Frequently Asked Questions For Senior Citizens
What is income tax return ?
Do I need to file Income Tax return?
Income tax return is a document you file with the Internal Revenue Service or the state tax board reporting your income, profits and losses of your business and other deductions as well as details about your tax refund or tax liability.
In what ways, can I file my Income Tax return?
You are required to file Income Tax Return (ITR), if your total income exceeds the basic exemption limit. Basic exemption limit as per Income Tax Act is as follows:
• RS 250000/- for resident individual below 60 years of age.
• RS 300000/- for resident individual above 60 years but below 80 years of age.
• RS 500000/- for resident individual above 80 years of age.
My employer deduct and deposits TDS on my behalf.Do I still need to file my Income tax return?
A) You can file your returns manually or by online mode
• If you file your returns using online mode, you have two options.
• E-Filing using digital signature - If you file e-return using digital signature there is no requirement to send signed copy of ITR to Bangalore CPC.
• E-Filing without using digital signature - If you file e-return without using digital signature, then you are required to send signed copy of ITR to Bangalore CPC at following address
Income Tax Department CPC Post Bag No-1, Electronic City Post Office, Bangalore-560100, Karnataka.
Note- Ispeedtax helps you in filing income tax return with ease and accuracy. Log onto www.ispeedtax.com and e-file your income tax return.
B) Is e-filing mandatory?
E-Filing is mandatory in certain cases. For example, if your total income exceeds Rs. 5,00,000 p.a. then you are compulsorily required to e-file your Income Tax Return. It is a much simpler process than filing a paper return and also your refunds are processed faster if your return has been E-Filed.
What are the benefits of filing return?
Yes, even if your employer deducts and deposits your TDS on regular and timely basis, you are still required to file your tax return if your income exceeds Rs. 2,50,000. This helps in determining any dues or eligibility for refunds.
Do I need to attach any documents along with my income tax return?
Followings are the benefits you get on filing returns-
• To claim refund- If you have a refund due from the Income Tax Department, you will have to file returns, without which you will have to forgo the refund.
• To carry forward losses- If you do not file returns, you will not be able to carry forward capital losses (short-term or long-term), if any, in a financial year to be adjusted against capital gains made in the subsequent years.
• Loans- Its easy to get loan,if you have ITR receipts.
• Visa Processing-If you are travelling overseas, foreign consultants ask you to furnish ITR receipt of the last couple of years at the time of the visa interview. Some embassies may ask for ITR receipts of previous three years, while some others may ask for the most recent certificate.
• Buying a high life cover-Buying life cover of Rs 50 lakh or Rs 1 crore has become commonplace. However, these covers are available against your ITR documents to verify annual income. Life insurance companies, especially LIC, ask for ITR receipts these days if you opt to buy a term policy with sum insured of Rs 50 lakh or more.
• Government Tender-Experts say that if one plans to start their business and need to fill a government tender or two for the same, they will need to show their tax return receipts of the previous five years. This again, is to show your financial status and whether you can support the payment obligation or not. However, this is no strict rule. It may vary depending on the internal rules of the government department. Even the number of ITRs required can vary.
• Self Employed-Businessmen, consultants and partners of firms do not get Form 16. Hence, ITR receipts become an even more important document for them, provided their annual income exceeds the basic exemption limit of Rs 2.50 lakh.
For how long should i keep my return documents with me?
No, you don’t have to attach any document along with your income tax return. You are required to submit documents only when the Income Tax Department asks you to submit.
Following are the documents you should have,so that you can e-file as quickly as possible :
View your tax credit statement of Form 26AS to ensure that the TDS deposited by your employer matches the amount on your Form 16. In case it doesn’t match, you can get a notice from the IT department.
You can claim deductions even if you forgot to submit proof to your HR. Deductions under section 80C, 80G can be claimed while filing income tax returns.
Interest up to Rs. 10,000 on savings accounts and fixed deposits is exempt from tax.
Ready your profit and loss statement, balance sheets or audit reports before you begin e-filing, if applicable.
Log onto www.ispeedtax.com
and e-file your income tax return.
What is Form 26AS?
Normally Income Tax Department can ask for the documents of 6 years prior to the current Financial Year. Therefore, you must maintain your documents at least for this period. However, in some special cases, Income Tax Department can also ask for documents pertaining to periods older than 6 years, so it is advisable to keep your documents as long as possible.
What is TDS?
Form 26AS is a statement maintained and generated by the Income Tax Department for each individual assesse (person). Form 26AS contains the details of your:
• Advance Tax or Self-assessment tax
• 15G/H details
• Details of paid refund
What is Form 16?
Full form of TDS is Tax Deducted at Source. Under Income Tax Act, there are certain payments including salary, interest etc. in which the one who makes such payment is liable to deduct tax. TDS is finally adjusted with the final tax payable at the time of computation of income tax return.
What is PAN and TAN?
Form-16 is a certificate of total TDS deducted from salary,given by the employer. Details of TDS deducted and the details of salary, allowances & deductions are mentioned in Form-16.However the details of deductions mentioned are subject to the proof of deductions submitted by the employee to their employer. Hence real computation may change from the computation mentioned in Form-16.
It is given at the end of year and helps the employee to file the income tax return. Remember Form-16 is not an alternative for Income Tax Return. Filing Income tax return is mandatory even if correct TDS has been deducted as per Form—16.
What are the types of ITR?
Full form of PAN is Permanent Account Number which is a 10 digit alpha numeric identification. It is issued to each tax payer by the Income Tax Department.
Full form of TAN is Tax Deduction Number which is a 10 digit alpha numeric number allotted to those who are liable to deduct TDS by the Income Tax Department.
What is ITR1?
There are 8 different income tax return (ITR) forms a taxpayer can file, depending on the source of income.Some common ITR forms are as below:
• Advance Tax or Self-assessment tax
• 15G/H details
• Details of paid refund
Who is eligible to file ITR 1 return?
The ITR-1 , also called Sahaj is the Income Tax Return Form for salaried individuals (i.e. salary/pension/family pension and interest income).
Who is not eligible to file ITR 1 return?
ITR -1 should be filed by an individual for an assessment year, when his Total Income includes:
• Income from Salary/Pension
• Income from One House Property (excluding cases where loss is brought forward from previous years)
• Income from Other Sources (excluding winning from Lottery and Income from Race Horses)
• In case of clubbed Income Tax Returns, where a spouse or a minor is included, this can be done only if their income too is limited to the above specifications.
How do i check my income tax refund status?
ITR -1 should be filed for an assessment year, when Total Income of an Individual includes:
• more than one Property
• Lottery, Race horses, Legal Gambling etc.
• non tax-exempted capital gains (Short term and Long term)
• agricultural means exceeding Rs. 5000
• Business and Profession
• Individual who is a Resident and has
• assets (including financial interest in any entity) outside India or
• signing authority in any account located outside India.
• Individual claiming relief of foreign tax paid or double taxation relief under section 90/90A/91.
How I can file income tax return using ispeedtax?
What is Form 26AS?
If you were due to get refund of income tax from the income tax department, you can check the status of that refund.
All you need to do is enter your PAN number and email ID that is registered with the IT department.
ispeedtax will fetch the refund details and inform you about the same on screen.
What is the last date of filing an Income Tax return?
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.
Does that mean that I cannot file return after the last date mentioned?
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, 2017, the due date of filing Income Tax Return is 31st July, 2017.
What is revised return?
You can file return after the last date also under section 139(4),belated return. However, in such case you will have to pay penal interest @ 1% per month for late filing. In case you have not filed your Income Tax Return for the financial year ended on 31st March, 2017 till 31st July, 2017, still you can file the same till 31st March, 2018. You may be required to pay Interest. Further, in case you have still missed to file your Income Tax Return by 31st March, 2018, you can still file the same till 31st March 2019, 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.
I think online filing could be more complex than physical filing. Can ispeedtax help me if I need it?
If you discover any omission or any wrong statement in the return filed within due date of filing, you may file a revised return under section 139(5) at any time before 31-03-2018 or before the completion of the assessment, whichever is earlier.
How secure is my data with ispeedtax?
With ispeedtax, you can confidently prepare and file your Income Tax Return on your own. We believe you can, because:
• You are guided through simple interactive screens with online help available at each step.
• 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 and incorporate the latest updates. So you do not have to bother about tax laws and updates. Our system does it all!
What is a return of income?
Ispeedtax protects your data in several ways.
Ispeed 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.
Ispeedtax 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 Ispeedtax, 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.
From where can I get a return form?
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. These forms can be downloaded from www.incometaxindia.gov.in
What are the different modes of filing the return of income?
The return form can be downloaded from the site http://www.incometaxindia.gov.in or http://incometaxindiaefiling.gov.in
For whom e-filing of return is mandatory?
The Return Form can be filed with the Income-tax Department in any of the following ways, -
( i ) by furnishing the return in a paper form;
(ii) by furnishing the return electronically under digital signature.
(iii)by transmitting the data in the return electronically under electronic verification code;
(iv) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;
Where the return of income is filed in the manner given at (iv) 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, is 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, Bengalore-560100 (Karnataka). The other copy may be retained by the taxpayer for his record.
Is it necessary to attach any documents along with the return of income?
For whom e-filing of return is mandatory?
( i ) From the assessment year 2015-16 onwards any asessee 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 Rs. 5,00,000 is required to furnish the return of income electronically with or without digital signature or by using electronic verification code.
( ii ) 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.
( iii ) 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.
( iv ) A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India or income from any source outside India shall furnish the return of income electronically with or without digital signature or by using electronic verification code.
( v )
Taxpayers claiming relief under section 90, 90A or 91 shall furnish the return of income electronically with or without digital signature or by using electronic verification code.
( vi ) 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.
( vii )
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 to give a notice under section 11(2)(a) shall furnish the return electronically..
( viii )
Return Form ITR- 3 is to furnish electronically in the following modes:
(i) by furnishing the return electronically under digital signature;
(ii) by transmitting the data in the return electronically under electronic verification code;
(iii) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V.
Where and how am I supposed to file my return?
TR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). 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.
As discussed above, no documents are to be attached along with the return of income, however, in case of a taxpayer who is required to furnish a report of audit under section 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 to give a notice under section 11(2)(a) shall furnish it electronically on or before the date of filing the return of income.
How to file the return of income electronically?
Return of income can be filed either in hard copy at the local office of the Income-tax Department or can be electronically filed at www.incometaxindiaefiling.gov.in
In the case of certain persons (already discussed in previous FAQ) e-filing is mandatory.
What is e-filing utility provided by the Income-tax Department?
Income-tax Department has established an independent portal for e-filing of return of income. The taxpayers can log on to www.incometaxindiaefiling.gov.in for e-filing the return of income..
Is there any e-filing help desk established by the Income-tax Department?
The Income-tax Department has provided free e-filing utility (i.e., software) to generate e-return and furnishing of return electronically. The e-filing utility provided by Department is simple, easy to use and also contains instructions on how to use it. By using the e-filing utility, the taxpayers can easily file their returns of income. Utility can be downloaded from www.incometaxindiaefiling.gov.in
What is the difference between e-filing and e-payment?
In case of queries on e-filing of return, the taxpayer can contact 1800 4250 0025.
Will I be put to any disadvantage by filing my return?
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.
What are the benefits of filing my return of income?
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.
Is it necessary to file return of income when I do not have any positive 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, etc.
What are the due dates for filing returns of income/loss?
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.
If I fail to furnish my return within the due date, will I be fined or penalized?
Due date of filing of return of income
|Status of the taxpayer
|Any company other than a company who is required to furnish a report in Form No. 3CEB under section 92E (i.e. other than covered in 2 below)
||September 30 of the assessment year
|Any person (may be corporate/non-corporate) who is required to furnish a report in Form No. 3CEB under section 92E
||November 30 of the assessment year
|Any person (other than a company) whose accounts are to be audited under the Income-tax Law or under any other law
||September 30 of the assessment year
|A working partner of a firm whose accounts are required to be audited under this Act or under any other law.
||September 30 of the assessment year
|Any other assessee
||July 31 of the assessment year .
Can a return be filed after the due date?
Yes, if you have not furnished the return within the due date, you will have to pay interest on tax due. If the return is not filed up to the end of the assessment year, in addition to interest, a penalty of Rs. 5,000 shall be levied under section 271F.
If I have paid excess tax how will it be refunded to me?
Yes, if one could not file the return of income on or before the prescribed due date, then he can file a belated return. A belated return can be filed within a period of one year from the end of the assessment year or before completion of the assessment, whichever is earlier. Return filed after the prescribed due date is called as a belated return. However, w.e.f. 01-04-2017, belated income-tax return for the Assessment Year 2017-18 and onwards can be filed at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. A belated return attracts interest and penalty as discussed in previous FAQ.
E.g. In case of income earned during FY 2015-16, the belated return can be filed up to 31st March, 2018.
If I have committed any mistake in my original return, am
I permitted to file a revised return to correct the mistake?
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 ECS transfer. The department has been making efforts to settle refund claims at the earliest.
How many times can I revise the return?
Yes* 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 2015-16, the due date of filing the return of income (considering no audit) is 31st July, 2016. If the return of income is filed on or before 31st July, 2016 then the return can be revised upto 31st March, 2018 (assuming assessment is not completed by that date).
Am I required to keep a copy of the return filed as proof and for how long?
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.
There are various deductions that are not reflected in the Form 16 issued by my employer. Can I claim them in my return?
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.
Why is return filing mandatory, even though all my taxes and interests have been paid and there is no refund due to me?
Yes, it can be claimed if you are otherwise eligible to claim the same.
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?
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.
What is Form 26AS?
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 to do if discrepancies appear in actual TDS and TDS
credit as per 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 precautions should be taken while filing the return
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 Permanents 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.
Following is the list of few important steps/points/precautions to be kept in mind while filing the return of income:
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 :
Loss (other than house property loss)
cannot be carried forward.
Levy of interest under section 234A.
Penalty of Rs. 5,000 under section 271F can be levied.
Exemptions/deductions under section 10A, section 10B, 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE are not available.
Belated return cannot be revised under section 139(5). However, w.e.f. 01-04-2017, income-tax return for the Assessment Year 2017-18 and onwards filed under section 139(1) or section 139(4)[belated return’ can also be revised.
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.
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.
The taxpayer should identify the correct return form applicable in his case.
Carefully provide all the information in the return form.
Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.
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.
Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.
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.
In case return is filed electronically without digital signature and without electronic verification code do not forget to post the acknowledgement of filing the return of income at CPC Bangalore (as discussed earlier).
For details on e-filing please logon to www.ispeedtax.com