Your Queries (Income Tax): Use ITR Form 1 if you have income from salary and dividend only

June 30, 2021 1:45 AM

Assuming that you have income only from salary and dividends, you may continue to declare income in ITR-1. Disclosure may be made under head ‘Salary” and “other sources”.

So, if you’re a non-resident for income tax purposes in India you shall not be required to quote Aadhar and linking of PAN and Aadhar is not needed.So, if you’re a non-resident for income tax purposes in India you shall not be required to quote Aadhar and linking of PAN and Aadhar is not needed.

By Chirag Nangia

In my Form 26AS for AY 2021-22, salary amounting to Rs 29 lakh is reflected in Part A under Section 92 and dividends from Infosys, Tata, Hero, Mahindra, SKF amounting to Rs 1226 are reflected in Part A under Section 94. TDS has been deducted and deposited on salary. However, no TDS has been deducted on dividends. Which ITR form is to be filled? Till now I was filling ITR Form 1.
—Sushil Agrawal
Assuming that you have income only from salary and dividends, you may continue to declare income in ITR-1. Disclosure may be made under head ‘Salary” and “other sources”. Notably, TDS has not been deducted on dividends because the same is less than Rs 5,000. However, you have to disclose the dividend income in the ITR. If you have income from sale/ redemption of shares in the form of capital gains, then you shall not be eligible to file ITR-1, disclosure shall then have to be made in ITR 2.

Last year we sold the house which was in my mother’s name. My father had spent on renovation but we don’t have any proof about this. I only have the original purchase value in 1991. How can I calculate the long term capital gains tax liability?
—Sidharth Pupneja
In your mother’s case, the gains from sale of house property will be taxable as ‘Long Term Capital Gain’. For calculating long term capital gains, sale price has to be reduced by the indexed cost of acquisition, indexed cost of renovation and the transfer costs. Since you do not have proper information regarding the cost of renovation, it is advisable to not claim the deduction of such expenses. To reduce the tax burden, the capital gains/ sale consideration can be reinvested in specific assets or schemes (for instance, purchase of another house property or bonds of RECL/NHAI) within the prescribed time limit.

CBDT has said all unlinked PAN cards by June 30, 2021 will be declared as inoperative. Does this apply to Non Resident Indian PAN cards?
—A Venkat
The CBDT has exempted non-residents from quoting Aadhar in PAN applications and Income Tax Returns. So, if you’re a non-resident for income tax purposes in India you shall not be required to quote Aadhar and linking of PAN and Aadhar is not needed.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com

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