you are a Government Employee, shade the Circle prior to it. While filling up the form also mention the Ward Number or the Circle Number.(Eg – Ward 15(1), Circle 14(1)).

Carefully fill all the columns in the income tax return as any error may lead to wrong filing to Income Tax Return (ITR). Also mention all your Bank Details like Bank Account Number, MICR Code etc. These details have to be furnished irrespective of whether any tax is due or payable.

For Advance Taxes and TDS, there are different schedules such as Schedule IT, Schedule TDS 1 and Schedule TDS 2, along with supplementary sheets for each section. In the Schedule IT, you need to mention the details of advance tax and self-assessment tax payments. In TDS 1 and TDS 2, details of TDS from Salary and Income other than salary have to be mentioned.

While filling up Sugam for income from business, you need to fill Schedule BP. You are required to furnish information such as gross turnover or gross receipts, total presumptive income. Along with total sundry debtors or creditors, and total stock-in-trade and cash balance.

PAN No. and Bar Code No. on each page

The new Sahaj and Sugam forms would have unique bar code number and PAN Number printed on each page which helps in easier processing of income tax returns and would help in easier scanning and uploading the same into the database of the Income Tax Department.

The new Sahaj and Sugam Forms also have large boxes to be filed in Block Format which would help in both manual scanning as well as OCR Scanning. An extract of the same has been shared here

Old ITR How to file an Income Tax Return (ITR)?

Old Income Tax Return Form

New ITR How to file an Income Tax Return (ITR)?

New Income Tax Return Form

Reason for using Colored Income Tax Forms

The reason for Income Tax Forms has been explained below

Colored Income Tax Form How to file an Income Tax Return (ITR)?

New Coloured Income Tax Forms

Sahaj black and white How to file an Income Tax Return (ITR)?

Old Income Tax Return Form

Once the Color is dropped all the boxes and commas, disappear leaving only the data to be captured. The comma’s which are placed in boxes makes the user not write commas which may become a problem in recognition

  1. By providing visual cues like commas, many users would not use special characters like /- and =00/- in the forms. Many Taxpayers also write paise in the forms, the commas would give visual cues to Taxpayers not to use the decimal points
  2. Every entry as a unique legend, for example for Income from Salary, the legend is B1, the software searches this in the form and decides a zone as shown above and captures the data.

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