Understanding the Capacity Column in ITR-1

The ITR-1 Income Tax Return form used in India is an essential document for individuals and entities to report their assessable income and file their tax returns. One crucial section within this form is the Capacity Column, which provides vital information about who is filing the return and in what capacity.

Common Entries in the Capacity Column

Self: This entry is used when the taxpayer is filing the return for themselves. Guardian: This section is for guardians filing on behalf of a minor. Authorized Signatory: This is for when someone else, with the taxpayer's authorization, is filing the return on their behalf.

Accurately filling in this section is important to ensure that the return is processed correctly. If you are filing the return yourself, you would typically write 'Self' in this column.

What Does the Capacity Column Mean?

The Capacity Column in ITR gives an idea about whether the return has been filled as an individual or in a representative capacity. For example, if you are an individual, you would write 'Individual' as your capacity. If the return is for a Hindu Undivided Family (HUF), the Karta would sign the return in the capacity of 'Karta'. If the return is for a deceased person, the return would be signed in the legal heirs' capacity.

Section 140 of the Income Tax Act

Section 140 of the Income Tax Act specifies who can verify and sign the income tax return. The authorized person depends on the status of the person filing the return. Here are the key points to understand:

Individual Capabilities

If the individual is filing the return, they must mention themselves/herself. If the individual is a minor or mentally incapable, the return must be signed by their authorized signatory, along with the PAN number of such person. If the individual is abroad or unable to sign for any other reason, a person properly authorized through a valid Power of Attorney may sign on their behalf. A certified copy of the Power of Attorney must accompany the return.

Hindu Undivided Family (HUF)

The Karta of the HUF must mention their PAN number. If the Karta is abroad or mentally incapable, another member of the HUF, not a minor, can sign. This member must mention their authorized signatory and PAN number.

Firm Capabilities

If the return is for a firm, the managing partner should sign and mention their PAN. If the managing partner is unavailable, any other partner who is not a minor may sign.

Understanding the capacity column is crucial to ensure the correct signing and verification of your ITR-1. Filling this information accurately helps avoid any delays in the processing of your tax return.