Every citizen has certain duties to perform in a country. Just like how casting vote is considered to be an important duty, paying of taxes is also another important duty that one has to follow. The income taxes can be filed online and the taxes can also be paid online. When the government is taking so many efforts to make this process easier by introducing means of filing through online, we also have to put in equal effort to make sure that we keep paying our taxes regularly. The government has taken this step as a way to encourage more people to come forward and pay the taxes.
There are different types of tax forms from which people have to choose, according to the type of income tax that they have to pay. There are totally 7 types of income tax return forms for different types of income – income from salary, income from household property, income from business and professions, income from gains from capitals, income from other sources. The income tax return form 1 is for individuals whose yearly earnings is up to the gross limit of 50 lakhs and who has one property. Income tax return form 2 is for people who have an income from a business or a profession. Income tax return form 3 is for people who are partners in firm who does not have any income through any profession or business. Income tax return form 4 is for people who have income from a business or any profession.
Income tax return form 4s is for people who have income that is calculated by presumptive method and this is mostly suitable for income from business and so on. The new income tax return form has a separate section called the cash deposit, in which the tax payer has to disclose details about the cash he deposited in his account as old currency notes after demonetisation and all cash benefits over 2 lakhs have to be disclosed, let it be either for settling a loan or for paying of credit card dues. If a wrong option of a firm is selected and filed, that will get returned as defective and will be deemed as not filed. The correct firm has to be filed within the 15 days of the wrong firm returning.
Difference between Income Tax Return Form 1 and 4S:
Let us now see the major differences between income tax return form 1 and income tax return form 4s.
Income tax return form 1 is filed by people who have a monthly income from the job that they do, or from a rent from a house or property or from a bank account interest. Income tax return form 4s is an income tax filed by tax payers, who have presumptive business income as their chosen one, and also gets income monthly from a salaried employer, a property rent or a bank interest. Presumptive incomes are applicable to professionals, doctors, cinema stars and lawyers. The name of the income tax return form 1 is Sahaj and the name of the income tax return form 4s is Sugam. Income tax return form 1 is suitable for an individual and the latter is suitable of an individual or a Hindu Undivided Family. Three are three heads of income covered by income tax return form 1 and the income tax return form 4s covers four heads of income.
Income tax return form 1 cannot be submitted if the income of the assesse is from two or more house property, informal income from lotteries, contests, card games and horse games etc, capital gains, profession or any personal businesses, loss from other sources, agricultural income of more than 5000 rs, any relief claimed from the following sections – 90 or 91, or any source outside India. Income tax return form 4s cannot be submitted by the assesse if the income is from more than one house property, informal gains from horse races, contests or card games, agricultural income, capital gains, businesses or any other specified incomes, relief amounts claimed under section 90, section 90A or section 91, signing authority in any bank account or for any asset located outside our country.
Income tax return form 1 can be used in the situations where the income of the spouse or a minor is being clubbed with the tax payer, if their income comes under the so told criteria.
It is a must for anyone to go through all the income tax return forms before they zone in on the one form that would suit their income, and file it appropriately. If you can’t figure out which form would be apt for you, there are auditors and tax personnel out there who can explain what form is for what income and with their help you can file the right type of income tax.