In the Union budget, the finance minister had promised to make filing returns easier. In keeping with the announcement, the income-tax department has come out with two new forms—Sahaj and Sugam for the assessment year 2011-12. Sahaj is for salaried people and Sugam for small businessmen and professionals. We take you through the first two pages of ITR 1. We tell you what the nine key portions of the form mean and what you should do. Even if you are filling ITR 2, this should serve as a useful guide. To make your job easier, we have also given a rundown on what to expect in ITR 2. In all this, keep your Form 16 handy.
Also See | A User’s Guide to ITR Forms (PDF)
ITR 2: Important things to keep in mind
Capital gains:If you make a profit on transfer (sale) of a capital asset, such as a property or jewellery, it is known as capital gains. Capital gains are of two types. You can compute capital gains by adding short- and long-term capital gains.
Current year loss adjustment: You need to fill this in the form in case you have incurred any loss that needs to be adjusted. Let’s say, your income is Rs 4 lakh and you incurred a loss of Rs 1 lakh, then the loss of Rs 1 lakh is set off against your income of Rs 4 lakh. Keep in mind that it is the current year’s loss which is adjusted.
Carry-forward loss: Here you need to fill 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. Loss under the head “house property”, short-term capital loss and long-term capital loss, loss from other sources (other than loss from betting on horse races) are allowed to be carried forward for eight years.
Graphics by Yogesh Kumar/Mint
Compiled by Deepti Bhaskaran and Bindisha Sarang