Friday, 25 July 2014

Last date for submit Annual Income Tax Return for Asstt. Year 2014-15 - 31st July, 2014 & ITR FAQs.

Q 1. What are the modes of filing return of income?
Return of income can be filed in paper mode or in e-filing mode. If return of income is filed through electronic mode, then the assessee has following two options:
  1. E-filing using a Digital Signature
  2. E-filing without a Digital Signature

If return of income is filed by using a digital signature, then there is no requirement of sending the signed copy, ITR V (i.e., acknowledgement of return filed electronically) to Bangalore CPC. However, if the return is filed without using digital signature, then the assessee shall send the signed copy of ITR V to CPC, Bangalore at the following address. Income Tax Department - CPC, Post Bag No -1, Electronic City Post Office, Bangalore -560100, Karnataka within 120 days of uploading the return either by ordinary post or speed post only.

Q 2. When is it mandatory to file return of income?
It is mandatory for a company and a firm to file its return on income. However, for an individual and HUF, it is mandatory to file return of income if his/its gross total income (before claiming Chapter VI-A deduction) exceeds the maximum exemption limit. The maximum exemption limit and the slab rates for Assessment Year 2014-15 are given in the following table:

Q 3. Is it mandatory to file return of income if I have a PAN?

No, it is not mandatory to file return of income if your income is less than maximum exemption limit, irrespective of the fact that you have been allotted a PAN.

Q 4. I am an Individual and resident of India. Do I need to file return if my income is below taxable limit but I am having an account in a foreign bank?

Yes, it is mandatory for you to file the income-tax return. In view of newly inserted proviso to Section 139(1), it is mandatory to file income-tax return, if following conditions are satisfied:

(a) The assessee is resident and ordinarily resident in India;

(b) He has any of following:

(i) Signing authority in any account located abroad;

(ii) Any asset located abroad; or

(iii) Financial interest in any entity located abroad.

The assessee is required to provide requisite details of such account, assets or financial interest in the return of income.

Q 5. Which form should I opt for to file my income-tax return for the assessment year 2014-15?




Download ITR-1
Download ITR-2
Download ITR-3
Download ITR-4S
Download ITR-4


Q 6. What are the due dates for filing of income-tax returns for the year ending March 31, 2014?


Q 7. Whether it is mandatory to file return electronically?
E-filing of return is mandatory for:

(a) Every company;

(b) Every AOP or BOI

(c) A person [other than a company and a person required to furnish return in form ITR 7] whose total income exceeds Rs. 5 lakh rupees during the previous year 2013-14;

(d) A firm or an individual or HUF who are required to get their accounts audited under section 44AB;

(e) Every person claiming tax relief under Section 90, 90A or section 91;

(f) A political party [if its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

(g) Every resident and ordinarily resident individual and HUF, if he/it has any of following:

(i) Signing authority in any account located abroad;

(ii) Any asset located abroad; or

(iii) Financial interest in any entity located abroad.

Q 8. When is it mandatory to file return electronically with digital signature?
E-filing of return with digital signature is mandatory for:

(a) Every company;

(b) A firm or an individual or HUF who are required to get their accounts audited under section 44AB;

(c) A Political Party [it its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

Q 9. How to file return electronically?

Income-tax return can be filed electronically with the help of following instructions:

(a) Visit https://incometaxindiaefiling.gov.in;

(b) Choose the appropriate ITR form suitable for your status and source of income (Refer FAQ No. 5) and download excel utility (available only for ITR 1, 2, 3 and 4s) or java utility from the aforementioned website;

(c) Fill the income-tax return in the excel utility or java utility and generate XML file. Java utility has an option to pre-fill the information on basis of PAN card or previous year's return and submit return directly (without generating XML file) but for that one has to create his account at income-tax e-filing portal;

(d) Use the following link to create your account: https://incometaxindiaefiling.gov.in/e-Filing/ Registration/ RegistrationHome.html;

(e) After creation of account, you need to login and then click on "submit return" option;

(f) Select the 'assessment year' and 'form name', then click 'next';

(g) Click on Browse option to select the generated XML file and upload it;

(h) Java utility gives an option to submit return directly, i.e., without generating XML file. Thus, taxpayers who are required to file return in ITR 4, 5, or 7 or those taxpayers who opt to file ITR 1, 2, 3, or 4S in Java utility shall not follow the instructions given above in point (e), (f) and (g).

(i) On successful submission of ITR form, a pop-up menu will be displayed on the screen. Click on "Download" button to get the acknowledgement, i.e., ITR-V;

The final step is to get the printout of such acknowledgement, get it signed and send it to "Income Tax Department - CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka" within 120 days of uploading the return either by ordinary post or speed post only.

If ITR-V is not submitted within stipulated period of 120 days, then it will be deemed that assessee has not filed the return of income.

The assessees who are required to file the ITR-1 may alternatively fill and file their return online without downloading the excel or java utility after login at the incometaxindiaefiling.gov.in.

If assessee is using digital signature ("DSC") for uploading the return, it is to be registered on the website beforehand. If return is filed through DSC, assessee would not be required to send the print-out of the acknowledgement to CPC.

Q 10. What if I have forgotten the login details of https://incometaxindiaefiling.gov.in?

(a) Click on forget password or on the following link https://incometaxindiaefiling/gov.in/e-Filing/UserLogin/ LoginHome.html;

(b) Enter your user ID (i.e., your PAN) and the captcha (i.e., the security random code) and click on continue;

(c) In the password reset page, one of the following options can be selected:

(i) Answer the secret question;

(ii) Upload the digital signature certificate; or

(iii) Enter e-filed acknowledgement number or bank account number as furnished in return of income.

(d) Enter new password twice and click on 'Reset Password' to generate new password;

(e) If you are unable to retrieve your password, send an email request from registered email-id, to validate@incometaxindia.gov.in with following details:

(i) PAN:

(ii) Name of the assessee as appearing on the PAN card;

(iii) Date of Birth/Date of incorporation;

(iv) Name of father as appearing on the PAN card;

(v) Registered PAN Address;

New password will be communicated to you by the income-tax department via email.

Q 11. If the last date to file income-tax return is a public holiday, whether the next day would be treated as "last date of filing"?

Normally, income-tax department continues its operation during the last days of filing of income-tax return even if the last days eventually fall on Sundays or on holidays. However, if department is closed on the last due date, then the immediately next working day of the department would be considered as the last date of filing of income-tax return.

Q 12. How can I find my jurisdictional Assessing Officer?

Either click on Services>Know your Jurisdiction given on the home page of incometaxindiaefiling.gov.in or use the following link https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html to know your jurisdictional officer.

Q 13. How to know TAN of my deductor?


It can be found either on the Form 16/16A or in the 26AS tax credit statement available on https://www.tdscpc.gov.in/app/login.xhtml TRACES (TDS Reconciliation and Correction Enabling System) website.

Q 14. How would I know whether my e-return has been processed at CPC Bangalore?
Log on to the e-filing website and select CPC processing status to check the status of return.

Q 15. I am the authorized signatory of the firm. While filing the return of income I get an error that 'PAN mentioned in Verification section is invalid'.
In case of return of income of firm/company/AOP/BOI/Artificial judicial person/Co-operative society/trust, etc., PAN of authorized signatory is required to be filled in verification field instead of the assessee's PAN.

Q 16. I had e-filed my return and had identified some mistake which seems to be a 'mistake apparent from record'. Can I make rectification with CPC in paper form?

No, the CPC doesn't accept any of the manual correspondence. You have to login to incometaxindiaefiling.gov.in and have to file rectification request using web portal.

Q 17. What to do in case of TDS mismatch?

Even if the credit for TDS as claimed in the return matches with the balance as appearing in the Form 26AS, Assessing Officer may raise a demand for payment of differential amount due to TDS mismatch. The reason for such difference could be as under:

(1) TAN of deductor was wrongly mentioned

(2) Name of deductor was not spelt out correctly

(3) Tax deducted by one deductor was wrongly included in the amount of tax deducted by another deductor

In case of such TDS mismatch, an assessee can file a rectification request.

Steps to file the rectification request:

(a) Login to your account in https://incometaxindiaefiling.gov.in

(b) Go to My Account > Rectification request

(c) You need the following to fill in the required details:

(i) PAN

(ii) Assessment Year

(iii) Latest Communication Reference Number (it starts with CPC/Assessment Year/)

(iv) Latest CPC Order date
(Request Rectification)
(d) Click on Validate to go to next step

(e) On the next screen, choose 'Taxpayer is correcting data for Tax Credit Mismatch Only' from the drop-down box of 'Rectification Request Type'

(f) Check from the following relevant boxes for which item taxpayer is seeking rectification:

(i) TDS on salary income details

(ii) TDS on other than salary income details
(Submit Information)

(g) Fill in all the relevant details including details of tax deducted and reported in the return of income filed earlier

(h) Click on the button 'Submit' to submit the rectification request.

The TDS mismatch may also be due to error in TDS return filed by deductor. In such a situation, you should intimate the deductor about such error and require him to rectify the TDS return.

In press note no. 402/92/2006, dated April 17, 2014 CBDT had noted that many taxpayers commit mistakes while furnishing details of tax credit in the return of income. Such mistakes include:

(a) Invalid/incorrect TAN of deductor;

(b) Furnishing same TAN for more than one deductor;

(c) Filing information in wrong TDS Schedules in the Return Form;

(d) Furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax, etc.

Consequently, the tax credit could not be allowed to the taxpayers while processing returns despite the tax credit being available in Form 26AS statement. The CBDT, therefore, directs the taxpayers to verify if the demand raised on them is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands. The rectification requests have to be submitted to the jurisdictional Assessing Officer in case the return was processed by such officer, or the taxpayer is informed by CPC, Bangalore that such rectification is to be carried out by Jurisdictional Assessing Officer. In all other cases of processing by CPC, Bangalore, an online rectification request can be made (as defined above).

Q 18. I have filed my return electronically and furnished the signed copy of acknowledgment to the CPC. However, I have received a letter from CPC that said copy of acknowledgement had not been received. Since time-limit to resend the acknowledgement already expired, whether it will be deemed that I have not filed the return?

The same issue has been dealt with by Bombay High Court in the case of Crawford Bayley & Co. v. Union of India [2011] 16 taxmann.com 323 (Bom.), wherein the Court, despite expiry of the time-limit to send the acknowledgment, allowed additional time to assessee to resend the same, since the assessee had furnished adequate material before the Court in support of its contention that having filed return electronically, it had also submitted ITR-V Form by ordinary post.

Based on the above, it can be inferred if you have already submitted the ITR-V to the CPC then you can resend the acknowledgement, even though the time-limit for filing ITR-V has already expired, provided you have sufficient evidences to substantiate the fact that you have send the acknowledgment earlier within 120 days of uploading the return either by ordinary post or by speed post only.

Q 19. Can I file the return even if the due date to file the same has expired?

Yes, you can file return of income belatedly within a period of one year from the end of relevant assessment year or before the completion of assessment, whichever is earlier.

Q 20. What are the consequences of filing belated return?

If return is filed after the end of relevant assessment year, in that case penalty of five thousand rupees can be levied under section 271F.

If the return of income is not filed within the due date specified under section 139(1), loss incurred during the year under the heads 'Profits and gains of business and professions' and 'Capital gains' cannot be carried forward to next year.

Q 21. Can I file return of income even if my income is below taxable limits?

Yes, you can file return of income voluntarily even if your income is less than the maximum exemption limit.

Q 22. I have filed my return of income; however, I omitted to claim benefit of Section 80C deduction. What should I do?
The benefit of omitted claim can be availed only by filing a revised return. But in that case you have to ensure that your original return has been filed within the due date as return can be revised only if it has been filed originally within the specified due date (Refer FAQ 6). An income-tax return can be revised within one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier.

Q 23. I am a salaried person. My total taxable salary is Rs. 5,40,000 on which tax has been duly deducted under Sec. 192 amounting to Rs. 39,140. During finalization of return, I found that my bank has given me a credit of Rs. 1,24,500 towards interest. Please guide me what should I do now?
In this situation, you have to pay the balance taxes on the interest income (or any other income) before filing of return. As per revised computation, your total tax liability would be Rs. 64,787. Since tax of Rs. 39,140 has already been deducted under Sec. 192, the balance tax of Rs. 25,647 should be paid along with interest under Section 234B and 234C. The tax and interest can be paid in any authorized bank through Challan No. ITNS 280. Alternatively, it can be paid through online bank portal through following link https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp.

Q 24. What documents are needed to be enclosed along with the return of income?
Income-tax returns are annexure less. Hence, there is no need to enclose any document(s) along with the return of income. Thus, documents like TDS certificate, balance sheet, Profit & Loss A/c, Capital A/c, proof of investments, etc., are not to be attached along with the return of income. However, these documents should be retained and have to be produced before the Assessing Officer whenever he requires us to do so.

Q 25. My employer has deducted tax without allowing me relief of section 89. Can I claim the relief while filing the return of income?

If the employer fails to provide relief under section 89 and deducts excess tax, then you can claim such relief in your return of income and can claim refund of excess tax deducted.

Q 26. How to claim deduction on donation given to an organization registered under section 80G?
Deduction under section 80G can be claimed by filing the return of income in which the following details need to be given:
(a) Name of donee;
(b) PAN of donee;
(c) Address of donee; and
(d) Amount of donation.

Q 27. How to avoid deduction of tax, if during the year the accrued interest on deposit in my saving account is Rs. 15,000 and my total income including such interest income is below taxable limit?

You can file a self-declaration to the banker in Form 15H (in case of Senior Citizen) or Form 15G (in case of assessees below 60 yrs. of age) stating that your income is below taxable limit.

Q 28. Whether salaried persons are not required to file return of income for assessment year 2014-15?

Exemption from filing return of income isn't available for salaried persons for Assessment Year 2014-15, as exemption from filing of return of income for salaried persons was allowed under Notification No. 9/2012 only in respect of the Assessment Year 2012-13. Similar notification for Assessment Years 2013-14 and 2014-15 has not been issued. Therefore, every assessee earning income of more than basic exemption limit shall file the return of income.

Q 29. Whether all salaried taxpayers can choose ITR-1 for filing income-tax returns?

No, all salaried taxpayers can't choose ITR-1 for filing tax returns from Assessment Year 2013-14 onwards. They can choose ITR-1 only if they are claiming exemption under sec. 10 (e.g. HRA, Conveyance allowance, etc.) up to Rs 5,000 or less. So, if taxpayer is claiming any exemption under sec. 10 which exceeds Rs. 5,000, he cannot file return of income in ITR-1 (As per amended Rule 12 of income-tax rules).

Q 30. I omitted to submit rent receipt and investment proof to my employer because of which relief for HRA and certain other deductions weren't given to me; the tax deducted from my salary income is higher than my actual tax liability. How to claim refund of such excess tax?

Even if the benefit of HRA under Section 10(13A) and deduction under Chapter VI-A are not considered by the employer in Form 16, yet they can be claimed in the income-tax return. Accordingly, the excess tax deducted by employer can be claimed as refund.

Q 31. Can I claim deduction under section 80C of interest on housing loan?

Repayment of principal portion of residential housing loan will be allowed as deduction under section 80C within the overall limit of Rs. 1,00,000. However, such deduction is available if housing loan is borrowed by assessee from:
(a) Central Government or any State Governments
(b) Banks, including a co-operative banks
(c) LIC
(d) National Housing Bank
(e) Domestic Public company providing long-term finance for construction or purchase of houses in India
(f) Assessee's employer, being an authority or a board or a corporation or any other body established or constituted under Central or State Act
(g) Assessee's employer being, a public company or a public sector company or a university or a university established by law or a college affiliated to such university or a local authority or a co-operative society.

However, interest on housing loan is deductible under section 24(b) while computing income chargeable to tax under the head "Income from house property".

Q 32. How to claim benefit of tax deducted in advance on income which is taxable in subsequent years?

Certain provisions of TDS (including TCS) require deduction of tax at source at the time of payment or at the time of credit, whichever occurs earlier. Advance payments are also subjected to TDS. Old ITR form did not have any mechanism to carry forward the excess TDS, thus, taxpayers were required to show the entire TDS as a deduction and claim refund of excess TDS. To overcome the issues, the Schedule TDS/TCS in the ITR forms introduced two new columns:

(a) Unclaimed TDS/TCS brought forward

(i) Financial Year in which deducted/collected

(ii) Amount brought forward

(b) TDS/TCS being claimed this year from amount brought forward or from TDS/TCS of current financial year.

Thus, the portion of TDS credit pertaining to income taxable in the subsequent year can be carried forward to subsequent year and can be claimed in the year in which income is offered to tax.

Q 33. What will be the consequences if return of income is filed without making payment of self-assessment tax?

To discourage the practice of filing of return of income without payment of self-assessment tax, the Finance Act, 2013 has amended Explanation to section 139(9) so as to provide that the return of income shall be deemed as defective return if tax including interest thereon, if any, payable in accordance with the provisions of the Act has not been paid on or before the date of furnishing of the return.

Q 34. Whether is it mandatory to furnish PAN of the landlord to claim exemption in respect of house rent allowance ?

If employee is claiming exemptions for house rent allowance and the annual rent paid by him exceeds Rs. 1,00,000, it is mandatory for him to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Q 35. Who is required to file audit report electronically?
Following persons are required to get their accounts audited and file the audit report electronically:

(a) A person carrying on business, if his turnover exceeds Rs. 1 crore

(b) A person carrying on profession, if his gross receipt exceeds Rs. 25 lakh

(c) A person eligible to compute taxable income on presumptive basis but does not opt to do it so

(d) Trusts or institutions registered under section 12AA or claiming exemption under section 10(23C)(iv),(v), (vi) or (via) if their total income exceeds the amount not chargeable to tax.

(e) Persons claiming deduction under section 80-IA, 80-IC.

(f) Non-Resident or a foreign company who is in receipt of royalty or fee for technical services in pursuance of an agreement with the Indian government or an Indian concern (subject to conditions specified under section 44DA)

Q 36 Is there any requirement to file audit report electronically with digital signature?

Yes, following persons are required to file their audit report electronically along with digital signature-

(a) Every company

(b) A firm, Individual or HUF who is required to get its accounts audited under section 44AB.

Q 37. Is there any other report which has to be filed electronically?

Following reports have to be filed electronically:

(a) Report of Transfer Pricing under Section 92E

(b) Report on computation on Net worth in case of slump sale under Section 50B

(c) Report on computation of book profit in case of companies liable to pay MAT under Section 115JB

(d) Report certifying the correctness of deductions claimed under section 10A, 10AA, 80-IB, 80-ID, 80JJAA, 80LA

(e) Report on tonnage taxation scheme

Q 38 Is there any restriction on number of returns that can be filed using same email-ID or same mobile number?

Yes, only 10 returns can be filed using same email-id or same mobile number.

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