Revised Frequently Asked Questions on income
tax returns
Q 1. What
are the modes of filing return of income?
Return of
income can be filed in paper mode or in e-filing mode. If return of income is
filed through electronic mode, then the assessee has following two options:
(1) E-filing
using a Digital Signature
(2)
E-filing without a Digital Signature
If return
of income is filed by using a digital signature, then there is no requirement
of sending the signed copy ITR V (i.e. acknowledgement of return
filed electronically) to Bangalore CPC. However, if the return is filed without
using digital signature, then the assessee shall send the signed copy of ITR V
to CPC, Bangalore at below mentioned address. Income Tax Department -
CPC, Post Bag No -1, Electronic City Post Office, Bangalore -560100,
Karnataka within 120 days of uploading the return either by ordinary
post or speed post only.
Q 2. When
it is mandatory to file return of income?
Every
company is required to file return of income. However, for an individual and
HUF, it is mandatory to file return of income if his/its gross total income
(before claiming Chapter VI-A deduction) exceeds the maximum exemption limit.
The maximum exemption limit and the slab rates for Assessment Year 2013-14 are
given in the following table:
|
Class
of persons
|
Tax
slab(Amount)
|
Tax
rate
|
|
Resident
senior citizen (aged 60 years and above but less than 80 years)
|
Up
to Rs. 2,50,000
|
Nil
|
|
Rs.
2,50,000 to Rs. 5,00,000
|
10%
|
|
Rs.
5,00,000 to Rs. 10,00,000
|
20%
|
|
Above
Rs. 10,00,000
|
30%
|
|
Resident
super senior citizen (aged 80 years or above)
|
Up
to Rs. 5,00,000
|
Nil
|
|
Rs.
5,00,000 to Rs. 10,00,000
|
20%
|
|
Above
Rs. 10,00,000
|
30%
|
|
Any
other individual or HUF (i.e. other than above)
|
Up
to Rs. 2,00,000
|
Nil
|
|
Rs.
2,00,000 to Rs. 5,00,000
|
10%
|
|
Rs.
5,00,000 to Rs. 10,00,000
|
20%
|
|
Above
Rs. 10,00,000
|
30%
|
Q 3. Is
it mandatory to file return of income, if I have a PAN?
No, it is
not mandatory to file return of income if your income is less than maximum
exemption limit irrespective of the fact that you have been allotted a PAN.
Q 4. I am
an Individual and resident of India. Do I need to file return if my income is
below taxable limit but I am having an account in a foreign bank?
Yes, it
is mandatory for you to file the income tax return. In view of newly inserted
proviso to Section 139(1), it is mandatory to file income-tax return, if
following conditions are satisfied:
|
(a)
|
|
The assessee is resident and
ordinarily resident in India;
|
|
(b)
|
|
He has any of following:
|
|
(i)
|
|
Signing authority in any account
located abroad;
|
|
(ii)
|
|
Any asset located abroad; or
|
|
(iii)
|
|
Financial interest in any entity
located abroad.
|
The
assessee is required to provide requisite details of such account, assets or
financial interest in the return of income.
Q 5.
Which form should I opt to file income-tax return for the assessment year
2013-14?
|
Individual and HUF
|
|
Nature
of income
|
ITR
1 (Sahaj)
|
ITR
2
|
ITR
3
|
ITR
4
|
ITR
4S (Sugam)
|
|
Income
from salary/pension
|
✓
|
✓
|
✓
|
✓
|
|
|
Income
from one house property (excluding losses)
|
✓
|
✓
|
✓
|
✓
|
|
|
Income
or losses from more than one house property
|
|
✓
|
✓
|
✓
|
|
|
Income
not chargeable to tax which exceeds Rs. 5,000
|
|
✓
|
✓
|
✓
|
|
|
Income
from other sources (other than winnings from lottery and race horses or
losses under this head)
|
✓
|
✓
|
✓
|
✓
|
|
|
Income
from other sources (including winnings from lottery and race horses)
|
|
✓
|
✓
|
✓
|
|
|
Capital
gains/loss on sale of investments/property
|
|
✓
|
✓
|
✓
|
|
|
Share
of profit of partner from a partnership firm
|
|
|
✓
|
✓
|
|
|
Income
from proprietary business/profession
|
|
|
|
✓
|
|
|
Income
from presumptive business
|
|
|
|
|
✓
|
|
Details
of foreign assets
|
|
✓
|
✓
|
✓
|
|
|
Claiming
relief of tax under section 90, 90A or 91
|
|
✓
|
✓
|
✓
|
|
|
Other Assessees
|
|
|
|
|
Nature
of income
|
ITR
5
|
ITR
6
|
ITR
7
|
|
Firm
|
✓
|
|
|
|
Association
of Persons (AOP)
|
✓
|
|
|
|
Body
of Individuals (BOI)
|
✓
|
|
|
|
Companies
other than companies claiming exemption under Sec. 11
|
|
✓
|
|
|
Persons including
companies required to furnish return under:
(1) Section
139(4A);
(2) Section
139(4B);
(3) Section
139(4C); and
(4) Section 139(4D)
|
|
|
✓
|
|
ITR-1
|
|
Who
can file return in
ITR
1
|
Return in ITR 1 can
be filed by an individual if his total income includes:
(a) Salary
or pension
(b) Income
from one house property (except brought forward loss under this head)
(c) Income
from other sources (except winnings from lotteries or horse races or losses
under this head)
|
|
Who
can't file return in ITR 1
|
Return in ITR 1
cannot be filed by an individual if he:
(a) Is
resident and ordinarily resident and has an asset located outside India or
has signing authority outside India
(b) Has
claimed any relief under Section 90 or 90A or 91
(c) Has
income not chargeable to tax which exceeds Rs. 5,000
|
|
ITR-2
|
|
Who
can file return in ITR 2
|
Return in ITR 2 can
be filed by an individual and HUF if his/its total income includes:
(a) Salary
or pension
(b) Income
from more than one house property (including losses
thereon)
(c) Income
from capital gains
(d) Income
from other sources (including winnings from lotteries or horse races or
losses under this head)
|
|
Who
can't file return in ITR 2
|
Return
in ITR 2 cannot be filed by an individual and HUF if he/it has income
chargeable to tax under the head 'Profit or gains from business or
profession'
|
|
ITR-3
|
|
Who
can file return in ITR 3
|
Return
in ITR 3 can be filed by an Individual or HUF deriving his/its share of
profit as partner of firm.
|
|
ITR-4S
|
|
Who
can file return in ITR 4S
|
Return
in ITR 4S can be filed by an Individual or HUF deriving presumptive business
income.
|
|
Who
can't file return in ITR 4S
|
Return in ITR 4S
cannot be filed by a person who:
(a) Is
resident and ordinarily resident and has an asset located outside India or
has signing authority outside India
(b) Has
claimed any relief under Section 90 or 90A or 91
(c) Has income
not chargeable to tax which exceeds Rs. 5,000
|
|
ITR-4
|
|
Who
can file return in ITR 4
|
Return
in ITR 4S can be filed by an Individual or HUF deriving income from
proprietary business or profession
|
Q 6. What
are the due dates for filing of income-tax return for the year ending March 31,
2013?
|
Assessee
|
Due
date
|
|
An
Individual or HUF
|
July
31, 2013
|
|
A
Company
|
September
30, 2013
|
|
A
person whose accounts are required to be audited
|
September
30, 2013
|
|
A
working partner of a firm whose accounts are required to be audited
|
September
30, 2013
|
|
An
assessee who is required to furnish a report under Sec. 92E for international
transaction
|
November
30, 2013
|
|
Any
other person
|
July
31, 2013
|
Q 7.
Whether it is mandatory to file return electronically?
E-filing
of return is mandatory for:
|
(a)
|
|
Every company;
|
|
(b)
|
|
A firm or an individual or HUF who
are required to get their accounts audited under section 44AB;
|
|
(c)
|
|
Every person claiming tax relief
under Section 90, 90A or 91.
|
|
(d)
|
|
Every resident and ordinarily
resident assessee in India, if he has any of following:
|
|
(i)
|
|
Signing authority in any account
located abroad;
|
|
(ii)
|
|
Any asset located abroad; or
|
|
(iii)
|
|
Financial interest in any entity
located abroad.
|
|
(e)
|
|
A person other than a company and
a person required to furnish return in form ITR- 7, if his total income
exceeds Rs. 5 lakh rupees during the previous year 2012- 13.
|
Q 8. How
to file return electronically?
Income
tax return can be filed electronically with the help of following instructions:
|
(a)
|
|
Visit
https://incometaxindiaefiling.gov.in;
|
|
(b)
|
|
Choose the appropriate ITR form
suitable for your status and source of income (Refer FAQ No. 5) and download
excel utility from the aforementioned website;
|
|
(c)
|
|
Fill the income-tax return in the
downloaded excel utility and generate XML file;
|
|
(d)
|
|
Use the following link to create
your account:
https://incometaxindiaefiling.gov.in/e-Filing/Registration/RegistrationHome.html;
|
|
(e)
|
|
After creation of account, you
need to login and then click on "submit return" option;
|
|
(f)
|
|
Select the 'assessment year' and
'form name', then click 'next';
|
|
(g)
|
|
Click on Browse option to select
the generated XML file and upload it;
|
|
(h)
|
|
On successful uploading, a pop-up
menu will be displayed on the screen. Click on "Download" button to
get the acknowledgement i.e. ITR-V;
|
|
(i)
|
|
The final step is to get the
printout of such acknowledgement, get it signed and send it to "Income
Tax Department - CPC, Post Bag No - 1, Electronic City Post Office, Bangalore
- 560100, Karnataka" within 120 days of uploading the return either by
ordinary post or speed post only.
|
If ITR-V
is not submitted within stipulated period of 120 days, then it will be deemed
that assessee has not filed the return of income.
The
assessee who are required to file the ITR-1 may alternatively fill and file
their return online without downloading the excel utility after login at the
incometaxindiaefiling.gov.in.
If
assessee is using digital signature ("DSC") for uploading the return,
it is to be registered on the website beforehand. If return is filed through
DSC, assessee would not be required to send the print-out of the
acknowledgement to CPC.
Q 9. What
if I have forgotten the login details of https://incometaxindiaefiling.gov.in?
|
(a)
|
|
Click on forget password or on the
following link
(https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html);
|
|
(b)
|
|
Enter you user id (i.e., your PAN)
and the captcha (i.e. the security random code) and click on continue;
|
|
(c)
|
|
In the password reset page, one of
the following options can be selected:
|
|
(i)
|
|
Answer to the secret question;
|
|
(ii)
|
|
Upload the digital signature
certificate; or
|
|
(iii)
|
|
Enter e-filed acknowledgment
number or bank account number as furnished in return of income.
|
|
(d)
|
|
Enter new password twice and click
on 'Reset Password' to generate new password;
|
|
(e)
|
|
If you are still unable to
retrieve your password then send an email request from registered email-id,
to validate@incometaxindia.gov.in with following details:
|
|
(i)
|
|
PAN;
|
|
(ii)
|
|
Name of the assessee as appearing
on the PAN card;
|
|
(iii)
|
|
Date of Birth/Date of
incorporation;
|
|
(iv)
|
|
Name of father as appearing on the
PAN card;
|
|
(v)
|
|
Registered PAN Address;
|
New
password will be communicated to you by the income-tax department via email.
Q 10. If
the last date to file income-tax return is a public holiday, whether the next
day would be treated as "last date of filing"?
Normally,
income-tax department continues its operation during the last days of filing of
income-tax return even if the last days eventually fall on Sundays or on
holidays. However, if department is closed on the last due date then the
immediately next working day of the department would be considered as the last
date of filing of income tax return.
Q 11. How
can I find my jurisdictional Assessing Officer?
Either
click on Services>Know your Jurisdiction given on the home
page of incometaxindiaefiling.gov.in or use the following link
https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html
to know your jurisdictional officer.
Q 12. How
to know about TAN of my deductor?
It can be
found either on the Form 16/16A or in the 26AS tax credit statement available
on https://www.tdscpc.gov.in/app/login.xhtml TRACES (TDS Reconciliation and
Correction Enabling System) website.
Q 13. How
would I know whether my e-return has been processed at CPC Bangalore?
Log on to
the e-filing website and select CPC processing status to check the status of
return.
Q 14. I
am the authorized signatory of the firm. While filing the return of income I
get an error that 'PAN mentioned in Verification section is invalid'.
In case
of return of income of firm/company/AOP/BOI/Artificial judicial
person/Co¬operative society/trust etc., PAN of authorized signatory is required
to be filled in verification field instead of the assessee's PAN.
Q 15. I
had e-filed my return and had identified some mistake which seems to be a
'mistake apparent from record'. Can I make rectification with CPC in paper
form?
No, the
CPC doesn't accept any of the manual correspondence. You have to login to
incometaxindiaefiling.gov.in and have to file rectification request using web
portal.
Q 16.
What to do in case of TDS mismatch?
Even if
the credit for TDS as claimed in the return matches with the balance as appearing
in the Form 26AS, still Assessing Officer may raise a demand for payment of
differential amount due to TDS mismatch. The reason for such differences could
be as under:
|
(1)
|
|
TAN of deductor was wrongly
mentioned
|
|
(2)
|
|
Name of deductor was not spelt
correctly
|
|
(3)
|
|
Tax deducted by one deductor
wrongly included in the amount of tax deducted by another deductor
|
In case
of such TDS mismatch, an assessee can file a rectification request.
Steps to
file the rectification request:
|
(1)
|
|
Login to your account in
https://incometaxindiaefiling.gov.in
|
|
(2)
|
|
Go to My Account >
Rectification request
|
|
(3)
|
|
You need the following to fill in
the required details:
|
|
(a)
|
|
PAN
|
|
(b)
|
|
Assessment Year
|
|
(c)
|
|
Latest Communication Reference
Number (it starts with CPC/Assessment Year/)
|
|
(d)
|
|
Latest CPC Order date
|
|
(4)
|
|
Click on Validate to go to next
step
|
|
(5)
|
|
On the next screen, choose
'Taxpayer is correcting data for Tax Credit Mismatch Only' from the drop-down
box of 'Rectification Request Type'
|
|
(6)
|
|
Check from the following relevant
boxes for which taxpayer is seeking rectification:
|
|
(a)
|
|
TDS on salary details
|
|
(b)
|
|
TDS on other than salary details
|
|
(c)
|
|
IT details
|
|
(7)
|
|
Fill in all the relevant details
including details of tax deducted and reported in the return of income filed
earlier
|
|
(8)
|
|
Click on the button of 'Submit' to
submit the rectification request.
|
The TDS
mismatch may also be due to error in TDS return filed by deductor. In such a
situation, you should intimate the deductor about such error and require him to
rectify the TDS return. However, if your return is related to assessment year
2011-12 then it is advised to the assessee to claim the actual tax deducted in
the return and such mismatch would be handled in accordance with Instruction No.
4/2012, in the following manner:
|
(a)
|
|
Where difference between TDS
claimed and amount reported in 26AS does not exceed Rs. 5,000, the claim
shall be accepted;
|
|
(b)
|
|
Where even a single claim isn't
matching, the credit shall be allowed only after due verification by
department;
|
|
(c)
|
|
Where there are claims with
invalid TAN, the TDS credit for such claims is not to be allowed; and
|
|
(d)
|
|
In all other cases, the credit
shall be allowed after due verification by department.
|
Q 17. I
have my return electronically and furnished the signed copy of acknowledgment
to the CPC. However, I have received a letter from CPC that said copy of
acknowledgement had not been received. Since, time limit to resend the
acknowledgement already expired, whether it will be deemed that I have not
filed the return.
The same
issue has been dealt by Bombay High Court in the case of Crawford
Bayley & Co. v. Union of India [2011] 16
taxmann.com 323 (Bom.),wherein, the Court, despite expiry of the time limit to
send the acknowledgment, allowed additional time to assessee to resend the
same, since the assessee had furnished adequate material before the Court in
support of its contention that having filed return electronically, it had also
submitted ITR-V Form by ordinary post.
Based on
the above, it can be inferred if you have already submitted the ITR-V to the
CPC then you can resend the acknowledgement even though the time limit for
filing ITR-V has already expired, provided you have sufficient evidences to
substantiate the fact that you have send the acknowledgment earlier within 120
days of uploading the return either by ordinary post or speed post only.
Q 18. Can
I file the return even if the due date to file the same has been expired?
Yes, you
can file return of income belatedly within a period of one year from the end of
relevant assessment year or before the completion of assessment whichever is
earlier.
Q 19.
What are the consequences of filing belated return?
If return
is filed after the end of relevant assessment year, then in that case, penalty
of five thousand rupees can be levied under section 271F.
If the
return of income is not filed within the due date specified under section
139(1), then loss incurred during the year, under the heads 'Profits and gains
of business and professions' and 'Capital gains' cannot be carried forward to
next year.
Q 20. Can
I file return of income even if my income is below taxable limits?
Yes, you
can file return of income voluntarily even if your income is less than the
maximum exemption limit.
Q 21. I
have filed my return of income; however, I omit to claim benefit of Section 80C
deduction. What should I do?
The
benefit of omitted claim can be availed only by filing of revised return. But
in that case you have to ensure that your original return has been filed within
the due date as return can be revised, only if it has been filed originally
within the specified due date. An income-tax return can be revised within one
year from the end of relevant assessment year or before completion of assessment,
whichever is earlier.
Q 22. I
am a salaried person. My total taxable salary is Rs. 5,40,000 on which tax has
been duly deducted under Sec. 192 amounting to Rs. 39,140. During finalization
of return, I found that my bank has given me a credit of Rs. 124,500 towards
interest. Please guide me what should I do now?
In this
situation, you have to pay the balance taxes on the interest income (or any
other income) before filing of return. As per revised computation, your total
tax liability would be Rs. 64,787. Since, tax of Rs. 39,140 has already been
deducted under Sec. 192, the balance tax of Rs. 25,647 should be paid along
with interest under Section 234B and 234C. The tax and interest can be paid in
any authorized bank, through Challan No. ITNS 280. Alternatively, it can be
paid through online bank portal through following link
https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp.
Q 23.
What documents needed to be enclosed along with the return of income?
Income-tax
returns are annexure less. Hence, there is no need to enclose any document(s)
along with the return of income. Thus, documents like TDS certificate, balance
sheet, Profit & Loss A/c, Capital A/c, proof of investments, etc. are not
to be attached along with the return of income. However, these documents should
be retained and have to produce before the Assessing Officer whenever required
so.
Q 24. My
employer has deducted tax without allowing me relief of section 89. Now, can I
claim the relief while filing the return of income?
If the
employer fails to provide relief under section 89 and deducts excess tax, then
you can claim such relief in your return of income and can claim refund of
excess tax deducted.
Q 25. How
to claim deduction of donation given to an organization registered under
section 80G.
Deduction
under section 80G can be claimed by filing the return of income in which the
following details needs to be given:
|
(a)
|
|
Name of donee;
|
|
(b)
|
|
PAN of donee;
|
|
(c)
|
|
Address of donee; and
|
|
(d)
|
|
Amount of donation.
|
Q 26. How
to avoid deduction of tax, if during the year, the accrued interest on deposit
in my saving account is Rs. 15,000 and my total income including such interest
income is below taxable limit.
You can
file a self-declaration to the banker in form 15H stating that your income is
below taxable limit.
Q 27.
Whether salaried persons are not required to file return of income for
assessment year 2013-14?
Exemption
from filing return of income isn't available for salaried persons for
assessment year 2013-14, as the benefit of non-filing of return of income for
salaried persons was allowed under Notification No. 9/2012 only in respect of
the assessment year 2012-13. No similar notification for assessment year
2013-14 has been issued so far. Therefore, every assessee earning income more than
basic exemption limit shall file the return of income.
Q 28.
Whether all salaried class taxpayers can choose ITR-1 for filing income tax
returns?
No, all
salaried class taxpayers can't choose ITR-1 for filing tax returns from
assessment year 2013-14 onwards. They can choose ITR-1 only if they are
claiming exemption under sec. 10 (E.g. HRA, Conveyance allowance etc) upto Rs
5,000 or less. So, if taxpayer is claiming any exemption under sec. 10 which
exceeds Rs. 5,000, they cannot file return of income in ITR-1 (As per amended
Rule 12 of income-tax rules).
Q 29. I
omitted to submit rent receipt and investment proof to my employer because of
which relief for HRA and certain other deductions weren't given to me, the tax
deducted from my salary income is much higher than my actual tax liability. How
to claim refund of such excess tax?
Even if
the benefit of HRA under Section 10(13A) and deduction under Chapter VI-A are
not considered by the employer in Form 16, yet they can be claimed in the
income-tax return. Accordingly, the excess tax deducted by employer can be
claimed as refund.
Q 30. Can
I claim deduction under section 80C of interest on housing loan?
Repayment
of principal portion of residential housing loan will be allowed as deduction
under section 80C within the overall limit of Rs. 1,00,000. However, such
deduction is available if housing loan is borrowed by assessee from:
|
(a)
|
|
Central Government or any State
Governments
|
|
(b)
|
|
Banks, including a co-operative
banks
|
|
(c)
|
|
LIC
|
|
(d)
|
|
National Housing Bank
|
|
(e)
|
|
Domestic Public company providing
long-term finance for construction or purchase of houses in India
|
|
(f)
|
|
Assessee's employer being an
authority or a board or a corporation or any other body established or
constituted under Central or State Act
|
|
(g)
|
|
Assessee's employer being a public
company or a public sector company or a university or a university
established by law or a college affiliated to such university or a local
authority or a co-operative society.
|
However,
interest on housing loan is deductible under section 24(b) while computing
income chargeable to tax under the head "Income from house property".
Q 31. How
to claim benefit of tax deducted in advance on income which is taxable in
subsequent years.
The portion
of TDS credit, pertaining to income taxable in the subsequent year, can be
claimed through same TDS certificate.
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