What is Income Tax Return?
Income Tax Return is a form in which the taxpayers file information about his income earned and tax applicable to the income tax department.
What are the Due dates of Filing Income Tax return?
31st July is the due date for filing ITR in case of 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 ITR for Assesses requiring 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 has deposited an amount more than one crore in aggregate in one or more current account maintain with banks or cooperative bank
(e) He has incurred foreign travel expenditure of Rs.200000 or more for himself or any other person
(f) He has incurred foreign travel expenditure of Rs.200000 or more for himself or any other person
ITR Forms
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)
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
What is AIS/TIS?
AIS
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.
TIS
The TIS is a generation of Taxpayer Information available in AIS in a simplified format. TIS contains category-wise aggregated information summary for a taxpayer. It shows processed value (i.e., the value generated after processing of information) and derived processed value (i.e., the value generated after processing of information) and derived under each information category (e.g., Salaries, Interest, Dividend etc.).
What are the popular tax savings options?
You can save maximum Rs.1,50,000 in one FY u/s 80C
1. Fixed Deposit having lock in period of 5 years
2. Tax savings mutual funds known as Equity linked savings scheme
3. Premium amount paid on Life Insurance
4. Senior Citizens Savings Scheme
5. National Saving Certificates
6. Unit lInked Insurance Plan
7. public Provident Fund
8. Tuition Fees for Maximum 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, various other provisions allow deductions to taxpayer as follows :
80D- for medical insurance premium for self, spouse & dependent parents.
Section 80EE Deduction for interest payment of home loan for first home owners
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 income 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. Payments may be made to you after TDS. You can adjust this against your final tax liability. You are also required to effect TDS while making business 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 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 up 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?
You can check your Aadhaar-PAN Linking status from the following link: https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/AadhaarPreloginStatus.html
How to get area code for my allotment of PAN?
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 up by the applicant. These details can be obtained from following links :
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, Email 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. One can also before section section 2(7A) of Income tax Act
Please give me the e-mail id of Income Tax ombudsperson?
Please see the following link to check the list of Email Id of income tax ombudsman: https://www.incometaxindia.gov.in/Pages/ombudsman/know-your-ombudsman.aspx
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.