December 16, 2013



From- Ravi

I am getting Income from Salary in a company where I am working as an employee and I also get income from a software company (not related to the company where i am getting Salary Income), in which I am the one of the Directors and having 4% share in the capital of the company.

Kindly reply me which ITR form should I file?

Thanking u in advance.


Hi Ravi,
First of all please clarify what income you get from software company i.e. whether you get dividend, professional income, directors sitting fees etc and also if there is any other income from Shares or Business. The above incomes will tell which ITR you should file.

If you get dividend, it is exempt from tax and hence you can file ITR 1.

If you get Professional fees, Director Sitting Fees and other similar incomes, it is other source income as you are into a Job, and thus you can again file ITR 1.

If you invest into shares or Mutual Fund and have earner Capital Gain or Loss you will have to file ITR 2 irrespective of fact that it may be Long Term or Short Term.

The income of company is taxable in Companies hand as Company and its shareholders are different entity and thus you don't have to take Profit of company in your returns.

I hope the above answer will help you. For further help please clarify the type of Income from the company.

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