Which ITR form should I file as I am a homemaker who has Rs 98,000 dividend income and paid Rs 4000 TDS?

These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.

I am 43, a homemaker, with mutual fund investments of Rs 35 lakh and stock investments of Rs 50 lakh, mostly invested from my husband’s income. During FY2025 26, I received dividend income of Rs 98,000, on which TDS of Rs 4,000 was deducted. I have no short-term or long-term capital gains during the year. In earlier years, I filed ITR-1 and reported annual income of Rs 2-3 lakh from private tuition. Is it appropriate to continue reporting Rs 2-3 lakh as income from private tuition? If so, which ITR form should I file?

Umesh Kumar Jethani Founder, ApkiReturn: Since your investment corpus of Rs 85 lakh was primarily funded by your husband, the dividend income of Rs 98,000 is subject to the clubbing of income provisions under Section 64(1)(iv) of the Income Tax Act. Consequently, these dividend earnings must be declared and taxed under your husband’s income tax return, not yours.

Your husband can claim the Rs 4,000 TDS credit in his return. Regarding your tuition income, if you earn Rs 2-3 lakh annually, reporting it is perfectly appropriate. However, if the income is either nominal or non-existent, continuing to declare it primarily to claim refunds against TDS could be viewed as misrepresentation under the Income Tax Act—a risk not worth taking.

Furthermore, if you show tuition income, ITR-1 is the incorrect form. Regular tuition income is classified as professional income, meaning you must file ITR-4 (under the presumptive taxation scheme) or ITR-3. Moving forward, ensure your filings accurately reflect actual earnings and strictly adhere to clubbing rules to avoid penalties.

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My wife, a homemaker, has never filed her income tax returns but she invests in fixed deposits and mutual funds from her savings. The interest income from FDs and recurring deposits is less than Rs 2 lakh. Is it necessary for her to file tax returns?

Umesh Kumar Jethani Founder, ApkiReturn: As per the IT Act, filing an Income Tax Return (ITR) is mandatory only if an individual’s gross total income exceeds the basic exemption limit, which is currently Rs 3 lakh under the new tax regime (Rs 2.5 lakh under the old). Since your wife’s interest income is below Rs 2 lakh, and assuming no realised capital gains from mutual funds, she is not legally required to file an ITR.

However, filing a voluntary “nil return” is highly advisable. It helps create a formal financial record, which can be useful for future loan, visa or financial documentation. It also enables her to claim refunds for any TDS deducted by the bank on fixed deposits or savings interest. In addition, regular ITR filing improves financial traceability and can make future compliance or investment-related processes smoother.

Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com