What is Income Tax Return?
Income Tax Return is a form in which the taxpayers file information about ther income earned and tax payable to the income tax department.
What are the Due dates for Filing Income Tax return?
31st July is the due date for filing ITR in case of an Individual, HUF, AOP, BOI whose books of accounts are not required to be audited;
31st October is the due date for filing ITR for Corporates and Non-Corporates requiring Tax Audit;
30th November is the due date for filing return of Transfer Pricing.
Who is required to file Income tax return?
- 1. Conditional Filing of Income tax Return
Assessee whose Gross Total Income (i.e income before claiming exemption u/s 54, 54B, 54D, 54EC, 54F, 54G, 54GA, 54GB and deduction Under Chapter VI-A) is more than the basic exemption limit then the assessee is required to file its ITR.
2. Compulsory filing of Returns
- (a) Company & Partnership Firm (including LLP) are required to file their ITR mandatorily
- (b) Resident individual who is the beneficial owner of any asset located outside India or has signing authority of any Account outside India
- (c) Resident individual who is beneficiary of any asset located outside India
- (d) Resident individual who has deposited an amount more than one crore in aggregate in one or more current account maintained with banks or cooperative banks
- (e) He has incurred foreign travel expenditure of Rs. 2,00,000 or more for himself or any other person
- (f) He has incurred foreign travel expenditure of Rs. 2,00,000 or more for himself or any other person
- 1. ITR-1 is for resident individual whose total income includes :
Income from Salary or Pension; or
Income from one House Property (except the cases where loss from previous year is carry forward); or
Income from Other Sources (except Winning from Lottery and Income from Race Horses) (Total income from the above sources should not be more than 50 Lakhs)
Income from Agriculture up to Rs.5000
- 2. ITR-2 is for Individual or Hindu Undivided Family (HUF) whose total income includes:
Income from Salary or Pension; or
Income from House Property; or
Income from Other Sources (including Winnings from Lottery and Income from Race Horses)
(Total income from the above sources should be more than 50 Lakhs)
ITR 2 is not applicable:
If you are a Director of a company (not having income from Business or Profession)
If you have investments in unlisted equity shares at any time during the financial year
Income from Capital gain; or
Income from Agriculture more than Rs. 5000
Having any Foreign Asset or Foreign Income
Being a non resident and resident not ordinarily resident (RNOR)
- 3. ITR-3 is for Individuals and Hindu Undivided Family having income from proprietary business or carrying on profession with following sources of income :
Income from Business and Profession
If you are a Director of a company
If you are a partner of a firm having income from partnership firm and not opting for Presumptive taxation
If you have investments in unlisted equity shares at any time during the financial year
This return may include income from House Property, Salary/Pension and Income from other sources 4. ITR-4: Upto INR 50 Lakhs and Profits from Business or Profession is computed under Section 44AD, 44ADA, 44AE. ITR-4 can not be filed by an Individual/HUF who is a Non-resident Indian. 5. ITR-5: ITR-5 is applicable for firms, Limited Liability Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI) and Artificial Juridical Person (AJP). 6. ITR-6: ITR-6 is applicable for Companies other than Companies claiming exemption under Section 11(i.e. Income from property held for charitable or religious purposes). 7. ITR-7: ITR-7 can be used by persons including companies who are required to furnish return under section
139(4A) - related with trust income
139(4B) - deals with political parties
139(4C) - deals with scientific research
139(4D) - related with the university and college
What is AIS/TIS?
The AIS is a comprehensive statement containing details of all the financial transactions undertaken by taxpayers in a financial year (FY).
It contains the information relating to income earned from various sources such as salary, dividend, interest from savings account, recurring deposits, sale and purchase of equity shares, bonds, mutual funds etc. The statement also contains information related to TDS, TCS.
Taxpayer Information Summary (TIS) is an information category wise aggregated information summary for a taxpayer. It shows processed value (i.e. value generated after deduplication of
information based on pre-defined rules) and derived value (i.e. value derived after considering the taxpayer feedback and processed value) under each information category (e.g. Salary, Interest, Dividend etc.). The derived information in TIS will be used for prefilling of return, if applicable.
What are the popular tax savings options?
You can save maximum Rs.1,50,000 in one FY u/s 80C
- 1. Tax Saving Fixed Deposits having lock in period of 5 years
- 2. Tax savings mutual funds known as Equity linked savings scheme
- 3. Life Insurance Premium
- 4. Senior Citizens Savings Scheme
- 5. National Saving Certificates
- 6. Unit lInked Insurance Plan
- 7. Public Provident Fund
- 8. Tuition Fees for a Maximum of two children
- 9. Principal Repayment of Housing Loan
- 10. Stamp Duty and Registration fee for New House Property
You can save maximum Rs.1,00,000 in one FY u/s 80D
- 1. Medical Insurance Premium paid : (Age Below 60 yrs)
- a. For yourself , spouse , dependent children upto Rs 25,000
- b. For parents Rs. 25,000
- 2. Medical Insurance Premium paid (Age above 60 yrs)
- a. For individual being senior citizen upto Rs. 50,000
- b. For parents Rs. 50,000
How to save tax other than 80 C and 80D?
Apart from 80C/80D, various other provisions allow deductions to taxpayer as follows :
Section 80EE - Deduction on interest portion of home loan for first home
Section 24- Interest deduction for housing loan upto Rs 2 lakh
Section 80EEB- Interest deduction for vehicle loan for purchase of electric vehicle
80G- Donations to charitable institutions.
80GG-If your salary does not include HRA component, you can claim rent deduction under 80GG
Section 80TTA- Deduction upto Rs 10,000 for interest received in saving bank account.
Am I eligible to pay advance tax?
If your tax liability for the year after TDS is Rs. 10,000 or more then you are liable to pay advance tax during the same financial year
Do salaried person need to pay advance tax?
Individuals having only salary income are not required to pay advance tax as liability to deduct and deposit tax is on employer in the form of TDS
How to calculate advance tax?
Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:
- a) In case of all the assessees (other than assessees opting for presumptive taxation) :
- i) Atleast 15 % on or before 15th June
- ii) Atleast 45 % on or before 15th September
- iii) Atleast 75 % on or before 15th December
- iv) 100 % on or before 15th March
- b) In case of assessee opted for presumptive taxation: 100% on or before 15th March
Note: Any tax paid on or before 31st day of March shall also be treated as advance tax paid during the same financial year.
What is TDS?
For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as “Tax Deduction at Source”, commonly known as TDS. Under this system tax is deducted at the origin of the income. Tax is deducted by the payer and is remitted to the Government by the payer on behalf of the payee. The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.
Is TDS relevant for me as a businessman?
Yes. Receipts credited to you will be after deducting TDS. You can adjust this against your final tax liability. You are also required to deduct TDS while making any payments. Failure to do so will result in the entire expenditure being disallowed as your business expenditure and taxed as income
I have TAN but no TDS is deducted by me during the quarter/year. Do I need to file TDS return?
It is not mandatory to file NIL TDS return if no TDS has been deducted during the year/quarter. A declaration for non-filing of return has to be filed in this case. Declaration can be filed at tdscpc.gov.in, by logging in as 'Deductor' and going to 'Declaration for Non - filing of TDS statements' under the 'Statement/Payments' menu. Please also note that if the deductor has permanently closed his business, he/she should surrender his TAN before the jurisdictional AO.
I have not received TDS certificate from the deductor. Can claim TDS in my return of income?
Yes, the tax credit in your case will be reflected in your Form 26AS and, hence, you can check Form 26AS and claim the credit of the tax accordingly. However, the claim of TDS to be made in your return of income should be strictly as per the TDS credit being reflected in Form 26AS. If there is any discrepancy in the tax actually deducted and the tax credit being reflected in Form 26AS then you should intimate the same to the deductor and should reconcile the difference. The credit granted by the Income-tax Department will be as per Form 26AS.
I have not received TDS certificate from my employer. Can I claim TDS deducted from my salary?
Yes. The claim can be made in your ITR. However, Department will raise a demand which will not be enforced on you but on your employer
What is PAN?
PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card (commonly known as PAN card).
How to apply for PAN?
PAN application can be filled in the following forms- 1. FORM 49A (for Indian Citizens) 2. FORM 49AA (for foreign citizens)
What is the validity of PAN?
PAN obtained once is valid for life-time of the PAN-holder throughout India. It is not affected by change of address or change of Assessing Officer etc. However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes or Correction in PAN Data”.
How to Check the status of Aadhar PAN linking?
How to get area code for PAN allotment?
It is mandatory to provide the AO Code while applying for PAN and TAN. AO Code (i.e., Area Code, AO Type, Range Code and AO Number) of the Jurisdictional Assessing Officer must be filled by the applicant.
What is E-PAN?
e-PAN is the PAN provided in PDF format rather than physical card. The e-PAN card in PDF format will be sent to e-mail ID mentioned in PAN application form. If the physical PAN Card is not required, then PAN applicant will have to indicate at the time of submission of PAN application. In such cases, e-mail ID will be mandatory & e-PAN Card will be sent to the PAN applicant at the email ID. Physical PAN Card will not be dispatched in such cases. Charges for e-PAN card is different from physical PAN card.
Who is an Assessing Officer?
He/She is an officer of the Income-tax Department who has been given jurisdiction over a particular geographical area in a city/town or over a class of persons. You can find out from the PRO or from the Departmental website, http://www.incometaxindia.gov.in
, about the officer administering the law which could be based on your geographical jurisdiction or the nature of income earned by you.
Is my responsibility under the Income Tax Act over once taxes are paid?
No, you are thereafter responsible for ensuring that the tax credits are available in your tax credit statement and TDS/TCS certificates received by you and that full particulars of income and tax payment are submitted to the Income-tax Department in the form of Return of Income which is to be filed before the due date prescribed in this regard.
What is the due date for filing Tax Audit Report?
30th September is the due date for the assessees not having international transactions or specified domestic transactions;
31st October is the due date for the assessees having international transactions or specified domestic transactions;
What is the penalty for not filing Income Tax Return before due date?
If total income exceeds Rs 5 lakhs, then penalty payable is Rs. 5,000;
If total income is less than Rs 5 lakhs, then penalty payable is Rs. 1,000;
What is the interest liability for delay in filing ITR?
If you do not file income tax returns on or before the due date, you would be required to pay interest at the rate of 1% for every month, or part of a month, on the amount of tax remaining unpaid as per section 234A.
The calculation of interest will start from the date immediately after the due date, which is usually 31 July of the relevant assessment year.
How is HUF formed?
Hindu Undivided Family (HUF) is treated as a 'person' under section 2(31) of the Income-tax Act, 1961 (herein after referred to as "the Act'). HUF is a separate entity for the purpose of assessment under the Act.
How is AOP formed?
An association of persons (AOP) or a body of individuals (BOI), whether incorporated or not, is treated as a 'person' under section 2(31) of the Income-tax Act, 1961. Hence, AOP or BOI is treated as a separate entity for the purpose of assessment under the Income-tax Act. Here it is important to note that an AOP or BOI shall be deemed to be a person, whether or not, they were formed or established or incorporated with the object of deriving income, profits or gains.
If I have paid excess tax, how will it be refunded to me?
You are eligible to receive an income tax refund if you have paid more tax to the government than your actual tax liability.
Process to claim a tax refund: In order to claim Income tax refund, it is mandatory to file an ITR. Once the IT department verifies your ITR and the refund claim made by you, it will communicate the outcome to you. If you have filed ITR electronically, the IT department will send you an e-mail or an SMS. Refund, if accepted as due, is normally credited to the bank account you had mentioned for this purpose in your tax return.
Is it necessary to attach documents with Income tax return?
ITR forms, whether filed manually or electronically, do not require any documents like proof of investment, TDS certificates, etc. However, these documents should be retained by the taxpayer and produced before the tax authorities when demanded in situations like assessment, inquiry, etc.
What is Form 26AS?
Form 26AS reflects the details of tax credit in respect of taxes deducted for the taxpayer as per the database of the IT Department. The tax credit may cover TDS, TCS, and taxes paid by the taxpayer in other forms like advance tax, self-assessment tax, etc.
What should one do in case of discrepancies in actual TDS and TDS credit as per Form 26AS?
The actual amount of TDS and TDS credit in Form 26AS may differ and the TDS credit in the form may be less as compared to the actual TDS. This may happen due to reasons like non-furnishing of TDS details to the I-T Department by the deductor, linking the tax deducted to an incorrect PAN, etc. In such a case, the deductee should approach the deductor and request to take necessary steps to rectify the discrepancy due to above reasons.
How many times can I file the revised return?
You can do it multiple times till the expiry of one year time limit.
From where can I take the help of any expert on Income-tax related matters?
You can take the help from tax professionals of JJ Tax App. They will help you with the filing of return and in the post filing compliances as well.
I am an agriculturist, is my income taxable?
Agricultural income is not taxable. However, if you have non-agricultural income too along with agricultural income, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for the purpose of tax rate. Section 2(IA) can be referred to know more in respect of Agricultural Income.
What is Part A and Part B of Form No. 16?
The Form 16 is as per the standard format prescribed by Income tax rules. As per that format, it has two parts, Part A and Part B. The Part A contains the basic information about the employer and employee like his address,TAN,PAN and the gross amount of income given by him to employee.Part B contains the complete details about different income sources, amount of income, deductions claimed and the taxes deducted thereon. Part B is most important for filing IT Return.
How to E-Verify Income Tax Return?
Mode and process of generating and validating income tax returns through Electronic Verification Code (EVC):
- Through Aadhaar Number OTP
- Generation of EVC
- Through Net banking
- Through Email id and Mobile Number
- Pre-validating Bank Account Number
- Through Demat Account Number
- E-Verify through available EVC (If already having the same)