Which incometax return I file

For A.Y.2017-18, There are 7 ITRs for varies
ITR 1
For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh

ITR 2
For Individuals and HUFs not carrying out business or profession under any proprietorship
]
ITR 3
For individuals and HUFs having income from a proprietary business or profession

ITR 4
(SUGAM)
For presumptive income from Business & Profession

ITR 5
For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7

ITR 6
For Companies other than companies claiming exemption under section 11

ITR 7
For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)

Verious type of income tax return.

There are 7 type of return.

1. ITR-1 (SAHAJ).

    Who can use this return?
             This Return Form is to be used by an Individual whose total income for the assessment year 2016-17 includes :-

a) Income from Salary/Pension; or
b) Income from One House Property (excluding cases where loss is brought forward from previous years); or
c) Income from Other Sources (excluding winning from Lottery and Income from Race Horses) and does not have any loss under the head
Note:

       Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the Income being clubbed falls under the above income categories

       Who can not use this return?

This Return Form should not be used by an Individual whose Total Income for the assessment year 2016-17 includes:- 

a) Income from more than one House Property; or

b) Income from winnings from Lottery or income from Race Horses; or

c) Income under the head "Capital Gains" ,e.g., short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or

d) Agricultural income in excess of  5,000; or

e) Income from Business or Profession ;or 

f) Loss under the head 'Income from other sources'; or 

g) Person claiming relief under section 90 and/or 91;or 

h) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or

i) Any resident having income from any source outside India

2. ITR-2

      Who can use this return?

This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2016-17 includes :- 

a) Income from Salary / Pension; or 

b) Income from House Property; or 

c) Income from Capital Gains; or

d) Income from Other Sources (including Winning from Lottery and Income from Race Horses).Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories. 

    Who can not use this return?

This Return Form should not be used by an Individual or a Hindu Undivided Family whose Total Income for assessment year 2016-17 includes Income from Business or Profession

3.ITR 2A

   Who can use this return?

     This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2016-17 includes :- 

a) Income from Salary / Pension; or 

b) Income from House Property; or 

c) Income from Other Sources (including Winning from Lottery and Income from Race Horses).Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories. 

      Who can not use this return?

This Return Form should not be used by an Individual or a Hindu Undivided Family whose Total Income for assessment year 2016-17 includes :- 

a) Income from Capital Gains; or 

b) Income from Business or Profession; or 

c) Any claim of relief/deduction under section 90, 90A or 91; or 

d) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India; or 

e) Any resident having income from any source outside India. 

4.ITR 3

    Who can use this return?

       This Return Form is to be used by an individual or an Hindu Undivided Family for the assessment year 2016-17 who is a partner in a firm and where income chargeable to income-tax under the head "Profits or gains of business or profession" does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, he shall use this form only and not Form ITR-2.

      Who can not use this return?

          This Return Form should not be used by an individual whose total income for the assessment year 2015-16 includes Income from Business or Profession under any proprietorship.

5.ITR 4S (SUGAM)

      

      Who can  use this return?

This Return Form is to be used by an individual/HUF/Partnership Firm whose total income for the assessment year 2016-17 includes :- 

a) Business income where such income is computed in accordance with special provisions referred to in section 44AD and 44AE of the Act for computation of business income; or

b) Income from Salary/Pension; or

c) Income from One House Property (excluding cases where loss is brought forward from previous years); or

d) Income from Other Sources (Excluding winning from Lottery and Income from Race Horses)

Note:

1. The Income computed shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income Tax Act.

2. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the Income being clubbed falls into either of the above income categories.

      Who can  use this return?

This Return Form cannot be used to file the following incomes 

a) Income from more than one House Property; or

b) Income from winnings from Lottery or income from Race Horses; or

c) Income under the head "Capital Gains", e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or

d) Agricultural income in excess of ₹ 5,000; or

e) Income from Speculative Business and other special incomes; or

f) Income from a profession as referred to in sub-section (1) of section 44AA or income from agency business or income in nature of commission for brokerage; or

g) Person claiming relief of foreign tax paid under section 90,90A or 91;or

h) Any resident having an asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or

i) Any resident having income from any source outside India

      

6.ITR 4

      Who can  use this return?

      This Return Form is to be used by an individual or a Hindu Undivided Family for the assessment year 2016-17 who is carrying out a proprietary business or profession.

7.ITR 7

    Who can  use this return?

        This Form can be used by persons including Companies who are required to furnish return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) .

how to save tax u/s 80C?

     Articles deals with deduction under Section 80C of the Income Tax Act and explains,who is eligible for deduction, Eligible Investments, Limit for deduction, who can invest for whom and time period for investment.

 Background for deduction under Section 80C of the Income Tax Act (India) What are eligible investments for Section 80C:

                  Section 80C replaces the Section 88 with more or less same investment mix available in Section 88.  The new section 80C has become effective from 1st April, 2006 Even the section 80CCC on pension scheme contributions was merged with the above Section 80C.  However, this new section has allowed a major change in the method of providing the tax benefit.  Section 80C of the Income Tax Act allows certain investments 

and expenditure to be tax-exempt.  One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit. 

       From financial year- 2014-15, the maximum  limit of deduction under section 80C is 1.50 lakh.under this headimg , there are  many  schemes  for tax saving like LIC,public provident fund,national saving certificate,specifies gov.infrastructure bonds etc.

       This section is very important for tax-saving.This benefit is available to everyone, irrespective of their income levels.Thus, if you are in the highest tax bracket of 30%, and you invest the full Rs. 1.50 Lakh, you save tax of Rs. 45,000. Isn’t this great? So, let’s understand the qualifying investments first. 

Investments Qualifying for deduction under section 80C:   

Provident Fund (PF) & Voluntary Provident Fund (VPF) : 

      PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s  contribution is  exempt from tax, your contribution (i.e., employee’s contribution) is counted towards  section  80C  investments. You also  have  the  option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest

is 8.5% per annum (p.a.) and is tax-free.

Public Provident Fund (PPF):
     Among all the assured returns small saving schemes,Public Provident Fund (PPF) is one of the best. Current rate of interest is 8.70% tax-free (Compounded Yearly) and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is
Rs 1,50,000. A point worth noting is that interest rate is assured but not fixed.

Life Insurance Premiums:
     Any amount that you pay towards life insurance premium for yourself,your spouse or your children can also be included in Section 80C deduction.Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy,all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

National Savings Certificate (NSC) :
  NSC is a time-tested tax saving instrument with a maturity period of Five and Ten Years. Presently, the interest is paid @ 8.50% p.a. on 5 year NSC and 8.80 % Per Annum on 10 year NSC.  Interest is Compounded Half Yearly. While the minimum investment amount is Rs 100, there is no maximum amount. Premature withdrawals are permitted only in specific circumstances such as death of the holder. Investments in NSC are eligible for a deduction of upto Rs 150,000 p.a. under Section 80C. Further more,the  accrued interest which is deemed to be reinvested qualifies for deduction under Section 80C. However, the interest income is chargeable to tax in the year in which it accrues.

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explore below topics to increase your knowledge about "Accounting & Taxation"

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What is the importance of Accounting?

Knowledge about "Accounting basics"

What is new slab of Income Tax(AY.2018-19)?

New Tax slabs of Income-tax.

              Mr.Arun Jetli our finance minister present historical budget for 2017-2018.and our new tax slab for assesment year 2018-19 is below,

          There is Including below:

Surcharge= 10% of total income tax,where total income exceeds 50 lakh (to 1 crore),

                     15% of total income Tax , where total income exceeds 1 crore

Cess  = 3% of [total Income Tax + surcharge(if applicable)] 

    here is some releaf for small Taxpayers,

For F.Y.2017-18:

    if  individual's income is below 3.5 lakh than,Income Tax Exemption limit for FY 2017-18, is up to Rs. 3,00,000 (only for Individual) because of tax rebat of 2500 rs. (u/s 87A).

Exmaple of tax calculatting:
- If Taxable Income is 12,00,000 rs. Than tax is,

                         0 to 2,50,000   = 00

           2,50,000 to 5,00,000     =12,875  (05.15%)

           5,00,000 to 10,00,000   =1,03,000 (20.60%)

         10,00,000 to 12,00,000   =61,800    (30.90%)

                       TOTAL  TAX    =1,77,675 Rs.

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   Your income is taxed according to income tax slab rates. Tax slabs have not change for financial year  2014-15 (assessment year AY 2015-16). Income tax slab rates are same for these 3 financial  years – FY 2014-15 , FY 2015-16 and  FY 2016-17.(We also called Assesment yr.2015-16 , 2016-17, 2017-18.).

  There is Including below:

 Surcharge= 15% of total income Tax , where total income exceeds 1 crore

 Cess  = 3% of [total Income Tax + surcharge(if applicable)]

                            

    here is some releaf for small Taxpayers,

For F.Y.2016-17:

if  individual's income is below 5 lakh than,Income Tax Exemption limit for FY 2016-17, is up to Rs. 2,70,000 (only for Individual) because of tax rebat of 2000rs. (u/s 87a).

For F.Y.2017-18:

if individual's income is below 5 lakh than,Income Tax Exemption limit for FY 2017-18, is up to Rs. 3,00,000 (only for Individual) because of tax rebat of 5000rs. (u/s 87a).

Exmaple of tax calculatting:

- If Taxable Income is 12,00,000 rs. Than tax is,

                         0 to 2,50,000   = 00

           2,50,000 to 5,00,000     =25,750    (10.30%)

           5,00,000 to 10,00,000   =1,03,000 (20.60%)

         10,00,000 to 12,00,000   =61,800    (30.90%)

                      TOTAL  TAX    =1,90,550 rs.

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explore below topics to increase your knowledge about "Accounting & Taxation"

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What is the importance of Accounting?

Knowledge about " Accounting basic".

How to save Tax by use section 80C?

Accounting basic

   first of all I tell one story of one grocer Mr.modi.He starts her grocer shop.He has research his idea and prepaired a business plan and that documents like verious lisence etc.Mr.modi decides that the name for his corporation will be "All in one store".and keep permits and government identification numbers (like pan card,gst no.etc.) that will be needed for the new corporation.

         Mr.modi  is a  hard  worker  and a  smart man,  but admits he is not comfortable with matters of accounting. He assumes he will use some accounting software, but wants to meet with a professional accountant before making his selection. He asks his businessmen friend to recommend a professional accountant    who    is  also  skilled  in  explaining  accounting  to  someone  without  an accounting background. He wants to understand the financial  statements and wants to keep on top of his new business.His banker recommends Mr.Shah, an accountant who has helped many of the small businessmen.
         At his  first  meeting  with  Mr.shah,  modi asks  her  for  an  overview  of accounting, financial statements , and the need for accounting software. Based on modi's business plan, Mr.shah sees that there will likely be thousands of transactions each year. She states that accounting software will allow for the electronic recording, storing, and retrieval of those many transactions. Accounting software will permit modi to generate the financial statements and other reports that he will need for running his business.

        modi  seems  puzzled  by the term  transaction, so Mr.shah gives him three  examples of transactions that Direct Delivery, Inc. will need to record:

   it seen expenses transections like ,he needed  a  vehical for home  delivery  of  grocery.so that it's maintenense and fual expenses,driver's salary etc.,rent expenses for shop,electric exp.,advertizing exp....

There is purchase a/cs.it's recorded purchase from hole salers.

There is sale a/c.it's recorded sale to daily customer.

With thousands of such transactions in a given year, modi is smart to start using accounting software right from the beginning. Accounting software will generate  sales  invoices  and accounting  entries simultaneously , prepare statements for customers with no additional work, write checks, automatically update accounting records, etc.

        By  getting  into  the  habit  of  entering  all of the day's business transactions into his computer, modi will be rewarded with fast and easy access to the specific information he will need to make sound business decisions.  Mr.shah  tells  modi  that  accounting's     "transaction  approach"  is  ,   reliable  , and  informative. She has worked with other small business owners who think it is enough to simply "know" their company made1,00000rs.e year (based only on the fact  that  it  owns 1,00,000rs.it  did  on 1st april)are the people who start off on the wrong foot and end up in Mr.shah office for financial advice.

      if modi enter  all of  Delivery's transactions into his computer, good accounting software will  allow  hisprint  out his financial statements with a click of a button. In Parts 2 through 7 Marilyn will explain the content and purpose of the three main financial statements:

1.Income Statement
2.Balance Sheet
3.Statement of Cash Flows

let's learn it more,

1.INCOME STATEMENT
       

       Modi points out that an income statement will show how profitable"all in one shop" has been during the time interval shown in the statement's heading. This period of time might be a week, a month, three months, five weeks, or a year—Modi can choose whatever time period he deems most useful.The reporting of profitability involves two things: the amount that was earned(revenues) and the expenses necessary to earn the revenues. As you will see next, the term revenues is not the same as receipts, and the term expenses involves more than just writing a check to pay a bill.

A. Revenues

               The main revenues for shop are thesale of grocery to daily customer. Under the accrual basis of accounting (as opposed  to the less-preferred cash method of accounting), revenues are recorded when they are earned, not when the company receives the money. Recording revenues when they are earned is the result of one of the basic accounting principles known as the revenue  recognition principle.


For example,

if modi sale 1,000 packets of salt in December for 10rs. per packet, he has technically sale totalling 10000rs. for that month. 
He sends invoices to his customer for these thing and his terms require that his customer must pay by January 10. Even though his customer won't be paying Direct Delivery until January 10, the accrual basis of accounting requires that the 10000rs. be recorded as December revenues, sincethat is when the delivery work actually took place. After expenses are matched with these revenues, the income statement for December will show just how profitable the company was in delivering parcels in December.

When Modi receives the 10000rs. worth of payment checks from his customers on January 10, he will make an accounting entry to show the money was received. This 10000rs. of receipts will not be considered to be January revenues, since the revenues were already reported as  revenues in December when they were earned. This 10000rs. of receipts will be recorded in January as a reduction in Accounts Receivable. (In December Modi had made an entry to Accounts Receivable and to Sales.)

B.EXPENSES

     Now Mr.shah turns to the second part of the income statement—expenses.there is two type of expenses 

1. direct exp.     
       In this case which money is paid for purchase of grocery from hole seller,wages expenses etc. are direct expenses.
    Mr.modi purchase some goods of 25000rs. at 8,december from Patel treders and due of payment is 10,january. then purchase a/c of december is debited  25000rs & account payable is credited 25000rs..when he pay 25000 (at 10,january) then,purchase a/c is credited 25000 & account payable is debited 25000


 2.indirect exp.

        In this case which money is paid for electic bill,fual expens,telephone bill,salary paid to emploies,shop maintain exp.etc. are indirect expense
         If shop rent is 8000rs/month. then last date of every month 8000 is debited to rent exp. a/c & credited to account payable.and when he actualy paid, this entry is reverced

2.BALANCE SHEET 

Mr.Shah moves on to explain the balance sheet, a financial statement that reports the amount of a company's (A) assets, (B) liabilities, and (C) stockholders' (or owner's) equity at a specific point in time. Because the balance sheet reflects a specific point in time rather than a period of time, Mr.Shah  likes to  refer to  the  balance  sheet as a  "snapshot" of a company's financial position at a given moment. For example, if a balance sheet is dated MARCH 31, the amounts shown on the balance sheet are the balances in the accounts after all transactions pertaining to March 31 have been recorded.
let's I explain part of Balance sheet

(A) Assets

Assets are things that a company owns and are sometimes referred to as the resources of the company.Modi readily understands this—off the top of his head he names things such as the company's vehicle,its cash in the bank, all of the stokes he has on hand, . Mr.Shah nods  and  shows Modi    how     these are reported  in accounts called Vehicles, Cash, Supplies,and Equipment. She mentions one asset Modi hadn't considered—Accounts
 Receivable. If Modi sale some goods, but isn't paid immediately for the bill, the amount which is recived letar an asset known as Accounts Receivable.

Prepaids

MR.Modi brings up another less obvious asset—the unexpired portion of prepaid expenses. Suppose "ALL IN ONE STORE" pays 12,000rs. on March 1 for a six-month insurance premium on its delivery vehicle. That divides out to be 1000rs. per month  Between March 1 and March 31, 1000rs. worth of insurance premium is "used up" or "expires".The expired amount will be reported as Insurance Expense on March's income statement. Modi asks Mr.Shah where the remaining 11,000rs. of unexpired insurance premium would be reported. On the March 31 balance sheet, Mr.Shah tells him, in an asset account called Prepaid Insurance.

Other examples of things that might be paid for before they are used include supplies and annual dues to a trade association. The portion that expires in the current accounting period is listed as an expense on the income statement;the part that has not yet expired is listed as an asset on the balance sheet.

(B) Liabilities

The balance sheet  reports store's   liabilities  as of  the  date  noted in  the  heading of the balance sheet. Liabilities are obligations of the company; they are amounts owed to others as of the balance sheet date. Mr.Shah gives Modi some examples of liabilities: the loan he received from his aunt (Notes Payable or Loan Payable), the interest on the loan he owes 
to his aunt (Interest Payable), the amount he owes to the supply store for items purchased on credit (Accounts Payable), the wages he owes an employee  but hasn't yet paid to him (Wages Payable).


(C) Stockholders' Equity (owner's equity)

If the company  is  a corporation, the  third  section of  a  corporation's balance sheet is Stockholders'  Equity.(If the company is a sole proprietorship, it is referred to as Owner's Equity.) The amount of Stockholders' Equity is exactly the difference between the asset amounts and the liability amounts. 
so that, 
  
ASSET= LIABILITIES + STOCKHOLDER'S EQUITY (OR OWNER'S EQUITY)

As a result accountants often refer to Stockholders' Equity as the difference (or residual) of assets  minus  liabilities. Stockholders'Equity  is  also   the "book value" of the corporation.
Since the corporation's assets are shown at cost or lower (and not at their market values) it is important that you do not associate the reported amount of Stockholders' Equity with the market value of the corporation.(Hence, it is a poor choice of words to refer to Stockholders' Equity as the corporation's "net worth".) To findthe market value of a corporation, you should obtain the services of a professional familiar with valuing businesses.

  Within the  Stockholders'  Equity  section  you may  see  accounts such as Common Stock, Paid-in Capital in Excess of Par Value-Common Stock, Preferred Stock, Retained Earnings, and Current Year's Net Income.

The account Common Stock will be increased when the corporation issues shares of stock in  exchange  for cash  (or some other asset). Another  account  Retained  Earnings  will increase when the corporation earns a profit. There will be a decrease when the corporation has a net loss. This means that revenues will automatically cause an increase Stockholders' Equity  and  expenses  will  automatically  cause a  decrease  in Stockholders' Equity. This illustrates a link between a company's balance sheet and income statement.

3.Statement of Cash Flows

       The third financial statement that Modi needs to understand is the Statement of Cash Flows.This  statement   shows  how   "all in on store"'s  cash amount has changed during the time interval shown in the heading of the statement.Modi will be able to see at a glance the cashgenerated and used by his company's operating activities, its investing activities, and its financing activities. Much of the information on this financial statement will come from store's balance sheets and income statements.


The three financial reports that Marilyn introduced to Joe—the income statement, the balance sheet, and the statement of cash flows—represent one segment of the valuable output that good accounting software can generate for business owners.

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explore below topics to increase your knowledge about "Accounting & Taxation"

What is the importance of Accounting?

What is new slab of Income Tax(AY.2018-19)?

How to save Tax by use section 80C?

Accounting Importance

                                 Accounting is most important in any Business in the world. Histry of Accounting is million years.In holy book"RAMAYANA",When "BHAGWAN RAMA" was came to ayodhya-nagari after 14 year of "VANVAS" and enter in ayodhya first of all he ask to his younger brother BHARAT about last 14 year's account of treasury(Rajkosh) of ayodhya.so that we can say that importance of accounting is very huge from many years,

I just told you what the purpose of accounting was, let's talk about  important of accounting. Do you remember being a child, and it seemed that as soon as you were given money it was gone?'If company is running this way....
 'Now, can you imagine how well a company could run if they had no idea where their money went? I feel safe in predicting that the majority of companies out there would be in ruins and so would the entire economy. In order to even have a hope of success, a company has to know where their money is coming from and where it's going out. That's the importance of accounting and of the financial statements.'
Now, I explain "What is financial statements?",
         There are four main financial statements that are created in the accounting cycle. And just so you know, they are created in a specific pattern. The first financial statement is the income and expenses statement, which tells how much money was made or lost in a given time period. Next is the statement of retained earnings, which tells how much money that was made was reinvested into the company. The third statement is the balance sheet. The balance sheet is the financial statement that lists all the assets, liabilities, and owner's equity of the company. It's important to note here that the accounting equation is also known as the balance sheet equation. The last financial statement is the statement of cash flows, which tells how much money came in and was paid out in a specific time period.'

   

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explore below topics to increase your knowledge about "Accounting & Taxation"

---

Knowledge about " Accounting basic".     

What is new slab of Income Tax(AY.2018-19)?

How to save Tax by use section 80C? 

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