Ans. The particulars of Income earned by a person in a Financial Year is ascertained and declared and taxes to be paid on such income are communicated to the Income-tax Department through a Form, which is known as “Income Tax Form” or “Income Tax Return”. However, different Forms are determined for different “Nature of Incomes” and “Classes of Taxpayers” by the Department for the convenience of the taxpayers.
- What are different Forms of Return prescribed under the Income Tax Law?
Ans. The different ITR Forms are prescribed for different “Classes of Taxpayers” under the Income – Tax Law. Here are the ITR Forms classified for various assesses :
ITR Forms |
Applicability |
ITR – 1 (SAHAJ) |
Applicable to an Individual having salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses).
|
ITR 2A |
It is applicable to Individuals and Hindu Undivided Family NOT having income from business or profession and capital gains and being resident who do not hold foreign assets do not have foreign income.
|
ITR – 2 |
It is applicable to an Individual or a Hindu Undivided Family having income from any source other than “Profits and gains of business or profession”.
|
ITR – 3 |
It is applicable to an Individual or a Hindu Undivided Family who is a partner in a firm and where income chargeable to tax under the head “Profits or gains of business or profession” does 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.
|
ITR – 4S (Also known as SUGAM) |
Applicable to Individuals and Hindu Undivided Family who have opted for the “Presumptive taxation scheme” of section 44AD/44AE.
|
ITR – 4 |
Applicable to an Individual or a Hindu Undivided Family who is carrying on a “Proprietary Business or Profession”.
|
ITR – 5
|
Applicable to a person being a firm, LLP, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), co-operative society and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form (i.e., trusts, political parties, institutions, colleges, etc.)
|
ITR – 6 |
Applicable to a Company, other than a company claiming exemption under section 11 (exemption under section 11 can be claimed by charitable/religious trust). |
ITR – 7 |
Applicable to persons including companies who are required to furnish return under section 139(4A) or section 139(4B)or section 139(4C) or section 139(4D) (i.e., trusts, political parties, institutions, colleges, etc.). |
ITR V |
It is the acknowledgement copy of the Return so filed by the taxpayers generated after the ITR is filed. |
Download the ITR Forms for Financial Year 2015-16 (Assessment Year 2016-17).
- What is e-Filing of Returns?
Ans. Income Tax Department has introduced a convenient way to file the return of income by the taxpayers using the internet. Therefore, the process of electronically filing your Income tax returns is known as e-filing of returns.We can know more about ONLINE INCOME TAX RETURN FILING-FY 2015-16 ( AY 2016-17) –
Watch this video to know more about Income Tax Return Filing.
- What are the modes of E-Filing?
Ans. The Different modes of E-Filing are as follows :
- E-filing using a Digital Signature
- 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 of ITR V (i.e., acknowledgement of return filed electronically) to Bangalore CPC.
But, if the return is filed without using digital signature, then the assessee shall do the following :
- 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.
- E-Verify the Return so filed through “Electronic Verification Code”.
- Is it mandatory to file the Return Electronically?
Ans. It has been made mandatory for the following taxpayers to file their return electronically:
- Any assessee filing ITR 1/2/2A (other than an individual of the age of 80 years or more at anytime during the previous year) having a refund claim in the return or having total income of more than 5,00,000 is required to furnish the return of income electronically with or with out digital signature or by using electronic verification code.
- Every Company shall furnish the return of income electronically under digital signature. In other words, for corporate taxpayer e-filing with digital signature is mandatory.
- A firm or an individual or a Hindu Undivided Family (HUF) whose books of account are required to be audited under section 44AB shall furnish the return of income electronically under digital signature. In other words, in such a case, e-filing with digital signature is mandatory.
- A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India shall furnish the return of income electronically with or without digital signature or by using electronic verification code.
- Taxpayers claiming relief under section 90, 90A or 91shall furnish the return of income electronically with or without digital signature or by using electronic verification code.
- A person who is required to file ITR – 5 shall file the same electronically with or without digital signature. However, a firm liable to get its accounts audited under section 44AB shall furnish the return electronically under digital signature mandatorily.
- A taxpayer who is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)via), 10A, 10AA, 12A(1)(b), 44AB, 44DA,50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW or shall furnish the report electronically on or before the date of filing the return.
- Return Form ITR- 3 is to furnish electronically by furnishing the return electronically under digital signature or by electronically under electronic verification code or by electronically , without Digital Signature, and thereafter submitting the verification of the return in Return Form ITR-V.
- Return Form ITR-4 is to be furnished by electronically under digital signature or by electronically under electronic verification code or by electronically , without Digital Signature, and thereafter submitting the verification of the return in Return Form ITR-V.
However, where the books of accounts are required to be audited under section 44AB, the return is required to be furnished electronically under digital signature mandatorily.
- Return Form ITR – 7 is to be furnished by electronically under digital signature or by electronically under electronic verification code or by electronically , without Digital Signature, and thereafter submitting the verification of the return in Return Form ITR-V.
However, a political party shall compulsorily furnish the return by electronically under digital signature.
- Is it necessary to attach any documents along with the return of Income?
Ans. No documents (like proof of investment, TDS certificates, etc.) are to be attached with the return of income while filing (whether filed manually or filed electronically) as the ITR forms are attachment less forms.
However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.
- What is Electronic Verification Code?
Ans. Taxpayer has an option to e-Verify the return at the time of uploading / after uploading. In case of already uploaded return, tax payer can still e-Verify the same through “e-File – e-Verify Return” option after logging into their E-Filing account. Taxpayer can e-Verify the return using the below modes :
- EVC received in Registered Mobile number and e-mail. (Electronic Verification Code (EVC) is a 10 digit alphanumeric code which can be generated through e-Filing portal and is valid for 72 hours).
- Aadhaar OTP
- Login to e-Filing through Net Banking
Know the detailed procedure to E-Verify your Return.
- ITR filed electronically and ITR V already sent to the CPC. Still, received a letter from CPC that ITR V had not been received. Since time-limit to resend the acknowledgement already expired, whether it will be deemed that the return is not filed?
Ans. If the ITR V has already been submitted to the CPC then one can resend the acknowledgement, even though the time-limit for filing ITR-V has already expired, provided he has sufficient evidences to substantiate the fact that he has send the acknowledgment earlier within 120 days of uploading the return either by ordinary post or by speed post only.
- What is E-Filing Account?
Ans. E-Filing Account is the account of every assessee over the Income Tax Site on which all the details of the assessee’s ITR so filed by him, TDS (Tax Deducted at Source) details, any pending assessment, etc are found. It is very convenient for the taxpayers to locate their past ITR Forms, xml’s, TDS Certificate, Refund / Demand status, etc at one click. Further, it also reflects the status of the ITR’s (processed, transferred to Jurisdictional AO, defective, etc) so as to enable the taxpayers to be updated about their returns.
- How to create your E-Filig account?
Ans. In order to create an e-filing account, following steps needs to be followed :
- Visit the Income Tax website
- Click on ‘Register Yourself’ button at top-right corner of the page
- Fill your personal details (status, PAN, Date of Birth, Email id, mobile no,. Surname, etc)
- Create a password for yourself
- An activation link will be sent to the given mail id along with an OTP to the mobile no. Click on the link and feed in the OTP at the page arrived after clicking on the said activation link.
- Your account will be successfully created.
- Login to your account through PAN– as your Username, password and DOB.
- What are the due dates for filing of income-tax returns for the Financial Year 2015-16?
Ans.
Types of Assessee |
Due Date |
An Individual or HUF or businesses not required to get audited |
31-Jul-16 |
A Company |
30-Sep-16 |
A person whose accounts are required to be audited |
30-Sep-16 |
A working partner of a Firm whose accounts are required to be audited |
30-Sep-16
|
An assessee who is required to furnish a report under section 92E for international transaction |
30-Nov-16 |
Any other person |
31-Jul-16 |
- Can ITR be filed after the due-date? If yes, what are the consequences?
Ans. Yes, the ITR can be filed after the due date but at a cost of interest to be levied if any tax liability was outstanding against your income on the due date of filing the ITR. The interest shall be levied :
- u/s 234 A – for late filing of ITR
- u/s 234 B – default in payment of advance taxes
- u/s 234 C – deferment of payment of advance taxes
However, if the return is not filed up to the end of the relevant assessment year, in addition to interest u/s 234, a penalty of Rs. 5,000 shall be levied u/s 271 F .
Note : A belated return, i.e., return filed after the due date, can be filed within a period of one year from the end of the relevant assessment year or before completion of the assessment, whichever is earlier.
- What are the benefits of ITR Filing?
Ans. Filing of return is your duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validates your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, apply for loans, visa application, etc.
Watch out all the benefits of ITR Filing.
- Is there any disadvantage involved in filing the income tax return?
Ans. No, there is no disadvantage involved in filing the returns. On the contrary by not filing the return inspite of having taxable income, one will be liable to the penalty and prosecution provisions under the Income-tax Act.
- What if the income is below taxable limits? Should the ITR be still filed?
Ans. If the income is below the minimum taxable limit, one can still file his return voluntarily to keep a record of his income tax returns to gain creditability before the Financial Institutions.
- What is the Income Tax Slab for FY 2015-16?
Ans. (i) Individual resident or non-resident aged below 60 years, HUF or AOP or BOI or AJP:
Income Slabs |
Tax Rates |
Where the taxable income does not exceed Rs. 2,50,000/- |
NIL |
Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/- |
10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
Less : Tax Credit or Rebate u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-
From FY 2016-17, this rebate shall be maximum of Rs.5000/- as laid down by Budget 2016
|
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- |
Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-
|
Where the taxable income exceeds Rs. 10,00,000/- |
Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-
|
Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable).
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
(ii) Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year) :
Income Slabs |
Tax Rates |
Where the taxable income does not exceed Rs. 3,00,000/-
|
NIL |
Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/- |
10% of amount by which the taxable income exceeds Rs. 3,00,000/-
Less : Tax Credit or Rebate u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-
From FY 2016-17, this rebate shall be maximum of Rs.5000/- as laid down by Budget 2016.
|
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- |
Rs. 20,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-
|
Where the taxable income exceeds Rs. 10,00,000/- |
Rs. 120,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/- |
Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable).
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
(iii) Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year):
Income Slabs |
Tax Rates |
Where the taxable income does not exceed Rs. 5,00,000/- |
NIL |
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- |
20% of the amount by which the taxable income exceeds Rs. 5,00,000/-
|
Where the taxable income exceeds Rs. 10,00,000/- |
Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/- |
Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable).
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
(iv) Co-operative Society:
Income Slabs |
Tax Rates |
Where the taxable income does not exceed Rs. 10,000/-
|
10% of the income. |
Where the taxable income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/- |
Rs. 1000/- + 20% of the amount by which the taxable income exceeds Rs. 10,000/-
|
Where the taxable income exceeds Rs. 20,000/- |
Rs. 3,000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-
|
Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable).
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
(v) Firm:
Income Tax : 30% of taxable income.
Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable).
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
(vi) Local Authority:
Income Tax : 30% of taxable income.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable).
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
(Vii) Domestic Company:
Income Tax : 30% of taxable income.
Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge
- At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
- At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores.
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
(viii) Company other than a Domestic Company:
Income Tax :
- @ 50% of on so much of the taxable income as consist of –
- royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or
- fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
- @ 40% of the balance.
Surcharge :
The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under –
- At the rate of 2% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
- At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 10 crores.
Education & Secondary Higher Education Cess: 2% & 1% (respectively) of the total of Income Tax and Surcharge.
Download the Income Tax Rates Slab.
- What is Marginal Relief in Surcharge?
Ans. The concept of marginal relief is designed to provide relaxation from levy of surcharge to a taxpayer where the total income exceeds marginally above Rs. 1 crore or Rs. 10 crore, as the case may be. Thus, while computing surcharge, in case of taxpayers (other than a company) having total income of more than Rs. 1 crore, marginal relief shall be available in such a manner that the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
In case of a company, surcharge is levied @ 7% (2% in case of foreign company) on the amount of income-tax if the total income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 12% (5% in case of foreign company) on the amount of income-tax if total income exceeds Rs. 10 crore. Hence, in case of company whose total income exceeds Rs. 1 crore but does not exceeds Rs. 10 crore, marginal relief will be computed as discussed above, but in the case of company having total income above Rs. 10 crore marginal relief is available in such a manner that the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore.
- What if no positive income is there but losses are there in any Financial Year?
Ans. If losses are there in any financial year, then the same can be carry forwarded to the subsequent year for adjustment against subsequent year(s) positive income. But to do so, one must make a claim of such losses by filing the return before the due date. The ITR Filed after the due date cannot claim to carry forward the losses to subsequent years.
- How can be jurisdictional Assessing Officer be ascertained?
Ans. To find the Jurisdictional AO, please follow the below:
- Go to Income Tax Website.
- Click on “Know your Jurisdiction” given on the home page.
- A page will appear. Feed in PAN and the captcha code.
- Click on Submit.
- The Jurisdiction shall be displayed.
- What is the classification of taxes paid by taxpayers at different intervals of time?
Ans. A taxpayer may pay tax in any of the following forms:
(1) Tax Deducted at Source (TDS)
(2) Tax Collected at Source (TCS)
(3) Advance tax or Self-assessment Tax or Payment of tax on regular assessment.
- What is Form 26 AS?
Ans. The Income-tax Department maintains the database of the total taxes paid by the taxpayer (i.e., tax credit in the account of a taxpayer). Form 26AS is an annual statement maintained under Rule 31AB of the Incomee-tax Rules disclosing the details of tax credit in his account as per the database of Income-tax Department.
In other words, Form 26AS will reflect the details of tax credit appearing against the Permanent Account Number (PAN) of the taxpayer as per the database of the Income-tax Department. The tax credit will cover TDS, TCS and tax paid by the taxpayer in other forms like Advance Tax, Self-Assessment tax, etc.
Income-tax Department will generally allow a taxpayer to claim the credit of taxes as reflected in his Form 26AS.
- How to generate Form 26 AS?
Ans. The below procedure should be followed for getting Form 26 AS:
- Login to E-Filing a/c through PAN as username and password.
- Click on “My Account”
- Click on “View Form 26AS”.
- Select the Assessment year and you can download the desired Form 26AS.
- What if excess taxes have been paid by any taxpayer?
Ans. The excess taxes can be claimed as refund by filing the Income-tax return. It will be refunded through ECS transfer by crediting the bank account mentioned in the ITR. The same shall be sent via cheque at the address mentioned in the ITR, if the amount of refunds exceeds Rs.50,000.
- Can a mistake in the Original Return be corrected or revised?
Ans. Yes, provided the original return has been filed before the due date and the Department has not completed the assessment. It is expected that the mistake in the original return is of a genuine and bona fide nature and not rectification of any deliberate mistake. However, a belated return (being a return filed after the due date) cannot be revised.
Return can be revised within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier.
- How many times can a return be revised?
Ans. A return can be revised any number of times before the expiry of one year from the end of the relevant assessment year or before the assessment by the Department is completed, whichever event takes place earlier.
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