Which ITR form will help me declare my cash receipts?
Is there a new income tax return (ITR) form to declare cash receipts? How can I show the cash withdrawn from my bank account for the purpose of an emergency that did not materialise and was deposited back in the account or cash loan extended to my house help or driver for their emergency and later returned by them?
—Bimla
You are referring to the recently released ITR-1 and ITR-4 forms for AY2024-25
In ITR-4 (largely applicable for presumptive taxation), an additional field to report ‘receipts in cash’ has been included in Schedule ‘BP- details of income from business or profession’, wherein the taxpayer to whom such form is applicable is required to report cash receipts as part of break-up of gross turnover during the year.
Personal cash receipts which were withdrawn earlier are not required to be reported under the aforesaid field.
On a separate note, cash in hand (as on 31 March of the financial year) is required to be reported under schedule AL, if that is applicable.
My mom, who is 62 years old and has no professional or business income, sold her land on 21 August 2023 and now has to pay a good amount of tax towards long-term captal gains. Does my mom, who earns from rental income alone, need to pay advance tax or can she pay her taxes by 31 July 2024?
— Bhavik
As per the Income-tax Act, an individual is not required to pay advance tax provided all the below conditions are satisfied:
The individual qualifies as a tax resident of India; the individual does not have any income chargeable under the head “profits and gains of business or profession”; and the individual is of the age of sixty years or more at any time during the year. Since your mother is above the age of 60 and does not have any professional or business income, she is not required to pay advance tax on her income. She can choose to pay the tax at the time of filing her tax return, as self – assessment tax.
Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.
Salaried Individuals for AY 2023-24: Returns and Forms Applicable for Salaried Individuals for AY 2023-24
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 lakh
Salary / Pension
One House Property
Salary / Pension One House Property Other sources (Interest, Family Pension, Dividend etc.)
Agricultural Income up to ₹ 5,000
Note: 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 Profession
Who 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 Profession
Who is not eligible for filing ITR-1, ITR-2 or ITR-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 / Pension
One House Property
Other 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.
1. Form 12BB – Particulars of claims by an employee for deduction of tax (u/s 192)
Provided by
Details 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)
Income of employee, 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 by
Details provided in the form
Deductor to Deductee
Form 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 by
Details provided in the form
Taxpayer 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
Provided by
Details provided in the form
Income Tax Department (It is available on e-Filing Portal: Login > e-File > Income Tax Return > View Form 26AS)
Tax Deducted / Collected at Source.
Note: Information (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS will now be available in AIS mentioned below.
6. AIS- Annual Information Statement
Provided by
Details provided in the form
Income Tax Department (It can be accessed in Services menu after logging on to Income Tax e-Filing portal)
Tax Deducted / Collected at Source SFT Information Payment of taxes Demand / Refund Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)
Path to access AIS: Go to e-filing portal > login > Services > AIS
7. Form 15G – Declaration by resident taxpayer (not being a Company or Firm) claiming certain receipts without deduction of tax
Submitted by
Details 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 limit
Estimated Income for the FY
8. Form 15H – Declaration to be made by a resident individual (who is 60 years age or more) claiming certain receipts without deduction of tax
Submitted by
Details provided in the form
A Resident Individual, 60 years or more to Bank for not deducting TDS on Interest Income
Estimated Income for the FY
9. Form 10E – Form for furnishing particulars of Income for claiming relief u/s 89(1) when Salary is paid in arrears or advance
10% – Taxable Income above ₹ 50 lakh – up to ₹ 1 crore
15% – Taxable Income above ₹ 1 crore – up to ₹ 2 crore
25% – Taxable Income above ₹ 2 crore – up to ₹ 5 crore
37% – Taxable Income above ₹ 5 crore
Maximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112, and112A 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 respectively
What 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
These deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115BAC, except for deduction u/s 80CCD (2), 80CCH which will be applicable for New Tax Regime as well.
Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)
Deduction limit of ₹ 50,000
Section 80CCD(2)
Deduction towards contribution made by an employer to the Pension Scheme of Central Government If the Employer is a PSU or OthersDeduction limit of 10% of salary If the Employer is Central or State GovernmentDeduction limit of 14% of salary
Section 80CCH
Deduction in respect of contribution to Agnipath Scheme
Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund
Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited
Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund
Allowed a deduction in the computation of total income of the whole of the amount so contributed
Section 80D
Deduction towards payments made to Health Insurance Premium & Preventive Health check up
For Self / Spouse or Dependent Children
₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit
For Parents
₹ 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 coverage
For Self/ Spouse or Dependent Children
Deduction limit of ₹ 50,000
For Parents
Deduction limit of ₹ 50,000
Section 80DD
Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme
Flat 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).=
Section 80DDB
Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases
Deduction limit of ₹ 40,000 (₹ 1,00,000 if Senior Citizen)
Section 80E
Deduction towards interest payments made on loan for higher education of Self or relative
Total amount paid towards interest on loan taken
Section 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 2017
Deduction limit of ₹ 50,000 on the interest paid on loan taken
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
Section 80G
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc. Donation are eligible for deduction under the below categories
Without any limit
100% deduction 50% deduction
Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-
Subject to qualifying limit
100% deduction 50% deduction
Section 80GG
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary
Least of the following shall be allowed as deduction
Rent paid reduced by 10% of Total Income before this deduction
₹ 5,000 per month
25% 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.
Section 80GGA
Deduction towards Donations made for Scientific Research or Rural Development
Donation are eligible for deduction under the below categories:
Research Association or University, College or other Institution forScientific ResearchSocial Science or Statistical Research
Association or Institution for Rural DevelopmentConservation of Natural Resources or for Afforestation
PSU 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 Development
National Urban Poverty Eradication Fund as setup and notified by Central Government
Note: 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
Section 80GGC
Deduction towards Donations made to Political Party or Electoral Trust
Deduction towards Donations made to Political Party or Electoral Trust
Deduction on interest received on deposits by Resident Senior Citizens
Deduction limit of ₹ 50,000/-
Section 80U
Deductions for a resident individual taxpayer with Disability
Flat ₹ 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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