Income Tax

With Taxraj, even the word TAX brings a smile…

Is it mandatory for me to file an Income Tax Return if I have a PAN?

No. The following points explain this clearly:

You need to file an Income Tax Return if your Total Taxable Income exceeds the basic exemption limit before taking into account deductions, i.e., tax saving investments.

The basic exemption limit for financial year 2013-2014 is as under: –

Gender, Age & Residential Status

Basic Exemption Limit

Resident Female & Others

Rs.2,00,000

Resident Senior Citizen 
(Age > = 60 yrs and < 80 yrs as on 31st March of Financial year)

Rs.2,50,000

Resident Very Senior Citizen 
(Age > = 80 yrs as on 31st March of Financial year)

Rs.5,00,000

You do not need to file an Income Tax Return if your total taxable income does not exceed the basic exemption limit before taking into account deductions, even though you may have a PAN.

Who can file an Income Tax Return using Taxraj?

 

Any Individual having the following types of income can opt for Taxraj's services:

  • Income from Salary
  • Income from House Property
  • Income from Sale of Investments (Shares, Mutual Fund units, Bonds) or Property
  • Income by way of Interest, Dividend, Gifts, Family Pension, Agricultural Income
  • Brought Forward Losses (Except Loss from Activity of owning and maintaining Race Horses)
  • Clubbing of Income

Why is filing an Income Tax Return using Taxraj a unique experience?

Taxraj offers you a unique experience when filing your tax return. Find out how:

  • You do not need to know Income Tax Laws.
  • The tax computation is done absolutely FREE. You can also view it for free. You pay only when ready to file.
  • Taxraj is an e-Return Intermediary, duly authorized by the Income Tax Department. So we can file your return with the IT Department on your behalf.
  • Taxraj uses 128-bit encryption Secure Sockets Layer (SSL) technology, used by banks around the world. Our servers are the safest home for your data!
  • No advertisements or pop-ups on the Taxraj website.
  • You can prepare and file your return for all types of Income. Taxraj does not place restriction on income types in its plan.

What are the steps for filing an Income Tax Return using Taxraj?

  • Log on to Taxraj,com.
  • Enter the relevant details or upload your form16. Taxraj generates your return based on this data.
  • View your tax computation absolutely FREE!
  • Make a payment to Taxraj based on the Filing Plan you chose.
  • Authorise Taxraj to efile your Income Tax Return.
  • Receive via email the Acknowledgement in  the ITR-V
  • Does Taxraj support manual preparation and filing of Income Tax Returns?

No. Taxraj does not support manual preparation and filing of income tax returns. All returns are e-Filed by Taxraj with the Income Tax Department

Does Taxraj calculate the Tax Refunds that I am eligible for?

Yes. In fact, as you enter your details in the relevant sections, our system updates and remembers your taxable income and tax payable figures.
Once you have entered all the required information, the tax payable by you or refund due to you will be displayed onscreen in your computation. So rest assured – the Taxraj website is not just a tax estimating tool, but a complete return preparation and filing portal!

What are the methods of e-Filing an Income Tax Return using Taxraj?

Taxraj can help you e-File your return using 2 filing methods:

 Steps involved:

  • Prepare your return on Taxraj.
  • Review your Tax Calculation.
  • Get your Income tax Return generated in electronic format.
  • Authorize Taxraj to e-File your Return.
  • Get ITR-V from Income Tax Department in your mail box.
  • Download and print ITR-V, available at your email id.
  • Sign with "Blue" ink, enclose it in an A-4 size envelope. Send this envelope by ordinary or speed post to "Income Tax Department – CPC, Post Box No.1, Electronic City Post Office, Bangalore – 560100, Karnataka" within 120 days
    of e-Filing.
  • Receive e-mail from Income Tax Department, acknowledging the receipt of ITR-V. That is your final acknowledgement. That concludes your efiling.

What steps are to be followed when I e-File without using a Digital Signature?

When you e-File without using a Digital Signature, you receive ITR-V as an attachment in the e-mail sent by the Income Tax Department. Since the return you filed was not signed, your filing is still incomplete. To complete the return filing process, follow the below mentioned steps –

  • Print and sign ITR-V.
  • Do not fold this signed ITR-V. Enclose the same in A-4 size envelope.
  • Mail the envelope within 120 days of e-Filing to –

Income Tax Department CPC
Post Box No.1,
Electronic City Post Office,
Bangalore 560100, Karnataka.

  • Upon receipt of ITR-V, Income Tax Department will send an e-mail acknowledging the receipt of signed copy of ITR-V. This is your acknowledgement.
  • Your filing is now complete..

What is an ITR-V?

  • ITR-V stands for 'Income Tax Return – Verification' form.
  • This form is received when you e-File without using a digital signature.
  • Income Tax Department needs to verify the authenticity of income tax return when filed online without using a digital signature.
  • On receipt of ITR-V you have to sign the copy and submit to the Income Tax Department to complete the filing process.

Can I submit ITR-V anywhere else in India?

No, you cannot. You have to compulsorily mail your ITR-V in a sealed A-4 envelope to the address mentioned above.

Is there any time limit for submitting ITR-V to Income Tax Department?

Yes, you should mail your ITR-V within 120 days of e-Filing your return.

What is the Last Date for filing an Income Tax Return?

The Due Date of filing your Income Tax Return for a financial year is 31st July after the end of the financial year. Thus, for financial year ended on 31st March, 2014, the due date of filing Income Tax Return is 31st July, 2015.

Does that mean that I cannot file return after the last date mentioned?

You can file return after the last date also. In case you have not filed your Income Tax Return for the financial year ended on 31st March, 2014 till 31st July, 2014, still you can file the same till 31st March, 2015. You may be required to pay Interest if any tax is payable by you. Further, in case you have still missed to file your Income Tax Return by 31st March, 2015, you can still file the same till 31st March 2016, beyond which the return will become time barred and you would not be able to file the same. Assessing Officer may require you to pay penalty up to Rs.10,000 for late filing of Income Tax Return.

What is Revised Return and can I file a Revised Return using Taxraj?

If you discover any omission or any wrong statement in the return filed within due date of filing, you may file a revised return at any time before 31-03-2015 or before the completion of the assessment, whichever is earlier.

Whom should I contact in case I have queries / difficulties?

Taxraj's Customer Support team will be happy to help resolve all your doubts and queries. You can write to us at info@Taxraj.com.

I think online filing could be more complex than physical filing. Can Taxraj help me if I need it?

With Taxraj, you can confidently prepare and file your Income Tax Return on your own. We believe you can, because:

  • You are required to fill simple online one page form details for efiling .
  • If you have basic queries like navigating through the website, printing your return etc., you can contact us by email.
  • Your tax calculations are done by intelligent algorithms that are built into our website software and incorporate the latest updates. So you do not have to bother about tax laws and updates. Our system does it all!

Actually, filing returns online is not at all difficult. Read the feedback from other customers just like you about filing using Taxraj.

How secure is my data with Taxraj?

Taxraj protects your data in several ways.

  • Taxraj uses globally accepted 128-bit encryption Secure Sockets Layer (SSL) technology to protect your data while being transmitted from your computer to its data servers. This technology is used by banks globally, and offers the highest level of protection against any third-party intrusion
  • Taxraj servers are secured with firewalls to safeguard your data from viruses and unauthorized intrusion attacks. They are monitored around-the-clock for any denial of service or intrusion attacks
  • As a registered user of Taxraj, you can access your data through a unique password, which you create when you register for our service. Since your password is unique to you, only you can access your data. We have implemented a stringent security policy to protect your data against unauthorized access.

FAQs on filing the return of income

·         What is a return of income?

It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.

 

·         ​What are the forms of return prescribed under the Income-tax Law?

Under the Income-tax Law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms). The forms of return prescribed under the Income-tax Law for filing of return of income for the assessment year 2014-15 (i.e., financial year 2013-14) are as follows (*):

 

Return Form

​ Brief Description

ITR – 1​​

Also known as SAHAJ. It is 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 – 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 income chargeable to income-tax in his/its hands 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 is applicable to individuals and HUFs who have opted for the presumptive taxation scheme of section 44AD/ 44AE.

​ITR – 4

It is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietary business or profession.

ITR – 5

It is applicable to a person being a firm, LLP, AOP, BOI, artificial juridical person, 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) or139(4C) or 139(4D) shall not use this form (i.e., trusts, political party, institutions, colleges, etc.)

ITR – 6

It is applicable to a company, other than a company claiming exemption under section 11 (charitable/religious trust can claim exemption under section 11​).

ITR – 7

It is applicable to a persons including companies who are required to furnish return under section 139(4A) or139(4B) or 139(4C) or 139(4D) (i.e., trusts, political party, institutions, colleges, etc.).

ITR – V

It is the acknowledgement of filing of return of income. 

 

(*) The aforesaid table gives only a brief overview of the return forms and is not an exhaustive discussion. For more provisions of applicability/non-applicability of the ITR Forms, the readers should go through the discussion on each ITR Form covered in later part.​

 

·         ​What are the different modes of filing the return of income?

​The return of income can be filed with the Income-tax Department in any of the following modes (*): –

o    By furnishing the return in a paper form.

o    By furnishing the return electronically under digital signature, i.e., e-filing with digital signature.

o    By furnishing the return electronically and thereafter submitting the hard copy of ITR-V with signature of authorized person, i.e., e-filing without digital signature ($).

 Where the return of income is electronically filed without digital signature, then the taxpayer should take two printed copies of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer, has to be sent (within the period specified in this regard, i.e., 120 days) by ordinary post or speed post to "Income Tax Department – CPC, Post Bag No. 1, Electronic City Post Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the taxpayer for his record.
​​ 

​For whom e-filing of return is mandatory?

Following taxpayers shall file their returns of income only through e-filing mode:

(1) Company :-Every company shall furnish th​e return of income electronically under digital signature. In other words, for corporate taxpayer e-filing with digital signature is mandatory.

(2)Tax Audit Assessee:- 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.

(3) A resident and ordinarily resident individual/HUF 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.

 (4) Taxpayers [other than covered under (1) and (2) above] having total income of more than Rs. 5,00,000 shall furnish the return of income electronically with or without digital signature.

(5) Taxpayers claiming relief under section 9090A or 91 shall furnish the return of income electronically with or without digital signature.

(6) 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

(7) A taxpayer  who is required to furnish a report of audit under section 10(23C)(iv)​, 10(23C)(v)10(23C)(vi)10(23C)(via)10A10AA12A(1)(b)44AB44DA50B80-IA80-IB80-IC 80-ID80JJAA 80LA92E115JB or 115VW​ shall furnish the return of income electronically with or without digital signature.

(8) A political party who is liable to file return of income shall file the same electronically with digital signature.

(*) Where the Return of income is furnished electronically without digital signature, then the taxpayer should take two printed copies of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer, has to be sent (within the period specified in this regard, i.e., 120 days) by ordinary post or speed post to "Income Tax Department – CPC, Post Bag No. 1, Electronic City Post Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the taxpayer for his record.​

·         ​Where and how am I supposed to file my return?

​Return of income can be filed  electronically filed at taxraj.com.​

·         ​​

·         ​What is the difference between e-filing and e-payment?

​E-payment is the process of electronic payment of tax (i.e., by net banking or SBI’s debit/credit card) and e-filing is the process of electronically furnishing of return of income. Using the e-payment and e-filing facility, the taxpayer can discharge his obligations of payment of tax and furnishing of return easily and quickly.​

·         Will I be put to any disadvantage by filing my return?

No, on the contrary by not filing your return inspite of having taxable income, you will be liable to the penalty and prosecution provisions under the Income-tax Act.​

​What are the benefits of filing my return of income?

​​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 validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, loans, and help in getting TDS Refunds etc.​​

·         ​What are the benefits of e-filing the return of income?

E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns filed manually.​​

·         ​Is it necessary to file return of income when I do not have any positive income?

If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date. ​​

·         ​What are the due dates for filing returns of income/loss?

The due dates for filing return of income are as follows:

 

Companies

30th September

Any person (other than companies), whose accounts are to be audited and the working partner of a firm whose accounts are to be audited

 

30th September

In all other cases

31st Ju​ly​

·         ​So far I have never paid any tax. If I file a return this year would the Income-tax Department ask me about my earlier years’ income?

·         No every year’s return is separate and have no connection with old year’s Income.

·         ​If I have paid excess tax how will it be refunded to me?

  • ​​The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through NEFT transfer. The department has been making efforts to settle refund claims at the earliest.​​

·         ​If I have committed any mistake in my original return, am I permitted to file a revised return to correct the mistake?​

 

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.

E.g., In case of income earned during FY 2013-14, the due date of filing the return of income (considering no audit) is 31st July, 2014. If the return of income is filed on or before 31st July, 2014 then the return can be revised upto 31st March, 2016 (assuming assessment is not completed by that date). However, if return is filed after 31st July, 2014, then it will be a belated return and a belated return cannot be revised. ​

·         ​How many times can I revise the return?

​Theoretically a return can be revised any number of times before the expiry of one year from the end of the assessment year or before assessment by the Department is completed, whichever event takes place earlier.​​

·         ​Am I required to keep a copy of the return filed as proof and for how long?

​​Yes, since legal proceedings under the Income-tax Act can be initiated up to four or six years (as the case may be) prior to the current financial year, you must maintain such documents at least for this period. However, in certain cases the proceedings can be initiated even after 6 years, hence, it is advised to preserve the copy of return as long as possible. Further, after introduction of the e-filing facility, it is very easy and simple to maintain the copy of return of income.​​

·         ​There are various deductions that are not reflected in the Form 16 issued by my employer. Can I claim them in my return?

Yes, it can be claimed if you are otherwise eligible to claim the same.​

·         ​Why is return filing mandatory, even though all my taxes and interests have been paid and there is no refund due to me?

Amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing of the return of income. Only then the Government assumes rights over the taxes paid by you. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.​​

Am I liable for any criminal prosecution [arrest/imprisonment, etc.] if I don’t file my Income-tax return, even though my income is taxable?

Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).​​

·         ​What is Form 26AS?

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.

The Income-tax Department maintains the database of the total tax 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 Income-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 in the Permanent Account Number 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.

·         ​What to do if discrepancies appear in actual TDS and TDS credit as per Form 26AS?

Every person deducting tax at source has to furnish the details of tax deducted by him to the Income-tax Department. The details will cover the name of the deductee, Permanent Account Number of the deductee, amount of tax deducted, amount paid to the deductee, date of payment of TDS to the credit of Government, etc. On the basis of the details of TDS provided by the deductor, the Income-tax Department will update Form 26AS of the deductee.

Many times the actual amount of TDS and TDS credit as appearing in Form 26AS may differ and it may happen that the TDS credit appearing in Form 26AS may be less as compared to actual TDS, this may happen due to reasons like non-furnishing of TDS details to the Income-tax Department by the deductor, deducting the tax in incorrect Permanent Account Number, etc. In such a case the deductee should approach the deductor and request him to take the necessary steps to rectify the discrepancy due to above reasons. 

The Income-tax Department updates the TDS details in Form 26AS on basis of details provided by the person deducting the tax (i.e., the deductor), hence, if there is any default on the part of deductor like non -furnishing of TDS details (i.e., TDS return) to the Income-tax Department, deducting the tax in incorrect Permanent Account Number, etc. then Form 26AS will not reflect the actual TDS. In such a case, the taxpayer may not be able to claim the credit of correct TDS. Hence, the taxpayers are advised to confirm the tax credit appearing in Form 26AS and should reconcile the difference, if any. 


·         ​What precautions should be taken while filing the return of income?

Following is the list of few important steps/points/precautions to be kept in mind while filing the return of income:

o    The first and foremost precaution is to file the return of income on or before the due date. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income :

o    Loss (other than house property loss) cannot be carried forward.

o    Levy of interest under section 234A.

o    Penalty of Rs. 5,000 under section 271F can be levied.

o    Exemptions/deductions under section 10A​, section 10B80-IA80-IAB80-IB80-IC 80-ID and 80-IE are not available.

o    Belated return cannot be revised under section 139(5)​.

o    Taxpayer should download Form 26AS and should confirm actual TDS/TCS/Tax paid. If any discrepancy is observed then suitable action should be taken to reconcile it.

o    Compile and carefully study the documents to be used while filing the return of income like bank statement/passbook, interest certificate, investment proofs for which deductions is to be claimed, books of account and balance sheet and P/L A/c (if applicable), etc. No documents are to be attached along with the return of income.

o    Carefully provide all the information in the return form.

o    Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc. 

o    If any tax is payable as per the return of income, then the same should be paid before filing the return of income, otherwise return would be treated as defective return.

o    Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.

o    After filling all the details in the return of income and after confirmation of all the details, one can proceed with filing the return of income.

o    In case return is filed electronically without digital signature do not forget to post the acknowledgement of filing the return of income at CPC Bengaluru (as discussed earlier).  ​​


Basics of E-filing Income Tax India

Not sure if you need to file or when? See below for helpful information!

Relevant Dates

July 31: Due date for filing the tax return for salaried individuals. 

Note that you can file income tax return even after the due date. Such returns are called belated returns. However, there are some disadvantages of filing a belated income tax return:

·        You cannot carry forward the losses incurred during the head under ‘Capital Gains’ or ‘Profits and Gains of Business or Profession’

·        You cannot revise such return later

·        You may have to pay interest under section 234A @ 1% per month (or part thereof) of delay in filing the return. Such penal interest is computed on the amount of income tax due as on the first day of the assessment year. Therefore, if you did not have any outstanding tax liability as on that date then the amount of penal interest under section 234A will be Nil.

·        If you are claiming a refund and you are eligible to receive interest on your refund then you are not eligible to receive interest on the period of delay.

·        If you file the return a year after the end of the financial year, the income tax officer can levy a penalty up to Rs. 5,000 for the delay.

·        In any case, a belated return cannot be filed after 2 years from the end of the relevant financial year.

 

September 15: Due date for the first instalment for payment of Advance Tax

December 15: Due date for the second instalment for payment of Advance Tax

March 15: Due date for the third instalment for payment of Advance Tax
March 31: Last date for filing the return for the  financial year ended 2 years ago

Who is required to file?

An individual is required to file his income tax return for a financial year if his taxable income for that year was in excess of the amount of basic exemption applicable to him.

All the persons whose income is below taxable limits but any tds has been deducted on any income in the way of commission, interest and contract amount and to claim Refund of TDS Deducted, that person is required to efile return.

For FY 2013-14, the amount of basic exemption applicable to individuals (other than resident senior citizens and resident super senior citizens) is Rs. 200,000, and therefore all such individuals are required under the law to file their tax return.

I am not required to file. Should I file voluntarily?

Yes, in the following cases.Where you have incurred a loss and you wish to carry forward the same to future years.

For example, you may have housing loan in India. In most cases, you will have a loss under the head Income from House Property occurring due to interest on such housing loan. You can file tax return showing such loss. This loss can be utilized to offset positive income from properties in future years.

Similarly, you may consider filing tax return if you have incurred any capital losses on sale of shares, etc.
 

Similarly, you may consider filing tax return if you have incurred any capital losses on sale of shares, etc.

Where taxes on certain incomes are deducted at source and you wish to claim a refund of the taxes so deducted. For example, the banks may have deducted tax on interest on FD accounts or tenant has deducted tax on rental payments or Some one had paid Commission and deducted tds, etc.

·        Where you think you would be required to submit copies of your tax returns for visa purposes or for loan purposes.

 

What is Form 16?

Form 16 is a Certificate of Deduction of Tax at Source issued by your employer organization after the end of each financial year.

It includes the details of the employer organization; the amount of tax deducted (from salary) and deposited, the details of the salary and other income and deductions considered by the employer organization to compute the amount of TDS.

Most organizations issue this Form in the month of May. More and more organizations are now issuing the Form 16 in an electronic format (a digitally signed pdf document).

Form 16 forms the basis for preparation of the tax return for the salaried individuals.

What is Form ITR-V?

Form ITR-V is the document which is generated by the tax department’s server soon after a return is e-filed (without a digital signature). The ‘V’ stands for verification. It contains the summary of the e-filed return. The taxpayer is required to verify the summary in the form, print and sign the same and send it to the Centralized Processing Centre of the Income Tax Department by ordinary post or by speed post within 120 days from the date of filing the return. Non-submission of the signed ITR V form within the prescribed time would make the e-return void and the taxpayer would be required to e-file the return afresh.

Am I required to ‘E-file’ my return?

Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more.
Even if you are not required to e-file your return, it is advisable to do so for the following benefits:

·         i) E-filing is environment friendly.

·         ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns.

·         iii) E-returns are processed faster than the paper returns.

·         iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file.

·         v) E-returns can be accessed anytime from the tax department’s e-filing portal.

General FAQs

·         ​What is Income-tax?

It is a tax levied by the Government of India on the income of every person. The provisions governing the Income-tax Law are given in the Income-tax Act, 1961.​

·         ​What is the administrative framework of Income-tax?

The revenue functions of the Government of India are managed by the Ministry of Finance. The Finance Ministry has entrusted the task of administration of direct taxes like Income-tax, Wealth tax, etc., to the Central Board of Direct Taxes (CBDT). The CBDT is a part of Department of Revenue in the Ministry of Finance.

CBDT provides essential inputs for policy framing and planning of direct taxes and also administers the direct tax laws through the Income-tax Department. Thus, Income-tax Law is administrated by the Income-tax Department under the control and supervision of the CBDT.​

·         What is the period for which a person’s income is taken into account for the purpose of Income-tax?

Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1st April and ending on 31stMarch of next calendar year. The Income-tax Law classifies the year as (1) Previous year, and (2) Assessment year.

The year in which income is earned is called as previous year and the year in which the income is charged to tax is called as assessment year.

e.g., Income earned during the period of 1st April, 2013 to 31st March, 2014 is treated as income of the previous year 2013-14. Income of the previous year 2013-14 will be charged to tax in the next year, i.e., in the assessment year 2014-15.​

​Who is supposed to pay Income-tax?

Income-tax is to be paid by every person. The term 'person' as defined under the Income-tax Act covers in its ambit natural as well as artificial persons.

For the purpose of charging Income-tax, the term 'person' includes Individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authority and any artificial juridical person not covered under any of the above.

Thus, from the definition of the term 'person' it can be observed that, apart from a natural person, i.e., an individual, any sort of artificial entity will also be liable to pay Income-tax.​

How does the Government collect Income-tax?

Taxes are collected by the Government through three means: a) voluntary payment by taxpayers into various designated Banks. For example, Advance Tax and Self Assessment Tax paid by the taxpayers, b) Taxes deducted at source [TDS] from the income of the receiver, and c) Taxes collected at source [TCS]. It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly.​

How will I know how much Income-tax I have to pay?

The rates of Income-tax and corporate taxes are available in the Finance Act passed by the Parliament every year. You can also check your tax liability by using the free online tax calculator available at www.taxraj.com

From where can I take the help of any expert on Income-tax related matters?

You can take the help of tax professionals or the help of our consultant.

When do I have to pay the taxes on my income?

Generally, the tax on income crystallizes only on completion of the previous year. However, for ease of collection and regularity of flow of funds to the Government for its various activities, the Income-tax Act has laid down the provisions for payment of taxes in advance during the year of earning itself. It is called as ‘pay as you earn’ concept. Taxes may also be collected on your behalf during the previous year itself through TDS and TCS mode. If at the time of filing of return you find that you have some balance tax to be paid after taking into account the credit of your advance tax, TDS & TCS, the shortfall is to be deposited as Self Assessment Tax.

How to deposit Self Assessment Tax or Advance tax to the credit of Government?​?

Self – Assessment Tax or Advance Tax is to be deposited to the credit of Government by using the challan prescribed in this behalf, i.e., ITNS 280. The Tax can be paid onlineby clicking here

​In the Challan there are terms like Income-tax on companies & Income-tax other than companies. What do they mean?

The tax that is to be paid by the companies on their income is called as corporate tax, and for payment of same in the challan it is mentioned as Income-tax on Companies (Corporation tax). Tax paid by non-corporate assessees is called as Income-tax, and for payment of the same in the challan it is to be mentioned as Income-tax (other than Companies).

How is advance tax calculated and paid?

Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:

​Status

By 15th June

By 15th Sept

15th Dec

15th March

Corporate

15%

45%

75%

100%

Non-Corporate

Nil

30%

60%

100%

Any tax paid till 31st March is treated as advance tax.

The deposit of advance tax is made through challan ITNS 280 by ticking the relevant column, i.e., advance tax.

What is tax on regular assessment and how is it paid?​

Under the Income-tax Act, every person has the responsibility to correctly compute and pay his due taxes. Where the Department finds that there has been understatement of income and resultant tax due, it takes measures to compute the actual tax amount that ought to have been paid. This demand raised on the person is called as Tax on regular assessment. The tax on regular assessment has to be paid within 30 days of receipt of the notice of demand.

·         ​Do I need to insist on some proof of payment from the Banker to whom I have submitted the challan?

The filled-up taxpayer’s counterfoil will be stamped and returned to you by the bank. Please ensure that the bank’s stamp contains BSR Code [Bankers Serial Number Code], Challan Identification Number [CIN], and the date of payment. In case of e-payment a computer generated copy will be issued.

​How can I know that the Government has received the amount deposited by me as taxes in the bank?

The NSDL website [http://www.tin-nsdl.com] provides online services called as Challan Status Enquiry. You can also check your tax credit by viewing your Form 26AS from your e-filing account at www.incometaxindiaefiling.gov.in

Form 26AS will also disclose the credit of TDS/TCS in your account.​

·         ​What should I do if my tax payment particulars are not found against my name in the website?

The possible reasons for no credit being displayed in your Form 26AS can be:

1.   Deductor/collector has not filed his TDS/TCS statement;

2.   You have not provided PAN to the deductor/collector;

3.   You have provided incorrect PAN to the deductor/collector;

4.   The deductor/collector has made an error in quoting your PAN in the TDS/TCS return;

5.   The deductor/collector has not quoted your PAN;

6.   The details of challan against which your TDS/TCS was deposited was wrongly quoted in the statement by the deductor or wrongly quoted in the challan details uploaded by the bank.

To rectify these errors you may request the deductor:

7.   to file a TDS/TCS statement if it has not been filed;

8.   to rectify the PAN using a PAN correction statement in the TDS/TCS statement that has been already uploaded if it has made an error in the PAN quoted;

9.   to furnish a correction statement if the deductor had filed a TDS/TCS statement and had inadvertently missed providing your details or you had not given your PAN to him before he filed the TDS/TCS return;

10.               to furnish a correction statement if the deductor had filed a TDS/TCS statement which had mistake in the challan details;

                to take up with the bank to rectify any mistake in the amount in the challan details uploaded by the bank.​

​Is my responsibility under the Income-tax Act over once taxes are paid?

No, you are thereafter responsible for ensuring that the tax credits are available in your tax credit statement and TDS/TCS certificates received by you and that full particulars of income and tax payment are submitted to the Income-tax Department in the form of Return of Income which is to be filed before the due date prescribed in this regard.

​Income-tax is levied on the income of every person. As per Income-tax Law what constitutes income?

Under the Income-tax Law, the word income has a very broad and inclusive meaning. In case of a salaried person all that is received from an employer in cash, kind or as a facility is considered as an income. For a businessman his net profit will constitute his income. Income may also flow from investments in the form of Interest, Dividend, Commission, etc. Further, income may be earned on account of sale of capital assets like building, gold, etc.

Income shall be computed as per relevant provision of Income-tax Act, 1961 which lays down detail condition for computation of income chargeable to tax under various heads of income​

What is exempt income and taxable income?

An exempt income is not charged to tax, i.e., Income-tax Law specifically grants exemption from tax to such income. Incomes which are chargeable to tax are called as taxable incomes.

E.g., Dividend income from an Indian company is granted specific exemption and, hence, the same is not liable to tax in the hands of the shareholders. However, dividend from a foreign company is taxable.​

I am an agriculturist. Is my income taxable?

Agricultural income is not taxable. However, if you have non-agricultural income too, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for rate purpose. For meaning of Agricultural Income refer section 2(IA) of the Income-tax Act.

 

                Do I need to maintain any records or proof of earnings?

For every source of income you have to maintain proof of earning and the records specified under the Income-tax Act. In case no such records are prescribed, you should maintain reasonable records with which you can support the claim of income.