Frequently Asked Questions about Income Tax Filing
What do we mean by the filing of income tax returns or income tax filing?
There are two ways by which you can file your income tax returns in India. The traditional way is offline, where you go to the Income Tax Department's office to file your returns physically by taking a Physical Income Tax Form from the counter.
Another way is when you e-file online. Over the last few years, e-filing of income tax returns or income tax filing has become more popular because it's easier, doesn't require a physical set of documents, and can be done for free! E-filing or electronic filing of income tax returns is submitting your income tax returns online with the tax authorities and verifying it as well by any mode of e-verification.
How can we file an income tax return in India?
Income Tax Filing or e-filling is made accessible with TAXAJ. You can e-file your returns within just 10 minutes by talking to us!
Also, note that the extended due date to e-file your income tax returns for the assessment year 2021-22 is on or before September 30, 2021.
My company deducts my TDS. Do I still have to file my income tax return?
Yes, deducting the TDS and filing a tax return are two separate things. You file an income tax return to show that you've paid all the tax which you needed to spend on the income accrued or earned by you in the specific year. The income tax return is also a handy document for applying for a loan or visa, or credit card to confirm your financial stability.
Excellent question! Honestly, choosing the correct income tax form to file your income tax return is a lot of work. There are seven income tax forms - ITR 1, 2, 3, 4, 5, 6 and 7 for each tax situation. This is why if you are e-filing with TAXAJ, we automatically decide the proper income tax return form and guide you through the process smoothly and accurately.
How do I pay my income tax to the government or income tax department while filing my income tax return?
You can pay your income tax to the government or income tax department directly on the Income Tax Department Portal/website using your net banking account with challan 280 by following the steps
here.
You can still file your income tax return on TAXAJ without a Form 16. You're just going to need your payslips. You need to share your Form 16 and Investment details, if any, with our expert, and your income tax filing shall be done before you know it.
What is ITR-V or Income Tax Filing Acknowledgement?
ITR-V is a single-page document that you receive after e-filing your income tax return called Income Tax Filing Acknowledgement. Suppose you have not e-verified your income tax return. In that case, you must print, sign and send the ITR-V or Income Tax Acknowledgement to the Income Tax Department CPC Bangalore within 120 days from e-filing your tax return to avoid your filed income tax return being defective.
What if I forgot or missed sending the ITR V or Income Tax Acknowledgement to CPC Bangalore within 120 days?
In case you missed sending the ITR-V or Income Tax Filing Acknowledgement to CPC Bangalore and also couldn't e-verify your income tax return, then consider your filed income tax return to be defective or unfiled because the income tax department doesn't process your income tax return unless its e-verified or physical ITR V is received.
You can also apply for the condonation of delay if you plan to do this after 120 (One hundred twenty) days of filing the income tax return online or manually.
Is it necessary to attach any supplementary documents along with the return of income?
Income Tax Returns are attachment less forms. Hence, the assessee or taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the income tax return (whether filed manually or filed electronically). However, the taxpayer should retain these documents and be produced before the tax authorities demanded an assessment, inquiry, etc.
You can file Income Tax Return Form 1 if the agricultural income is only up to INR 5,000. For agricultural income exceeding INR 5,000, you have to file ITR 2.
If I have paid excess income tax, will I get the refund and how?
The excess income tax paid (usually when TDS has been deducted) can be claimed as a refund by filing your Income-tax return online or manually. It shall be transferred to your bank account through ECS transfer if it's below 1 lakh and by cheque if it exceeds 1 lakh. Take utmost care in mentioning bank details such as account number, IFSC code etc., in the ITR form.
Is it necessary to file an income tax return when I don't have any positive or taxable income?
You must file your income tax return within the due date if you have sustained any losses in the financial year. Suppose you want to carry forward it to the subsequent year for adjustment against the following year's positive income. Losses can only be carried forward to next year only if you have filed the return claiming such loss before the due date.
Who can file a tax return on TAXAJ?
As per subsection 1 of section 139 of the Income Tax Act, 1961, Individuals whose total income during the previous year exceeds the taxable limit should file their income tax returns (ITR).
a. Individuals who only have their Salary Income
b. Individuals who have switched jobs during the year (Multiple Form 16)
c. Individuals having Income from Capital Gains (shares, mutual funds & stocks), business/profession, house property, other income such as Interest etc.
d. Individuals having certain Foreign Income (Onsite deputation), Foreign Assets, NRI
Is it mandatory to do self ITR filing, or can someone else do it on my behalf?
You can seek the assistance or help of
chartered accountants and agencies dedicated to Income Tax Return Filing. It is wiser not to allow anyone unknown or untrustworthy to have your PAN and password to prevent fraud. Also, you can always take assistance from a qualified CA to file Income Tax Returns. With TAXAJ, you can get an Expert to calculate your taxes and e-file your tax return on your behalf. See Prices
here.
Which Tax Regime is beneficial for an Individual Tax Payer?
Both income tax regimes have their pros and cons. The old taxation regime inculcates & promotes the habit of investing in a taxpayer. A new taxation regime is better for employees with less salary and fewer investments, resulting in fewer deductions and exemptions. The new taxation regime is cleaner and straightforward, involving lesser or no documentation and lesser chances of fraud for tax evasion by the taxpayers who claim ingenuine deductions. Everyone will have their own set of deductions and exemptions in their income tax returns, so we need to assess and compare both regimes to see what works best for them.
The new income tax regime will benefit those who don’t have too many deductions or want to jump the paperwork of tax planning. This could include non-salaried taxpayers or individuals (including consultants) who are not eligible for exemptions and deductions under Chapter VI-A of the Income Tax Act. It could also include senior citizens who do not have a pension income and are therefore not eligible for the standard deduction of INR 50,000. However, senior citizens earn a significant portion of their income from interest and enjoy an exemption of Rs 50,000 for interest income under the newly introduced Section 80TTB. They will be better under the existing regime.