Income Tax Return Filing

Basics and Benefits of e-filing Income Tax Return

Salaried Individuals and other non-audit tax payers are required do Income Tax Return Filing compulsorily before 31st July for the year ended 31st March (i.e., for the year ended 31st March, 2014 due date is 31st July 2014).

Every individual whose income before allowing deductions and exemptions exceeds the basic exemption limit are required to do Income Tax Return Filing . However, ITR filing is required even if full tax has been deducted at source or there is no liability to pay further tax and have no other income. Moreover, Income Tax Return Filing of income is always advisable as well as maintaining of Income Tax file even when there is no compulsory requirement as it helps to access many financial benefits easily such as bank credits etc.

The Income tax department has made income tax return filing in India easier, by introducing the e-filing income tax return facility. As a result of this Online Income Tax filing facility now almost 98% returns are being accepted by the income tax department without any question. Every assesses should prefer e-filing income tax return to avail full benefits associated with it and to remain hassle free.

With e-filing income tax return the processing speed is really quick and it helps to keep personal information private, get instant notification of Income Tax Return receipt, check the status of tax return or tax refund and get acknowledgment receipt immediately. Moreover, online income tax return allows to pay taxes at any time and from anywhere through the net-banking account without being in the long queue at the Bank. So, by opting online income tax return filing one can save a lot of precious time, money and energy.

Key Benefits of e-filing Income Tax Return with Taxmantra.com

Remain totally Hassle free – The income tax return filing experience on the automated platform at times becomes too complicated, as the users have to virtually punch in all their income details and as a result of which individuals end up filing return of income incorrectly. Taxmantra.com offers complete online income tax filing solutions and to keep its users totally hassle free Taxmantra.com has launched fully personalized Online Income Tax Return filing Platform where the users have to just email their details and documents, and our tax expert gets in touch with the user to file the online income tax returns.

• Tax return is being reviewed by a qualified tax expert with 30+ years of experience within the Group
• Faster processing of returns and refunds as the online income tax returns filed through Taxmantra.com (E-Return Intermediary) gets priority
• Personalized Care by CA & Tax Experts
• Full Support by Phone, Mails, Live Chat, and also Personal Data Security Assured

You would note that IT Department is taking serious action for mistakes encountered in filing IT Return by sending Tax Notices to so many assesses all over India. What are the reasons for issuance of such a huge number of tax notices? The probable answer would be that they all have done certain mistakes while filing their income tax returns which have miserable consequences. Simply it’s very hard for individuals to tackle the issues like rectification of return after getting notice u/s 139(9)-defective return, readjustment of tax refund u/s 245, intimation letter u/s 143(1), rejection of TDS credit, Notice u/s 148- income escaping assessment, etc. Thus taking experts’ help in filing your IT Return would make your life hassle-free.

Procedure to file your tax returns with Taxmantra.com

Choose your package & make payment

We have packages for all assesses ( salaried individuals, consultants, self employed, Non Resident Indians and foreign citizens based on the nature income and taxation pattern. Your have to choose the package which suits you best and make payment.

Email us your details

The next thing is to email us the details and documents, you can check here for the list of documents to be emailed. The documents needs to be emailed to our email id – info@taxmantra.com

Error free ITR xml uploaded

Based on the details provided by, our tax experts would prepare the tax computation and would discuss the same with you. Once the same is confirmed, we would upload the tax returns and would send you the tax ACK or ITRV form and other details. If you do not have Digital Signature (DSC) then after filing the ITR Filing system will generate ITR-V Form which is acknowledgment of filing your IT Return. We would send you this acknowledgment via mail. You download the same and send to the CPC Bangalore. You can also file the tax return with DSC, in that no need to send the ITRV forms to CPC Bangalore.

Please check this video , wherein our founder is explaining our personalized Tax Return Filing Service.

FAQ on Income Tax Return Filing

1. What is Income Tax?

Income tax is the taxes paid on the total income earned during the relevant financial year at the rates prescribed.

2. What is the period for which income tax is payable on the income?

Income earned in the twelve months contained in the period from 1^st April to 31^st March (commonly called Financial Year [FY]) is taken into account for purposes of calculating Income Tax. Under the Income Tax Act this period is called a Previous year.

3. What is an Assessment Year?

It is the twelve-month period 1^st April to 31^st March immediately following the previous year i.e financial year. In the Assessment year a person files his return for the income earned in the previous year. For example for FY:2013-14 the AY is 2014-15.

4. Who is liable to pay Income Tax?

Any Individual or group of Individual or artificial bodies who have earned income during the previous years are required to pay Income tax on it. The IT Act recognizes the earners of income under seven different categories. Each category is called a Status. These are Individuals, Hindu Undivided Family [HUF], Association of Persons [AOP], Body of individuals [BOI], Firms, Companies, Local authority, Artificial juridical person.

5. What is corporate tax?

When Companies pay taxes under the Income tax Act it is called Corporate tax.

6. To whom Income tax Act is applicable?

The Income tax Act applies to all persons who earn income in India, irrespective of the fact whether they are resident or non-resident.

7. Who is a resident?

If an individual stays in India for 182 days or more in a year, he is treated as resident in that year regardless of his citizenship. He/she is considered as the NRI if following conditions do not satisfy:

• He/ She is in India for a period of 182 days or more in that financial year.
• He/ She is  in India for 60 days or more during that financial year and has been in India for 365 days or more during 4 previous years immediately preceding the relevant financial year.
• In case where a person leaves for employment or where an Indian Citizen who is abroad comes to India for a visit, the period of stay would be 182 days instead of 60 days in the previous year as per point b above.

8. How is residential status relevant for levy of income tax?

In case of resident individuals and companies, their global income is taxable in India. However non-residents have to pay tax only on the income earned in India or from a source/activity in India.

9. What should be considered for the calculation of total income?

The income from the following sources should be considered for the calculation of total income:

• Income from Salary
• Income from House property
• Income from Business or Profession
• Income from Capital Gains
• Income from Other Sources

10. Are all receipts considered as income?

No, all receipts are not considered as income. Receipts can be classified into two kinds.

• Revenue receipt
• Capital receipt.

The general rule under the Income tax Act is that, all revenue receipt are taxable unless a receipt is specifically exempted and all capital receipts are exempt from taxation unless there is a provision to tax it. Gifts and loans etc are in the nature of capital receipts not attracting tax.

11. Is income tax levied on gifts received by a person?

Gift exceeding Rs 50,000 is taxable unless it is received from

• any person who is a relative or
• on occasion of marriage or
• under will or by inheritance or in contemplation of death of the payer

12. Is there any limit of income below which I need not pay taxes?

Yes, Rs. 200,000 is limit below which you do not need to pay taxes for Individuals and HUF. For Companies and Firms there is no such limit.

13. What is Rebate u/s 87A?

Tax payer can claim the rebate u/s 87A if the following two conditions are satisfied

• The taxpayer must be a resident individual and is not applicable to NRI.
• The income of the tax payer should not exceed Rs. 500,000 after claiming deduction u/s 80C to 80U.

The amount of rebate which can be claimed by resident individual is 100% of the income tax payable on total income after deduction of 80C to 80U or Rs. 2000 whichever is lower. This rebate is allowed out of the total income tax payable amount without adding surcharge and education cess.

14. Is exemption limit raised by Rs. 20000?

No, the exemption limit is not raised by Rs. 20000. However rebate of Rs. 2000 allowed(as per FAQ-13).

15. When is ITR 1 used for filing the return?

• Income from Salary/ Pension; or
• Income from One House Property (excluding cases where loss is brought forward from previous years); or
• Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Moreover, in case any income of spouse, minor child, etc. gets clubbed with the income of the assessee, then ITR–1 can be used only if the clubbed income falls into the above income source.

16. When you cannot use ITR 1 form?

• Income from more than one house property
• Income from Winnings from lottery or income from Race horses
• Income ( not exempt from tax) under Capital Gains
• Income exceeding Rs. 5,000 from agricultural business
• Income from Business or Profession
• Income from stock & equity mutual funds
• Losses which has to be carried forward
• Person claiming relief of foreign tax paid under section 90, 90A or 91
• An individual who is a resident having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.

17. When is ITR 2 form used for filing the return?

This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2014-15 includes:-

• Income from Salary / Pension
• Income from House Property
• Income from Capital Gains
• Income from Other Sources
• Income from Winning of Lottery
• Income from Race Horses

Further, in a case where the income of another person like one’s spouse, child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

18. When you cannot use ITR 2 form?

This Return Form should not be used by an individual whose total income for the assessment year 2014-15  includes Income from Business or Profession or if you receive remuneration as a Partner in a Partnership Firm or LLP. For declaring these types of Income, you may have to use ITR-3 or ITR-4 or ITR-4S.

19. When is ITR 3 form used for filing the return?

This Return Form is to be used by an individual or an Hindu Undivided Family who is a partner in a Partnership Firm or LLP and where income chargeable to income-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. In case a partner in the firm 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, he shall use this form only and not Form ITR-2.

20. When you cannot use ITR 3 form?

This Return Form should not be used by an individual whose total income for the assessment year 2013-14 includes Income from Business or Profession under any proprietorship.

21. When is ITR 4 form used for filing the return?

ITR-4 Form is used by an Individual or HUF who is carrying out a proprietary business or profession and who are not filing Return under Presumptive Taxation Scheme. The following income can be included in ITR-4 form:

• Income from Salary/Pension
• Income or Losses from House property
• Income from Business Profession
• Income or Losses from Capital gains
• Income or Losses from Other Sources

Moreover, every Partnership firms, Individuals & HUF having their tax audits mandatorily u/s 44AB is required to file their ITR-4 Electronically using digital signature.

22. When you cannot use ITR 4 form?

An Individual or a HUF computing business income from Presumptive Taxation Scheme are not eligible to file ITR-4. For Presumptive Business Income, an assessee files ITR-4S (SUGAM).

23. When is ITR–4S OR SUGAMform used for filing the return?

Income tax Return to be filed by individuals, HUF and small business taxpayers having:

• Presumptive Business Income
• Salary / Pension
• One house property
• Income from other sources.

24. When you cannot use ITR–4S OR SUGAM form?

This form cannot be used if, taxpayer

• Has more than one house property
• Speculative income
• Agriculture income more than Rs 5000
• Winning from lotteries/races
• Capital gains
• Losses to be carried forward

ITR – 4S ( SUGAM ) is not applicable if an assessee, maintains his books of accounts as per sec 44AA and is required to get his books of accounts audited under sec 44AB.

25. When is ITR 5 form used for filing the return?

This return form is used for firms, LLPs, AOPs (Association of persons) and BOIs (Body of Individuals)

26. When is ITR 6 form used for filing the return?

For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes) This return has to be filed electronically only.

27. When is ITR 7 form used for filing the return?

For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).

• Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
• Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.
• Return under section 139(4C) is required to be filed by every –
  • scientific research association;
  • news agency ;
  • association or institution referred to in section 10(23A);
  • institution referred to in section 10(23B);
  • fund or institution or university or other educational institution or any hospital or other medical institution.
• Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.

This return has to be paper filed.

28.  What is the due date of filing the return?

29. What if return is filed after due date?

If the return is filed after due date then it will be considered as belated return and hence interest @ 1% per month will be levied.

30. What is the difference between return filed within due date and after due date?

The return filed within due date can be revised while in case of belated return, return cannot be revised. The losses of previous year cannot be carried forward. The interest u/s 234 A will be levied while if the return is filed within due date interest @ 1% per month is not levied and also losses can be carried forward.

31. What if return is not filed even after due date?

Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 6 months to 7 years and fine.

32. What should I do if my income is below exemption limit?

If the income is below exemption limit then it is not mandatory to file the return but you may file the return as you cannot file the return for past years once the due date lapses. Also, ITR is valid document for bank credit, housing loan etc.

33. Which income fall under the head “Salary”?

The incomes which fall under the head Salary are:

• Wages;
• Any annuity or pension;
• Any gratuity;
• Any fees, commissions, perquisites or profit in lieu of or in addition to any salary or wages;
• Any payment received by an employee in respect of any period of leave not availed by him;
• The portion of the annual accretion in any previous year to the balance at the credit of an employee participating in a recognized provident fund to the extent it is taxable
• Transferred balance in a recognized provident fund to the extent it is taxable;
• Contribution by the Central Government to the account of an employee under a pension scheme referred to in section 80CCD.

34. What are the benefits of filing my Income tax return?

Many Individuals assume that filing of return is a harrowing experience. But nowadays an individual can file a return very easily and even faster. Filing of Income tax return helps an individual in many ways. It helps an individual to manage his financial affairs effectively. The benefits of filing of income tax return are as follow:

• Helps in availing any loan facility like Home loan, Personal Loan, Education Loan- Whenever an individual opts for a education loan or home loan or any personal loan Banks ask for 2-3 years of Income Tax Acknowledgement. This is possible only when a individual file his return timely.
• For Visa and immigration Processing – The ITR acknowledgement works as a proof of financial soundness of an individual. The ITR acknowledgement of last 2-3 years is required when an individual applies for VISA.
• For claiming Refund  – Incase  an individual has paid excess of TDS ,it makes sense to file a income tax return so that refund of that excess amount paid can be claimed.

35. Is it mandatory to file a return if I have a PAN?

PAN does not mandate you to file your return of income. If the income of the individual is below the tax exemption limit mentioned by the income tax department then it is not mandatory to file a return. It becomes mandatory for the individuals to file a return when their income exceeds the exemption limit.

36. If I am not able to pay my taxes/ file my IT return; what will be the consequences?

It is mandatory to file your income tax return if your income is above the maximum exemption limit. Non filing of income tax return attracts penalty of Rs 5000 and also interest u/s 234A, 234B, and 234C accordingly. Further, If the original return is not filed within the due date then an individual cannot file a revise return u/s 139(5) of the IT act. Also, losses such as business loss, capital loss and loss in owning and maintenance of race horse cannot be carried forward as per section 80 of the IT act.

37. TDS has already been deducted from my income by the employer/ deductor, do I still need to file my IT return?

Mere deduction of TDS does not give you exemption from filing of IT return. Even if your employer has deducted TDS from your income you must file your return. To claim the TDS amount you need to file your IT return.

38. If I am not able to file my IT return within the due date, is there any provision which allows me to file my return even after the due date?

If you have not filed the income tax return timely you can also file your return even after the due date and that return will be termed as Belated Return u/s 139(4). Belated return can be filed before the expiry of one year from the end of assessment year or before the completion of the assessment whichever is earlier.  A belated return cannot be revised.

39. If tax deducted (TDS) from my income is more than my actual tax liability, how can I claim my refund amount back?

Refund can be claimed only by filing the income tax return timely. The amount of refund will be deposited in the Bank Account provided by you while filing your return of income. The refund amount will processed by  IT department once the return is processed and 143(1) intimation is received by you.

40. Is it possible for me to revise my return if I want to?

One can revise his Return of Income as many times he wants but only if the original return is filed within the due date and provided that the department has not completed the assessment. However, it must be noted that a Belated Return can’t be revised.

41. How and where can I check the details of TDS from my income?

You can check details the TDS details online from the income tax department website by downloading “Form 26AS”. The Form contains details of all the TDS deducted against your PAN if the deductor has filed the TDS returns. There is another facility which is available to a PAN holder having net banking account with any of authorized banks. View of Tax Credit Statement (Form 26AS) is available only if the PAN is mapped to that particular account. The facility is available for free of cost. View Tax Credit (Form 26AS) from TRACES website The PAN holder has to Register as new user (as taxpayer) and then fill in the required details from Step 1 to Step 4 during which an activation link and activation code will be sent to the registered e-mail ID and registered mobile number

42. Do I need a digital signature to file my return?

The e-filing portal has 2 options of filing the return with DSC and without DSC. If you opt for filing return without DSC then you must also physically submit the printed copy of ITRV Acknowledgment by speed Post or Normal Post to CPC Bangalore. But for certain entities/individuals, e-filing of return is mandatory with DSC:

• Companies need to e-file their returns using digital signatures
• Individuals/firms whose accounts are to be audited u/s 44 AB of the Income Tax Act 1961 e-file their returns using digital signature.

43. What are the ways in which I can file my return?

You can file your Return of Income using an IRS-approved Tax Preparation and E-file Program available at the income tax department website. Filing of return can also be done manually but only for certain assesses. The best option for filing the return is hiring Tax Professionals to prepare your Income Tax Return

44. Is E-filing a safe mode of filing return?

E-Filing is a very safe method for filing return of income. Facilities are becoming more popular among taxpayers.  E-filing is safer than paper filing as your return is going directly to the secured server of Income Tax Department. But you must check the trust worthiness of the site you choose to prepare your income tax return.  Even if you physically submit your income tax return, and get acknowledgement, your return will be processed online by the department. Further, e-filing provides you with certain benefits like avoiding waiting in que at the local ward. The facility can be opted from anywhere and anytime. E-filing your tax return also provides greater accuracy than filing a paper tax return as the software corrects the mistakes and points them out and also calculates the taxes automatically. This year the MRA has enhanced the security feature for electronic filing system for individual income tax returns by allocating to each taxpayer a User ID (Login) and a Password. The User ID (Login) is your Permanent Account Number (PAN). To file your return electronically (e-filing) using this facility, you need to register for MRA E-services. The registration is simple, quick and free of any charge and allows you to update your personal information.

45. My business is not making profits. Do I still need to file my return?

Income tax act requires every person (Individual, firm, HUF, LLP, Company) to file income tax returns if the total income exceeds the maximum amount which is not chargeable to income tax. However, the law does not prohibit the assessee from income tax return filing if the total income doesn’t exceed the maximum exemption limit. Every company is required to file a return of its income or loss in every financial year. Startups, Smaller Companies or Self-Employed Individuals generally believe that since the initial year does not bring any profits, hence it’s not required to file returns. But losses incurred in the initial years can actually be utilized to lower tax burden in the future profitable years, if the income tax return declaring the loss has been filed within the due date.

46. If I have not filed my return by the due date, will I not be able to carry forward my losses?

Carry forward of loss is allowed only when it has been determined in pursuance of return of loss submitted by the assessee on or before due date for filing return. However, loss under, ‘Income from house property,’ ‘Unabsorbed depreciation’, ‘Capital expenditure on scientific research’, and ‘Family planning expenditure’ can be carried forward even if the return is not filed within the due date mentioned under Section 139(1). Loss on account of unabsorbed depreciation, capital expenditure on scientific research and family planning can be carried forward indefinitely and it does not require continuity of business in subsequent year. In subsequent years, it can be set off against any income other than salaries. House property loss can be carried forward up to eight years and can be set off only against income under the head, ‘Income from house property’.

47. Is it mandatory to quote my PAN in the income tax return?

Return of Income cannot be filed without a PAN. It is compulsory to quote proper PAN on return of income.

48. I forgot to pay advance tax before 31st march, what should I do now?

If you forget to pay advance tax before 31^st march then interest penalty would be charged as per section 234(a), 234(b) and 234(c).

49. My salary income doesn’t exceed Rs 5 lakh. Do I need to file my return?

Filing of Income Tax Return is required even if your salary is less than Rs 5 lakhs. The exemption from filing IT returns is not applicable for FY 13-14.

50. If I am filing my return online, what are the papers documents/supporting that I need to send to the tax department post filing?

The filing of return of income is a self assessed return and does not require any submission of details, documents as poof in paper form. If the return is filed without DSC then the physically signed copy of ITR Acknowledgement is required to be sent to “Income Tax Department – CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka” by regular Indian Postal Service or speed post only. Once the acknowledgement is received the communication of the same is received over the email or through sms from the IT department.