The income tax return filing is our social responsibility. Everyone who is earning a taxable income should contribute some amount by way of taxes for the benefit of the Nation. As per Prime Minister Modi’s “Mann Ki Baat,” it is the responsibility of all assessees to declare Income and deposit tax their own for the benefit of economic growth.
We can file Income Tax returns by way of online mode and offline mode (In some Cases). But while uploading ITR, there is some confusion for “Aam Aadmi” like…
- Which ITR should I select?
- Where to Invest? And so on…
Here are some general FAQs that are useful in uploading ITR:
1) Which ITR Form to Fill out?
The selection of the ITR form depends on the nature of the Income. Here are the forms that you can choose according to income:
- ITR-1: For Individuals Residents (other than not ordinarily resident) having Income from Salaries, one house property, other sources (Interest, etc.) Long-term capital gains under section 112A up to Rs. 1.25 lakh, and agricultural income up to Rs. 5 thousand and having a total income up to Rs 50 lakh. (Not for an Individual) who is either a Director in a company or has invested in Unlisted Equity Shares)
- ITR-2: For Individuals and HUFs not having income from business or profession
- ITR-3: For individuals and HUFs having income from business or work.
- ITR-4: For individuals, HUF and firms (being resident) having u/s 44AD, 44ADA and 44AE and having a total income of up to INR 50 lakhs and having long-term capital gains under section 112A upto Rs. 1.25 lakh (Not for an Individual who is either a Director in a company or has invested in Unlisted Equity Shares)
- ITR-5: For persons other than:-
- Individual,
- HUF,
- Company and
- Person filing Form ITR-7
- ITR-6: For Companies other than companies claiming exemption under section 11
- ITR-7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D)
2) Where to Invest to Save Tax?
For saving Income Tax, assessee Can Invest up to 1,50,000 under Section 80C, 80CCC and 80CCD(1)
- A deduction up to Rs. 10000/- is allowed u/s 80TTA on interest from a savings bank account. (Up to Rs. 50000/- is allowed in case of senior citizens u/s 80TTB from AY 2019-20)
- An additional tax benefit can be taken under section 80CCD(1B) upto Rs 50000/- regarding contributions made in the national pension scheme
- Medical Insurance paid can be exempt U/s 80D -> Upto Rs. 25000 on the insurance of self not being a senior citizen. Up to Rs. 50000/- on the insurance of parents who are senior citizens
- Donation U/s 80G (Limit of the deduction depends on the donee as specified by Income Tax Rules)
- Rent Paid Exemption U/s 80GG (up to a Maximum of Rs. 60,000
- Deduction u/s 80DD of Rs. 75000/125000 based on disability.
- Deduction u/s 80U of Rs. 75000/125000 based on disability.
3) How to E-Verify Income Tax Return?
Mode and process of generating and validating income tax returns through Electronic Verification Code (EVC):
- Through Aadhaar Number OTP
- Generation of EVC
- Through Net banking
- Through Email ID and Mobile Number
- Pre-validating Bank Account Number
- Through the Demat Account Number
- e-Verify through available EVC (If already have the same)
4) Who is Required to Fill Schedule FA (Foreign Assets)?
Applicability Of Schedule FA: If an individual (not being a citizen of India) is in India for business purpose, employment or student visa purposes and he acquires any asset during the previous year in which he was a non-resident, such asset shall not be required to be reported in Schedule FA – details of foreign assets and income if no income is derived from that asset during the current previous year. That means the requirement to fulfil schedule FA is only for Resident Indians who have Income from any sources outside India or a signing authority in any account located outside India.
5) Is there any Compulsion to Disclose all Bank Accounts other than the Dormant Account?
- Under the new ITR form, an assessee is required to furnish details of all savings and current bank accounts held by him in India at any time during the previous year. However, immunity has been provided to the taxpayer from furnishing details about the bank accounts that have become dormant.
- The ‘dormant’ account shall be those current and savings bank accounts that have not been operational for more than 3 years.
- Details of OD account and FD Accounts are not required to be given, and also there is no need to submit details of Joint Account holder(viz….Name, PAN)
6) How To Claim Relief u/s 89(1)?
- If the assessee has received arrears of Salary, Pension (also includes arrears of family pension), gratuity, and compensation, he can claim relief u/s 89(1).
- You can calculate the relief amount as specified in the Income Tax Act and claim it in the return, but relief will not be granted by the department until you upload Form 10E online.
So if you want to claim tax relief u/s 89(1), you can claim the same by uploading Form 10E first, then you have to upload your ITR form.
7) How can One Revise an Income Tax Return?
- A return can be revised u/s 139(5) before processing by the department or before the expiry of the relevant assessment year, whichever is earlier.
- While uploading the original return, if the assessee forgot to disclose any income or claim any deduction, or he wants to change particulars of the ITR, he can do a revision in his ITR by uploading the revised return.
8) What Should One Report in Schedule ICDS?
ICDS (Income Computation and Disclosure Standards): These are a set of standards notified by the Central Government under the Income Tax Act, 1961, which must be followed by all taxpayers (other than individuals/HUFs not subject to tax audit) for computing income under the head “Profits and gains of business or profession” or “Income from other sources”.
The ultimate goal is to ensure that the income chargeable to tax is computed strictly in accordance with the ICDS and the provisions of the Income Tax Act, which prevails over the ICDS in case of conflict.
One must report adjustments required to the profits or losses to comply with the Income Computation and Disclosure Standards (ICDS) in the tax audit report (Form 3CD), specifically in Clause 13. The ICDS disclosures are required for the purpose of computing taxable income, not for maintaining books of account.
Deviation: This refers to any difference between the accounting treatment followed by a taxpayer in their books of accounts (which typically follow Accounting Standards (AS) or Ind AS) and the principles laid down in the ICDS.
9)Is an Aadhar Number Necessary to Link While Filing Income Tax Return?
Yes, as per the latest government announcement, all business units and taxpayers are obliged to present their Aadhar numbers while filing income tax returns and also when applying for a new Permanent Account Number (PAN).
Further, the taxpayers are required to link their PAN numbers with Aadhar numbers and on a strict basis, the PAN cards that are not attached to the Aadhar Numbers will be deemed invalid.
Recommended: How to Check the Status of My PAN Card? Active or Deactivated!
10) Is it Compulsory to E-File Income Tax Returns, or can you File Returns in Paper Form?
E-Filling is compulsory for the assessee (being an individual or HUF) who is claiming a Refund or whose Total Income exceeds Rs. 5,00,000/-:
Till the assessment year 2014-15, individuals or HUFs who were otherwise not liable to file the return of income electronically could claim the tax refund by filing a return of income in physical form. However, Rule 12, as notified on 15-04-2015, has made it mandatory for every taxpayer to file the income return electronically to claim the tax refund from the department.
Exceptions for Super Senior Citizens for Compulsory e-Filing:
Under the existing rules, all taxpayers, including super senior citizens (being an individual of 80 years or more), are required to file the return of income electronically if their total income exceeds five lakh rupees. From AY 2015-16, a relaxation has been given to the super senior citizens whose total income exceeds five lakh rupees or who are claiming the income-tax refund, to file the return of income in physical form, provided the return is furnished in ITR-1 or ITR-2.
Compulsory E-filing of ITR 3 and ITR 4:
As per the new provision (as notified on 15-04-2015), every individual or HUF who is required to file the return in Form ITR-3 or ITR-4 shall have to file the return of income electronically.
11) How to Upload Defective Return u/s 139(9)?
Nowadays department is sending notices to assessees who are not filing their Income Tax return as per the ITR validation rules.
If the assessee is not following the Income tax validation rules available for every ITR form on the ITD portal then the department considers these Returns as defective returns for example if the assessee offers income under Schedule BP and not disclosing a Balance Sheet and Profit and loss Account in ITR Form then a notice U/s 139(9) has been issued to the assessee by ITD that assessee offered Income under schedule BP and Balance Sheet and profit and loss is not filled.
In that case, the assessee has to change his original ITR form and file the ITR in response to notice u/s 139(9) by inserting CPC Communication No. and notice the date 139(9)
After that assessee has to Login in ITD portal -> E-File -> Upload Return -> In Response to notice u/s 139(9) and upload the JSON file.
12) What is the New Updated Return Form U/S 139(8A)?
The department has introduced an updated return of income tax(Section 139(8A)). A taxpayer who later realises they did not record any income has two years from the end of the relevant assessment year to update their return or file a fresh return if no return was filed earlier.
The assessee must disclose only the income requiring additional tax payment under the prescribed income heads. An updated return of income must be filed in a new form “ITR-U” within 48 months of the end of the relevant assessment year. Thus, updated returns can be submitted as per the table below.
| Assessment Year (AY) | Last date to File ITR-U |
|---|---|
| A.Y 2021-22 | 31st March 2026 |
| A.Y 2022-23 | 31st March 2027 |
| A.Y 2023-24 | 31st March 2028 |
| A.Y 2024-25 | 31st March 2029 |
I am coborrower with my mother in a housing loan not a co-owner. My mother has no income and no returns has been filed yet. Only I have income and repaying the entire loan. Can I claim house interest deduction and 80c benefit under housing loan.