The five-day ITR extension is meant to address issue of seeding PAN and Aadhaar, in a major relief to scrambling taxpayers.
The government has extended the deadline for filing income tax returns (ITR) to August 5. The five-day ITR extension is meant to address issue of seeding PAN and Aadhaar.
The move comes in contrast to reports on Sunday that
ruled out an extension for filing the returns. The last date for filing
of Income Tax Return (ITRs) for the financial year 2016-17 will not be
extended beyond tomorrow’s deadline, a top official told PTI on Sunday.
“The last date for filing of ITRs remains July 31. There are no plans to extend this deadline. The department has already received over 2 crore returns filed electronically. The department requests taxpayers to file their return in time,” the official said.
On reports of the efiling website facing some glitches, the official said no major glitches have been reported with the department’s efiling website — http://incometaxindiaefiling.gov.in/ — barring a few times when the portal was “interrupted for maintenance”.
The department has also issued advertisements in leading national dailies in the last few days stating that taxpayers should disclose their income “correctly” and file their ITR on or before July 31.
The linking of Aadhaar number with the PAN (Permanent Account Number) of a taxpayer has also been made mandatory for the filing of an ITR, beginning July 1.
The department has also asked taxpayers to declare cash deposits made in bank accounts aggregating to Rs 2 lakh or more, post demonetisation between November 9-December 30 last year, in the ITRs.
The income tax return to be filed by July 31 pertain to 2016-17 fiscal or assessment year 2017-18.
What you should do if you get an income tax notice
What you should do if you get an income tax notice
NEW DELHI: Filing income tax returns by due
date is crucial, but equally important is to file these correctly. If
you don’t do so, expect a notice from the Income Tax Department. What
would you do if you get one? Firstly, don’t panic.
Next, understand the section under which you have received it and how you should respond to it. Here are some of the common sections under which people get notices and what these mean:
SECTION 139 (9) Next, understand the section under which you have received it and how you should respond to it. Here are some of the common sections under which people get notices and what these mean:
You will get a notice under this section in case of defective filing of tax returns. The errors can include the following:
If you have used the wrong ITR form, if you haven’t paid the entire tax due, if you have claimed a refund for deducted tax but have not mentioned the relevant income, if there is a mismatch in the name on the form and PAN card, if you have paid taxes but not listed income.
Time limit to respond: Within 15 days from date of intimation by assessing officer. You can seek an extension by writing to the local assessing officer. If you don’t respond, the return will be considered invalid.
What to do? Go to the
income tax filing site (https://incometaxindiaefiling.gov. in/e-Filing/)
and download the right ITR form under the given Assessment Year. Then
select the option ‘In response to a notice under Section 139(9) where
the original return filed was a defective return.’ Fill in the reference
number and acknowledgement number, and fill the form by including the
required rectification. Under ‘e-File’, select ‘e-File in response to
notice u/s 139(9)’ and upload the rectified XML using the password in
the notice.
SECTION 143 (1) More than a notice, this is an intimation about the returns filed by you. You can get three types of notices under this section:
a) It can be simply the final assessment of your returns as your tax calculation matches that of the assessing officer.
b) It can serve as a refund notice, where the assessing officer’s computation shows excessive tax paid by you.
c) It can be a demand notice, wherein assessing officer finds a shortfall in your tax payment.
Time limit to respond:If tax is due, you will have to pay it within 30 days.
What to do:If there is no discrepancy in the returns, you don’t have to worry. If a refund is due, it will be transferred in the bank account. If it is not, request a reissue of the refund. If tax is due, you will have to pay it within 30 days.
SECTION 143 (1A)
“Though this provision existed earlier, the computer-assisted notices are being sent to a large number of taxpayers only this year,” says Chetan Chandak, Head of Tax Research, H&R Block, India. This is essentially a communication on proposed adjustment, which means that if there is a discrepancy in the income mentioned in the return and Form 16, or deductions given under Section 80C or Chapter VIA and Form 26AS, then verification will be sought.
Time limit to respond: Within 30 days of issue of intimation (applicable from the AY 2017-18).
What to do: You will have to log in to the tax filing portal and, under the ‘e-Proceeding’ section, explain the discrepancy, besides uploading the supporting documentary proof.
SECTION 143 (2)
This is a scrutiny assessment notice that follows preliminary assessment of returns. “This can be of three types, with the first two coming under computer-assisted scrutiny selection (CASS), while the third is a manual scrutiny notice,” says Chandak.
a) Limited purpose scrutiny: This is not a full-fledged scrutiny and is meant to highlight only one or two points.
b) Complete scrutiny: This entails a complete, detailed scrutiny as serious discrepancies have been identified in the returns.
c) Manual scrutiny: This notice is hand-picked by the assessment officer, but it can be sent only after an approval by the Income Tax Commissioner.
Time limit to respond: The taxpayer will have to appear in person or through a representative before the officer on the date specified in the notice.
What to do: Get all the documents and proofs to support your case and do not miss the hearing. If you fail to comply with the provisions of this section:
a) It may result in ‘best judgment assessment’, which means the officer decides the tax liability as he sees fit.
b) Penalty of Rs 10,000 for each failure or;
c) Prosecution up to one year with or without fine.
SECTION 234 (F)
This is a new section that has been introduced in the Income Tax Act, according to which a fee or penalty will be levied in case returns are not filed by 31 July of the relevant assessment year.
“So far, salaried taxpayers were lax about not filing returns by 31 July if taxes had been paid, but now it is mandatory to do so,” says Amit Maheshwari, Partner, Ashok Maheshwary & Associates. Till date, a penalty of Rs 5,000 was levied at the discretion of the assessment officer if the return was not filed.
Starting with assessment year 2018-19, a fee of Rs 5,000 will be charged in case returns are filed after the due date but before December 31 of the relevant assessment year or Rs 10,000 if it is filed after December 31 of the relevant assessment year.
However, for those earning less than Rs 5 lakh a year, maximum penalty of Rs 1,000 will be levied.
Not all tax notices are scary. Some notices are just for intimation……..
5 Benefits Of Filing Your Income Tax Return On Or Before 31st July 2017
5 Benefits Of Filing Your Income Tax Return On Or Before 31st July 2017
July end is just around the corner and for the uninitiated, this is no ordinary month ending! For one has to file income tax return in this month itself. Even if all the taxes have been paid, one would still lose out on certain benefits if income tax return is not filed by the due date – 31st July 2017.
(1) Deposits Made During Demonetization
Filing your return by the deadline is important specially for FY 2016-17 in case you have made cash deposits of Rs 2 lakh or more in your bank account during the demonetization period i.e. between Nov 9, 2016 to Dec 30, 2016. This is a mandatory process and failing to do so may fetch a letter from the department asking you to file your return if not filed in time.
The finances of the common man are being tracked, which is evidenced from the fact that many have received the below sms:
(2) Losing Out On Interests
If you claim a refund in your return filed before due date, you would lose some of the interest paid by the tax department on such refund. Note that interest is computed from 1st April till the date of grant of refund.However, if a refund is claim on a return filed belatedly, then interest is computed from the actual date of filing the return till the date when refund is granted.
(3) No carry forward of losses
Except loss from house property, if you file a belated return you cannot carry forward losses.
Kuldip Kumar, Partner and Leader Personal Tax, PwC says:
“Losses under the following heads of income: Income from business and profession including speculation business, capital gains, and income from other sources cannot be carried forward in case a belated return is filed by the tax payer. The return filer will not be allowed to carry forward these losses even if all taxes have been paid in time if the return is belated.”
Kuldip Kumar, Partner and Leader Personal Tax, PwC says:
“Losses under the following heads of income: Income from business and profession including speculation business, capital gains, and income from other sources cannot be carried forward in case a belated return is filed by the tax payer. The return filer will not be allowed to carry forward these losses even if all taxes have been paid in time if the return is belated.”
(4) Unpaid Tax Attracts Penalty
If you have any unpaid tax liability, filing your return after the due date would result in levy of penal interest at 1% per month from the due date of filing the return till the actual date of filing.(5) Penalty If Tax Not Filed By The End Of Assessment Year
A penalty of Rs. 5,000 can be levied by the tax authorities if one does not file tax return by 31st March of the Assessment year, i.e. the year immediately after the financial year for which the return is to be filed. This penalty can be levied even if no taxes are due.4 reasons why deadline to file ITR should be extended this year
4 reasons why deadline to file ITR should be extended this year
The deadline to file income tax returns i.e. July 31 is fast approaching. However, many people have still not filed their income tax returns due to various reasons. There are certain benefits that an individual loses if he/she files the return after the deadline even though there is no fee for late filing for this year.
This year there have been multiple changes which impact income tax return filing. Therefore, there may be a case for extension of the deadline for filing returns by individuals. The reasons pushing for such a move are:
Deadline to issue TDS certificates by banks and other deductors was extended this year
Central Board of Direct Taxes in 2016 had amended the rules relating to the deadlines for filing TDS returns by banks and other deductors who are liable to issue Form 16A (TDS certificate) to tax payers.
Due to this revision, the deadline for these deductors to issue Form 16A (for FY 2016-17) automatically got extended. According to the changed rules, the deadline for filing TDS returns by these entities was extended by 15 days from May 15 earlier to May 31. This allowed banks to issue Form 16A to their customers up till June 15, 2017 for FY2016-17.
This means that while earlier banks etc. were legally required to issue TDS certificates for a particular financial year to customers latest by May 31 (of the following financial year/relevant assessment year) this year (i.e. for FY2016-17) they could do so till June 15, 2017.
In fact, several banks actually took advantage of this and issued TDS certificates on or just before June 15, 2017. Consequently, customers got their TDS certificates this year later than in previous years. It is advisable to check the TDS in these certificates before filing one’s return. Therefore, tax payers waiting to get these TDS certificates would have found it difficult to finalise their returns till after June 15.
Extension of deadline for employers to give TDS certificate /Form 16 to their employees
Earlier the last date for employers to issue Form 16 to their employees was May 31 of the assessment year. Assessment year is the financial year immediately following the FY for which the return is to be filed.
However, the finance ministry in its notification dated June 2nd, 2017 revised the deadline for issuing TDS certificates for FY2016-17 to employees by employers. As per the notification, the new deadline is now June 15 of the assessment year as against May 31st earlier.
This extension is similar to that for banks etc. however it impacts a larger number of people i.e. all salaried employees. This is because salaried employees not having income from other sources (e.g. from fixed deposits with banks) would also not have been able to file their returns without getting this Form 16 from their employer.
The income tax department notified the new ITR forms for FY2016-17 on April 1, 2017 itself instead of much later as was done in earlier years. However, despite this many people would not have been able to file their returns early due to non-availability of TDS certificates.
“All this has reduced the time in the hands of the taxpayer and the tax practitioner by 15 days. In addition to this, demonetisation and other efforts of the government to bring about compliance awareness amongst the taxpayers and to increase the overall taxpayer base is expected to increase the count of the tax return filers this year. This will cause a significant burden on the tax practitioners to complete the increased no of returns in 75% of the time allowed in earlier years”, says Chetan Chandak, Head of tax Research H&R Block, India.
Changes in form along with additional compliance requirement of quoting Aadhaar/Enrolment ID
Last Union budget introduced additional compliance requirements for taxpayers. Starting July 1, 2017 it has become mandatory to link your PAN with Aadhaar and quote the Aadhaar number while filing ITR.
There have been cases reported where income tax e-filing website is not allowing the taxpayers to file ITR unless Aadhaar is linked with the PAN. Some people are facing genuine issues in linking of PAN with Aadhaar as there is mismatch in the details.
Without linking your Aadhar card with PAN you cannot file your Income tax return and out of 6.09 cr people registered with IT department website only 2.67 cr have linked their Aadhar and PAN. till now and tax filers are facing problems in linking their cards due to name, DOB etc. mismatches. And those with a mismatch in their details are unable to link before the due date as the average time of updating details in Aadhar card is 10 days. Thus, looking at the statistics and the practical problems people are facing, the tax department has to extend the due date, says Abhishek Soni, CEO, Tax2Win.in
Though government has vide exemption notification dated 37/2017 notified certain category of tax payer’s from the compulsory quoting of Aadhaar in their tax return. But there is still a confusion amongst the taxpayers as to how the exemption for taxpayers residing in the States of Assam, Jammu and Kashmir and Meghalaya is getting implemented, whether it is based on the address given in the tax forms or the PAN jurisdiction? Further, this notification exempts foreign citizens from application of section 139AA. But current tax forms do not have any facility to provide the details of the taxpayer’s citizenship. This is causing problems for those foreign citizens who qualify to be “Resident” of India for the tax year but they have already left the country before the budget amendments were proposed. Now they are not able to upload their tax returns on e-filing portal as tax forms does not allow them to state that they are foreign citizens”, says Chandak.
Shalini Jain, Tax Partner, People Advisory Services, EY – “Individual tax payers are facing genuine difficulties in filing tax returns due to the PAN-Aadhaar linkage (requirement). In some cases, foreign citizens who are qualifying as ‘Ordinary residents’ of India are not able to upload the return due to wrong categorization of such individuals as ‘Indian citizens’ on the e-filing portal of Income tax department. Given these issues, it would be good to have an extended window for filing of the tax returns.”
Chartered Accountants being busy with the arrival of GST
With the onset of the new indirect tax regime- GST, chartered accountants are very busy helping their business clients. GST being a huge change is taking up a lot of their time and would also be getting them a lot of consultancy business.
Consequently, they may not have been able to spare as much time as before to advise individuals on direct tax filing and returns in some cases may be getting delayed because of this.
“GST being most crucial aspect of any business, any delay or error in complying with GST norms can be most detrimental both financially and reputation wise for any business entity as such during the crucial month of July (which is also the most important month for income tax compliance) most of the tax practitioners were busy in GST related compliances because of it’s financial impact. This has left them with a very little time for the income tax related compliance” says Chandak.
Considering all these reasons we think that department should allow some relief by extending the due date by few days.
E-filing income tax return: How individuals can upload any ITR using excel utility
E-filing income tax return: How individuals can upload any ITR using excel utility
Every year the Income tax department is trying to make the process of
filing tax returns easier for taxpayers. Here is a step by step guide
on the procedure of uploading and filing income tax returns online.
There are two ways to file income tax return online. One is to download the applicable I-T form from the income tax website, fill the form offline, save it, generate an xml file and then upload it. Another way of doing it is to enter the relevant data directly in an online form and submit it
However, the latter method is available only for ITR 1 and ITR 4 and not for forms for other categories of individual taxpayers.
This e-filing method can be used to file any ITR applicable to individuals whereas e-filing totally online method is available as an alternative only for filing ITR 1 and ITR 4.
Visit website – www.incometaxefiling.gov.in
Download the ITR form applicable to you depending on the types of income you have received in the financial year for which the return is to be filed. The form is available in two alternative software formats-excel and java. The ITR forms are available under the “Downloads” tab given on the website for the relevant year. You can download whichever software you are comfortable in using.
Prepare the return by filling all the relevant information in the form which is available in two alternative software formats-excel and java. Tip: The cells with text in red colour have to be filled mandatorily and data has to be entered in green coloured cells by the taxpayer. While filling up the sheets some white background cells automatically pick up data as they are system calculated based on data entered by you in other cells. Also, while filling the form, click the validate button once (after filling the sheet) to ensure all the relevant sections have been filled.
Some excel functions have to be enabled before filing up the ITR form in excel format. The side buttons i.e. validate and other buttons of the excel file will work only if ‘Macros’ and ‘ActiveX’ function of the Excel workbook is enabled. The Macros can be enabled by visiting File > Excel options > Trust Centre > Trust Centre Settings > Macro Settings > Enable All Macro > Click ‘OK’ button twice to save this setting. The ‘ActiveX settings’ is also enabled in the similar fashion like macros in the Trust Centre settings.
The ITR form will have multiple sheets – some relate to general information and computation of tax whereas others relate to different types of income and tax rebates. Open each sheet and fill the ones that are applicable to you depending on the types of income you have earned in the year for which the return is being filed. The general information sheet will have to be filled in all cases. Most of the fields (with white colour background) in the tax computation sheet get filled automatically once you fill the income sheets relating to those fields.
After you have entered all the information in the different worksheets (which are applicable to you) of excel file, save the sheet and then click ‘Generate XML’ button to generate xml version of your return. It is advisable to open the XML file generated and check that all the information filled in the form by you is showing correctly.
Now visit the e-filing website again to upload and file the return. If you are a first time user or filing your returns for the first time then click on ‘New Registration’ and register yourself by providing the relevant information. One should make sure that email ID and mobile number is correctly mentioned while registering. This is because the I-T department sends all communication to you on your email. If you have already registered yourself then click on the ‘Registered user’.
Enter your user ID i.e. your PAN, password, Date of birth and enter ‘Captcha’ to sign in.
Click on ‘e-file’ tab and select the ‘Upload Return’ option.
After clicking the ‘Upload Return’ option, the website will direct you to page where you will be required to enter few details while uploading your ITR for the relevant year. Enter details required: the relevant assessment year, ITR form name, digital signature. PAN detail will be pre-filled.
Attach the ITR XML file using the browse button. (The same file which you have generated after filling the required information in excel/java utility software.)
Click on ‘digital signature certificate’ yes, if you are using this option. While using a digital signature, one should ensure that the signature is registered with the e-filing website
If you are using ‘digital signature’ option and click on the ‘Submit’ button, after all the information is entered, then the website will ask you to upload the pre-registered signature. Once the signature is uploaded successfully, the process of submitting ITR online is completed. The acknowledgement receipt will be sent to your email id. You’re not required to send the signed physical copy.
If you are not using digital signature then you will be required to verify your return using any of the options provided by the income tax department. Process of uploading return in xml format is the same as described above. Once the return is successfully uploaded in the XML format, go to ‘My Account’ tab and click ‘e-filed returns’ option. Here the website will show you the status of all the returns uploaded and filed (old and new) by you along with the status (processed, uploaded or pending for e-verification).
Once the return is uploaded, a person is required to verify his return using electronic verification code, Aadhaar OTP or by sending the signed acknowledgement copy (ITR-V) to CPC, Bengaluru.
If you wish to e-verify your return then go to ‘My account’ tab and select ‘e-verify’ option. A person can e-verify his return by using either Aadhaar OTP option or electronic verification code option.
Once the verification process is chosen and completed then the process of filing ITR completes. The I-T department will then process your verified returns and sent you an email confirmation stating the same.
There are two ways to file income tax return online. One is to download the applicable I-T form from the income tax website, fill the form offline, save it, generate an xml file and then upload it. Another way of doing it is to enter the relevant data directly in an online form and submit it
However, the latter method is available only for ITR 1 and ITR 4 and not for forms for other categories of individual taxpayers.
This e-filing method can be used to file any ITR applicable to individuals whereas e-filing totally online method is available as an alternative only for filing ITR 1 and ITR 4.
Visit website – www.incometaxefiling.gov.in
Download the ITR form applicable to you depending on the types of income you have received in the financial year for which the return is to be filed. The form is available in two alternative software formats-excel and java. The ITR forms are available under the “Downloads” tab given on the website for the relevant year. You can download whichever software you are comfortable in using.
Prepare the return by filling all the relevant information in the form which is available in two alternative software formats-excel and java. Tip: The cells with text in red colour have to be filled mandatorily and data has to be entered in green coloured cells by the taxpayer. While filling up the sheets some white background cells automatically pick up data as they are system calculated based on data entered by you in other cells. Also, while filling the form, click the validate button once (after filling the sheet) to ensure all the relevant sections have been filled.
Some excel functions have to be enabled before filing up the ITR form in excel format. The side buttons i.e. validate and other buttons of the excel file will work only if ‘Macros’ and ‘ActiveX’ function of the Excel workbook is enabled. The Macros can be enabled by visiting File > Excel options > Trust Centre > Trust Centre Settings > Macro Settings > Enable All Macro > Click ‘OK’ button twice to save this setting. The ‘ActiveX settings’ is also enabled in the similar fashion like macros in the Trust Centre settings.
The ITR form will have multiple sheets – some relate to general information and computation of tax whereas others relate to different types of income and tax rebates. Open each sheet and fill the ones that are applicable to you depending on the types of income you have earned in the year for which the return is being filed. The general information sheet will have to be filled in all cases. Most of the fields (with white colour background) in the tax computation sheet get filled automatically once you fill the income sheets relating to those fields.
After you have entered all the information in the different worksheets (which are applicable to you) of excel file, save the sheet and then click ‘Generate XML’ button to generate xml version of your return. It is advisable to open the XML file generated and check that all the information filled in the form by you is showing correctly.
Now visit the e-filing website again to upload and file the return. If you are a first time user or filing your returns for the first time then click on ‘New Registration’ and register yourself by providing the relevant information. One should make sure that email ID and mobile number is correctly mentioned while registering. This is because the I-T department sends all communication to you on your email. If you have already registered yourself then click on the ‘Registered user’.
Enter your user ID i.e. your PAN, password, Date of birth and enter ‘Captcha’ to sign in.
Click on ‘e-file’ tab and select the ‘Upload Return’ option.
After clicking the ‘Upload Return’ option, the website will direct you to page where you will be required to enter few details while uploading your ITR for the relevant year. Enter details required: the relevant assessment year, ITR form name, digital signature. PAN detail will be pre-filled.
Attach the ITR XML file using the browse button. (The same file which you have generated after filling the required information in excel/java utility software.)
Click on ‘digital signature certificate’ yes, if you are using this option. While using a digital signature, one should ensure that the signature is registered with the e-filing website
If you are using ‘digital signature’ option and click on the ‘Submit’ button, after all the information is entered, then the website will ask you to upload the pre-registered signature. Once the signature is uploaded successfully, the process of submitting ITR online is completed. The acknowledgement receipt will be sent to your email id. You’re not required to send the signed physical copy.
If you are not using digital signature then you will be required to verify your return using any of the options provided by the income tax department. Process of uploading return in xml format is the same as described above. Once the return is successfully uploaded in the XML format, go to ‘My Account’ tab and click ‘e-filed returns’ option. Here the website will show you the status of all the returns uploaded and filed (old and new) by you along with the status (processed, uploaded or pending for e-verification).
Once the return is uploaded, a person is required to verify his return using electronic verification code, Aadhaar OTP or by sending the signed acknowledgement copy (ITR-V) to CPC, Bengaluru.
If you wish to e-verify your return then go to ‘My account’ tab and select ‘e-verify’ option. A person can e-verify his return by using either Aadhaar OTP option or electronic verification code option.
Once the verification process is chosen and completed then the process of filing ITR completes. The I-T department will then process your verified returns and sent you an email confirmation stating the same.
IT Returns – Guide for e-Filing of Income Tax Return (ITR) Online
IT Returns – Guide for e-Filing of Income Tax Return (ITR) Online
As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns (ITR).The process of electronically filing income tax returns is known as e-filing. You can either seek professional help or file your returns yourself from the comfort of your home by registering on the income tax department website or other websites. The due date for filing tax returns (physical or online), is July 31st.
Who should e-file income tax returns?
Online filing of tax returns is easy and can be done by most assessees.-
- Assessee with a total income of Rs. 5 Lakhs and above.
- Individual/HUF resident with assets located outside India.
- An assessee required to furnish a report of audit specified under sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.
- Assessee required to give a notice under Section 11(2) (a) to the assessing officer.
- A firm (which does not come under the provisions of section 44AB), AOP, BOI, Artificial Juridical Person, Cooperative Society and Local Authority (ITR 5).
- An assessee required to furnish returns U/S 139 (4B) (ITR 7).
- A resident who has signing authority in any account located outside India.
- A person who claims relief under sections 90 or 90A or deductions under section 91.
- All companies.
Types of e-Filing:
-
-
- Use Digital Signature Certificate (DSC) to e-file. It is mandatory to file IT forms using Digital Signature Certificate (DSC) by a chartered accountant.
- If you e-file without DSC, ITR V form is generated, which should then be printed, signed and submitted to CPC, Bangalore by ordinary post or speed post within 120 days from the date of e-filing.
- You can file e-file IT returns through an E-return Intermediary (ERI) with or without DSC.
Checklist for e-Filing IT Returns
There are a few prerequisites to filing your tax returns smoothly and effectively. Major points have been highlighted below.
-
- How to choose the right form to file your taxes electronically
- It can be confusing deciding which form to submit when filing your
tax returns online. The different categories of Income Tax Return (ITR)
forms and who they are meant for are tabulated below.
ITR 1 (SAHAJ) Individuals with income from salary and interest ITR 2 Individuals and Hindu Undivided Families (HUF) not having income from business or profession ITR 3 Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship ITR 4 Individuals and HUFs having income from a proprietary business or profession ITR 4S (SUGAM) Individuals/HUF having income from presumptive business ITR 5 Firms, AOPs,BOIs and LLP ITR 6 Companies other than companies claiming exemption under section 11 ITR 7 Persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D
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- Check your tax credit – Form 26AS vs. Form 16You should check Form 26AS before filing your returns. It shows the amount of tax deducted from your salary and deposited with the IT department by your employer. You should ensure that the tax deducted from your income as per your Form 16 matches with the figures in Form 26AS. If you file your returns without clarity on errors, you will get a notice from the IT department.
- Claim 80G, savings certificates and other deductionsYou can claim extra deductions if you forgot to claim them. Similarly, you can also claim deductions under section 80G on donations made to charitable institutions.
- Interest statement – Interest on savings accounts and fixed depositsA deduction for up to Rs.10,000 is allowed on interest earned on savings accounts. However, interest earned on bank deposits, if any, forms a part of your taxable income and is taxable at applicable slab rates.
- In addition to the above, have the following at hand.
- Last year’s tax returns
- Bank statements
- TDS (Tax Deducted at Source) certificates
- Profit and Loss (P&L) Account Statement, Balance Sheet and Audit Reports, if applicable
- Ensure your system is equipped with the below.
List of Required Documents for e-filing of tax returns
It is always good to stay a step ahead, especially when it comes to tax filing. The checklist provided below will help you to get started with the e-filing of tax returns.
General details:
- Bank account details
- PAN Number
- Rent receipts for claiming HRA
- Form 16
- Pay slips
- Address of the house property
- Details of the co-owners including their share in the mentioned property and PAN details
- Certificate for home loan interest
- Date when the construction was completed, in case under construction property was purchased
- Name of the tenant and the rental income, in case the property is rented
- Stock trading statement is required along with purchase details if there are capital gains from selling the shares
- In case a house or property is sold, you must sought sale price, purchase price, details of registration and capital gain details
- Details of mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs
Reporting other income:
- The income from interest is reported. In case of interest accumulated in savings account, bank account statements are required
- Interest income from tax saving bonds and corporate bonds must be reported
- The income details earned from post office deposit must be reported
Income Tax Slab Rates
Income Tax Slab rates For Financial Year 2017 – 2018 And Assessment Year 2018-2019
(As Declared in the New Budget) :
For Individuals and HUF (Age – Less than 60 years):
Income Tax Slab Tax rate Up to Rs.2,50,000 NIL Above Rs.2,50,000 and up to Rs.5,00,000 5% Above Rs.5,00,000 and up to Rs.10,00,000 20% Above Rs.10,00,000 30%
*10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.
*15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.
For Individuals and HUF (Age – 60 years and more, but less than 80 years):
Income Tax Slab Tax rate Up to Rs.3,00,000 NIL Above Rs.3,00,000 and up to Rs.5,00,000 5% Above Rs.5,00,000 and up to Rs.10,00,000 20% Above Rs.10,00,000 30%
*10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.
*15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.
For Super Senior Citizens (age – 80 years and more):
Income Tax Slab Tax rate Up to Rs.5,00,000 NIL Above Rs.5,00,000 and up to Rs.10,00,000 20% Above Rs.10,00,000 30%
*10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.
*15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.
Income Tax Slab Rates for Year 2016 – 2017 :
For Individuals and HUF (Age – Less than 60 years):
Income Tax Slab Tax Rate Up to Rs.2,50,000 NIL Above Rs.2,50,000 and up to Rs.5,00,000 10% Above Rs.5,00,000 and up to Rs.10,00,000 20% Above Rs.10,00,000 30%
*12% surcharge is imposed in case the total income is above Rs.1 crore.
For Senior Citizens (Age – 60 years and more, but less than 80 years):
Income Tax Slab Tax Rate Up to Rs.3,00,000 NIL Above Rs.3,00,000 and up to Rs.5,00,000 10% Above Rs.5,00,000 and up to Rs.10,00,000 20% Above Rs.10,00,000 30%
*12% surcharge is imposed in case the total income is above Rs.1 crore.
For Super Senior Citizens (Age – 80 years and more):
*12% surcharge is imposed in case the total income is above Rs.1 crore.Income Tax Slab Tax Rate Up to Rs.5,00,000 NIL Above Rs.5,00,000 and up to Rs.10,00,000 20% Above Rs.10,00,000 30%
Income Tax Return Due Date:
Generally, the due date for filing Income Tax Return (ITR) for Hindu Undivided Family (HUF)/ Individuals/ AOP (Association of Persons)/ BOI (Body of Individuals) is 31st July of the next Financial Year. For example – The ITR due date for Financial Year 2016-17 would be 31st July, 2017.
Here is how you e-verify your income tax return
Here is how you e-verify your income tax return
After filing income tax returns, you are supposed to get it verified. Earlier it was mandatory to send the physical copies to income tax department, now you can e-verify it in minutes.Your income tax return filing process is not complete until you have successfully verified your income tax return. Earlier, returns could be verified via posting the ITR-V or use of digital signatures.
In a very welcome move the income tax department has now introduced several means to e-verify your income tax return. Your return can be verified by generating an EVC or electronic verification code. If you verify your return via EVC, you are no longer required to send the physical ITR-V. EVC is a 10 digit alphanumeric code and is unique to a PAN. One EVC code can validate only one return, so if you revise your return, you have to generate another EVC. This code can be obtained through various ways, lets understand them in detail –
EVC through net banking –
–Check if your bank is authorised by the income tax department for providing direct access to the government’s e-filing website. Also, your PAN must have been validated via KYC. You will need your internet banking password and login and transaction password to proceed. Once you login to bank’s site and request access to www.incometaxindiaefiling.gov.in, you will be able to generate an EVC which will be displayed on the screen and will also be sent to your registered mobile number. You can then e-verify your return with this EVC. This will be a big relief to Non Resident Indians who face distress with sending physical ITR-Vs if they don’t have digital signatures.
EVC through Aadhaar OTP –
Verification of your return through aadhaar is also done via the government’s e-filing website www.incometaxindiaefiling.gov.in. You have to link your aadhaar card from within the government’s site and then link it with your PAN on the website mentioned above. After aadhaar is authenticated & linked, an OTP will be sent to the taxpayer’s registered mobile number. And then this OTP can be used to verify the tax return. Do note that this OTP is valid for 10 minutes.
The government has asked tax payers to mention their aadhaar number in the tax return. However, do note that mentioning your aadhaar number does not relieve you of e-verification of your tax return. Your return must be separately e-verified using any of the means mentioned here.
EVC through ATM –
Banks which have been registered with the income tax department for providing this service can be used for generating EVC through ATM machines. EVC can be generated by logging into the bank account via an ATM and selecting option ‘Generate EVC for income tax return filing’. The bank’s systems will then request the income tax department’s website to send an EVC to the taxpayers registered mobile number which can be then used for verifying your tax return. So if you are not able to login to your net banking for some reason, you will be able to generate an EVC through ATM, if your bank has been specified for this purpose by the tax department.
EVC though the website -www.incometaxindiaefiling.gov.in
Where the tax payer’s gross total income less deductions is Rs 5 lakhs or less and there is no refund due to the tax payer, EVC can be generated from within the government’s tax filing website. Such EVC shall be sent to the registered email id and mobile number of the taxpayer. However, this option may be restricted based on the risk assessment the department has for a taxpayer, so use another method if you are unsuccessful.
Physical ITR-V –
Failure of all four options could be a streak of bad luck or possibly travails of a new system. Don’t lose sleep over it. You can still verify by sending your ITR-V using the old way of printing, signing and sending via speed post. Do remember though, this document must be sent within 120 days of your e-filing.
Bear in mind that returns must be e-verified or a digital signature must be used, failing which your return submission would be considered incomplete and you may have to submit your return again.
Recently, the CBDT has extended the timeline for submitting ITR-Vs for assessment years AY 2013-14 and AY 2014-15. The ITR-V for these assessment years can now be submitted up till 31st October 2015. This is applicable for your return for AY 2013-14 which has been filed on or after 1st April 2014 till 31st March 2015. And your return for AY 2014-15 which has been filed on or after 1st April 2014 till 30th June 2015.
Which ITR form to fill for FY 2016-17 and tips on how to fill it
Which ITR form to fill for FY 2016-17 and tips on how to fill it
The Central Board of Direct Taxes (CBDT) notified tax return forms for the Financial Year (FY) 2016-17 on March 31, 2017.The government also mandated quoting of Aadhaar number/ Aadhaar enrolment number while filing the tax return if the same is filed on or after July 1, 2017.
As per a recent notification dated May 11, 2017, relief from obtaining Aadhaar has been provided to below taxpayers:
* Taxpayer residing in the states of Assam, Jammu and Kashmir and Meghalaya;
* A Non-resident taxpayer as per Income-tax Act, 1961;
* A taxpayer of the age of eighty years or more at any time during the previous year;
* A taxpayer who is not a citizen of India.
1. Below is a brief synopsis of the tax return forms applicable to an individual taxpayer for filing income tax return for the FY 2016-17:
It is very important to file the correct tax return form, as filing of incorrect tax return form may make the tax return defective.
Below is a table to help you pick the right form
Applicability of the different ITR forms
* For ITR-1 Form, only the income which is eligible to be reported in ITR-1 can be clubbed with the income of the taxpayer.
For example, if spouse of the individual taxpayer has income only from other sources which needs to be clubbed, Form ITR-1 can be used to report such income. However, if the spouse has earned income from capital gains, then the individual taxpayer will have to file ITR-2.
2. Major changes from last year:
A separate column has been inserted in all forms to disclose aggregate cash deposited in excess of INR 2 lakh during the demonetisation period i.e. 9 November 2016 to 30 December 2016.
A. ITR-1 form
* The form has been simplified and reduced to one pager;
* ‘Asset and Liability’ schedule has been done away with in ITR-1 form since it is required to be filled only when the total income of the taxpayer is more than INR 50 lakh.
B. ITR-2 form
* ‘Asset and Liability’ schedule (applicable to individuals having total income more than INR 50 lakh) now requires reporting of additional information with respect to bank balance (including deposits) as on 31 March 2017, description and address of immovable assets, cost of shares and securities as on 31 March 2017, insurance policies, loans and advances given, interest held in assets of a firm or association of persons (AOP) as a partner or member etc.;
* ‘Schedule IF (i.e. information regarding partnership firms in which the taxpayer is a partner) has been inserted to report details of the partnership firm in case the taxpayer is a partner in one;
*’Schedule BP (i.e. details of income from firms in which the taxpayer is a partner)’ has been inserted to report details of income in the nature of salary, bonus, commission or remuneration received from partnership firms;
* Under the ‘Schedule OS (i.e. Other Sources)’, additional information is sought with respect to cash credits, unexplained investments, unexplained money, unexplained expenditure, amount borrowed or repaid on hundi, dividend income from Indian companies in excess of INR 10 lakh, royalty income from patents etc.
C. ITR-3 form
* Under the ‘Schedule OS’, additional information is sought with respect to cash credits, unexplained investments, unexplained money, unexplained expenditure, amount borrowed or repaid on hundi, dividend income from Indian companies in excess of INR 10 lakh, royalty income from patents etc.
3. General guidance on filling and submitting the tax return forms:
* The name filled in the ITR form should be as per the Permanent Account Number (PAN) card;
*The taxpayer should ensure that e-mail address, phone number and postal address are correctly stated in the tax return since the same are used by Income-tax Department for future correspondence with the taxpayer. Quoting of PIN code is mandatory;
* Quote Aadhaar/ Aadhaar enrolment number (if applicable) if filing the tax return after 30 June 2017;
* ITR-1 form can be filed in paper form only by:
a) An individual of the age of 80 years or more at any time during the financial year for which the return is being filed ; or
b) An individual or HUF whose income does not exceed INR 5 lakh and no refund is claimed in the return of income.
* In case the return is filed in paper form, no document (including TDS certificate) should be attached to the return;
* While filling ITR-1 in paper form, ITR-V should be duly filled;
*All other return forms have to be filed electronically;
* Check Form 26AS for income and taxes reported by the deductor so that there is no mismatch with the income and credit of taxes claimed in the tax return vis-à-vis Form 26AS;
* Ensure that outstanding taxes are paid before filing the tax return and use correct challan to avoid mismatch;
*Report all bank accounts held in India at any time during FY 2016-17 provided they have been operated in last three years. This includes reporting of joint accounts in which the taxpayer is the primary holder;
* Bank balance (including deposits) and cash in hand as on 31 March needs to be reported in ‘Asset and Liability’ schedule. While a common man may not know exact amount of cash held physically on 31 March 2017, it should be ensured that the amount declared in the tax return can be reasonably justified in case of scrutiny by the Income-tax Department;
* Foreign Asset schedule requires reporting of assets held outside India at any time during the relevant year only by a taxpayer qualifying as Resident and Ordinarily Resident of India. Since the Black Money Act 2015 imposes a stringent penalty of INR 10 lakh for non-disclosure of foreign assets and income, it is recommended to take help from a subject matter expert to avoid non-compliance in terms of type of asset to be reported and the value at which the asset should be reported;
* As per the CBDT notification on foreign tax credit rules, a resident taxpayer claiming credit of taxes paid outside India on doubly taxed income should file Form 67 along with specified certificate or statement on or before the due date of filing the tax return. The manner to file Form 67 and certificate or statement is yet to be prescribed by the CBDT;
* Reporting and disclosure requirement in ITR-3 form has been enhanced to ensure compliance by the taxpayers. However, a layman may not have complete details of requisite information sought in the tax return form and hence seeking help of a tax expert may be advisable;
* Taxpayers should ensure that the tax returns they file are verified, either manually or electronically, within 120 days of filing to avoid annulment of the tax return;
* In case the taxpayer wishes to manually verify the ITR-V form by sending a signed hard copy to CPC Bangalore, he should ensure that ITR-V is printed on A4 size paper and signed with blue ink only before sending to CPC Bangalore;
* ITR-V can be e-verified by generating electronic verification code using Aadhaar, net banking, bank account number, demat account or registered e-mail address and mobile number etc. of the taxpayer;
* Instructions for filling the tax return forms issued by CBDT and annexed to the relevant ITR form should be referred to before filing the tax return.
Disclaimer : The facts and opinions written in this column are those of the author and do not reflect the views of economictimes.com
