KNOW YOUR BASIC INCOME TAX PROCEDURE


KNOW YOUR BASIC INCOME TAX PROCEDURE

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Income Tax
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

 FAQs 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 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. 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 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 2014-15 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 for to file my income-tax return for the assessment year 2014-15?

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 business or 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 (including financial interest in any entity) located outside India or has signing authority outside India

(b) Has claimed any relief under Section 90 or 90A or section 91

(c) Has income not chargeable to tax 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'

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 one or multiple house properties (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

This Return Form is to be used by an individual or an HUF if:

(a) Such Individual or HUF is a partner in a firm; and

(b) Income chargeable to income-tax in his/its hands under the head "Profits or gains of business or profession" do not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm.

Who can't file return in ITR 3 A partner in the firm, who does not have any income from the firm by way of interest, salary, etc., and has only exempt income by way of share in the profit of the firm, shall use this form only and not Form ITR-2.
ITR-4S

Who can file return in ITR 4S

Return in ITR 4S can be filed by an individual if his total income includes:

(a) Presumptive Income

(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

(b) Has claimed any relief under Section 90 or 90A or section 91

(c) Has income not chargeable to tax 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 income from speculative business

(h) Has income from agency business or commission or brokerage

(i) Has losses under the head 'Income from other sources'

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 returns for the year ending March 31, 2014?

Assessee Due date
An Individual or HUF 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 7. Whether it is mandatory to file return electronically?

E-filing of return is mandatory for:

(a) Every company;

(b) Every AOP or BOI

(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 8. 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 9. 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 (available only for ITR 1, 2, 3 and 4s) or java utility from the aforementioned website;

(c) Fill 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/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) 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, 3, or 4S in Java utility shall not follow the instructions given above in point (e), (f) and (g).

 (i) On successful submission of ITR form, a pop-up menu will be displayed on the screen. Click on "Download" button to get the acknowledgement, i.e., ITR-V;

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 assessees who are required to file the ITR-1 may alternatively fill and file their return online without downloading the excel or java 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 10. 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 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:

  (i) Answer the secret question;

 (ii) Upload the digital signature certificate; or

(iii) Enter e-filed acknowledgement 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 unable to retrieve your password, 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 11. 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 12. 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 13. 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.

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