Govt urges taxpayers to disclose true income and pay appropriate taxes

Government urges all tax payers to disclose their true income and pay appropriate taxes within the current financial year;
A Compliance Management Cell has been set-up to ensure follow-up action and track return filing and tax payment of the target segment; 70,000 letters are being sent in 2 batches to high priority cases in this month

The Union Finance Minister Shri P. Chidambaram has repeatedly emphasized that there is need for a non-intrusive tax administration to enable the tax payer to file his/her return and pay appropriate taxes.

In the statement made by the Revenue Secretary, Government of India to the media on 11th February 2013, he had mentioned that the Directorate of Systems has undertaken a business intelligence project to identify PAN holders who have not filed Income Tax Return and about whom specific information is available in Annual Information Return (AIR), Central Information Branch (CIB) data and TDS/TCS Returns. Information in the Cash Transaction Reports (CTRs) of FIU-IND was also included as part of this data matching exercise. This data analysis has identified target segment of 12,19,832 non-filers linked to more than 4.7 crore information records. 


Reasons for mistakes in credit for tax payments or TDS

A major reason for difference in refund amount during processing is that the details of tax payment or TDS do not match with the data available with the Department. The critical checkpoints are as under:

  • Corresponding deduction of tax (TDS) on salary by all Employers should be correctly entered in Schedule TDS1 in ITR1 or Schedule TDS 1 for ITR 2.
  • TDS on salary should be entered in Schedule TDS1 ONLY and TDS on other Income should be entered in Schedule TDS 2 ONLY.
  • Tax deduction Account Number (TAN) of the Employer/Deductor is the unique identifier for matching TDS claims made against TDS reported by Employer/Deductor.The TAN number is mentioned on the Form 16 given by the Employer or on the Form 16A given by the Deductor. In case the TAN of the Employer/Deductor is not correctly mentioned, no matching is possible and TDS credit will not be given.
  • If the TAN has been correctly entered but the Employer/Deductor does not report the same TDS details to the Department, especially the taxpayer Permanent Account Number (PAN), then also the TDS cannot be matched. Therefore it is advised to check Form 26AS for the amount which has already been deposited by persons deducting tax on behalf of the taxpayer. Thereafter, the taxpayer should bring this fact in the notice of persons deducting tax so that they can act accordingly.
  • In case of Tax payments of Advance tax or Self Assessment tax, the PAN used to submit the tax challan to the bank should be the same as the PAN used to submit the return. Without a valid PAN the tax payment received from the bank would be in suspense and cannot be matched with tax payment claim as entered in the return.
  • While making the tax payment at the Bank, NO MISTAKE should be made in the challan while entering the PAN, Name, Major head (20 or 21), Assessment Year, Type of tax payment {advance tax (code 100), Self Assessment tax (code 300)}, tax applicable (Income tax other than companies).
  • Any tax payment made under code 400 corresponding to Tax on regular Assessment cannot be used for matching and accordingly credit cannot be given against advance tax or self assessment tax claims.
  • The Challan Identification Number (CIN) is the combination of BSR code (any bank branchs unique 7 digit identification number issued by RBI), date of deposit of challan (DD-MM-YY), and the running serial number of the challan, and is mentioned by the Bank while accepting tax payment on its seal. In case this is not clearly legible, the Bank can be requested to provide correct details. This must be entered correctly in the return while claiming credit.



Form & mode of filling of Income Tax Return for AY 2013-14

Relevant Sections of Income Tax Act, 1961:

139(1), 139(3), 139(4A), 139(4B), 139(4C), 139(4D), 142(1), 148(1), 153A

All Applicable Return Forms for A Y 2013-14:

ITR-1 (SAHAJ), ITR-2, ITR-3, ITR -4S (SUGAM), ITR-4, ITR-5, ITR-6, ITR-7

Filling of Income Tax Return in ITR-1 (SAHAJ)

Assessee Category: Only Individuals


Total Income Includes =

1. Salary/Family Pension

2. House Property (Only one house & no b/f loss under HP)

3. Other Sources (Except lottery, horse race)

Exceptions:- Assessee has –

i. Any asset located outside India;                   Covered under ITR -2
ii. Signing authority in any a/c outside India;


iii. Claimed relief u/s 90,90A or TDS u/s 91;
iv. has income, not  chargeable to tax exceeding Rs. 5,000/-

 Filling of Income Tax Return in ITR-2

Assessee Category: Individuals (Not covered by ITR-1)/HUF

Conditions: Assessee has income from –

A. Salary/Family Pension and/or;

B. House Property and/or;

C. Other Sources and/or;

D. STCG/LTCG and/or;

E. Any asset located outside India and/or;

F. Signing authority in any a/c outside India and/or;

G. Claimed relief u/s 90, 90A or TDS u/s 91

H. has income, not chargeable to tax exceeding Rs. 5,000/-

There is no income under head PGBP

Filling of Income Tax Return in ITR-3

Assessee Category: Individual/HUF-Partner in a Firm

Conditions: Assessee has PGBP income (from firm) only from –

1. Salary;

2. Interest;

3. Bonus;

4. Commission;

5. Remuneration.

Filling of Income Tax Return in ITR- 4S (SUGAM)

Assessee Category: Individual/HUF

Conditions: Assessee has income u/s 44AD/44AE.

Exceptions: Assessee has –

i. Any asset located outside India; Covered under ITR -4
ii. Signing authority in any a/c outside India;
iii. Claimed relief u/s 90,90A or TDS u/s 91;
iv. has income, not  chargeable to tax exceeding Rs. 5,000/-

Filling of Income Tax Return in ITR- 4

Assessee Category: Individual/HUF (Not covered by Form ITR-1,ITR-2,ITR-3,ITR-4S)

Conditions: Assessee has PGBP income.

Filling of Income Tax Return in ITR- 5

Assessee Category: AOP, BOI, Firm, Artificial Juridical Persons, Local Authority.

Filling of Income Tax Return in ITR- 6

Assessee Category: Every Company.

Filling of Income Tax Return in ITR- 7

Assessee Category: Person required to file ITR u/s 139(4A), 139(4B), 139(4C), 139(4D).

Mode of Filling Income Tax Return

1. Paper Form;

2. Electronic under digital signature

3. Electronic + ITR-V

4. Bar coded return in Paper Form

Assessee wise Mode of Filling

(A) Paper Form (B) Electronic Filling with or without digital signature (C) E-filling only with Digital Signatures
1. ITR -7I 1. Any person (non-company) plusFilling ITR-7 plusTotal Income exceeds Rs. 5 Lakh 1. Firm filling ITR 5  or Individual/HuF filling ITR-4 plus tax audit u/s 44AB
2. Not covered under category (B) or (C) 2. Individual/HUF plus ITR-2,ITR-3,ITR-4 plus having asset located outside India or signing authority in any a/c located o/s India. 2. ITR-6
  3. Claim of relief u/s 90, 90A or TDS u/s 91  



TIN revises rates for e-TDS/e-TCS, AIR, Form 24G returns

TIN with effect from May 4, 2013, revised rates for acceptance of e-TDS/TCS, Form 24G Statements and AIR at TIN Facilitation Centres (TIN-FCs).

They  are as under:

Basis of charges


0-100 records


100-1000 records


More than 1000 records


*Inclusive of service tax