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Return route for Salary plus Other income

This form is for individuals with income from house property or capital gains or some other source, but not from business or professional income, in addition to their regular salaries. Arnav Pandya reports.

business Updated: Jul 23, 2008 22:28 IST

A large part of the salaried class will be using the ITR-2 (Income Tax Return-2) form to file income tax returns. This form is for individuals with income from house property or capital gains or some other source, but not from business or professional income, in addition to their regular salaries.

Personal information and filing status
Most of the personal information required is not difficult to give. They include name and address along with the Permanent Account Number (PAN), date of birth and contact details.

You are required to mention the category of the employer — the government or a public sector undertaking, or ‘others’. If you are employed in the private sector, the category to choose is ‘others’.

In terms of the residential status, most people employed in the country will fall under the resident category. However, if a person has been travelling or staying abroad for a long period of time, it is necessary to check on the number of days stay in India needed to fall under this category.

The above features are common for other types of returns too. The additional detail on ITR-2 pertains to whether the return is being filed by a representative assessee. If this is the case, then details about the person has to be given.
Income details

The income details have to be given in the space provided inside, called schedules, while the summary will only contain the total income. In case of salary details, the breakup of salary, allowances and perquisites will help arrive at the total salary figure that will be mentioned in the summary.

House property income:
House property income schedule has space to mention the address of the property and the income calculation. There will be some deductions available, including the interest cost on loan taken to buy the property. If there is loss incurred from house property, which is when the person has taken loan to buy a house, then the summary for the income will show a nil figure. The loss has to be adjusted at another place in the form.

Capital gains:
The schedule for capital gains has space for different types of capital gains. In case of short-term capital gain, there is space to calculate it after making various adjustments. The individual then has to separate the figure of short-term capital gains on which a favourable rate of tax (10 per cent for the year) is applicable. This has to be shown separately in the summary, because there is a different rate applicable on this income.

The long-term capital gains also has to be shown in this schedule. In this case too, if there are losses then the summary will show a nil figure and the adjustment can be made elsewhere.

Incomes from other sources:
They have to be brought together under the heads provided in the schedule and if there are deductions allowed, they have to be adjusted to arrive at the net figure.

There is a separate schedule for various losses under different heads. These are then adjusted against the income through a separate line item in the summary. Once the losses from the current year are set off, the balance income should be used to set off losses that might have been carried forward from the previous years.

Arriving at taxable income
Once these adjustments are over, the net figure is the gross total income from which various deductions can be made. The resulting amount is your net income. The tax is calculated on this along with the surcharge if applicable and the cess.

Different types of taxes paid during the year are then adjusted against the figure to arrive at the final amount to be paid or the refund that is due.

Don’t forget to sign:
In the space provided for verification, person has to sign before filing it. This is vital as the process will be complete only on signing the form.

Carry forward your losses:
In the schedules section, there is a separate schedule for losses that have to be carried forward to the years ahead because they could not be set off against the income of the current year. In addition there is a separate schedule if the person has to include the income of any minor along with their income.

There is a separate schedule for mentioning all the exempt income that the person has earned and also the required information that has to be informed under the annual information return requirements.