Income Tax Return (ITR) is filed with Income Tax department by a salaried person, self-employed individual, Hindu Undivided Family (HUF), or companies for reporting gross taxable income from different sources, declaring net tax liability and to claim tax deductions. This process of income tax filing can be accomplished online through an e-portal of the income tax department, which sometimes changes norms. Last year, the ITR-1 form asked for an aggregate amount of ‘Income from other sources’, but in this year’s revised ITR-1 a provision has been introduced to put detailed break-up of incomes including ‘Income from other sources’.
Under the head ‘Income from other sources’, you will find that a drop down option has been provided in the ITR-1 form to select and choose the types of income received by you. In the e-filing process, the drop-down now includes five options:
1. Interest from the savings account
Under this section, you are required to enter the total amount of interest received from savings accounts held with different banks, post offices. These details can be found either from the bank passbook/statement or net banking.
2. Interest from deposits (fixed deposits from banks/post offices/ co-operative society)
Under this section, you have to fill the details related to fixed deposits, recurring deposits with any bank or post office or with any co-operative bank. If your bank has already deducted TDS from interest payment, you need to collect Form-16A from the bank as it mentions the details of interest paid and tax deducted during the previous financial year.
3. Interest from income tax refund
In this section, you have to fill details of interest received on income tax refund as it is taxable according to I-T laws. Notably, the I-T department pays tax on I-T refund if the refund is more than 10% of the tax paid.
4. Family pension
Under the Family Pension section, you are required to put details related to it. Those who get family pension are also entitled to get standard deduction under Section 57. The deduction amount is equal to one-third of the pension received or Rs 15,000, whichever is lower…Read More>>>