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 electronicnmode, then the assessee has following three options:
(1) E-filing using a Digital Signature
(2) E-filing without a Digital Signature
(3) E-filing under electronic verification code
If return of income is filed using a digital signature or under electronic verification code, then there is norequirement 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 or without electronic verification code, the assessee shall send the signed copy of ITR V on the following address within 120 days of uploadingthe return either by ordinary post or by speed post only:
Income Tax Department - CPC, Post Bag No.-1, Electronic City Post Office, Bangalore -560100,
Karnataka
Q 2. When is it mandatory to file return of income?
It is mandatory for a company and a firm to file its return on income. However, for an individual, HUF, association of persons and body of individuals it is mandatory to file return of income if his/its gross total income (without giving effect to provisions of section 10(38) section 10A or section 10B or section 10BA or Chapter I-A deduction) exceeds the maximum exemption limit. The maximum exemption limit and the slab rates for Assessment Year 2016-17 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. 3,00,000
Rs. 3,00,000 to Rs. 5,00,000
Rs. 5,00,000 to Rs. 10,00,000
Above Rs. 10,00,000
|
NIL
10%
20%
30%
|
Resident super senior citizen (aged 80 years or above)
|
Upto Rs. 500000
Rs. 5,00,000 to Rs. 10,00,000
Above Rs. 10,00,000
|
NIL
20%
30%
|
Any other individual or HUF (i.e., other than above)
|
Upto Rs.250000
Rs.250000 to Rs. 500000
Rs. 5,00,000 to Rs. 10,00,000
Above Rs. 10,00,000
|
NIL
10%
20%
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.
The individual shall furnish details about the foreign assets and income from any source outside India in the income-tax return. If an individual (not being a citizen of India) is in India on a business, employment or on student visa and he acquires any asset outside India during the previous year in which he was a non-resident, such an asset shall not be required to be reported in return if no income has been derived from that asset during the current previous year.
Q 5. Which form should I opt to file my income-tax return for the assessment year 2016-17?
ITR1
|
|
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 (including
financial interest in any entity) located outside India or has signing
authority outside India or income from any source outside India.
(b) Has claimed any relief under section 90 or 90A or section 91 (c)
Has agricultural income which exceeds Rs. 5,000
(d) Has income from more than one house property
(e) Has income from winnings from lottery or race horses
(f) Has income under the head
Capital Gains or Business or profession
(g) Has losses under the head Income from other sources
|
ITR2
|
|
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 one or
multiple house properties (including losses)
(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'
|
ITR2A
|
|
Who can file return in ITR 2A?
|
Return in ITR 2A can be filed by an individual or a HUF if his/its
total income includes:
(a) Salary or pension
(b) Income from house property
(c) Income from other sources (including winnings from lotteries and
income from Race Horses)
|
Who can't file return in ITR 2A?
|
Return in ITR 2A cannot be filed by an individual or a HUF if he/it:
(a) Is resident and ordinarily resident and has an asset (including
financial interest in any entity) located outside India or has signing
authority outside India or has income from any source outside India
(b) Has claimed any relief under section 90 or 90A or section 91 (c)
Has income under the head Capital Gains or Business or profession
|
ITR 3
|
|
Who can file return in ITR 3
|
Return in ITR 3 can be filed by an Individual or HUF who is a partner
in a firm deriving income by way of any interest, salary, bonus, commission
or remuneration from firm.
|
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.
|
ITR 4S
|
|
Who can file return in ITR 4S?
|
Return in ITR 4S can be filed by an individual of HUF or a Firm
(other than a limited liability partnership firm) if his total income
includes:
(a) Presumptive Income
computed as per the provisions ofsection 44AD and 44AE
(b) Salary or pension
(c) Income from one house property (except brought forward loss under
this head)
(d) Income from other sources (except winnings from lotteries or
horse races or losses under this head
|
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 (including
financial interest in any entity) located outside India or has signing
authority outside India or income from any source outside India.
(b) Has claimed any relief under section 90 or 90A or section 91
(c) Has agricultural which exceeds Rs. 5,000
(d) Has income from more than
one house property
(e) Has income from winnings
from lottery or race horses
(f) Has income under the head Capital Gains
(g) Has income from speculative business and other specified business
(h) Has income from agency
business or commission or brokerage
(i) Has losses under the head
'Income from other sources'
(j) Has income from profession as referred to in section 44AA(1) In
above circumstances, the return of income shall be filed in Form ITR 4.
|
Assessee
|
Due Date
|
Where assessee is a company
|
September 30, 2016
|
Where assessee is required to furnish transfer pricing report in Form
No. 3CEB
|
November 30, 2016
|
Where accounts are required to be audited
|
September 30, 2016
|
Co-operative society
|
September 30, 2016
|
Other cases
|
July 31, 2016
|
Q 7. Do I need to furnish details of my assets and liabilities in ITR 1?
The new ITR forms introduce a new Schedule requiring individuals/HUFs to declare the value of assets and liabilities if their total income exceeds Rs. 50 lakhs.'
Assets include immovable assets and movable assets. Under the heading immovable assets, taxpayers have to disclose cost of land and building. Under the heading movable assets cost ofJewellery, bullion, vehicles, Yachts, boats, aircraft and cash in hand should be disclosed. Further, such taxpayers need to disclose all liabilities in relation to such assets.
Note: Individuals and HUFs with income exceeding 25 lakhs, filing ITR-3 and ITR-4 were already required to furnish information of their assets and liabilities. Now such threshold limit of 25 lakhs has been increased to 50 lakhs in new ITR-3 and ITR-4 for disclosure of details of assets and liabilities.
Q8. I am 30 years old, salaried person and my income for assessment year 2016-17 is Rs. 6,00,000.
Whether I can file return of my income in paper mode, i.e., physically?
It is mandatory to file return of income electronically for a person [other than person, being an individual of the age of 80 years or more] whose total income exceeds Rs. 5 Lakh during the previous year 2015-16. Thus, you are required to file return of income electronically.
Q 9. My total income is Rs. 4,00,000 and I want to claim income-tax refund. Whether I can file my return of income in paper mode?
You cannot file return of income in paper mode as e-filing of return is mandatory for claiming any income-tax refund.
Q 10. I am 82 years old and my income is Rs. 8,00,000. Do I need to file return of income electronically?
You have an option of filing return of income in paper mode as super senior citizens (i.e., individuals of age of 80 years or more) are exempted from requirement of filing return of income in electronic mode.
Q 11. I am 85 years old and I want to claim income-tax refund. Do I need to file return of income electronically?
Super senior citizens are exempted from requirement of filing return of income in electronic mode even for claiming tax refunds. Thus, you can file your return of income in paper mode as well.
Q 12. I am 65 years old senior citizen and my total income is Rs 6,50,000. Can I file my return of income in paper mode?
You are required to file your return of income electronically as your income exceeds Rs 5,00,000. An option has been given to file return of income in paper mode only for person, being an individual of the age of 80 years or more.
Q 13. I am a resident individual and have income from any source outside India. Whether I can file my income-tax return in paper mode?
E-filing of return of income is mandatory for every resident and ordinarily resident individual and HUF having income from any sources outside India.
Q14. I am a resident individual having signing authority in an account located abroad and own assets located abroad. Whether e-filing of return of income is mandatory?
Yes e-filing of return is mandatory in your case as e-filing of return is mandatory for every resident and ordinarily resident individual and HUF, if he/it has any of following:
(i) Signing authority in any account located abroad; or
(ii) Any asset located abroad; or
(iii) Financial interest in any entity located abroad; or
(iv) Income from any source outside India.
Q 15. 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 to FAQ No. 5) and download excel utility or java utility from the aforementioned website;
Assessees, who are required to file ITR-1 or ITR-4S, may alternatively file through "Quick e-File ITR" link without downloading the excel or java utility after login at the incometaxindiaefiling.gov.in.
(c) Fill up the income-tax return in the excel utility or java utility and generate XML file. Java utility has an option to pre-fill the information on basis of PAN Card or previous year's return and submit return directly (without generating XML file) but for that one has to create his account at income-tax e-filing portal;
(d) Use the following link to create your account: https://incometaxindiaefiling.gov.in/eFiling/Registration/RegistrationHome.html;
(e) After creation of account, you need to login in and then click on "Upload Return" option;
(f) Select the 'assessment year' and 'form name';
(g) Click on Choose file to select the generated XML file and upload it;
(h) Java utility gives an option to submit return directly, i.e., without generating XML file. Thus, taxpayers who are required to file return in ITR 4, 5 or 7 or those taxpayers who opt to file ITR 1, 2, 2A 3 or 4S in Java utility shall not follow the instructions given above at points (e), (f) and (g).''
(i) On successfulsubmission of ITR form a pop-up menu will be displayed on the screen to e-verify uploaded
 |
| All You Want to Know about Income Tax Returns for Assessment Year 2016-17 |
Q16. What are the benefits ofe-filing of return viaEVC?
Taxpayer will get an option to e-verify the uploaded return by either entering Electronic Verification Code (EVC) or an Aadhaar based One Time Password (OTP).
This facility of e-verification has been initiated by the income tax department in order to reduce physical submission ofsigned copy of acknowledgement (i.e., ITR-V).
Q17. How to e-Verify Income tax return by generating EVC?
EVC can be generated via following options:
A. Net Banking -
i) Click on option "I do not have a EVC and I would like to generate EVC to e-verify my return"
ii) Then click on "EVC- Through Net Banking and click on Continue.
iii) Taxpayer will be logged out of e-filing portal and will be redirected to a page where he can select
the bank wherein he has Net Banking facility.
iv) Login to Net Banking website and search for option for login to e-Filing portal.
v) Go to e-file menu and select E-Verify return.
vi) Click on the e-Verify link against the return that has been uploaded.
B. Bank Account Number - EVC can be generated by Pre-validating Bank Account Details. Taxpayer need to validate his bank account number that is linked with his PAN.
C. Through Demat Account Number - EVC can be generated by Pre-validating Demat Account Details.
Taxpayer need to validate his Demat account number that is linked with his PAN.
D. Through Registered email ID and Mobile Number - EVC will generated and sent to taxpayer's email ID and Mobile Number registered with e-filing portal.
Q18. How to generate Aadhaar based OTP to e-verify return?
Income tax return can be e-Verified by generating Aadhaar based one-time password (OTP). Taxpayer will be required to link his Aadhaar Number with his PAN to use this facility. Aadhaar based OTP can be generated by following steps:
i) Go to e-file menu, select e-Verify return.
ii) Click on e-Verify link and select Option 3 – "I would like to generate Aadhaar OTP to e-Verify my return"
iii) Taxpayer will get OTP on mobile number.
iv) Enter the OTP and click on "Submit Aadhaar OTP" button
Q19. I don't want to e-Verify my return, can I send the signed copy of acknowledgment?
E-verification of return is not mandatory, taxpayer can get the printout of ITR acknowledgement (i.e., ITR-V), 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 by 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.
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. 20. Whether e-filing of return under electronic verification code will do away the need of sending physical copies of ITRV to CPC, Bengaluru?
Now income-tax returns can be filed online via electronic verification code. Any taxpayer who is filing return through this mode will no longer required to send the singed copies of ITRV to CPC, Bengaluru.
Q. 21. How can I login at https://incometaxindiaefiling.gov.in through Net Banking facility?
E-filing portal of Income tax department have provided a new facility for login. Taxpayer can now use the NetmBanking facility to login at e-Filing Portal. This option is provided at the bottom of login page.
When user use the net banking facility to log-in, he shall get an OTP (one time password) in his registered mobile number, which can be used to log-in. User shall not be required to enter the password (created at e-filingwebsite) and the Captcha code. This facility shall be useful for the users who have forgot their password and unable to reset it.
Q 22. Whether all taxpayers who are earning income only from salary can choose ITR-1 for filing
income-tax returns?
Yes, all taxpayers who are earning income only from salary can choose ITR-1 for filing tax returns. However, they cannot choose ITR-1 if they are claiming exemption of agriculture income in excess of Rs. 5000 (As per amended Rule 12 of income-tax rules).
Q 23. I failed to submit rent receipt and proof of tax saving investment to my employer due to which HRA exemption and certain other deductions were not given to me. How can I claim refund of such excess tax, as the tax deducted from my salary income is higher than my actual tax liability?
Even if exemption of House Rent Allowance under section 10(13A) and deductions 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 24. Whether a firm can file ITR-4S for presumptive income?
Under the existing provisions of Rule 12, firms were required to file ITR 5 even for presumptive income. The amended Rule 12 would now allow firms to file ITR 4S for presumptive income. Accordingly, a separate row is provided for in ITR 4S to claim deduction of interest and salary paid by the firms to the partners.
Q 25. I want to opt for presumptive tax scheme under Section 44AD and I have income from more
than one house property. Can I file return in ITR-4S?
No, you cannot file ITR-4S. Any person earning income from more than one house property cannot file return in ITR 4S. You can report your presumptive income in ITR 4.
Q 26. I want to opt for presumptive tax scheme under Section 44AD and I have income from capital
gains as well. Can I file return in ITR-4S?
No, you cannot file ITR-4S. Any person earning capital gains cannot file return in ITR 4S. You can report your presumptive income in ITR 4.
Q 27. Can I claim deduction of interest on housing loan under section 80C?
Repayment of only principal portion of housing loan will be allowed as deduction under section 80C within the overall limit of Rs. 1,50,000. However, such deduction is available if housing loan is borrowed by assessee from:
(a) Central Government or any State Government
(b) Banks, including a co-operative bank
(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 28. Can I 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 of TDS/TCS in the ITR forms introduced following two new columns:
(a) Unclaimed TDS/TCS brought forward
(i) Financial Year in which deducted/collected
(ii) Amount brought forward
(b)
You cannot claim credit of TDS pertaining to income which is taxable in subsequent year. Thus, such TDS credit can be carried forward to subsequent year and can be claimed in the year in which income is offered to tax.
Q 29. 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 ofself-assessment tax, the Finance Act, 2013 has amended section 139(9) to provide that the return of income shall be deemed as defective return if tax including interest thereon, if any, payable has not been paid on or before the date of furnishing of the return.
Q30. I am a salaried person, drawing House Rent Allowance ('HRA') of Rs. 2900 per monthneed to furnish rent receipt to employer for claiming exemption of HRA?
Though actual expenditure on payment of rent is a pre-requisite for claiming deduction of HRA, yet as an administrative measure salaried employees drawing HRA of upto Rs.3,000 per month are exempted from production of rent receipt to employer.'
Q. 31. My House Rent Allowance is Rs. 3,000 per month. Can I claim exemption of HRA even if I have not incurred any expenditure on payment of rent?
Exemption under Section 10(13A) in respect of house rent allowance is allowed to enable employees to pay rent for his residential house. No deduction shall be allowed if employee does not incur anything on his house rent. As an administrative measure salaried employees drawing house rent allowance upto Rs.3,000 per month are exempted from production of rent receipt. However, this concession is only for the purpose of tax-deduction at source and in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose ofsatisfying himself that the employee has incurred actual expenditure on payment of rent.
Q 32. Whether it is mandatory to furnish PAN of the landlord to employer for claiming exemption of house rent allowance ('HRA')?
If annual rent paid by the employee exceeds Rs. 1,00,000 per annum, it is mandatory for the employee 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 33. Is there any restriction on number of returns that can be filed using same email-ID or same mobile number?
Only 10 returns can be filed using same email-id or same mobile number. This is to ensure that family members and related business concerns (not exceeding 10 separate users) not having personal email or mobile number can be covered under a common email or mobile number, but in general taxpayers should have their own unique emailID and Mobile number registered with the Department.
Q 34. I have filed my return of income electronically but in refund/demand status it is mentioned as "refund not determined". What does this status indicate?
This status depicts that your return is not processed. You will get status of tax-refund after your return is processed by the income-tax department.
Q 35. I have claimed tax refund by filing income-tax return but my refund claim failed as I have mentioned incorrect account number. How can I submit correct account number to claim tax refund?
You can submit your correct bank account number after selecting option of refund reissue. Procedure to apply for refund reissue is outlined hereunder:
(a) Login to https://incometaxindiaefiling.gov.in
(b) Go to 'My Account' and select 'Refund Re-issue Request'.
(c) Update bank account details.
(d) Click on submit.
Q 36. I received advance salary (for the month of April, 2016) in the month of March 2016. Whether the same will be taxable in A.Y 2016-17?
Salary is taxable on due or receipt basis, whichever is earlier, so it will be taxable in the assessment year 2016- 17. Once salary is included in income of assessment year 2016-17 on receipt basis it will not be included again on due basis in assessment year 2017-18.
Q 37. I have received payment for overtime for extra work from my employer. Is it taxable?
Salary also includes overtime payment received from the employer. Hence, it will be taxable under the head income from salary.
Q 38. I am getting monthly pension from government. Is my pension taxable?
Monthly pension received from any employer, either Government or non-government would be taxable in hands of employee under the head Salaries.
Q 39. I am having rental income from sub-letting of my property. Whether it is taxable as income from house property?
It will be taxable under the head "Income from other sources" and not under the head income from house property.
Q 40. My employer did not deduct tax from my salary income. Whether in such case I am liable to pay tax on my salary income?
TDS is only a mode of early collection of tax. The ultimate liability of paying taxes is on the person earning income and, hence, if the employer fails to deduct tax, then it is the liability of the employee to pay the tax on the same. Further, if the employer has deducted less tax, then it is the liability of the employee to pay the balance tax.
Q 41. I am getting parking charges from my plot of land. Whether this income is taxable under the
head income from house property?
Parking Charges will form part of your taxable income and same shall be taxable under the head "Income from other sources", because rental income from land is not taxable under the head income from house property.
Q 42. I am a part time employee and am also running a provision store. I suffered loss in business.
Can I adjust the business loss against my salary income?
Loss from business/profession cannot be adjusted with salary income. Hence, you cannot adjust the business loss against your salary income.
Q43. I sold gold after holding it for 13 months and suffered loss thereon. Can I adjust this loss against
my salary income?
Loss on sale of capital asset is termed as capital loss and capital loss can be adjusted against capital gains only.
Hence, loss on sale of gold cannot be adjusted against salary income.
Q 44. I have forgotten the login details of https://incometaxindiaefiling.gov.in. How can I get a new
password from the Income-tax Department?
(a) Click on forget password or on the following link https://incometaxindiaefiling/gov.in/eFiling/UserLogin/LoginHome.html;
(b) Enter your 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:
Answer the secret question; or
Upload the digitalsignature certificate; or
Using OTP (PINs); or
Using Aadhaar OTP
Login through your net-banking account.
(d) Enter new password twice and click on 'Reset Password' to generate new password;
(e) If you are unable to retrieve your password, send an emailrequest from registered email-id to
validate@incometaxindia.gov.in with following details:
PAN:
Name of the assessee appearing on the PAN card;
Date of Birth/Date of incorporation;
Name of father appearing on the PAN card;
Registered PAN Address;
New password will be communicated to you by the income-tax department via email.
Q 45. 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 day eventually falls 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 46. How can I find my jurisdictional Assessing Officer?
Either click on Services>Know your Jurisdiction given on the home page of incometax indiaefiling.gov.in or use the link https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html to know your jurisdictional officer.
Q 47. How to know TAN of my deductor?
It can be found either on Form 16/16A or in 26AS tax credit statement available on
https://www.tdscpc.gov.in/app/login.xhtml TRACES (TDS Reconciliation and Correction Enabling System) website.
Q 48. How to know whether my e-return has been processed at CPC Bangalore?
Log on to e-filing website and select CPC processing status to check the status of return.
Q 49. I e-filed my return and identified 'mistake apparent from record'. Can I rectify it with CPC in paper form?
No, the CPC doesn't accept any manual correspondence. You have two options to rectify this mistake. You can either file revised return or file rectification request via incometaxindiaefiling.gov.in.
Q 50. How best to proceed in case of TDS mismatch?
Even if the credit for TDS as claimed in the return matches with the balance appearing in the Form 26AS, Assessing Officer may raise a demand for payment of differential amount due to TDS mismatch. The reasons for such difference could be as under:
(1) TAN of deductor was wrongly mentioned
(2) Name of deductor was not spelt out correctly
(3) Tax deducted by one deductor was wrongly included in the amount of tax deducted by another deductor
In case ofsuch TDS mismatch, an assessee can file a rectification request in the following manner:
Steps to file the rectification request:
(a) Login to your account in https://incometaxindiaefiling.gov.in
(b) Go to My Account > Rectification request
(c) You need to fill up the following details:
(i) PAN
(ii) Assessment Year
(iii) Latest Communication Reference Number (it starts with CPC/Assessment Year/)
(iv) Latest CPC Order date
(d) Click on Validate to go to next step
(e) On the next screen, choose 'Taxpayer is correcting data for Tax Credit Mismatch Only' from the drop down
box of 'Rectification Request 'Type'
(f) Check from the following relevant boxes for which item rectification is sought for:
(i) TDS on salary income details
(ii) TDS on other than salary income details
(g) Fill in all the relevant details, including details of tax deducted and reported in the return of income filed earlier
(h) Click on the button '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 tell him to rectify the TDS return.
In Press Note No. 402/92/2006, dated April 17, 2014 CBDT had noted that many taxpayers commit mistakes while furnishing details of tax credit in the return of income. Such mistakes include:
(a) Invalid/incorrect TAN of deductor;
(b) Furnishing same TAN for more than one deductor;
(c) Filing information in wrong TDS Schedules in the Return Form;
(d) Furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax, etc.
Consequently, the tax credit could not be allowed to the taxpayers while processing returns despite the tax credit being available in Form 26AS statement. The CBDT, therefore, has directed the taxpayers to verify if the demand raised on them is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands. The rectification requests have to be submitted to the jurisdictional Assessing Officer in case the return was processed by such officer, or the taxpayer is informed by CPC, Bangalore that such rectification is to be carried out by Jurisdictional Assessing Officer. In all other cases of processing by CPC, Bangalore, an online rectification request can be
made (as defined above).
Q 51. I have filed my return electronically and furnished the signed copy of acknowledgement 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 has already expired, whether it will be deemed that I have not filed the return?
The issue has been dealt with by the 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 acknowledgement, 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, 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 had sent the acknowledgement earlier within 120 days of uploading the return either by ordinary post or by speed post only.
Q 52. 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 53. What are the consequences of filing a 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', Loss from specified business referred to in Section 35AD and 'Capital gains' cannot be carried forward to the next year. Further, interest under section 234A can also be levied.
Q 54. 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 55. I have filed my return of income; however, I omitted to claim benefit of section 80C deduction. What should I do?
The benefit of an 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 (Refer to FAQ 6). An income-tax return can be revised within one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier.
Q 56. I am a salaried person. My taxable salary is Rs. 5,40,000 on which tax has duly been deducted under section 192. During finalization of return, I found that my bank has given me a credit of Rs. 1,24,500 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. Balance taxes should be paid along with interest under sections 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 57. What documents are 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 may have to be produced before the Assessing Officer whenever he requires you to do so.
Q 58. My employer has deducted tax without allowing 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 claim refund of excess tax deducted.
Q 59. How to claim deduction of donation given to an organization registered under section 80G?
If you have given donation to an organization registered under section 80G you can claim deduction by filing the return of income wherein you are required to provide following details:
(a) Name of donee;
(b) PAN of donee;
(c) Address of donee; and
(d) Amount of donation.
Q 60. I have Fixed Deposit ('FD') of Rs. 1,50,000 in bank and my total income (including interest income that would accrue on FD) is below the taxable limit. How to avoid deduction of tax on interest income?
You can file a self-declaration to the bank in Form 15H if you are a senior citizen. Otherwise, you can file selfdeclaration in Form 15G.
Q 61. How to avoid deduction of tax, if my interest income on saving deposits exceeds Rs. 10,000 and my total income including such interest income would be below the taxable limit?
Only interest income on time deposits which exceeds Rs. 10,000 would attract tax deduction at source. Thus, interest accrued on saving deposits would not attract TDS.
Q 62. My Return has been processed and it shows 'Outstanding Tax Demand'. What should I do now?
Now a facility has been made available to taxpayers on the E-filing website (i.e.,
www.incometaxindiaefiling.gov.in) to provide online responses to such demands. The actions required to be performed by the taxpayer are prescribed as under:
i. Login to https://incometaxindiaefiling.gov.in, then go to e-file menu and click on 'Response to Outstanding Tax Demand".
ii. Select one option out of the following:
Demand is correct
Demand is partially correct
Disagree with demand
iii. If option of "Demand is correct" is selected then a pop up is displayed as "If you confirm "Demand is correct" then you cannot 'Disagree with the demand'. If any refund is due to assessee then outstanding demand alongwith interest will be adjusted against refund. If no refund is due to assessee then taxpayer has to immediately pay the demand.
iv. If an option of "Demand is partially correct" is selected then taxpayer is required to enter the "Amount which is correct" and "Amount which is incorrect". After selecting amount which is incorrect taxpayer should mandatorily fill up reasons from the specified list.
v. If an option of "Disagree with demand" is selected then taxpayer is required to furnish the details of disagreement with demand along with the reasons from the specified list.
vi. After the taxpayer submits the response the success screen would be displayed along with the Transaction ID.
