Returns and Forms Applicable for Salaried Individuals for AY 2022-23

Returns and Forms Applicable for Salaried Individuals for AY 2022-23

1. ITR-1 (SAHAJ) – Applicable for Individual
This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakhSalary / PensionOne House PropertyOther sources (Interest, Family Pension, Dividend etc.)Agricultural Income up to ₹ 5,000 infoNote: ITR-1 cannot be used by a person who:
(a) is a Director in a company 
(b) has held any unlisted equity shares at any time during the previous year 
(c) has any asset (including financial interest in any entity) located outside India 
(d) has signing authority in any account located outside India 
(e) has income from any source outside India 
(f) is a person in whose case tax has been deducted u/s 194N 
(g) is a person in whose case payment or deduction of tax has been deferred on ESOP
(h) who has any brought forward loss or loss to be carried forward under any head of income
2. ITR-2 – Applicable for Individual and HUF
This return is applicable for Individual and Hindu Undivided Family (HUF)
Not having Income under the head Profits and Gains of Business or ProfessionWho is not eligible for filing ITR-1

3. ITR-3- Applicable for Individual and HUF

This return is applicable for Individual and Hindu Undivided Family (HUF)

Having Income under the head Profits and Gains of Business or ProfessionWho is not eligible for filing ITR-1, 2 or 4
4. ITR-4 (SUGAM) – Applicable for Individual, HUF and Firm (other than LLP)
This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:
Salary / PensionOne House PropertyOther sources (Interest, Family Pension, Dividend etc.)Agricultural Income up to ₹ 5,000

Note: ITR-4 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year 
(c) has any asset (including financial interest in any entity) located outside India 
(d) has signing authority in any account located outside India 
(e) has income from any source outside India 
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP
(g) who has any brought forward loss or loss to be carried forward under any head of income

Please note that  ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

Forms Applicable

1. Form 12BB – Particulars of claims by an employee for deduction of tax (u/s 192)

Provided byDetails provided in the form
An Employee to his Employer(s)Evidence or particulars of HRA, LTC, Deduction of Interest on home loan, Tax Saving Claims / Deductions on eligible payments or investments for the purpose of calculating Tax to be Deducted at Source (TDS)

2. Form 16 – Certificate of Tax Deducted at Source on Salary (U/s 203 of the Income Tax Act, 1961)

Provided byDetails provided in the form
An Employer(s) to his Employee at the end of the financial yearIncome of the such person, Deductions / Exemptions and Tax Deducted at Source for the purpose of Computing Tax Payable / Refundable

3. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary

Provided byDetails provided in the form
Deductor to DeducteeForm 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department

4. Form 67- Statement of Income from a country or specified territory outside India and Foreign Tax Credit

Submitted byDetails provided in the form
Taxpayer, to be furnished on or before the due date specified for furnishing the ITRs u/s 139(1)Income from a country or specified territory outside India and Foreign Tax Credit claimed

5. Form 26AS – Annual Information Statement

6. Form 15G – Declaration by resident taxpayer (not being a Company or Firm) claiming certain receipts without deduction of tax

Submitted byDetails provided in the form
A Resident Individual less than 60 years or HUF or any other Person (other than Company / Firm) to Bank for not deducting TDS on Interest Income if the income is below basic exemption limitEstimated Income for the FY

7. Form 15H – Declaration to be made by a resident individual (who is sixty years age or more) claiming certain receipts without deduction of tax

Submitted byDetails provided in the form
A Resident Individual, 60 years or more to Bank for not deducting TDS on Interest IncomeEstimated Income for the FY

8. Form 10E – Form for furnishing particulars of Income for claiming relief u/s 89(1) when Salary is paid in arrears or advance

Provided byDetails provided in the form
An Employee to the Income Tax DepartmentArrears / Advance Salary Gratuity
Compensation on Termination
Commutation of Pension

Tax Slabs for AY 2022-23

Individuals and HUFs can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act)

The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain Exemptions and Deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime. 

Note: 1. The rates of Surcharge and Health & Education cess are same under both the tax regimes 2. Rebate u/s 87-A Resident Individual whose Total Income is not more than ₹ 5,00,000 is also eligible for a Rebate of up to 100% of income tax or ₹ 12,500, whichever is less. This Rebate is available in both tax regimes

Surcharge, Marginal Relief and Health & Education Cess

Tax deductions specified under Chapter VIA of the Income Tax Act

These Deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD (2) which will be applicable for New Tax Regime as well

Surcharge, Marginal Relief and Health & Education Cess 

component 389What is Surcharge?Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates10% – Taxable Income above ₹ 50 lakh – up to ₹ 1 crore15% – Taxable Income above ₹ 1 crore – up to ₹ 2 crore25% – Taxable Income above ₹ 2 crore – up to ₹ 5 crore37% – Taxable Income above ₹ 5 croreMaximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112A and 115AD is 15%What is Marginal Relief?Marginal relief is a Relief from Surcharge, provided in cases where the Surcharge payable exceeds the additional income that makes the person liable for Surcharge. The amount payable as Surcharge shall not exceed the amount of income earned exceeding ₹ 50 lakh, ₹ 1 crore, ₹ 2 crore or ₹ 5 crore respectivelyWhat is Health and Education cess?Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)

Investments / Payments / Incomes on which I can get tax benefit

Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is  ₹ 2 lakh. However, this deduction is not available for person opting for New Tax Regime.

Interest on loan u/s 24(b) allowable is tabulated below 

Tax deductions specified under Chapter VIA of the Income Tax Act  

These Deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD (2) which will be applicable for New Tax Regime as well
 

80C, 80CCC, 80CCD (1)
 Deduction towards payments made to 80CLife Insurance PremiumProvident FundSubscription to certain equity sharesTuition FeesNational Savings Certificate,Housing Loan PrincipalOther various items80CCCAnnuity plan of LIC or other insurer towards Pension Scheme80CCD(1)Pension Scheme of Central GovernmentgroupCombined deduction limit of ₹ 1,50,000
80CCD(1B)
Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)groupDeduction limit of ₹ 50,000
80CCD(2)
Deduction towards contribution made by an employer to the Pension Scheme of Central GovernmentIf Employer is a PSU, State Government  or OthersgroupDeduction limit of 10% of salaryIf Employer is Central GovernmentgroupDeduction limit of 14% of salary 
80D
Deduction towards payments made to Health Insurance Premium & Preventive Health check upFor Self / Spouse or Dependent Childrengroup₹ 25,000 (₹ 50,000 if any person is a Senior Citizen)₹ 5,000 for preventive health check up, included in above limitFor Parentsgroup₹ 25,000 (₹50,000 if any person is a Senior Citizen)₹ 5,000 for preventive health check up, included in above limit Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverageFor Self/    Spouse or Dependent ChildrengroupDeduction limit of ₹ 50,000For ParentsgroupDeduction limit of ₹ 50,000
80DD
  Deduction towards payments made towards Maintenance or Medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved schemegroupFlat deduction of
₹ 75,000
available for a person with Disability, irrespective of expense incurredThe deduction is
₹ 1,25,000
if the person has Severe Disability (80% or more).=
80DDB
 Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseasesgroupDeduction limit of
₹ 40,000
(₹ 1,00,000 if Senior Citizen)
80E
Deduction towards interest payments made on loan for higher education of Self or relativegroupTotal amount paid towards interest on loan taken
80EE
Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017groupDeduction limit of
₹ 50,000
on the interest paid on loan taken
80EEA
Deduction available only to individuals  towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EEgroupDeduction limit of
₹ 1,50,000
on the interest paid on loan taken
80EEB
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023groupDeduction limit of
₹ 1,50,000
on the interest paid on loan taken
80G
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc.Donation are eligible for deduction under the below categoriesWithout any limitgroup100% deduction50% deductionSubject to qualifying limitgroup100% deduction50% deduction 


  Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding  ₹ 2000/-
80GG
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of SalaryLeast of the following shall be allowed as deductionRent paid reduced by 10% of Total Income before this deduction₹ 5,000 per month25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D)Note: Form 10BA to be filled for claiming this deduction.
80GGA
Deduction towards Donations made for Scientific Research or Rural Development
Donation are eligible for deduction under the below categoriesResearch Association or University, College or other Institution forScientific ResearchSocial Science or Statistical ResearchAssociation or Institution for Rural DevelopmentConservation of Natural Resources or for AfforestationPSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project Funds notified by Central Government forAfforestationRural DevelopmentNational Urban Poverty Eradication Fund as setup and notified by Central Government  infoNote: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹  2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession
 80GGC
 Deduction towards Donations made to Political Party or Electoral TrustgroupDeduction towards Donations made to Political Party or Electoral Trust
 80TTA
 Deduction on interest received on saving bank accounts by Non-Senior CitizensgroupDeduction limit of
₹ 10,000/-
 80TTB
 Deduction on interest received on deposits by Resident Senior CitizensgroupDeduction limit of
₹ 50,000/-
 80U
 Deductions for a resident individual taxpayer with DisabilitygroupFlat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurredFlat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred 

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