How to file income tax efiling returns online 2017 LIVE updates: Deadline beckons, check out the FAQs; here is what you must do

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New Delhi | Updated: August 5, 2017 5:45:38 PM

How to file income tax efiling returns online 2017 LIVE updates: The last date for filing income tax return was extended to August 5. If you haven't filed your return yet, It is time to file your ITR.

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How to file income tax efiling returns online 2017 LIVE updates: The last date for filing income tax return has now been extended to August 5. Still, it is time to file your tax returns. The early you do it, the better it would be for you. Hopefully all of you must have got your Form 16 from your employers and might also have compiled various statements, documents and forms relevant for filing tax return. Although the Income Tax Department has made the efiling of tax return very simple now and has also launched a dedicated website for this purpose – www.incometaxindiaefiling.gov.in – there might be some doubts and queries related to tax filing playing on the mind of some of taxpayers, such as how to file income tax return, what is Form 16, can an income tax return be filed after the due date, am I eligible for interest on my tax refund, among others. Here we present some Frequently Asked Questions (FAQs) related to income tax filing which will surely help solve some of your doubts!

Here are FAQs and LIVE UPDATE 

5:45 pm: ​Is a Resident senior citizen granted exemption from payment of advance tax?

​​​As per section 208, every person whose estimated tax liability for the year is Rs 10,000 or more, shall pay his tax in advance, in the form of “advance tax”. However, section 207 gives relief from payment of advance tax to a resident senior citizen. As per section 207​ a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession, is not liable to pay advance tax.

12:30 pm: How many years can IT returns be filed for?

In one financial year you can file your IT Returns for previous 2 financial years. For example – in the FY 2017-18, up till 31st March 2018, you can file return for the previous 2 financial years 2016-17 and 2015-16. But this will change when you file your returns in the FY 2018-19 as you will be allowed to file returns for FY 2017-18 only and not any other previous year.

8:45 am: What is the meaning of clubbing of income?

Normally, a person is taxed in respect of income earned by him only. However, in certain special cases income of other person is included (i.e. clubbed) in the taxable income of the taxpayer and in such a case he will be liable to pay tax in respect of his income (if any) as well as income of other person too. The situation in which income of other person is included in the income of the taxpayer is called as clubbing of income. E.g., Income of a minor child is clubbed with the income of his/her parent. Section 60 to 64 give various provisions relating to clubbing of income.

04/08/2017

Read Also: Income Tax return last date for Assessment Year 2017-18: IT offices to remain open on Saturday for filing of income tax returns

5:00 pm: My daughter stays in the USA. She owns a house in India and has let it out. She has asked tenants to pay rent to me. She has not received any rent. Is she still liable to tax? What if she transfers the house to me?

Rental income is charged to tax in the hands of the owner of the property. Your daughter is the owner of the house and, therefore, she is liable to pay tax, even though you receive rent. If the house is transferred to you, then you will become the owner and you will have to pay Income-tax on the rental income.

1:45 pm: Is there any limit of income below which I need not pay tax?

At this moment, Individual, HUF, AOP (Association of Persons), and BOI (Body of Individuals) having income below Rs 2,50,000 need not pay any income-tax. In respect of resident individuals of the age of 60 years and above but below 80 years, the basic exemption limit is Rs 3,00,000 and in respect of resident individuals of 80 years and above, the limit is Rs 5,00,000. For other categories of persons such as co-operative societies, firms, companies and local authorities, no basic exemption limit exists and, hence, they have to pay taxes on their entire income chargeable to tax.

Read Also: Income Tax Return for AY 2017-18: Here’s all you need to know about Schedule AL – Details of assets and liabilities at the year-end

03/08/2017

4:25 pm: I have sold a house which had been purchased by me 5 years ago. Am I required to pay any tax on the profit earned by me on account of such sale?

House sold by you is a long-term capital asset. Any gain arising on transfer of capital asset is charged to tax under the head “Capital Gains”. Income-tax Law has prescribed the method of computing capital gain arising on account of sale of capital assets. Thus, to check the taxability in your case, you have to compute capital gain by following the rules laid down in this regard, and if the result is gain, then the same will be liable to tax.

12:00 pm: I own two houses. One is a farmhouse that I visit on weekends and the other is in the city that I use on weekdays. Is it correct to treat both these residences as self occupied?

No, for the purpose of Income-tax Law, you can claim only one property as self-occupied property and the other property will be deemed to be a let-out property.

02/08/2017

Read Also: Income Tax return efiling: How to report cash deposited during demonetisation period

10:30 am: If I have committed any mistake in my original return, am I permitted to file a revised return to correct the mistake?

Original return can be revised under section 139(5) within a period of one year from the end of the relevant assessment year or before completion of the assessment, whichever is earlier, if the person furnished original return on or before the due (till assessment year 2016-17). In assessment year 2017-18, any original return (which is furnished on or before or after due date) 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. From the assessment year 2018-19, return of income can be revised (original return is filed on or before due date of after due date) at any time during the assessment year or before the assessment made, whichever is earlier.

If the original return has been filed in the paper format or manually, then technically it cannot be revised by online mode or electronically. However, if a person is furnished original return and finds any mistake, omission or any wrong statement, then return should revised within the prescribed time limit.

01/08/2017

Read Also: File income tax returns for previous years: How many years can IT returns be filed for?

Read Also: Aadhaar card link with PAN card last date extended till August 31: Four things you must know

12:50 pm: My income from let out house property is negative. Can I ask my employer to consider this loss against my salary income while computing the TDS on my salary?

Yes, but only to the extent of Rs 2 lakh. However, losses other than losses under the head ‘Income from house property’ cannot be set-off while determining the TDS from salary.

10:30 am: Can my employer consider relief u/s 89 for the purposes of calculating the TDS from salary?

Yes, if you are a government employee or an employee of a PSU or company or co-operative society or local authority or university or institution or association or body. In such a case you need to furnish Form No. 10E to your employer.

31/07/2017

9:00 pm: Even if no taxes have been deducted from salary, is there any need for my employer to issue Form-16 to me?
Form-16 is a certificate of TDS. In your case it will not apply. However, your employer can issue a salary statement.

6:30 pm: Do I need to report exempt  Long Term Capital Gain (LTCG) in ITR-1?

Yes. In ITR1, under Part D – computation of tax payable, there is a column for exempt income. In this column, you have to report your exempt LTCG. If the LTCG is from sale of equity shares, you can mention it in the column given for “Sec10(38)”. For any other LTCG, mention it under the head “others” given under exempt income.

(By Archit Gupta, Founder and CEO, ClearTax)

5:30 pm: I pay rent for the house where I live in. Can that be claimed as deduction too?

Usually, an employer provides HRA as a component of salary. Since you are staying in a rented apartment you can claim deduction for the rent paid. All you need to do is submit the rent receipts to your employer. If the deadline has passed and you have not submitted the proofs, use the HRA Calculator and reduce the exempt HRA from your total taxable salary.

(By Archit Gupta, Founder and CEO, ClearTax)

Read Also: Income Tax return last date extended to August 5 for FY 2016-17

4:30 pm: Is a very senior citizen granted exemption from e-filing of income tax return?

From the assessment year 2017-18 onwards, any taxpayer filing return of income in Form ITR 1/4 and 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. However, Income-Tax Law grants relaxation from e-filing in the above case to very senior citizens. In other words, a very senior citizen filing his return of income in Form ITR 1/4 and having total income of more than Rs 5,00,000 or having a refund claim can file his return of income in the paper mode, i.e., for him e filing of ITR 1/4 (as the case may be) is not mandatory. However, he may go for e-filing if he so wishes.

3:30 pm: 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. However, when the tax sought to be evaded exceeds Rs 25,00,000, the punishment could be 6 months to 7 years).

Read Also: Income Tax notice for mismatch in Form 16 and Income Tax Return: Here’s what you should do

Read Also: Income Tax Return last date for Assessment Year 2017-18: From tax filing requirement to e-verification of ITR, here’s all you need to know about filing tax return

2:30 pm: If I make an investment in ELSS before filing, can I claim the return as a deduction?

No. That is not how it works! You need to make an investment before 31st March every year to claim the same in your income tax return. For example, if you are filing a return for Financial Year 2016-17, you have to make an investment before 31st March 2017. Also, keep in mind that there are upper limits set by the government on the amount of deduction that can be claimed. For example, deduction under section 80C is limited to Rs 1.5 lakh a year.

(By Archit Gupta, Founder and CEO, ClearTax)

1:30 pm: I invest in Fixed Deposits every year. Does this mean I can claim this as a deduction?

Not all investments are eligible as deduction. Only government-specified tax-saving investments are eligible as a deduction. Investments in tax-saving Fixed Deposits, the Public Provident Fund, Employee Provident Fund, Equity Linked Saving Schemes are a few  examples of investments that can be claimed as deductions. Also, expenditures like payment of premium on life insurance, medical insurance, stamp duty on purchase of house and principal on housing loan repayment are allowed as deduction.

(By Archit Gupta, Founder and CEO, ClearTax)

12:30 pm: Can an income tax return be filed after the due date?

If a person misses the tax filing due date for the Assessment Year 2017-18, he can still file his return before the end of the Assessment Year without any penalty.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

10:58 am: If, for any reason, I fail to furnish my income tax return within the due date, will I be fined?

If a person fails to furnish his returns even after the expiry of one year from the financial year for which income tax return is to be filed (i.e. before the end of the relevant assessment year), the Assessing Officer may impose a penalty of Rs 5,000 on him, under section 271F. This penalty is, however, not levied automatically and the decision to levy it is at the discretion of the tax officer.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

10:02 am: What to do if the TDS credit is not reflected in Form 26AS?

Non-reflection of TDS credit in Form 26AS can be due to several reasons like non-filing of TDS statement by the payer, quoting incorrect PAN of the deductee in the TDS statement filed by the payer. Thus, in case of non-reflection of TDS credit in Form 26AS, the payee has to contact the payer for ascertaining the correct reasons for non-reflection of the TDS credit in Form 26AS.

10:00 am: Last month, the Central Board of Direct Taxes (CBDT) had come out with revised format for issuing scrutiny notices and allowed taxpayers to reply to notice using internet by uploading information sought on the e-filing website.

9:50 am: The CPC, which is the centralised database centre of the I-T department, receives income tax returns (ITRs), both e-filed and sent through post, and processes them.

9:40 am: Once a case is picked up for scrutiny under section 143 (2) of I-T Act, a taxpayer has to submit additional documents to the department as sought by the assessing officer so that further investigation can be carried out to find if any income has escaped assessment.

9:30 am: Currently, tax scrutiny notices carry the name and digital signature of the tax official.The I-T department usually picks less than 1 per cent of the total ITRs filed for scrutiny.

9:20 am: E-mails sent out from the CPC would not bear the name of the assessing officer, he said.”It is in discussion stage. This will be as part of the department’s drive to go faceless and reduce interface,” the official, who did not wish to be quoted, told PTI.

9:10 am: The proposed cell will be on the lines of the Central Processing Centre (CPC) that the department currently has in Bengaluru for processing income tax returns. A senior revenue department official said the department wants to reduce interface between taxpayers and the department officers and is planning to set up a CPC.

9:00 am: The I-T department is considering setting up a centralised cell for scrutiny of income tax cases as part of efforts to reduce personalised interface between the taxmen and taxpayers with a view to curb corrupt practices.

8:50 am: The ITRs to be filed by July 31 pertain to 2016-17 fiscal or assessment year 2017-18.

8:40 am: The department has also asked taxpayers to declare cash deposits made in bank accounts aggregating to Rs 2 lakh or more, post demonetisation between November 9-December 30 last year, in the ITRs.

8:30 am: The department has also issued advertisements in leading national dailies in the last few days stating that taxpayers should disclose their income “correctly” and file their ITRs on or before July 31.

8:20 am: The linking of Aadhaar number with the PAN (Permanent Account Number) of a taxpayer has also been made mandatory for filing of an ITR, beginning July 1.

8:10 am: On reports of the e-filing website facing some glitches, the official said that no major glitches have been reported with the department’s e-filing website– https://incometaxindiaefiling.gov.in/–barring a few times when the portal was “interrupted for maintenance”.

8:00 am: “The last date for filing of ITRs remains July 31. There are no plans to extend this deadline. The department has already received over 2 crore returns filed electronically. The department requests taxpayers to file their return in time,” the official said.

7:55 am: The last date for filing of Income Tax Returns (ITRs) for the financial year 2016-17 will not be extended beyond today’s deadline, a top official had said.

30/07/2017

9:00 pm: Is rental income from sub-letting chargeable to tax under the head ‘Income from house property’?

Rental income in the hands of owner is charged to tax under the head ‘Income from house property’. Rental income of a person other than the owner cannot be charged to tax under the head ‘Income from house property’. Hence, rental income received by a tenant from sub-letting cannot be charged to tax under the head ‘Income from house property’. Such income is taxable under the head ‘Income from other sources’ or profits and gains from business or profession, as the case may be.

Read Also: 10 common mistakes people make while filing return of income

8:00 pm: What is the tax treatment of arrears of rent?

The amount received on account of arrears of rent (not charged to tax earlier) will be charged to tax after deducting a sum equal to 30% of such arrears. It is charged to tax in the year in which it is received. Such amount is charged to tax whether or not the taxpayer owns the property in the year of receipt.

Read Also: Income tax return forms to download: From ITR1 Sahaj to ITR2, which return form to use and when

7:00 pm: 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.

Read Also: Income tax efiling: Watch how to file returns using ITR-2 on incometaxindiaefiling.gov.in website in 30 minutes

6:15 pm: Are arrears of salary taxable?

Yes. However, the benefit of spread over of income to the years to which it relates to can be availed for lower incidence of tax. This is called as relief u/s 89 of the Income-Tax Act.

Read Also: Worried over Rs 10,000 penalty for delayed ITR filing? This will apply only from April 1, 2018 onwards

5:00 pm: Do I need to report exempt dividend income from shares/mutual funds in ITR Form 1?

Yes. In ITR1, under Part D – computation of tax payable, there is a column for exempt income. In this column, you have to report your exempt dividend income. If the dividend is received from Indian company, it should be reported under section 10(34) and if the dividend is received from mutual funds, it can be reported under the head “others” given under exempt income.

(By Archit Gupta, Founder and CEO, ClearTax)

Read Also: Income Tax slab for AY 2017-18: Want to calculate taxable income for efiling I-T return? Know the income tax slabs

4:00 pm: Which ITR form to file in case of presumptive income?

ITR 4 is applicable for the taxpayers following presumptive income scheme:

1. A doctor or engineer can opt for presumptive income scheme u/s 44ADA if his gross receipts don’t exceed Rs 50 lakh and can declare 50% of gross receipts as his income.
2. Persons engaged in the accountancy profession, interior decoration, technical consultancy can also for this scheme.
3. Freelancers engaged in the above profession can also opt for this scheme if their gross receipts don’t exceed Rs 50 lakh.
4. Businessman having turnover less than Rs 2 crore may opt for the scheme u/s 44AD and declare the profits at 8% of gross receipts(6% in case of digital receipts).

(By Archit Gupta, Founder and CEO, ClearTax)

3:00 pm: Is leave encashment taxable as salary?

It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of a government employee. In the hands of a non-government employee, leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-Tax Law.

2:00 pm: Are retirement benefits like PF and Gratuity taxable?

In the hands of a government employee, Gratuity and PF receipts on retirement are exempt from tax. In the hands of a non-government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.

1:00 pm: What are allowances? Are all allowances taxable?

Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. For example, tiffin allowance, transport allowance, uniform allowance, etc. There are generally three types of allowances for the purpose of the Income-Tax Act — taxable allowances, fully exempted allowances and partially exempted allowances.

12:05 pm: What is considered as salary income?

Section 17 of the Income-Tax Act defines the term ‘salary’. Not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility is considered as salary.

11.00 am: What to do if tax is deducted, but the ultimate tax liability of the payee is nil or lower than the amount of TDS?

In such a case, the payee can claim the refund of entire/excess amount of TDS (as the case may be) by filing the return of income.

10:00 am: What is tax deducted at source?

For a quick and efficient collection of taxes, the Income-Tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called ‘Tax Deducted at Source’, commonly known as TDS. Under this system tax is deducted at the origin of the income. Tax is deducted by the payer and is remitted to the government by the payer on behalf of the payee.

The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the government.

9:00 am: How do I get a refund of the TDS deducted on my salary? Does it mean that my employer deducts higher tax than what I am required to pay?

No, not at all! An employer requires you to submit proofs of investment and deductions twice in a Financial Year. Once, during the beginning when you have to declare all the investments you propose to make during the year. And the next time again during the months of February or March when you have to submit proofs of investments and deduction. Based on these details, the TDS is deducted by your employer. Sometimes, when you are not able to submit investment proofs, the employer deducts TDS at a higher rate. This excess TDS deducted can be claimed as a refund when you file your return. To do this you have to enter details of investments that were not submitted by you to your employer earlier.

(By Archit Gupta, Founder and CEO, ClearTax)

9:00 pm: 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 the ECS transfer. The Income Tax Department has been making efforts to settle refund claims at the earliest.

7:45 pm: How can an ITR form be downloaded from the Income-Tax Department’s online e-filing portal?

Steps to download an ITR form from the tax department’s portal:

Step 1: Visit the Income-Tax Department’s e-filing portal @ www.incometaxindiaefiling.gov.in;

Step 2: Click on tab “ITRs” appearing under the head “Downloads”

Step 3: Choose Assessment Year as 2017-18;

Step 4: Download the relevant ITR form by clicking on “Download” tab appearing under the head Excel utility and Java utility respectively.

The user may choose Excel or Java utility depending on the ease of using the respective application software.

Read Also: Income Tax Return Filing: CBDT dismisses reports of extension in July 31 deadline

6:40 pm: Why do I have to file income tax returns. My employer is already deducting IDS on my salary. Is filing really required in my case?

Yes, return filing is mandatory if your income excluding exemptions exceeds Rs 2.5 lakh. The employer is responsible for deducting TDS and paying tax on your behalf to the government in advance. You still have to file a return and declare your income, investments, total taxes paid and refund.

(By Archit Gupta, Founder and CEO, ClearTax)

5:30 pm: I have three bank accounts. Is it necessary to disclose all my bank accounts?

Yes, you need to mention the details of all your active bank accounts in your ITR. It is not compulsory to provide details of accounts which are dormant. For this purpose any account which has not been in operation for the past 3 years is considered as a dormant account.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

4:30 pm: My bank has deducted tax @10 %, but I am under the 20% slab. Am I required to pay the balance tax?

Yes, you need to pay the balance tax in the form of advance tax or self-assessment tax. You can also declare this income to your employer so that he can calculate your actual tax liability correctly and deduct the right amount of tax. This will save you from the hassle of paying advance tax.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

Watch this video:

3.15 pm: I made an error in my income tax return. Can I revise it?

Yes, you can revise your return. However, the time period given to taxpayers to revise their return has been revised. Earlier, a taxpayer had 2 years in hand to file a revised return which has now been reduced till the end of assessment year or before assessment is completed.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

2:00 pm: I have a PAN card. Do I need to file income tax return?

Merely having a PAN card does not make it necessary for you to file your tax return. Having, PAN is mandatory to file return but you must have a taxable gross income. Filing tax return is mandatory if your total income before claiming long-term capital gain exemption under section 10(38) and chapter VI-A deduction (80C to 80U) exceeds the basic exemption limit as applicable for the taxpayer.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

Read Also: Income Tax Return Filing Online: Not only income, disclose your assets as well in the income tax return

1:00 pm: Can I claim both medical reimbursement and insurance premium paid?

Yes, you can claim both. Medical Reimbursement up to Rs 15,000 p.a. is exempt from Income Tax. You can also claim tax deduction up to Rs 25,000 (Rs 30,000 if you are a senior citizen) on health insurance premium paid for you & your family; & tax deduction up to Rs 25,000 (Rs 30,000 if your parents are senior citizens) on health insurance premium paid for your parents. But for claiming the medical reimbursement exemption, you should submit medical bills to your employer.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

12:00 pm: Is my tax refund taxable?

Your tax refund is the excess amount of tax paid by you. Therefore, it is not taxable. But interest on your tax refund (if any) is taxable as income from other source.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

11:00 am: Am I eligible for interest on my tax refund?

Yes, you are eligible for an interest on the refund payable to you. Interest is calculated @0.5% per month or 6% per annum from the first day of the Assessment Year until the date when the refund is paid to you. In this case even a part of a month is considered as full month for interest calculation purposes. However, it should be noted here that interest is payable only when the amount of refund due is more than 10% of the total tax payable by tax payer for that year.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

10:00 am: Can an income tax return be filed after the due date?

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 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. For example, in case of income earned during FY2016-17, the belated return can be filed up to 31st March, 2018.

9:00 am: If I fail to furnish my return within the due date, will I be fined or penalized?

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. (No penalty under section 271F would be levied w.e.f. Assessment Year 2018-19)

Note: W.e.f. Assessment Year 2018-19, fee as per section 234F is required to be paid if return is furnished after the due date. Fee for default in furnishing return of income will be as follows:
# Rs 5000 if return is furnished on or before the 31st day of December of the assessment year;
# Rs 10,000 in any other case
However, late filing fee shall not exceed Rs 1000 if the total income of an assessee does not exceed Rs 5 lakh.

9:05 pm: 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 years’ positive income, you must make a claim of loss by filing your return before the due date.

8:00 pm.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.

6:46 pm: 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, etc. You also need to file tax returns if you wish to claim a tax refund.

Read Also: Income Tax Return Filing: 10 ways you get benefited from filing your tax return

6:05 pm:  Who is supposed to file the income tax return electronically?

In any of the following cases the Income Tax Department has made it mandatory to e-file your return.

#You want to claim an income tax refund
#Your taxable income is more than Rs 5,00,000
# ITR-3, 4, 4S, 5, 6, 7 have to be mandatorily e-filed

Paper returns can only be filed by those who are above 80 years of age OR by an individual or HUF whose income does not exceed Rs 5,00,000 and who has not claimed any refund in the return of income.

(By Chetan Chandak, Head of Tax Research, H&R Block India)

Read Also: Watch video: Income tax efiling; how to file returns using ITR 1 form in less than ten minutes on incometaxindiaefiling.gov.in

5:35 pm: What at 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. By using the e-payment and e-filing facility, the taxpayer can discharge his/her obligations of payment of tax and furnishing of return easily and quickly.

4:40 pm: What is the e-filing utility provided 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 the department is simple, easy to use and also contains instructions on how to use it. By using the e-filing utility, taxpayers can easily file their returns of income. Utility can be downloaded from www.incometaxindiaefiling.gov.in.

Read Also: Income Tax Return Filing Online: How to decode Form 26AS and use information to file returns for AY2017-18 on www.incometaxindiaefiling.gov.in

3:50 pm: How can I file the return of income electronically?

The Income Tax Department has launched an independent portal for e-filing of income tax return (ITR). Those who have to file ITR electronically should log on to www.incometaxindiaefiling.gov.in for e-filing their income tax return.

3:45 pm: What is advance tax? Is it not the same as TDS deducted?

Advance tax is payment of income tax in installments to the government. There are 4 installments to be made on 15th of June, September, December and March if there is a tax liability after reducing TDS from the Total Tax. It is not the same as TDS. The liability of advance tax arises when income earned is not subject to TDS or the rate of TDS deduction is lower than the tax slab under which you fall.

(By Archit Gupta, Founder and CEO, ClearTax)

3:40 pm: I make some money out of freelancing. How do I declare this in my return?

Freelancing income is considered as a part of business income. You can also claim any expenses that you have incurred for providing these services as deduction from your freelancing income. Also, you can declare your income on presumptive basis whereby you declare certain percentage of your total freelancing receipts as deemed income. You may want to calculate this in advance and pay accordingly to avoid interest.
(By Archit Gupta, Founder and CEO, ClearTax)

Read Also: Income Tax Return Filing Online: 6 interest incomes you are likely to forget to include in your tax return

3:35 pm: How do I go about filing my income tax returns?

You can file your return on the income tax website www.incometaxindiaefiling.gov.in or you can file your returns through online intermediaries. Some of these websites offer free income tax return filing. Filing on these websites is also easy as they pick up all information directly when you upload your Form 16 without the need for manually entering all values.
(By Archit Gupta, Founder and CEO, ClearTax)

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3:30 pm: What is Form 16? How can I get it?

Form 16 is a certificate from your employer that proves that TDS has been deducted on your salary. Employers usually provide their employees with their Form 16 in the month of June. This document is very important for filing income tax returns in India.
(By Archit Gupta, Founder and CEO, ClearTax)

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