- July 2, 2018
- Posted by: CA Anita Paliwal
- Categories: Blog, Mutual Funds
You all must be occupied these days with your income tax return filing or waiting outside your CA office as the due date for filing Income Tax Return for individuals taxpayers for financial year 2017-18 is approaching on 31st July 2018.
Let us help you little and you try to do it yourself this time!!!!
First question you may have regarding income tax return is, when an individual taxpayer required to pay income tax in India?
So, if you are an individual whose age is below 60 years on the last day of relevant previous year i.e. 31st March 2018 and you are having taxable income (i.e. income after claiming all the eligible exemptions and deductions) exceeding Rs. 2,50,000 , you are required to calculate tax on your taxable income. You are required to deposit tax and file Income tax return before 31st July, 2018 for financial year 2017-18.
Below table shows the slab rates applicable for financial year 2017-18 for an individual whose age is below 60 years on the last day of previous year i.e. 31st July 2018. Slab rates for individuals whose age is above 60 years are different which we are not discussing about now.
| Taxable Income | Tax Rate |
| Upto Rs. 2,50,000 | Nil |
| Rs. 2,50,000 to Rs. 5,00,000 | 5% |
| Rs, 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Plus (i) Surcharge: 10% of tax where taxable income exceeds Rs. 50,00,000 or 15% of tax where taxable income exceeds Rs. 1 Crore. (ii) Education Cess: 3% of tax plus surcharge
Note: If you are resident individual and your taxable income does not exceed Rs 3,50,000, you will be eligible for rebate u/s 87 A of Income Tax Act which is 100% of income tax ( before adding education cess) or Rs. 2,500, whichever is less.
Let’s understand it with an example. Suppose your taxable income( after claiming all the eligible exemptions and deduction) is Rs. 15,00,000. Your income tax calculation would be as under:
Upto Rs. 2,50,000 = NIL
Rs. 2,50,000 to Rs, 5,00,000 = Rs. 12,500( Rs. 2,50,000*5%)
Rs. 5,00,000 to Rs. 10,00,000 = Rs. 1,00,000 ( Rs. 5,00,000* 20%)
Above 10,00,000 = Rs. 1,50,000 ( Rs. 5,00,000*30%)
Total Tax = Rs. 2,62,500
Plus Surcharge= Nil
Plus Education cess= Rs. 7,875
Total Tax Payable = Rs. 2,70,375
So, after understanding how much tax you need to pay, your next question would be which ITR form you need to choose for filing your return. Please see below table for the answer of your this query. Again we are focusing only on individual tax payer, so below table will show forms applicable to individual taxpayer.
| Nature of income | ITR 1 | ITR 2 | ITR 3 | ITR 4 |
| Income from salary/pension (for ordinarily resident person) | ✓ | ✓ | ✓ | ✓ |
| Income from salary/pension (for not ordinarily resident and non-resident person) | ✓ | ✓ | ✓ | |
| Income or loss from one house property (excluding brought forward and carried forward losses) | ✓ | ✓ | ✓ | ✓ |
| Income or loss from more than one house property | ✓ | ✓ | ||
| Agricultural income exceeding Rs. 5,000 | ✓ | ✓ | ||
| Total income exceeding Rs. 50 lakhs | ✓ | ✓ | ✓ | |
| Dividend income exceeding Rs. 10 lakhs taxable under Section 115BBDA | ✓ | ✓ | ||
| Unexplained credit or unexplained investment taxable at 60% under Sections 68, 69, 69A, etc. | ✓ | ✓ | ||
| Income from other sources (other than winnings from lottery and race horses or losses under this head) | ✓ | ✓ | ✓ | ✓ |
| Income from other sources (including winnings from lottery and race horses or losses under this head) | ✓ | ✓ | ✓ | |
| Capital gains/loss on sale of investments/property | ✓ | ✓ | ||
| Interest, salary, bonus, commission or share of profit received by a partner from a partnership firm. | ✓ | |||
| Income from business or profession | ✓ | |||
| Income from presumptive business | ✓ | |||
| Income from foreign sources or Foreign assets or having Signing authority in any account outside India | ✓ | ✓ | ||
| Income to be apportioned in accordance with Section 5A | ✓ | ✓ | ✓ | |
| Claiming relief of tax under sections 90, 90A or 91 | ✓ | ✓ |
Hope, above information will help you in filing your income tax return. If you’ve any questions, feel free to ask in comments.
3 Comments
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While calculate Short term capital Gain STCG, If someone have Short term capital gain in all the period of time and amoung one period short term capital loss in perticular period (ie.. 16/6 to 15/9) than how to show?
No negative value allow there
Hello Akshay
Short Term Capital gain or Short Term Capital loss can be taken for the whole year i.e, if someone have short term capital gain as well as short term capital loss then net off amount can be shown in the ITR.
You have to taken total Sale consideration of all securities & Cost of Acquisition of all securities in the Income Tax return and accordingly capital gain or loss can be calculated.
CA. MANOJ KUMAR
Hi Akshay,
You need to know the sales consideration you have received from the sale of shares i.e. sale price. Deduct cost of acquisition of those shares i.e. purchase price of shares. You will get the STCG or STCL as the case may be. ITR utility will compute it itself.