Income Tax Return Filing

Income Tax Return Filing

FAQs

Q.1 Who is eligible to file ITR-1?

• Total income does not exceed ₹ 50 lakh during the FY
• Income is from salary, one house property, family pension income, agricultural income (up to ₹5000/-), and other sources, which include:
• Interest from Savings Accounts
• Interest from Deposits (Bank / Post Office / Cooperative Society)
• Interest from Income Tax Refund
• Interest received on Enhanced Compensation
• Any other Interest Income
• Family Pension
• Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).

Q.2 Who is not eligible to file ITR-1?

• is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
• has total income exceeding ₹ 50 lakh
• has agricultural income exceeding ₹ 5000/-
• has income from lottery, racehorses, legal gambling etc.
• has taxable capital gains (short term and long term)
• has invested in unlisted equity shares
• has income from business or profession
• is a Director in a company
• has tax deduction under section 194N of Income Tax Act
• has deferred income tax on ESOP received from employer being an eligible start-ups
•  owns and has income from more than one house property
• is not covered under the eligibility conditions for ITR-1

Q.3 What documents do I need to file ITR-1?
You would need Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable). However, ITRs are annexure-less forms, so you are not required to attach any document (like proof of investment, TDS certificates) along with your return (whether filed manually or electronically). However, you need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc.

Q.4 What precautions should I take while filing the return of income?

• Download Form 26AS (Annual Information Statement) and check the actual TDS / TCS / tax paid. If you see any discrepancy, you should reconcile it with the Employer / Tax Deductor / Bank.
• Compile and carefully study the documents to be referred to when filing your ITR, like bank statement / passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
• Ensure details like PAN, permanent address, contact details, bank account details, etc. are correct in the pre-filled data.
• Identify the correct return for you (from ITR-1 to ITR-7). Provide all the details in the return such as total income, deductions (if any), interest (if any), taxes paid / collected (if any), etc. No documents are to be attached along with ITR-1.
• e-File the return of income on or before the due date. The consequences of delay in filing returns include late filing fees, losses not getting carried forward, deductions and exemptions not being available.
• After e-Filing the return, e-Verify it. If you want to manually verify your return, send the signed physical copy of ITR-V Acknowledgement (by ordinary post or speed post) within 120 days of filing the return to Centralized Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).

Q.5 How do I know which ITR I need to file?
Different tax returns are prescribed for filing by individual taxpayers depending on their source of income and residential status. To determine the correct ITR to file, you can use the Help me decide which ITR Form to file option. You can then proceed based on questions displayed to determine the correct ITR to file.

Q.6 What is Form 26 AS (Annual Information Statement)?
Form 26AS is an annual information statement which shows various details including Tax Deducted / Collected at Source, Advance Tax / Self – Assessment Tax, Specified Financial Transactions Demand / Refund Pending / completed Proceedings for a taxpayer’s PAN as per ITD’s database.
A taxpayer may pay tax in any of the following forms:

• Tax Deducted at Source (TDS)
• Tax Collected at Source (TCS)
• Advance Tax or Self-Assessment Tax
  The Income Tax Department maintains a database of the total tax paid by all taxpayers, which is called tax credit in the taxpayer’s account. The ITD generally allows taxpayers to claim the credit of taxes as reflected in their Form 26AS.

Q.7 What is Advance Tax?
For salaried individuals, advance tax is mostly taken care of through TDS by employers. But other forms of income such as interest on savings bank accounts, fixed deposits, rental income, bonds, or capital gains increase the tax liability. One’s tax liability needs to be estimated beforehand. If tax amounts to more than ₹10,000/- per year, taxpayers need to pay advance tax in quarterly instalments (June, September, December and March).

Q.8 Will I get a refund if I have paid excess tax?
Yes, any excess tax paid by you can be claimed as refund by filing your Income Tax Return. After your return is processed, ITD checks and accordingly accepts your refund claim, and then the amount is credited to your bank account. You will also get a message on your email ID registered on the e-Filing portal.