ITR For Housewife - Which ITR Form to Fill?

Is it Mandatory to File ITR for Housewives?

As per the Income Tax Act, it is not mandatory for anyone to file an ITR if their annual income is below the basic exemption limit subject to certain conditions specified in the act. Under the new regime, the basic exemption limit is Rs.3 lakhs. This means that any person with an annual income less than Rs.3 lakh is not required to file an ITR. The same rule applies to housewives, too.

However, the provisions and rules for filing ITR for housewives vary depending on their age and annual income. For example, if the housewife is under 80 years old, she has to file an ITR if her annual income exceeds Rs.3 lakh. Similarly, a woman aged above 80 years has to file an ITR if her annual income exceeds Rs.5 lakh.

---

Income Tax Slabs for Women

Women Below 60 years (Old Regime)

Women Below 60 years (New Regime)

Women Between 60 and 80 Years

Women Above 80 Years

---

What are the Income Sources of Housewives?

Housewives do not fall under the category of salaried employees. However, there are various other sources of income that women might have. Given below are the various sources that can be considered as income for housewives -

Money received for household expenses

Housewives often receive money from their husbands to run the household. However, this amount is not considered their income, even if it is transferred directly to her bank account.

Interest received from Fixed Deposits

If the housewife has an FD in her name and earns interest on it, such interest income is considered her income. Its taxability depends on the amount of interest earned. If the interest amount is more than the exemption limit, then the interest earned becomes taxable.

Money Invested by Husband in Wife’s Name

If the husband invests his income in the name of his wife, then it is considered the husband’s income. However, if the wife earns any profit from this investment, then it is considered the wife’s income and taxed accordingly.

Gifts

Gifts from specific relatives are not subject to tax. Gifts received from others are taxed if their value exceeds Rs.50,000.

---

What Deductions and Exemptions are Available for Housewives?

There are various deductions and exemptions outlined in the Income Tax Act. Some of these deductions available to housewives are mentioned below -

• Medical Expense - Housewives can claim a tax deduction of Rs.40,000 on the medical and healthcare expenses incurred for themselves or their dependents every financial year.
• Donations - A housewife can avail of a tax deduction for the donations made to different charitable organizations under Section 80G. The deduction can be 50% or 100%, depending on the type of institution to which the donation has been made.
• Savings Schemes - Section 10(15)(i) allows an exemption of interest up to Rs.3500 for individual accounts and Rs.7,000 for joint accounts on the post office savings account. This deduction can be availed of by a housewife if she has a savings account in a post office.
• Home Loan Interest - If any housewife has taken any loan for purchasing or constructing a self-occupied house property, then she can avail of a deduction on the interest portion of the loan, subject to a maximum of Rs.2 lakhs.

Want to save more on taxes? Find out about more tax-saving options. Book Tax Consultation with our experts.

---

How to Calculate Taxable Income for Housewives?

The taxable income for housewives can be calculated by adding up the income from all sources and subtracting all the deductions and exemptions allowed for housewives from this income. Some common sources of income that housewives can have include interest on FDs and bank accounts, gifts, and other investments. The deductions and exemptions include PPF, NSC, donations to charitable institutions, etc.

Doing all this manually can be a little complex. So, to make it easier, you can also use an income tax calculator. All you have to do is enter your income and investment details, and the calculator will automatically calculate your tax liability.

---

Which ITR to File for Housewife?

The ITR Form that a housewife has to file depends on various factors like type of income, amount of annual income, investments, etc. Here are the various ITR forms applicable to housewives and when -

• ITR-1: If she has a total annual income not exceeding Rs.50 lakhs from one house property or other sources such as interest, she can file ITR-1.
• ITR-2: If she has income from more than one property or capital gains on shares and mutual funds, she can file ITR-2.
• ITR-3: If she has some income from business/profession/freelancing and is not eligible to file ITR-1, she can file ITR-3 if she has not opted for presumptive taxation.
• ITR-4: If she opts for presumptive taxation, then she can file ITR 4

---

How to File ITR for Housewife with Tax2win?

If you are wondering how to file an ITR with Tax2win, here are some simple steps you need to follow -

Step 1: Either sign in to the tax2win website using your existing credentials or sign up to the portal and create an account.

Step 2: After logging in, a table consisting of all the possible sources of income opens. You need to select the income sources that you have. Based on your sources of income, Tax2win’s DIY ITR filing system selects the applicable ITR form automatically.

Step 3. Select the F.Y. and enter the PAN Details and DOB. (If you don’t have a registered account with the Income Tax Department, you will receive an OTP and a new account will be created.). You can also choose if you want our DIY software to fetch your personal details and get data pre-filled.

Step 4: Enter a few basic details in the next step. As shown in the image below, you have to enter your personal details like name, contact details, , father’s name, gender, etc.

Step 5: Enter the OTP sent to your registered mobile number and click ‘continue.’

Step 6: Enter a few more basic details like your address and pin code.

Step 7: Enter the details of the house property from which you have rental income (if any), including any home loan taken and ownership status.

Step 8: In the next step, enter the details of capital gains from equity/mutual funds, debentures/bonds, land and buildings, and other assets.

Step 9: After entering capital gains details, you have to enter the income received from other sources like bank interest, dividends, etc.

Step 10: Enter the details of the investment made during the year to calculate the applicable deductions. You have to enter details of investments in PPF, LIC, PF, housing loan, FDR, NSC, tuition fees, premiums paid to the annuity, and other 80C deductions. Also, you can claim deductions like 80D, 80CCD (1B), 80CCD(2), 80G, etc.

Step 11: In this step, you are required to enter your bank account details. Enter your IFSC code, name of the bank, account number, and Aadhaar details. As per government law, it is mandatory to show all the active bank details. You can select one account as the primary account. Remember, you will get a tax refund in your primary bank account. Make sure the bank account selected for refund is prevalidated on the Income Tax Website.

Step 12: In this step, you have to upload Form 26AS, and your TDS details will be auto-populated. If you don’t have Form 26AS, you can skip it and fill in the details manually before filing your ITR. If you have paid the tax, select yes on Advance Tax and self-assessment tax paid, enter the challan details, and click on Continue.

Step 13: Select the return filing type. If your income is less than Rs.2.5 lakhs and electricity expenses during the year are more than 1 lakh, or expenses incurred on any Foreign Travelling expenses of more than Rs. 2 lakhs, select yes on the option ‘Are you filing a return under the seventh proviso to section 139(1). Also, select the number of days for which you have stayed in India in the relevant FY. The system will automatically determine your residential status. Also, select the type of return the user wants to file, i.e., Original return or revised return.

Step 14: Based on the information given by you in the previous sections, the software automatically computes your tax liability using both the old and the new tax regime. You can compare both regimes and select the one that is beneficial for you.

Step 15: Remember to cross-check all the information in return, click on the checkbox, and click on “File my return.” And here, you are done with filing. Don’t forget to e-verify the ITR at the same time. Remember to e-verify your return within 30 days. File ITR Now

While it is not mandatory for housewives to file ITR if their annual income is below the basic exemption limit, they have to file it if their income exceeds the basic exemption limit subject to certain conditions specified in the act. Housewives have various potential income sources, and they can avail of deductions and exemptions to reduce their tax liability.

If you are still confused about filing your ITR or what deductions/exemptions you can avail of, reach out to our experts at Tax2win. Book an eCA now!

---