Instructions to Form ITR-5 (AY 2017-18)

Instructions for filling out FORM ITR-5

These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.

1. Assessment Year for which this Return Form is applicable

This Return Form is applicable for assessment year 2017-18 only, i.e., it relates to income earned in Financial Year 2016-17.

2. Who can use this Return Form?

This Form can be used by a person being a firm, LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), persons referred to in section 160(1)(iii) or (iv), cooperative society, registered societies and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F) shall not use this form.

3. Annexure-less Return Form

Tax-payers are advised to match the taxes deducted/ collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS). (Please refer to www.incometaxindia.gov.in)

4. Manner of filing this Return Form

This Return Form can be filed with the Income-tax Department in any of the following ways, –

(i) by furnishing the return electronically under digital signature;

(ii) by transmitting the data in the return electronically under electronic verification code;

(iii) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;

However, a firm whose accounts are liable to audit under section 44AB shall compulsorily furnish the return in the manner mentioned at (i) above.

From assessment year 2013-14 on wards in case an assessee who is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80- IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW he shall file the report electronically on or before the date of filing the return of income.

5. Filling out the acknowledgement

Where the Return Form is furnished in the manner mentioned at 4(iii), the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.

6. Codes for filling this Return Form

(i) Under the heading ‘Filing Status’ in the Return Form the relevant box needs to be checked regarding section under which the return is being filed on the basis of following.

SI. No.

How the return is filed

i

On or before the due date as provided under section 139(1)

ii

After the due date under section 139(1) but before the expiry of one year from the end of relevant assessment year as per section 139(4)

iii

Revised Return under section 139(5)

iv

Modified return under section 92CD to give effect to advance pricing agreement entered with the Board

v

In response to notice under section 139(9) for removal of defects

vi

In response to notice under section 142(1)

vii

 In response to notice under section 148

viii

In response to notice under section 153A/153C

ix

Under section 119(2)(b) on an application to be made separately before the income-tax authority (The return shall be treated as valid only after the application/claim/relief under section 119(2)(b) has been admitted by the income-tax authority)

ii. Under the head Audit Information, if the assessee is liable for Audit u/s 44AB and the accounts have been audited by an accountant, the details of such audit report along with the date of furnishing it (if filed before the return) to the department has to be filled. Further, if the assessee is liable to furnish other audit report the section under which such audit is required and the date of furnishing it to the department (if audit has been carried out under that section) has to be filled. It is mandatory to furnish audit reports (if the audit has been carried out) under the following sections electronically on or before the date of filing the return of income.

Section under which Audit report is mandatory to be filed electronically (if the audit has been carried out) on or before the due date of-furnishing the return of income

Si.

Section Si.

Section

1. 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via) 9. 80-IB
2. 10A 10. 80-IC
3. 10AA 11. 80-ID
4. 12A(1)(b) 12. 80JJAA
5. 44AB 13. 80LA
6. 44DA 14. 92E
7. 50B 15. 115JB
8. 80-IA 16. 115VW

(iii) Under the head Audit Information, in (e), fill up the name of the Act, Section and date of furnishing audit report if liable to audit under any Act other than the Income-tax Act.

(iv) Under item E, under Partners/ Members/ Trust information, information about partners/members is to be filled in case of a firm/AOP/BOI and information about settler, trustee and beneficiary is to be filled in case of a trust. In the column for Status, the following status should be filled, as applicable.

Si. No.

Status to be filled

1

Individual

2

HUF

3

Firm

4

LLP

5

Domestic Company

6

Foreign Company

7

Co-Operative Society

8

Local Authority

9

Trust

10

AOP/ BOI

11

Any other Artificial Juridical Person

12

Settler (in case of a trust)

13

Trustee (in case of a trust)

14

Beneficiary (in case of a trust)

7. Instructions for filling out this Form

(i) The codes for nature of business to be filled in ‘Part- A- Nature of business’ are as under-

Sector

Sub- Sector

Code

(1) Manufacturing
Industry
Agro-based industries

0101

Automobile and Auto parts

0102

Cement

0103

Diamond cutting

0104

Drugs and Pharmaceuticals

0105

Electronics including Computer Hardware

0106

Engineering goods

0107

Fertilisers, Chemicals, Paints

0108

Flour & Rice Mills

0109

Food Processing units

0110

Marble & Granite

0111

Paper

0112

Petroleum and Petrochemicals

0113

Power and energy

0114

Printing & Publishing

0115

Rubber

0116

Steel

0117

Sugar

0118

Tea, Coffee

0119

Textiles, handloom, Power looms

0120

Tobacco

0121

Tyre 0122
Vanaspati & Edible Oils 0123
Others 0124
(2) Trading Chain Stores 0201
Retailers 0202
Wholesalers 0203
Others 0204
(3) Commission
Agents
General Commission Agents 0301
(4) Builders Builders 0401
Estate Agents 0402
Property Developers 0403
Others 0404
(5) Contractors Civil Contractors 0501
Excise Contractors 0502
Forest Contractors 0503
Mining Contractors 0504
Others 0505
(6) Professionals Chartered Accountants, Companies Secretaries, etc. 0601
Fashion designers 0602
Legal professionals 0603
Medical professionals 0604
Nursing Homes 0605
Speciality hospitals 0606
Others 0607
(7)  Service Sector Advertisement agencies 0701
Beauty Parlours 0702
Consultancy services 0703
Courier Agencies 0704
Computer training/ educational and coaching institutes 0705
Forex Dealers 0706
Hospitality services 0707
Hotels 0708
I.T. enabled services, BPO service providers 0709
Security agencies 0710
Software development agencies 0711
Transporters 0712
Travel agents, tour operators 0713
Others 0714
(8) Financial
Service Sector
Banking Companies 0801
Chit Funds 0802
Financial Institutions 0803
Financial service providers 0804
Leasing Companies 0805
Money Lenders 0806
Non-Banking Finance Companies 0807
Share Brokers, Sub-brokers, etc. 0808
Others 0809
(9) Entertainment
Industry
Cable T.V. productions 0901
Film distribution 0902
Film laboratories 0903
Motion Picture Producers 0904
Television Channels 0905
Others 0906
(10) Other Sector
[other than (1) to
(9) above]
1001

8. BRIEF SCHEME OF THE LAW– Before filling out the form, you are advised to read the following-

(1) Computation of total income

(a) “Previous year” is the financial year (1st April to the following 31st March) during which the income in question has been earned. “Assessment Year” is the financial year immediately following the previous year.

(b) Total income is to be computed as follows, in the following order:

(i) Classify all items of income under the following heads of income-
(A) “Income from house property”; (B) “Profit and gains from business or profession”; (C) “Capital gains”; and (D) “Income from other sources”. [There may be no income under one or more of the heads at (A), (B), (C) and (D)].

(ii) Compute taxable income of the current year (i.e., the previous year) under each head of income separately in the Schedules which have been structured so as to help you in making these computations as per provisions of the Income-tax Act. These statutory provisions decide what is to be included in your income, what you can claim as an expenditure or allowance and how much, and also what you cannot claim as an expenditure/allowance.

(iii) Set off current year’s head wise loss(es) against current year’s head wise income(s) as per procedures prescribed by the law. A separate Schedule is provided for such set-off.

(iv) Set off, as per procedures prescribed by the law, loss(es) and/or allowance(s) of earlier assessment year(s) brought forward. Also, compute loss(es) and/or allowance(s) that could be set off in future and is (are) to be carried forward as per procedures prescribed by the law. Separate Schedules are provided for this.

(v) Aggregate the head wise end-results as available after (iv) above; this will give you “gross total income”.

(vi) From gross total income, subtract, as per procedures prescribed by the law, “deductions” mentioned in Chapter VIA of the Income-tax Act. The result will be the total income. Besides, calculate agricultural income for rate purposes.

(2) Computation of income-tax, surcharge, education cess including secondary and higher education cess and interest in respect of income chargeable to tax

(a) Compute income-tax payable on the total income. Special rates of tax are applicable to some specified items. Include agricultural income, as prescribed, for rate purposes, in the tax computation procedure.

(b) If income includes income of the nature referred to in section 115BBE, surcharge @25% on such income is chargeable. If total income exceeds Rs. 1 crore, calculate surcharge on (total income minus income chargeable u/s 115BBE) at the rate of 12% or 15% as applicable.

(c) In case, the tax liability computed as above is less than 18.5% of adjusted total income, the assessee is required to pay alternate minimum tax (AMT) under section 115JC at the rate of 18.5% of the adjusted total income. The excess tax so paid is allowable to be carried forward for credit in the year in which tax liability under the normal provisions of the Act is more than AMT liability. Such carry-forward is allowable up to 10 years.

(d) Add Education Cess as prescribed on the tax payable and surcharge thereon.

(e) Claim relief(s) as prescribed by the law, on account of foreign tax credit and calculate balance tax payable.

(f) Add interest payable as prescribed by the law to reach total tax and interest payable.

(g) Deduct the amount of prepaid taxes, if any, like “tax deducted at source”, “tax collected at source”, “advance-tax” and “self-assessment-tax”. The result will be the tax payable (or refundable).

(3) Obligation to file return of income

(a) Every firm shall furnish the return of income whether it has income or loss during the year.

(b) Every AOP, BOI and artificial juridical person has to furnish the return of his income if his total income before allowing deductions under section 10A, 10AA or Chapter VI-A (i.e., if its gross total income referred to in item 9 of Part B-TI as increased by item ‘e’ of Schedule 10A, item ‘e’ of Schedule 10AA of this Form) exceeds the maximum amount which is not chargeable to income tax (Rs. 2,00,000/- in case of AOP, BOI and artificial juridical person, ‘nil’ in case of a cooperative society) during the financial year 2015-16.

(c) The deduction under sections 10A, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE shall not be allowed unless the return has been filed on or before the due date.

(d) The losses, if any, (item-16 of Part B-TI of this Form) shall not be allowed to be carried forward unless the return has been filed on or before the due date.

9. SCHEME OF THE FORM

The Scheme of this form follows the scheme of the law as outlined above in its basic form. The Form has been divided into three parts. It also has twenty-nine schedules. The details of these parts and the schedules are as under:-

(i) Part-A has five sub-divisions as under-

(a) Part A-GEN mainly seeks general information requiring identificatory and other data;

(b) Part A-BS seeks the balance sheet as on 31st March, 2017;

(c) Part A-P&L seeks information regarding the Profit and loss account for the financial year 2016- 17.

(d) Part A-OI seeks other information. It is optional in a case not liable for audit under section 44AB

(e) Part A-QD seeks information regarding quantitative details of the principal item of goods traded. It is optional in a case not liable for audit under section 44AB.

(ii) The second part, i.e., Part-B is regarding an outline of the total income and tax computation in respect of income chargeable to tax.

(iii) There are 29 schedules details of which are as under-

(a) Schedule-HP: Computation of income under the head Income from House Property

(b) Schedule-BP: Computation of income under the head “profit and gains from business or profession”

(c) Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act

(d) Schedule DOA: Computation of depreciation on other assets under the Income-tax Act

(e) Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act

(f) Schedule DCG: Computation of deemed capital gains on sale of depreciable assets

(g) Schedule ESR: Deduction under section 35 (expenditure on scientific research)

(h) Schedule-CG: Computation of income under the head Capital gains.

(i) Schedule-OS: Computation of income under the head Income from other sources.

(j) Schedule-CYLA: Statement of income after set off of current year’s losses

(k) Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.

(l) Schedule- CFL: Statement of losses to be carried forward to future years.

(m) Schedule –UD: Unabsorbed Depreciation

(n) Schedule- ICDS: Statement of effect of income computation disclosure standards on profit.

(o) Schedule- 10A: Computation of deduction under section 10A

(p) Schedule- 10AA: Computation of deduction under section 10AA

(q) Schedule- 80G: Details of donation entitled for deduction under section 80G

(r) Schedule- 80IA: Computation of deduction under section 80IA

(s) Schedule- 80IB: Computation of deduction under section 80IB

(t) Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.

(u) Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.

(v) Schedule –AMT: Computation of Alternate Minimum Tax payable under section 115JC

(w) Schedule AMTC: Computation of tax credit under section 115JD

(x) Schedule-SI: Statement of income which is chargeable to tax at special rates

(y) Schedule-EI: Statement of Income not included in total income (exempt incomes)

(z) Schedule-PTI: Statement of income from Business Trust or Investment Fund as per section 115UA, 115UB.

(aa) Schedule FSI: Details of income accruing or arising outside India

(bb) Schedule TR: Details of Taxes paid outside India

(cc) Schedule FA: Details of Foreign Assets and Income

10. GUIDANCE FOR FILLING OUT PARTS AND SCHEDULES

(1) General

(i) All items must be filled in the manner indicated therein; otherwise the return maybe liable to be held defective or even invalid.

(ii) If any item is inapplicable, write “NA” against that item.

(iii) Write “Nil” to denote nil figures.

(iv) Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.

(v) All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.

(2) Sequence for filling out parts and schedules

(i) Part A

(ii) Schedules

(iii) Part B

(iv) Part C

(v) Verification

11. PART A-GEN

Most of the details to be filled out in Part-Gen of this form are self-explanatory. However, some of the details mentioned below are to be filled out as explained here under:-

(a) Taxpayers are advised to mandatory fill up the address columns carefully and provide correct information. Similarly status column under the head Personal Information needs to be filled mandatory.

(b) Under the head “Filing status” in the Form, filing of “Residential Status” is mandatory.

(c) Tax payers are advised to furnish their correct mobile number and e-mail address so as to facilitate the Department in sending updates relating to demand, refund etc. In case a return is filed by an intermediary/professional, the email address of the intermediary as well as the assessee may be provided.

(d) The sections under which the return is filed be filled as given in item No. 6.

(e) In case the return is being filed by you in a representative capacity, please ensure to quote your PAN in item “PAN of the representative assessee”. In case the PAN of the person being represented is not known or he has not got a PAN in India, the item for PAN in the first line of the return may be left blank. It may please be noted that in the first line of this form, the name of the person being represented be filled.

12. PART A-BS AND PART A-P&L

(a) The Balance Sheet as on 31st March, 2017 and the profit and loss account for financial year 2016-17 in the formats provided in these parts have to be filled in respect of business or profession carried out by you during the financial year 2016-17 if you were required to maintain accounts of the business or profession during the year.

(b) In case, accounts of the business or profession were required to be audited, the items of balance sheet and profit and loss account filled in the these parts should match with the audited balance sheet and profit and loss account.

(c) In case, you were not required to maintain accounts of the business or profession during the year, please fill out the details mentioned in these parts against portion ‘No account case’.

13. PART A- OI AND PART A-QD

(a) If the accounts of the business or profession were not required to be audited under section 44AB, it is optional to fill these parts.

(b) Where the accounts of the business or profession were required to be audited under section 44AB, the details to be filled in these parts which are also required to be reported in the report of audit by the auditors, should broadly match with the details as given in the report of audit.

(c) Purchases are to be shown exclusive of taxes and the details of taxes paid on the purchases are to be indicated separately in the relevant rows. However, where it is not possible to segregate the details of the different taxes paid on the purchases, the same may be included and shown in the details of purchases.

(d) In Part A-QD, the quantitative details may be furnished only in respect of principal items.

14. SCHEDULES

(a) Schedule-HP– Following points also need to be clarified,-

(i) Annual letable value means the amount for which the house property may reasonably be expected to let from year to year, on a notional basis: Deduction for taxes paid to local authority shall be available only if the property is in the occupation of a tenant, and such taxes are borne by the assessee and not by the tenant and have actually been paid during the year.

(ii) In case of part ownership of property, the figure of annual value or rent receivable/ received in row ‘a’ should be for whole of the property and only after computation of annual value in row ‘e’ the portion chargeable in own hands should be computed in row ‘f’ by multiplying such annual value with assessee’s percentage share in the property

(iii) In item 3a, arrears of rent received and the amount of unrealised rent realised subsequently are to be mentioned after deduction @30% of such arrears of rent and unrealised rent realised.

(b) Schedule-BP-

(i) The computation in this schedule has to be started on the basis of profit before tax as shown in item 46 of Part-A- P&L.

(ii) In case any item of addition or deduction not covered by the items mentioned in this schedule be filled in residual items 23 and 32 of this schedule.

(iii) In case accounts of business or profession are not maintained, the profit as entered into by you in item 54d of Part A-P&L.

(iv) In case, agricultural income to be excluded on the basis of rule 7A, 7B or 8 (in business of growing and manufacturing tea, coffee etc.), it shall not be included in the item 5c of this schedule.

(v) In A-37, net profit or loss from business or profession is to be computed, only in special cases, e.g. business of growing and manufacturing tea, coffee, etc., where rules 7A, 7B or 8 is applicable otherwise, the figure of profit/ loss as computed is A-36 may be entered.

(vi) Income earned by the assessee by way of salary, commission, bonus, interest, etc. from other firms as if in the capacity of a partner, which has not been included in the profit and loss account of the proprietary business needs to be disclosed in item No.A24 in Schedule BP.

(vii) Item D of this schedule computes the total of profit or loss from business or profession (other than speculative business and profit or loss from speculative business and profit and loss from specified business) (item A37 + item B41 + item C47). Please note that if balance in item B41 in respect of speculative business is a loss, same shall not be set-off against profit from non-speculative business. In such situation, only the figures of item A37 be entered in item D.

(viii) Item E of this schedule computes the set off of any business loss (other than from speculative business and specified business) with the profits from speculative business and specified business, if any. Losses from speculative business or specified business are not allowable to be set off with normal business profits.

(c) Schedule-DPM, Schedule DOA, Schedule DEP and Schedule DCG: For sake of convenience, computation of depreciation allowable under the Income-tax Act [other than in case of an undertaking generating electricity which may at its option claim depreciation on straight line method under section 32(1)(i)], has been divided into two parts i.e. in schedules DPM (depreciation on plant and machinery) and DOA (depreciation on other assets). The summery of depreciation as per these schedules has to be shown in schedule DEP. Deemed short term capital gain, if any as computed in schedule DPM and DOA has to be entered into schedule DCG.

(d) Schedule ESR: Deduction under section 35 (expenditure on scientific research): In column (2) of this schedule, please furnish the details of deduction to which you are entitled under provisions of this section. In column (1), please enter the amounts of expenses of the nature covered by section 35 which are, if, debited to profit and loss account. Please note that no deduction for depreciation is available in respect of capital asset for which deduction under section 35(1)(iv) has been claimed. Deduction under section 35CCC and 35CCD also be filled in this schedule.

(e) Schedule-CG-

(i) Capital gains arising from sale/transfer of different types of capital assets have been segregated. If more than one capital asset within the same type has been transferred, make the combined computation for all such assets within the same type. Under short-term capital gains items 3 and 4 are not applicable for residents. Similarly, under long-term capital gains items 4, 5 and 6 are not applicable for residents.

(ii) For computing long-term capital gain, cost of acquisition and cost of improvement may be indexed, if required, on the basis of following cost inflation index notified by the Central Government for this purpose.

Si. No.

Financial Year Cost Inflation
Index
Si. No. Financial
Year

Cost Inflation
Index

1.

1981-82 100 18. 1998-99

351

2.

1982-83 109 19. 1999-00

389

3.

1983-84 116 20. 2000-01

406

4.

1984-85 125 21. 2001-02

426

5.

1985-86

133

22.

2002-03

447

6.

1986-87

140 23. 2003-04

463

7.

1987-88

150 24. 2004-05

480

8.

1988-89

161 25. 2005-06

497

9.

1989-90

172 26. 2006-07

519

10.

1990-91

182 27. 2007-08

551

11.

1991-92

199 28. 2008-09

582

12.

1992-93

223 29. 2009-10

632

13.

1993-94

244 30. 2010-11

711

14.

1994-95

259 31. 2011-12

785

15.

1995-96

281 32. 2012-13

852

16.

1996-97

305 33. 2013-14

939

17.

1997-98

331 34. 2014-15

1024

35.

2015-16

1081 36. 2016-17

1125

(iii) Sections 54B/54D/54EC/54EE/54G/54GA mentioned in this schedule provide exemption on capital gains subject to fulfilment of certain conditions. Exemption under some of these sections is available only in respect of long-term capital gains. If any deduction is claimed details in item D to be provided.

(iv) Item C of this Schedule computes the total of short-term capital gain and long-term capital gain. Please note that if balance in item B10 in respect of long-term capital gain is a loss, same shall not be set-off against short-term capital gain. In such situation, the figure of item B10 would be entered as 0 and then the figures of item A9 be added in item C.

(v) Item E of this Schedule provides for set off of current year capital losses with current year capital gains. The schedule separates different category of capital gains (long-term and short-term) into different baskets according to rate at which the same is chargeable to tax. The applicable rate implies the rate of tax at which the normal income of the assessee is otherwise taxable. The figures in column 1 list out the categories of capital gains against which capital loss will be set off. Similarly figures in row ‘i’ provides for different categories of capital losses which will be set off against capital gains in column 1. The figures in row ‘i’ and column ‘1’ will be derived from addition of different fields of schedule CG as indicated. For example if (A3e+ A4a) represents a negative figure it will be filled in cell ‘2i’ and if it is a positive figure it will be filled in cell ‘1ii’. The assessee may set off the capital loss of row ‘i’ with any category of capital gains in column ‘1’ except that the long-term capital loss can only be adjusted with any long-term capital gains and the amount of such set off has to be entered into in the relevant rows of columns 2 to 6.

(f) Schedule-OS-

(i) Against item 1a and 1b, enter the details of gross income by way of dividend and interest which is not exempt.

(ii) Against item 1c, indicate the gross income from machinery, plant or furniture let on hire and also such income from building where its letting is inseparable from the letting of the said machinery, plant or furniture, if it is not chargeable to income-tax under the head “Profits and gains of business or profession”.

(iii) Against item 1d, indicate any other income under the head other sources such as winning from lottery, crossword puzzles etc., income of the nature referred to in section 68, 69, 69A, 69B, 69C or 69D. The nature of such income is also required to be mentioned.

(iv) Income from owning and maintaining race horses is to be computed separately as loss from owning and maintaining race horses cannot be adjusted against income from any other source, and can only be carried forward for set off against similar income in subsequent years.

(v) Item 4 of this Schedule computes the total income chargeable under the head “Income from other sources”. If balance in item 3c from owning and maintaining race horses is a loss, please enter 0 and enter the total of item 2.

(g) Schedule-CYLA-

(i) Mention only positive incomes of the current year in column 1, head wise, in the relevant rows.

(ii) Mention total current year’s loss(es), if any, from house property, business or profession and other sources (other than losses from race horses) in the first row against the heading loss to be adjusted under the respective head. These losses are to be set off against income under other heads in accordance with the provisions of section 71. The amount set off against the income of respective heads has to be entered into in columns 2, 3 and 4, in the relevant rows.

(iii) Mention the end-result of the above inter-head set-off(s) in column 5, head wise, in relevant rows.

(iv) Total of loss set off out of columns 2, 3 and 4 have to be entered into row xiii.

(v) The losses remaining for set off have to be entered in row xiv.

(h) Schedule-BFLA-

(i) Mention only positive incomes of the current year (after set-off of loss in Schedule-CYLA in column 1, head wise in relevant rows.

(ii) The amount of brought forward losses which may be set off are to be entered in column 2 in respective rows. Brought forward short-term capital loss can be adjusted under any item of short-term or long-term capital gains. Brought forward long-term capital loss can be adjusted under any item of long-term capital gains.

(iii) The end result of the set off will be entered in column 5 in respective heads. The total of column 3 shall be entered in row xiii which shall give the amount of gross total income.

(iv) The total amount of brought forward losses set off during the year shall be entered in column 2 of row xii.

(i) Schedule-CFL-

(i) In this Schedule, the summary of losses carried from earlier years, set off during the year and to be carried forward for set off against income of future years is to be entered.

(ii) The losses under the head “house property”, ‘profit and gains of business or profession” short term capital loss and long term capital loss, losses from other sources (other than losses from race horses) are allowed to be carried forward for 8 years. However, loss from owning and maintaining race horses can be carried forward only for 4 assessment years.

(j) Schedule-UD– In this Schedule, amount of brought forward un absorbed depreciation and allowance under section 35(4) for each assessment year, amount of depreciation and allowance under section 35(4) set-off against the current year’s income and the balance un absorbed depreciation and allowance under section 35(4) to be carried forward to the next assessment year needs to be mentioned.

(k) Schedule-ICDS- Income Computation Disclosure Standards (ICDS) have come into force from financial year 2015-16 and on wards. Deviation from each ICDS as notified under section 145(2) of the Income-tax Act that has an effect on profit is to be filled in column(iii) of the said Schedule. The net effect as in serial No. 11 is to be taken in row 3 of Part A-OI.

(l) Schedule- 10A-

(i) If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

(ii) The amount of deduction under this section for an undertaking shall be as per item 17 of Form No. 56F being the report of audit under section 10A.

(m) Schedule-10AA– If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

(n) Schedule- 80G-

(i) In this Schedule, the details of donation given by you which are entitled for deduction under section 80 G have to be filled.

(ii) In Part-A of this Schedule, the details of donations which are entitled for 100% deduction without any qualifying limit are to be filled in. Section 80 G(1)(i) read with section 80 G(2) contains the list of funds/ institutions donations to which are eligible for 100% deduction in hands of the donor.

(iii) In Part-B of this Schedule, the details of donations which are entitled for 50% deduction without any qualifying limit are to be filled in where such donations have been given to the funds/ institutions which are not required to be approved by an authority for this purpose. Section 80 G (1) (i) read with section 80 G (2) also contains the list of such funds/ institutions

In Part-C of this Schedule, the details of donations which are entitled for 100% deduction subject to a qualifying limit are to be filled in.

(v) In Part-D of this Schedule, the details of donations which are entitled for 50% deduction subject to a qualifying limit are to be filled in.

(vi) It may kindly be noted that where the aggregate donations referred to in Part-E and donations referred to in sub-clauses (v), (vi), (via) and (vii) of clause (a) and in clauses (b) and

(c) of section 80G (2) exceeds 10% of total income (before deduction under other provisions of Chapter VI-A), then the excess amount shall be ignored for purpose of computing deduction under section 80G.

(o) Schedule- 80IA, Schedule- 80IB, Schedule- 80IC and Schedule-80-IE:

(i) If there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.

(ii) The amount of deduction for an undertaking shall be as per item 30 of Form No.10CCB being the report of audit under sections 80-IA/ 80-IB/ 80-IC and 80-IE.
(p) Schedule-VIA-

(i) The total of the deductions allowable is limited to the amount of gross total income. For details of deductions allowable, the provisions of the Chapter VI-A may kindly be referred to.

(ii) For deductions under sections 80-IA, 80-IB, 80-IC/ 80-IE, the amount as shown in Schedules 80-IA, 80-IB and 80-IC/ 80-IE be filled. The amount of deduction under section 80-ID also needs to be shown in this Schedule.

(iii) Details of other deductions which are available are as under:-

(a) Section 80G (Deduction in respect of donations to certain funds, charitable institutions, etc.)

(b) Section 80GGC (Deduction in respect of contributions given by any person to political parties)

(c) Section 80IA (Deduction in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.)

(d) Section 80IAB (Deduction in respect of profits and gains by an undertaking or enterprise engaged in development on Special Economic Zone).

(e) Section 80IAC (Special provision in respect of specified business).

(f) Section 80IB (Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings).

(g) Section 80IBA (Deductions in respect of profits and gains from housing projects).

(h) Section 80IC/80IE (Special provisions in respect of certain undertakings or enterprises in certain special category States/ Special provisions in respect of certain undertakings in North-Eastern States).

(i) Section 80ID (Deduction in respect of profits and gains from business of hotels and convention centers in specified area)

(j) Section 80JJA (Deduction in respect and gains from business of collecting and processing of bio-degradable waste)

(k) Section 80JJAA (Deduction in respect of employment of new workmen)

(l) Section 80LA (Deduction in respect of certain incomes of Offshore Banking Units and International Financial services Centre)

(m) Section 80P (Deduction in respect of income of cooperative societies)

(q) Schedule ¡VAMT– The assessee is required to fill the details of computation of Alternate Minimum Tax (AMT) payable under section 115JC (special provisions for payment of tax by certain persons other than a company). The tax liability under the section shall be 18.5 percent of the adjusted total income computed under the said section. The computation under this Schedule is to be based on Form No. 29C.

(r) Schedule ¡VAMTC– Mention the details for computation of tax credit where LLP is subject to Alternate Minimum Tax and the credit for the same is being carried forward to subsequent assessment years.

(s) Schedule-SI– Mention the income included in total income which is chargeable to tax at special rates. Such income will be taken from the appropriate columns in schedule BFLA/CYLA or schedule OS as indicated.

(t) Schedule-EI– Furnish the details of income like agriculture income, interest, dividend, etc. which is exempt from tax.

(u) Schedule PTI: Fill Income details from business trust or investment fund as per section 115UA, 115UB.

1. In column 2 of the table, fill the name of business trust or investment fund.

2. In column 3 of the table, fill the PAN of business trust or investment fund.

3 Against serial number (i), fill amount of income from House property in column number 6 and fill TDS on such amount, if any, in column number 7.

4. Against serial number (ii)(a), fill amount of income from short term capital gain in column number 6 and fill TDS on such amount, if any, in column number 7.

5. Against serial number (ii)(b), fill amount of income from Long term capital gain in column number 6 and fill TDS on such amount, if any, in column number 7.

6. Against serial number (iii), fill amount of income from other sources in column number 6 and fill TDS on such amount, if any, in column number 7.

7. Against serial number (iv)(a),(b),(c), fill income received from business trust or investment fund claimed to be exempt under section 10(23FBB), 10(23FD), etc. in column number 6.

(v) Schedule FSI,-

(i) In this Schedule, fill the details of income, which is already included in total income, accruing or arising outside India.

(ii) For country code use the International Subscriber Dialing (ISD) code of the country.

(iii) The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.

(w) Schedule TR, –

(i) In column £á mention the tax paid outside £á on the income declared in Schedule FSI which will be the total tax paid under column £á of schedule FSI in respect of each country.

(ii) In column (d) mention the tax relief available that will be the total tax relief available under column £á of schedule FSI in respect of each country.

(iii) For country code use the ISD code of the country.

(iv) The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.

(v) Relief claimed under section 90 or section 90A or section 91 is to be filled in the respective columns.

(x) Schedule FA-

(i) This schedule is to be filled up by a resident assessee. It need not be filled up by a ¡¥not ordinarily resident¡¦ or a ¡¥non-resident¡¦. Mention the details of foreign bank accounts, financial interest in any entity, details of immovable property or other assets located outside India. This should also include details of any account located outside India in which the assessee has signing authority, details of trusts created outside India in which you are settlor, beneficiary or trustee. Under all the heads mention income generated/derived from the asset. The amount of income taxable in your hands and offered in the return is to be filled out under respective columns. Item G includes any other income which has been derived from any source outside India and which has not been included in the items A to F and under the head business of profession in the return.

(ii) This schedule is to be filled in all cases where the resident assessee is a beneficial owner, beneficiary or legal owner. For this purpose,-

  • Beneficial owner in respect of an asset means an individual who has provided, directly or indirectly, consideration for the asset and where such asset is held for the immediate or future benefit, direct or indirect, of the individual providing the consideration or any other person.
  • Beneficiary in respect of an asset means an individual who derives an immediate or future
    benefit, directly or indirectly, in respect of the asset and where the consideration for such asset has been provided by any person other than such beneficiary.

Where the assessee is both a legal owner and a beneficial owner, mention legal owner in the column of ownership.
(iii) (A) The peak balance in the bank account during the year is to be filled up after converting the same into Indian currency.

(B) Financial interest would include, but would not be limited to, any of the following:-

(1) if the resident assessee is the owner of record or holder of legal title of any financial account, irrespective of whether he is the beneficiary or not.

(2) if the owner of record or holder of title is one of the following:-

(i) an agent, nominee, attorney or a person acting in some other capacity on behalf of the resident assessee with respect to the entity.

(ii) a corporation in which the resident owns, directly or indirectly, any share or voting power.

(iii) a partnership in which the resident assessee owns, directly or indirectly, an interest in partnership profits or an interest in partnership capital.

(iv) a trust of which the resident has beneficial or ownership interest.

(v) any other entity in which the resident owns, directly or indirectly, any voting power or equity interest or assets or interest in profits.

(3) the total investment in col(5) of part (B) has to be filled up as peak investment held during the year after converting it into Indian currency.

(C) The total investment in col(5) of part (C) has to be filled up as peak investment in immovable property held during the year after converting it into Indian currency.

(D) The total investment in col(5) of part (D) has to be filled up as peak investment (at cost) held during the year after converting it into Indian currency. Capital Assets include financial assets which are not included in part (B) but shall not include stock-in-trade and business assets which are included in the Balance Sheet.

(E) The details of peak balance/investment in the accounts in which you have signing authority and which has not been included in Part (A) to Part (D) mentioned above has to be filled up as peak investment/balance held during the year after converting it into Indian currency.

(iv) For the purpose of this Schedule, the rate of exchange for the calculation of the value in rupees of such asset situated outside India shall be the telegraphic transfer buying rate of such currency as on the date of peak balance in the bank account or on the date of investment.

Explanation: For the purposes of this Schedule, “telegraphic transfer buying rate”, in relation to a foreign currency, means the rate or rates of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency, where such currency is made available to that bank through a telegraphic transfer.

15. PART B- TI-COMPUTATION OF TOTAL INCOME

(i) In this part the summary of income computed under various heads and as set off in Schedule CFLA and Schedule BFLA is to be entered.

(ii) Every entry which have to be filled on basis of Schedules have been crossed referenced and hence doesn’t need any further clarification.

16. PART B-TI-COMPUTATION OF TAX LIABILITY ON TOTAL INCOME

(a) In item 2a, fill the details of gross tax liability to be computed at the applicable rate. The tax liability has to be computed at the rates given as under:-

(A) In case of an AOP or a BOI or any other artificial juridical person,-

Income (In Rs.)

Tax Liability (In Rs.)

Up-to Rs. 2,50,000 Nil
Between Rs. 2,50,001 – Rs. 5,00,000 10% of income in excess of Rs. 2,50,000
Between Rs. 5,00,001 – Rs. 10,00,000 Rs. 25,000 + 20% of income in excess of Rs. 5,00,000
Above Rs.10,00,000 Rs. 1,25,000 + 30% of income in excess of Rs. 10,00,000

(B) In case of a co- operative society,-

Income (In Rs.)

Tax Liability (In Rs.)

Up to Rs. 10,000 10%
Between Rs. 10,000 – Rs. 20,000 1,000 + 20% of income in excess of Rs. 10,000
Above Rs.20,000 3,000 + 30% of income in excess of Rs. 20,000

(C) In case of a firm or local authority– 30% of the total income

(b) In item No. 2b fill out the total of tax computed at special rates as per schedule SI.

(c) In item No. 2c the amount of rebate is the amount of tax computed on the aggregate of net agricultural income and the maximum amount not chargeable to tax as mentioned in para (a) above. This is applicable only if normal income (Total income less income chargeable to tax at special rate) is more than the maximum amount not chargeable to tax.

(d) In item No.2e, if income includes income of the nature referred to in section 115BBE, surcharge @25% on tax such income is to be computed. If total income exceeds Rs. 1 crore, calculate surcharge on balance tax i.e. (tax on total income minus tax on income chargeable u/s 115BBE) at the rate of 12% or 15% as applicable.

(e) In item No. 2f, calculate the education cess including secondary and higher education cess at the rate of three per cent of item No. 2d+2e.

(f) In item No. 8a, claim relief in respect of tax paid (on income which is included in the return) in any foreign country with which DTAA exists between India and that foreign country.

(g) In item No. 8b, claim relief in respect of tax paid (on income which is included in the return) in any foreign country with which there is no DTAA between India and that foreign country.

(h) In item 10b, please furnish the details in accordance with Form 16A issued by any other person in respect of other income as entered in schedules TDS.

(i) In item 13 please provide details of all savings, current accounts held at any time during the previous year. However, details of dormant account i.e. account which is not operational for more than 3 years is not mandatory. Please quote the IFS code of the bank. Further, enter full bank account number without any special character like ‘-’, ‘/’, bracket etc. The number should be as per Core Banking Solution (CBS) system of the Bank. Also indicate the account in which you would like to get your refund credited. This is mandatory even if your do not claim any refund. The amount of cash deposited during 09.11.2016 to 30.12.2016 in the said bank accounts should also be filled. In case cash is deposited during 09.11.2016 to 30.12.2016 in any account other than the savings, current (viz. cash credit accounts, loan accounts etc.), then details of such account indicating the cash deposited in the said account during the said period should also be provided.

It may be noted that details of cash deposited are to be provided, if the aggregate amount of cash deposited during 09.11.2016 to 30.12.2016 is Rs.2 lakh or more.

17. VERIFICATION

(a) In case the return is furnished electronically under digital signature, please fill up the required information in the Verification. Strike out whatever is not applicable. Please ensure that the verification has been signed before furnishing the return. Write the designation of the person signing the return.

(b) In case the return is to be furnished electronically in the manner mentioned in instruction no. 4(iii), please fill verification form (Form ITR-V)

(c) Please note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

18. TAX PAYMENTS

(A) (i) Fill out the details of payment of advance income-tax and income-tax on self-assessment.

(ii) The details of BSR Code of the bank branch (7 digits), date of deposit, challan serial No., and amount paid should be filled out from the acknowledgement counterfoil.

(B) (i) In this table, fill the details of tax deducted on the basis of TDS certificates (Form No.16A or Form 26 QB) issued by the deductor(s).

(ii) Details of each certificate are to be filled separately in the rows.

(iii) It may please be noted that the TDS certificates are not to be annexed with the Return Form.

(iv) In this schedule where tax is deducted u/s 194-IA and details are filled as per Form 26QB, in column (2) in place of TAN of the Deductor mention PAN of the Buyer and in column (3) mention Name of Buyer being the Deductor.

(C) (i) In this table, fill the details of tax collected at source on the basis of TCS certificates (Form No. 27D) issued by the Collector.

(ii) It may please be noted that the TCS certificates are not to be annexed with the Return Form.

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