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FAQ on Income Tax Return Filing

Q 1. What are the way, I can file my Income Tax Returns?

Return of income can be filed manually or online mode. If return of income is filed through online 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.

But, if the return is filed without using digital signature, then the assessee shall send the signed copy of ITR V to CPC, Bangalore at the following 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. Whether it is mandatory to file return electronically?

E-filing of return is mandatory for:

(a) Every company; or (b) Every AOP or BOI or

(c) A person [other than a company and a person required to furnish return in form ITR 7] whose total income exceeds Rs. 5 lakh rupees during the previous year 2013-14;

(d) A firm or an individual or HUF who are required to get their accounts audited under section 44AB;

(e) Every person claiming tax relief under Section 90, 90A or section 91;

(f) A political party [if its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

(g) Every resident and ordinarily resident individual and HUF, if he/it 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.

Q 3. When is it mandatory to file return electronically with digital signature?

E-filing of return with digital signature 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) A Political Party [it its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

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. What are the due dates for filing of income-tax returns for the year ending March 31, 2014?

Assessee with their respective due date:

Assessee Due date
An Individual or HUF or businesses not required to get audited  July 31, 2014
A Company  September 30, 2014
A person whose accounts are required to be audited  September 30, 2014
A working partner of a firm whose accounts are required to be audited  September 30, 2014
An assessee who is required to furnish a report under Sec. 92E for international transaction  November 30, 2014
Any other person  July 31, 2014

Q 6. 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 7. How to know 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 8. 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 9. I have filed 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?

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 by speed post only.

Q 10. Can I file the return even if the due date to file the same has 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 11. What are the consequences of filing belated return?

If return is filed after the end of relevant assessment year, 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), 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 12. 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 13. I have filed my return of income; however, I omitted to claim benefit of Section 80C deduction. What should I do?

The benefit of omitted claim can be availed only by filing a 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.

Q 14. What documents are 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 be produced before the Assessing Officer whenever he requires us to do so.

Q 15. My employer has deducted tax without allowing me relief of section 89. 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 16. How to claim deduction on 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 need to be given: (a) Name of donee, (b) PAN of donee, (c) Address of donee; (d) Amount of donation

Q 17. Whether salaried persons are not required to file return of income for assessment year 2014-15?

Exemption from filing return of income isn’t available for salaried persons for Assessment Year 2014-15, as exemption from filing of return of income for salaried persons was allowed under Notification No. 9/2012 only in respect of the Assessment Year 2012-13. Similar notification for Assessment Years 2013-14 and 2014-15 has not been issued. Therefore, every assessee earning income of more than basic exemption limit shall file the return of income.

Q 18. Whether all salaried taxpayers can choose ITR-1 for filing income-tax returns?

No, all salaried 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.) up to Rs 5,000 or less. So, if taxpayer is claiming any exemption under sec. 10 which exceeds Rs. 5,000, he cannot file return of income in ITR-1 (As per amended Rule 12 of income-tax rules).

Q 19. 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 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 20. How to claim benefit of tax deducted in advance on income which is taxable in subsequent years?

Certain provisions of TDS (including TCS) require deduction of tax at source at the time of payment or at the time of credit, whichever occurs earlier. Advance payments are also subjected to TDS. Old ITR form did not have any mechanism to carry forward the excess TDS, thus, taxpayers were required to show the entire TDS as a deduction and claim refund of excess TDS. To overcome the issues, the Schedule TDS/TCS in the ITR forms introduced two new columns:

(a) Unclaimed TDS/TCS brought forward

(i) Financial Year in which deducted/collected

(ii) Amount brought forward

(b) TDS/TCS being claimed this year from amount brought forward or from TDS/TCS of current financial year.

Thus, the portion of TDS credit pertaining to income taxable in the subsequent year can be carried forward to subsequent year and can be claimed in the year in which income is offered to tax.

Q 21. What will be the consequences if return of income is filed without making payment of self-assessment tax?

To discourage the practice of filing of return of income without payment of self-assessment tax, the Finance Act, 2013 has amended Explanation to section 139(9) so as to provide that the return of income shall be deemed as defective return if tax including interest thereon, if any, payable in accordance with the provisions of the Act has not been paid on or before the date of furnishing of the return.

Q 22. Whether is it mandatory to furnish PAN of the landlord to claim exemption in respect of house rent allowance ?

If employee is claiming exemptions for house rent allowance and the annual rent paid by him exceeds Rs. 1,00,000, it is mandatory for him to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Q 23. Is there any restriction on number of returns that can be filed using same email-ID or same mobile number?

Yes, only 10 returns can be filed using same email-id or same mobile number.

 Source: Mr. Alok Patnia, founder of Taxmantra.com 

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Income tax offices will remain open on 26th & 27th July 2014 for accepting the returns of Income

For the convenience of the taxpayers, the Income Tax Department has decided to keep the offices open for accepting the returns of income during normal office hours on 26th July and 27th July, 2014, being Saturday and Sunday. This direction has been issued by the Central Board of Direct Taxes in exercise of powers conferred under section 119 (1) of the Income Tax Act, 1961.

F.No.225/121/2014/ITA.II

Government of India

Ministry of Finance

Central Board of Direct Taxes

New Delhi, the 24th July, 2014

Order under Section 119(1) of the Income tax Act, 1961

The due date for filing of return of income within the meaning of Explanation 2(c) to section 139(1) of the Income Tax Act, 1961 is 315t July 2014. The Income tax authorities are hereby directed that for the convenience of the taxpayers’, arrangements be made for accepting the returns of income during normal office hours on 26th July and 27th July 2014, being Saturday and Sunday respectively. This direction is issued by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961.

Special arrangements may also be made by way of opening additional receipt counters, wherever required, on 26th, 27th, 28th, 30th and 31st wide publicity July, 2014 to facilitate the taxpayers in filing their returns of income conveniently and in a timely manner. These instructions may be given.

(Richa Rastogi)

Under Secretary to the Government of India

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Frequently asked question (FAQ) on TDS

What is TDS?

TDS means ‘Tax Deducted at Source’. TDS is one of the modes of collection of taxes, by which a certain percentage of amount is deducted by a person at the time of making / crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government Account.

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 of expenditure being disallowed as your business expenditure and taxed as income.

I have made some deposits with a bank on which annual interest is around 15000. My income is below taxable limit. The banker wants to deduct tax. What do I do?

You can file a self-declaration to the banker in Form 15H stating that your income is below taxable limit. The form is available with your banker, the local Income Tax office and can be downloaded from the website www.incometaxindia.gov.in This form should be filed before the interest begins to accrue in the fixed deposit account, since the declaration has no retrospective effect.

I have let out a property for 20,000 per month. The tenant is deducting tax that is more than my tax liability. What can I do under this circumstance?

If you compute your tax liability and find it to be lower than the tax being deducted, you may approach your Assessing Officer by filing Form 13. He will issue a certificate directing the tenant to make TDS at a lesser rate. This form is available with the local Income Tax office or can be downloaded from the website www.incometaxindia.gov.in

I have deducted tax from payments disbursed but used the same for some urgent financial needs. What are the consequences?

It is an offence to misuse Tax Deducted at Source. It should have been remitted to government account within the specified time limit. Failure to deposit TDS attracts levy, interest, penalty and also rigorous imprisonment up to seven years.

If the employer does not deduct tax and employee also does not pay his due tax, who will be held responsible for tax payment?

The ultimate responsibility to pay tax rests on the person who has earned income. If the employee deposits such tax then the employer will be liable for interest and penalty for failure to deduct tax.

I am buying a property from a person residing in USA. Should I deduct tax while making payment?

Yes, u/s 195. In case you have any doubt regarding the amount on which TDS is to be made, you may file an application with the officer handling non-resident taxation who will pass an order determining the TDS to be made. Alternatively, if the recipient feels that the TDS is more he may file an application with his Assessing Officer for non-deduction.

Can I use PAN to pay the TDS deducted into government account?

No. You are required to have a separate Tax Deduction Account Number (TAN) by making an application in Form 49B with the TIN facilitation center of NSDL.

Is Income Tax Act applicable only to residents?

No, Income Tax Act applies to all persons who earn income in India, whether they are resident or non-resident.

Who is a resident?

If an individual stays in India for 182 days or more in a year, he / she is treated as resident in that year regardless of his citizenship. If the stay is less than 182 days, he /she is a non-resident.

How can I know whether a company is resident or non-resident?

A company is considered as resident if it is incorporated under the Indian Companies Act. A foreign company can also become a ‘resident’ if the control and management of its affairs is done entirely in India during the previous year.

How is resident / non-resident status relevant for levy of income tax?

In case of resident individuals and companies, their global income is taxable in India. However, non-residents have to pay tax only on the income earned in India or from a source / activity in India.

Source: TRACES

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Issue TDS certificates by 30/07/2014 to avoid penalties

Last date for issuance of TDS/TCS certificates for Q1 of FY: 2014-15 – 30th July, 2014

The above is applicable for deductors other than the Office of the Government

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted. Click here for more details

Please note:

It is now mandatory for all the deductors to issue the TDS certificates after generating and downloading the same from “TRACES”(www.tdscpc.gov.in). Refer to Circular no.3/2011 dated 13-5-2011, Circular No.1/ 2012 dated 9-4-2012 (in respect of 16A)

Click here to view the tutorial on how to download Form 16A from TRACES.

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