These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.
1. Assessment Year for which this Return Form is applicable
This Return Form is applicable for assessment year 2011-2012 only, i.e., it relates to income earned in Financial Year 2010-11.
2. Who can use this Return Form
This Form can be used a person being a firm, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4)(a) or 139(4)(a) or 139(4)(b) or 139(4)(c) or 139(4)(d) shall not use this form.
3. Annexure-less Return Form
- No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.
- Tax-payers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS). (Please refer to www.incometaxindia.gov.in)
4. Manner of filing this Return Form
This Return Form can be filed with the Income Tax Department in any of the following ways, –
- by furnishing the return in a paper form;
- by furnishing the return electronically under digital signature;
- by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;
- by furnishing a Bar-coded return.
However, a firm whose accounts are liable to audit under section 44AB shall compulsorily furnish the return in the manner mentioned at (ii) above. Where the Return Form is furnished in the manner mentioned at 5(iii), the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bangaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.
5. Filling out the acknowledgement
Only one copy of this Return Form is required to be filed. Where the Return Form is furnished in the manner mentioned at 5(i) or at 5(iv), the acknowledgement slip attached with this Return Form should be duly filled.
6. Codes for filling this Return Form
Under the heading ‘Filing Status’ in the Return Form details have to be filled regarding section under which the return is being filed by ticking in the relevant box provided therein.
7. Instructions for filling out this Form
8. Brief Scheme of the Law– Before filling out the form, you are advised to read the following-
(1) Computation of total income
- “Previous year” is the financial year (1st April to the following 31st March) during which the income in question has been earned. “Assessment Year” is the financial year immediately following the previous year.
- Total income is to be computed as follows, in the following order:
- Classify all items of income under the following heads of income-
- (A) Salaries; (B) “Income from house property”; (C) “Profit and gains from business or profession”; (D) “Capital gains”; and (E) “Income from other sources”. [There may be no income under one or more of the heads at (A), (B), (D) and (E)].
- Compute taxable income of the current year (i.e., the previous year) under each head of income separatelyin the Schedules which have been structured so as to help you in making these computations as per provisions of the Income-tax Act. These statutory provisions decide what is to be included in your income, what you can claim as an expenditure or allowance and how much, and also what you cannot claim as an expenditure/allowance.
- Set off current year’s headwise loss(es) against current year’s headwise income(s) as per procedures prescribed by the law. A separate Schedule is provided for such set-off.
- Set off, as per procedures prescribedby the law, loss(es) and/or allowance(s) of earlier assessment year(s) brought forward. Also, compute loss(es) and/or allowance(s) that could be set off in future and is (are) to be carried forward as per procedures prescribed by the law. Separate Schedules are provided for this.
- Aggregate the headwise end-results as available after (iv) above; this will give you “gross total income”.
- From gross total income, subtract, as per procedures prescribedby the law, “deductions” mentioned in Chapter VIA of the Income-tax Act. The result will be the total income. Besides, calculate agricultural income for rate purposes.
(2) Computation of income-tax, education cess including secondary and higher education cess and interest in respect of income chargeable to tax
- Compute income-tax payable on the total income. Special rates of tax are applicable to some specified items. Include agricultural income, as prescribed, for rate purposes, in the tax computation procedure..
- Add Education Cess as prescribed on the tax payable.
- Claim relief(s) as prescribed by the law, on account of arrears or advances of salary received during the year or of double taxation and calculate balance tax payable.
- Add interest payable as prescribed by the law to reach total tax and interest payable.
- Deduct the amount of prepaid taxes, if any, like “tax deducted at source”, “advance-tax” and “self-assessment-tax”. The result will be the tax payable (or refundable).
(3) Obligation to file return of income
- Every firm, AOP, BOI and artificial juridical person has to furnish the return of his income if his total income before allowing deductions under section 10A or section 10B or section 10BA or Chapter VI-A (i.e., if his gross total income referred to in item 9 of Part B-TI as increased by item 6 of Schedule 10A, item f of Schedule 10A and item f of Schedule 10A of this Form) exceeds the maximum amount which is not chargeable to income tax (Rs. 1,60,000/- in case of AOP, BOI and artificial juridical person, Rs. 10,000/- in case of a cooperative society, during the financial year 2010-11.
- Every firm shall furnish the return of income whether it has income or loss during the year.
The deduction under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE shall not be allowed unless the return has been filed on or before the due date.
9. SCHEME OF THE FORM
The Scheme of this form follows the scheme of the law as outlined above in its basic form. The Form has been divided into three parts. It also has thirty one schedules. The details of these parts and the schedules are as under:-
1. Part-A has five sub-divisions as under-
- Part A-GEN mainly seeks general information requiring identificatory and other data;
- Part A-BS seeks the balance sheet as on 31st March, 2011;
- Part A-P&L seeks information regarding the Profit and loss account for the financial year 2010-11;
- Part A-OI seeks other information. It is optional in a case not liable for audit under section 44AB
2.. The second part, i.e, Part-B is regarding an outline of the total income and tax computation in respect of income chargeable to tax..
3. There are 31 schedules details of which are as under-
- Schedule – BA: Details of bank account.
- Schedule-HP: Computation of income under the head Income from House Property
- Schedule-BP: Computation of income under the head “profit and gains from business or profession”
- Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
- Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
- Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
- Schedule DCG: Computation of deemed capital gains on sale of depreciable assets Schedule ESR: Deduction under section 35 (expenditure on scientific research)
- Schedule-CG: Computation of income under the head Capital gains.
- Schedule-OS: Computation of income under the head Income from other sources.
- Schedule-CYLA: Statement of income after set off of current year’s losses
- Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
- Schedule- CFL: Statement of losses to be carried forward to future years.
- Schedule- 10A: Computation of deduction under section 10A
- Schedule- 10AA: Computation of deduction under section 10AA
- Schedule- 10B: Computation of deduction under section 10B
- Schedule- 10BA: Computation of deduction under section 10BA
- Schedule- 80G: Details of donation entitled for deduction under section 80G
- Schedule- 80IA: Computation of deduction under section 80IA
- Schedule- 80IB: Computation of deduction under section 80IB
- Schedule- 80IC/ 80-ID/ 80-IE: Computation of deduction under section 80IC/ 80-ID/ 80-IE.
- Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
- Schedule-SI: Statement of income which is chargeable to tax at special rates
- Schedule-EI: Statement of Income not included in total income (exempt incomes)
- Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
- Schedule-TDS2: Statement of tax deducted at source on income other than salary.
- Schedule-TCS: Statement of tax collected at source
10. GUIDANCE FOR FILLING OUT PARTS AND SCHEDULES
(1) General
- All items must be filled in the manner indicated therein; otherwise the return maybe liable to be held defective or even invalid.
- If any schedule is not applicable score across as “—NA—“.
- If any item is inapplicable, write “NA” against that item.
- Write “Nil” to denote nil figures.
- Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.
- All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.
(2) Sequence for filling out parts and schedules
- Part A
- Schedules
- Part B
- Part C
- Verification
11. Part A-GEN
Most of the details to be filled out in Part-Gen of this form are self-explanatory. However, some of the details mentioned below are to be filled out as explained hereunder:-
- e-mail address and phone number are optional;
- The code for sections under which the return is filed be filled as per code given in instruction No.6(i).
- In case the return is being filed by you in a representative capacity, please ensure to quote your PAN in item “PAN of the representative assessee”. In case the PAN of the person being represented is not known or he has not got a PAN in India, the item for PAN in the first line of the return may be left blank. It may please be noted that in the first line of this form, the name of the person being represented be filled.
12. Part A-BS and Part A-P&L
- The Balance Sheet as on 31st March, 2011 and the profit and loss account for financial year 2010-11 in the formats provided in these parts have to be filled in respect of business or profession carried out by you during the financial year 2010-11 if you were required to maintain accounts of the business or profession during the year.
- In case, accounts of the business or profession were required to be audited, the items of balance sheet and profit and loss account filled in the these parts should broadly match with the audited balance sheet and profit and loss account.
- In case, you were not required to maintain accounts of the business or profession during the year, please fill out the details mentioned in these parts against portion ‘No account case’.
13. Part A- OI and Part A-QD
- If the accounts of the business or profession were not required to be audited under section 44AB, it is optional to fill these parts.
- Where the accounts of the business or profession were required to be audited under section 44AB, the details to be filled in these parts which are also required to be reported in the report of audit by the auditors, should broadly match with the details as given in the report of audit.
- Purchases are to be shown exclusive of taxes and the details of taxes paid on the purchases are to be indicated separately in the relevant rows. However, where it is not possible to segregate the details of the different taxes paid on the purchases, the same may be included and shown in the details of purchases.
- In Part A-QD, the quantitative details may be furnished only in respect of principal items.
14. Schedules
(a) Schedule- BA
In this schedule, please quote the MICR code of a bank if you desire to receive the refund through electronic clearing system (ECS). However, it may not be possible to issue the refund in all cases through ECS since the ECS facility is not available across the country.
(b) Schedule-HP
If there are more than three house properties, the details of remaining properties need to be filled in a separate sheet in the format of this Schedule. and attach this sheet with this return. The results of all the properties have to be filled in last row of this Schedule. Following points also need to be clarified,-
- Annual letable value means the amount for which the house property may reasonably be expected to let from year to year, on a notional basis: Deduction for taxes paid to local authority shall be available only if the property is in the occupation of a tenant, and such taxes are borne by the assessee and not by the tenant and have actually been paid during the year.
- Deduction is available for unrealized rent in the case of a let-out property. If such a deduction has been taken in an earlier assessment year, and such unrealized rent is actually received in the assessment year in question, the unrealized rent so received is to be shown in item 4a of this Schedule.
- Item 4b of this Schedule relates to enhancement of rent with retrospective effect. Here mention back years’ extra rent received thereon, and claim deduction @ 30% of such arrear rent received.
(c) Schedule-BP
- The computation in this schedule has to be started
on the basis of profit before tax as shown in item 43 of Part-A- P&L.- In case any item of addition or deduction not covered by the items mentioned in this schedule be filled in residual items 21 and 26 of this schedule.
- In case accounts of business or profession are not maintained, the profit as entered into by you in item 50d of Part A-P&L.
- In case, agricultural income to be excluded on the basis of rule 7A, 7B or 7C (in business of growing and manufacturing tea, coffee etc), it shall not be included in the item 5c of this schedule.
- In A-37, net profit or loss from business or profession is to be computed, only in special cases, e.g. business of growing and manufacturing tea, coffee, etc., where rules 7A, 7B or 7C is applicable otherwise, the figure of profit/ loss as computed is A-36 may be entered.
- Income earned by the assessee by way of salary, commission, bonus, interest, etc. from other firms as if in the capacity of a partner, which has not been included in the profit and loss account of the proprietory business needs to be disclosed in item No. A23 in Schedule BP.
- Item C of this schedule computes the total of profit or loss from business or profession (other than speculative business and profit or loss from speculative business) (item A37 + item B41). Please note that if balance in item B41 in respect of speculative business is a loss, same shall not be set-off against profit from non-speculative business. In such situation, only the figures of item A37 be entered in item C.
- The special provision for computing profits and gains of retail business under section 44AF shall NOT be applicable for the AY 2011-12. Hence the column against 44AF should be left BLANK for the current assessment year.
d) Schedule-DPM, Schedule DOA, Schedule DEP and Schedule DCG:
For sake of convenience, computation of depreciation allowable under the Income-tax Act [other than in case of an undertaking generating electricity which may at its option claim deprecation on straight line method under section 32(1)(i)], has been divided into two parts i.e. in schedules DPM (depreciation on plant and machinery )and DOA (depreciation on other assets). The summery of depreciation as per these schedules has to be shown in schedule DEP. Deemed short term capital gain, if any as computed in schedule DPM and DOA has to be entered into schedule DCG.
e) Schedule ESR: Deduction under section 35 (expenditure on scientific research):
In column (2) of this schedule, please furnish the details of deduction to which you are entitled under provisions of this section. In column (1), please enter the amounts of expenses of the nature covered by section 35 which are, if, debited to profit and loss account. Please note that no deduction for depreciation is available in respect of capital asset for which deduction under section 35(1)(iv) has been claimed.
f) Schedule-CG
- If more than one short-term capital asset has been transferred, make the combined computation for all the assets. Similarly, make the combined computation for all the assets if more than one long-term capital asset has been transferred.
- For computing long-term capital gain, cost of acquisition and cost of improvement may be indexed, if required, on the basis of following cost inflation index notified by the Central Government for this purpose.
- Sections 54/54B/54D/54EC/54F/54G/54GA mentioned in this schedule provides exemption on capital gains subject to fulfillment of certain conditions. Exemption under some of these sections is available only in respect of long-term capital gains. Therefore, please ensure that you are claiming the benefit of any of these sections correctly in accordance with the provisions of law.
- Item C of this Schedule computes the total of short-term capital gain and long-term capital gain (item A6 + item B6). Please note that if balance in item B6 in respect of long-term capital gain is a loss, same shall not be set-off against short-term capital gain. In such situation, the figure of item B6 would be entered as 0 and then the figures of item A6 be added in item C.
g) Schedule-OS
- Against item 1a and 1b, enter the details of gross income by way of dividend and interest which is not exempt.
- Against item 1c, indicate the gross income from machinery, plant or furniture let on hire and also such income from building where its letting is inseparable from the letting of the said machinery, plant or furniture, if it is not chargeable to income-tax under the head “Profits and gains of business or profession”.
- Income from owning and maintaining race horses is to be computed separately as loss from owning and maintaining race horses cannot be adjusted against income from any other source, and can only be carried forward for set off against similar income in subsequent years.
- Winnings from lotteries, crossword puzzles, races, etc., are subject to special rates of tax; hence a separate item is provided and the income from these can not be adjusted against the losses arising under the head Income from other sources.
- Item 5 of this Schedule computes the total income chargeable under the head “Income from other sources” (item 1g + item 2 + item 3 + item 4c). If balance in item 4c from owning and maintaining race horses is a loss, please enter 0 and enter the total of item 3 in item 5.
h) Schedule-CYLA
- Mention only positive incomes of the current year in column 1, headwise, in the relevant rows.
- Mention total current year’s loss(es), if any, from house property, business or profession and other sources (other than losses from race horses) in the first row against the heading loss to be adjusted under the respective head. These losses are to be set off against income under other heads in accordance with the provisions of section 71. The amount set off against the income of respective heads has to be entered into in columns 2, 3 and 4, in the relevant rows.
- Mention the end-result of the above inter-head set-off(s) in column 5, headwise, in relevant rows.
- Total of loss set off out of columns 2, 3 and 4 have to be entered into row vii.
- The losses remaining for set off have to be entered in row viii.
i) Schedule-BFLA
- Mention only positive incomes of the current year (after set-off of loss in Schedule-CYLA in column 1, headwise in relevant rows.
- The amount of brought forward losses which may be set off are to be entered in column 2 in respective rows.
- The end result of the set off will be entered in column 3 in respective heads. The total of column 3 shall be entered in row viii which shall give the amount of gross total income.
- The total amount of brought forward losses set off during the year shall be entered in column 2 of row vii.
j) Schedule-CFL
- In this Schedule, the summary of losses carried from earlier years, set off during the year and to be carried forward for set off against income of future years is to be entered.
- The losses under the head “house property”, ‘profit and gains of business or profession” short term capital loss and long term capital loss, losses from other sources (other than losses from race horses) are allowed to be carried forward for 8 years. However, loss from owning and maintaining race horses can be carried forward only for 4 assessment years.
k) Schedule- 10A
- If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.
- The amount of deduction under this section for an undertaking shall be as per item 17 of Form No.56F being the report of audit under section 10A.
l) Schedule-10AA
If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.
m) Schedule-10B
- If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.
- The amount of deduction under this section for an undertaking shall be as per item 17 of Form No.56G being the report of audit under section 10B.
n) Schedule- 10BA,-
- If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.
- The amount of deduction under this section for an undertaking shall be as per item 15 of Form No.56H being the report of audit under section 10BA.
o) Schedule- 80G,-
- In this Schedule, the details of donation given by you which are entitled for deduction under section 80G have to be filled.
- In part-A of this Schedule, the details of donations which are entitled for 100% deduction are to be filled in. Section 80G(1)(i) read with section 80G(2) contains the list of funds/ institutions donations to which are eligible for 100% deduction in hands of the donar.
- In Pat-B of this Schedule, the details of donations which are entitled for 50% deduction are to be filled in where such donations have been given to the funds/ institutions which are not required to be approved by an authority for this purpose. Section 80G(1)(i) read with section 80G(2) also contains the list of such funds/ institutions.
- In Part-C of this Schedule, the details of donations to the funds/ institutions which are approved by the Commissioner of Income-tax for this purpose.
- It may kindly be noted that where the aggregate donations referred to in Part-C and donations referred to in sub-clauses (v), (vi), (via) and (vii) of clause (a) and in clauses (b) and (c)of section 80G(2) exceeds 10% of total income (before deduction under other provisions of Chapter VI-A), than the excess amount shall be ignored for purpose of computing deduction under section 80G.
p) Schedule- 80IA, Schedule- 80IB, Schedule- 80IC and Schedule-80-IE:
- If there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.
- The amount of deduction for an undertaking shall be as per item 30 of Form No.10CCB being the report of audit under sections 80-IA/ 80-IB/ 80-IC and 80-IE.
q) Schedule-VIA,-
- The total of the deductions allowable is limited to the amount of gross total income. For details of deductions allowable, the provisions of the Chapter VI-A may kindly be referred to.
- For deductions under sections 80-IA, 80-IB, 80-IC/ 80-IE, the amount as shown in Schedules 80-IA, 80-IB and 80-IC/ 80-IE be filled. The amount of deduction under section 80-ID also needs to be shown in this Schedule.
- Details of other deductions which are available are as under:-
- Section 80G (Deduction in respect of donations to certain funds, charitable institutions, etc.)
- Section 80GGA (Deduction in respect of certain donations for scientific research or rural development)
- Section 80GGC (Deduction in respect of contributions given by any person to political parties)
- Section 80JJA (Deduction in respect and gains from business of collecting and processing of bio-degradable waste)
- Section 80LA (Deduction in respect of certain incomes of Offshore Banking Units and International Financial services Centre).
- Section 80P (Deduction in respect of income of cooperative societies)
r) Schedule-SI,-
Mention the income included in total income which is chargeable to tax at special rates. The codes for relevant section and special rate of taxes are given in Instruction No.9(iii).
s) Schedule-EI,-
Furnish the details of income like agriculture income, interest, dividend, etc. which is exempt from tax.
t) Schedule-IT,-
- In this schedule, fill out the details of payment of advance income-tax and income-tax on self-assessment.
- The details of BSR Code of the bank branch (7 digits), date of deposit, challan serial no., and amount paid should be filled out from the acknowledgement counterfoil.
u) Schedule- TDS2,-
- In this Schedule fill the details of tax deducted on the basis of TDS certificates(Form No.16A) issued by the deductor(s).
- Details of each certificate are to be filled separately in the rows. In case rows provided in these Schedules are not sufficient, please attach a table in same format.
- It may please be noted that the TDS certificates are not to be annexed with the Return Form.
v) Schedule TCS,-
- In this Schedule, fill the details of tax collected at source on the basis of TCS certificates (Form No. 27D) issued by the Collector.
- In case rows provided in these Schedules are not sufficient, please attach a table in same format.
- It may please be noted that the TDS certificates are not to be annexed with the Return Form.
15. Part B-TI-Computation of Total Income
- In this part the summary of income computed under various heads and as set off in Schedule CFLA and Schedule BFLA is to be entered.
- Every entry which have to be filled on basis of Schedules have been crossed referenced and hence doesn’t need any further clarification.
16. Part B-TI-Computation of tax liability on Total Income
- In item 1a, fill the details of gross tax liability to be computed at the applicable rate. The tax liability has to be computed at the rates given as under:-
- In case of an AOP or a BOI or any other artificial juridical person,-
- In case of a firm or local authority– 30% of the total income
- In item No. 3, calculate the education cess including education cess at the rate of three per cent of [item No.2].
- In item 9b, please furnish the details in accordance with Form 16A issued by a deductor .
17. Verification
- In case the return is to be furnished in a paper format or electronically under digital signature or in a bar coded return format, please fill up the required information in the Verification. Strike out whatever is not applicable. Please ensure that the verification has been signed before furnishing the return. Write the designation of the person signing the return.
- In case the return is to be furnished electronically in the manner mentioned in instruction no. 5(iii), please fill verification form (Form ITR-V)
- Please note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.
