I am a PSU employee. Owns a house and rented. Annual income is approx 54 Lakhs. Which form is to be filled up for Income Tax Returns. Please guide. Thank you.

Ans: For person earning income of business & profession, ITR 3 and 4 is applicable. If person is opting for presumptive taxation scheme ITR 4 is applicable, in other case ITR 3 is applicable.

Ans: Person giving teaching service is considered as professional and taxable under the head Income from Business and Profession. For Income from Business and Profession, 2 ITRs forms available. ITR 3 and ITR 4 (for presumptive scheme). As income is below exemption limit, it is advisable to file ITR 3.

Ans: Resident person having Income from Salary, Capital Gain and Other sources is required to file Income tax return in ITR 2.

Ans: Congratulations on your retirement from the public sector bank! It's a significant milestone worth celebrating. Now, let's address your query regarding income tax filing for the Assessment Year 2024-25.

Given your income from intraday trading and delivery of shares during FY 2023-24, you should file your Income Tax Return using Form ITR-3. This form is specifically designed for individuals and Hindu Undivided Families (HUFs) with income from business or profession.

As a Certified Financial Planner, I understand the importance of minimizing income tax legally. Here are some methods you can consider:

Claiming Deductions: Explore available deductions under Section 80C to 80U, such as investments in Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), and health insurance premiums, to reduce your taxable income.

Set Off and Carry Forward Losses: If you incurred losses from intraday trading or delivery of shares, you can set them off against your other income. Additionally, any unadjusted losses can be carried forward to future years.

Avail Tax Exemptions: Certain incomes, like dividends from domestic companies up to 10 lakh Rs, are tax-exempt. Utilize such exemptions effectively to reduce your tax liability.

Maintain Proper Records: Keep detailed records of your intraday trading and share transactions, including purchase and sale invoices, contract notes, and bank statements, to accurately calculate your taxable income and claim deductions.

Consult a Tax Professional: Given the complexities of income tax laws, consulting a tax professional, especially one with expertise in securities trading, can help you navigate the process efficiently and identify additional tax-saving opportunities.

By implementing these strategies and staying compliant with income tax regulations, you can effectively minimize your tax liability while fulfilling your filing obligations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: ITR 2