Mayank Jain

Now its time to file the IT-Return. So assessee must be aware of which form is to be used and various important deductions of which he/she can take benefit out of it.

For individual/HUF who are not covered under tax audit required to file their return by their 31st July.

Filing online return is quite convenient. Forms are available on the site

ITR 1 (SAHAJ): Assessee having Income from Salary, Interest and Rental income from 1 house                       . It cannot be used if assessee having any foreign asset, lottery or horse race earnings. This form not to be used if the exempt income during the year exceeds Rs. 5000

Note: Exempt income would include allowances for HRA, leave travel allowances, medical allowances, dividend income, proceeds of PPF,etc.

ITR 2: Assessee having income from salary, Interest (incl lottery or horse race earnings), Capital Gains, Rental income from more than 1 property. It cannot be used if having income from business or profession.

ITR 3: Assessee being partners in firms and carrying out business or profession. It is not to be used if the firm is a sole proprietorship.

ITR 4: Assessee having income from a proprietary business or profession.

ITR 4S (SUGAM) : Assessee having income from presumptive business. Business which are not liable to tax audit. It cannot be used if assessee is a self employed professional, or want to report income less than 8% of turnover, or if income is from speculative business or income includes lottery or horse race income.

ITR 5 : For firms, Association of persons, Body Of individuals, Limited liability partnership

ITR 7: Persons and companies required to furnish return u/s 139(4A), 139(4B), 139(4C), 139(4D).

NOTE: ITR V: This is the acknowledgement form. If the return is filed without digital signature then you are required to send by ordinary or speed post (not by couriers) signed ITR V to Bengaluru compulsorily in order to complete the filing of return process. No photocopies of ITR V are allowed, should be signed in original

Before filling form, check your 26AS form giving you the details of Tax deducted at source (TDS). TDS is reflected in 26AS only when it is deposited to government with correct PAN details. If there is any discrepancy between TDS certificate and 26AS then consult your deductor. However TDS certificate is to supersede 26AS in case of variation between two.

Now discussing certain important tax deductions

80C Rs. 100000 or Amt. whichever lowerFor: Indv/HUF PPF, Life Insurance Premium (individual himself, his/her spouse, any child of individual), ELSS, Home Loan Principal Repayment, National Savings Certificate, 5 Year Fixed Deposit, Senior Citizen Savings Scheme, Children education exp, contribution to PPF, etc
80CCC Rs. 100000 or Amt. whichever lowerFor: Individual Deduction in respect of Contribution to Certain Pension FundAllowed for amount paid or deposited in the previous year for receiving pension from the fund set up by LIC/ or any other insurer.
80CCD 10% of salary/Gross Total Income or Amt. deposited whichever lowerFor: Individual Deduction in respect of Contribution to Pension Scheme of Central Govt. by Central Govt. or other employerDeduction allowed to assessee who is employed by central govt. or by any other employer or is allowed to any other asseessee being self emloyed.
80CCE 80C+80CCC+80CCD Less than equal to Rs. 1 lac Limit on 80C, 80CCC, 80CCD
80CCG 50% of Amt. Invested or Rs.25000 whichever lowerFor: Resident Individual RGESS (Rajiv Gandhi Equity Savings Scheme)Conditions: Gross Total Income upto Rs. 12 lacsInvestment in specified securities

Lock in Period of 3 years

Assessee being a new retail investor

Note: If assessee allowed deduction u/s 80CCG for any assessment year, then he shall not be allowed any deduction under this section for any subsequent assessment year.

80D Deduction upto Rs. 20000 for senior citizen and upto Rs.15000 in other caseDeduction for insurance of parents (father or mother or both) upto Rs.20000 if parents are senior citizen and Rs.15000 in other caseDeduction of upto Rs. 5000 for preventive health check up is available

For: Individual/HUF

Deduction in respect of Medical InsuranceAllowed for the sum paid in Previous year to General insurance company or any other insurer for medical insurance premium.
80E Deduction available for max 8 years or until interest is fully paid (whichever earlier)For: Individual : Deduction in respect of Interest on Loan for Higher StudiesInterest on educational loan qualifies for deduction on full time studies for any graduate or post graduate course. However, there is no benefit on principal repayments. 
80G For: All Assessees Deduction in respect of donations to certain funds, charitable Institutions, etc.
Conditions: Donation should be of sum of moneyShould be made only to specified inst.No deduction if more than Rs. 10000 paid in . cashDonations to: PM Relief fund, National Illness Assistance fund, National Foundation for Communal Harmony, National Sports Fund.Deduction is allowed to the extent of 100% of donation in some cases and 50% in some.

Donations in kind not qualify for the deduction.

80GGC Deduction in respect of contributions given by any person to political parties.No deduction allowed for the sum contributed by way of cash. 
80EE Upto Rs.100000 in A.Y. 2014-15If Interest payable for the P.Y. is less than Rs.100000 then balance amount shall be allowed in the P.Y. 2014-15For: Individual Deduction in respect of interest on loan sanctioned during financial year 2013-14 for acquiring Residential house property (w.e.f. Assessment Year :2014-15)Conditions: Loan sanctioned between 1/4/2013 to 31/3/14Amount of loan upto Rs. 2500000

Value of house upto Rs. 4000000

Assessee not own any other residential house . property on date of loan sanction


80TTA Upto Rs. 10000For: Individual/HUF Deduction in respect of interest on deposits in savings accounts

An assessee must be aware of difference between deduction, exemption and relief in order to avoid confusion while filing return.

Exemption: Income which is not taxable at all. expl: HRA, etc

Deduction: Reduction from the taxable income. expl: 80C, 80D, etc

Relief: Some relaxation on payment of tax or taxability on income. expl: Relief under DTAA.

The deadline to file the tax return is coming near. So its necessary to file the return as early as possible to avoid certain difficulties. Tax filing now has become simpler than the process it used to be few years ago. Its necessary to e-file the return for those who are having income of more than Rs.500000.

(Author may be contacted

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0 responses to “Income Tax Return and Certain Deductions”

  1. sunder singh says:

    Sir, I was it return filled in the year of 2013-14. The return was not get. Also the year acknowledged and status shown defective. How to refill the return

  2. sudarshana says:

    Mr. Raut,
    You are correct. Pl go ahead.

  3. A Raut says:

    I m a central gov. employee. My income chargeable under head salary is 3776666 for fy 14-15 as per form 16.but from this amount, there is 33600 exempt income ( high altitude area allowance ) which is included in it.Should I fill ITR 1? If yes,then what amount should I fill in col 1.income from salary and col 26.income under salary in TDS1 of itr 1 .As per me in col1 -: 343066 (376666-33600) and in col26 -: 376666.sir please guide and help.Thanks

  4. s sudarshana says:

    Limited to 10% of the taxable income for section 80-G is not shown in the above table. I myself had the experiance of showing above 10% and the computer limiting it to 10%!

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