The Hindu : Business : Choice of form for those with property income

Online edition of India's National Newspaper
Monday, Dec 10, 2007
ePaper

Business

Business

Choice of form for those with property income

I am a pensioner submitting my income-tax return regularly. I obtained PAN when the non-taxable income was Rs. 50,000. I am submitting the return regularly before the due date, that is, July. When I submitted my return in Form ITR-1 for the assessment year 2007-08 prescribed for the salaried class, I found that there is no column for showing the rental income under col. 2 (other sources) I have only one house which fetches rent up to Rs. 5,000 and below, as the occasion demands. For observing the due date, I submitted the return without showing the rental income, as there was no other go. No information was available as to the correct form. There was also no proper notification on the notice board. I am a senior citizen and completed 65 years in November 2006. Even after adding the rental income, my gross income does not exceed the limit of Rs. 1.85 lakh for senior citizens.

If the reader’s income falls below the exemption limit, there is no need to file return.

If he chooses to file a return, he should choose the correct form. ITR 1 cannot be used for persons with property income.

If he chooses ITR 1 and does not show property income merely because the form does not contain a column, he may well be liable for filing incorrect return in case he has taxable income.

ITR 2, which caters to the individuals and the Hindu Undivided Families having no income from business or profession should have been chosen, since this Form provides for income from property and capital gains.

If the original return has been filed in time, revision of such return is possible. Return filed for assessment year 2007-08 can be revised by way of return in ITR 2 before March 31, 2009.

It is advisable that the reader corrects the mistake of omitting to show his property income, though he may not be taxable, so as to make the records straight.

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section

The time has come for corporate bond market

Attrition is the order of the day

RBI may have to recast monetary policy

NRE deposits are tax free

PAN: whether it can be substituted?

Choice of form for those with property income

Competency as collateral: fiscal opportunity for SMEs

No move to cut duty on cash crops

Minister offers support to industrial clusters