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  • Category: Finance & Banking

    Which income tax return form should I file?


    Are you looking for a queue which income tax return form should you need to file? Ask our technical experts to guide you through.

    I want some guidelines and help regarding the income tax filing for my case. I am a PhD student getting Rs. 28000/- per month scholarship from MHRD. When I was in job, I took home loan and I am paying EMI of Rs. 8512 per month. I have home loan certificate too. I also get some money from Google AdSense and share market. I have been investing in LIC, ELSS Mutual fund and SBI Health insurance.

    I want to know which income tax form should I use for e-filing for my case?
  • #12488
    Your PHD stipend is treated like a salary and it will be taxed accordingly. As there is no provision to treat the stipend, intern salary differently than regular job. So your income through stipend in PHD, any other income that is attached can be filed through ITR- 1 form.

    There are two more variations of this form but the default ITR-1 form is meant for the salaried employees. You can get the deduction for the Home loan of 8K from the tax filing. If your passive income and the active income through PHD stipend collectively stands from 2.5 to 5L then you'd be taxed 5%. And based on that you'd have to file the income through ITR-1 form. You can even file it yourself but it's better to read more on it or take help of CA.

    You can read more about how ITR-1 applies to your case here : https://cleartax.in/itr1

    I suggest taking help of CA as you have home loan, so deduction related information is better to be processed through them for better verification of rules and things we may often miss.

  • #12489
    It would be a good idea to get the help from a financial consultant, or better still CA for getting a proper information about the exact amount that would be taxable in your case. The income tax rules suggest that Wages, pension, gratuity, fees or commission or profits paid in lieu of the salary, advance salary, payment for leaves standing to the credit of the employee –all these form part of salary for the calculation of your taxable income. The scholarship earned for the cost of education is exempt from the payment of tax. From that point of view, your stipend remains to be taxable.
    It depends upon whether your stipend is classified as salary or scholarship. If it is classified as scholarship, you can file your Income in ITR 1 and then claim returns. In any case, consult a Chartered Accountant for a better understanding.

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