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Frequently Asked Questions

TO’s prime objective is to maximize tax savings. In fact, it helps you to decide the right tax saving investments for you keeping in view the tax efficiency.

How Tax Optimizer Helps You?

  • Understand and restructure salary components
  • Additional tax savings in current financial year
  • Taxpayer specific financial products and process to invest in them
  • Lack of authentic and relevant Tax education/information
  • Absence of personalized service
  • No information on job change implications, advance tax implications
  • Not knowing the status of past years tax returns
  • Incorrect information on PAN Card not known to taxpayer
  • Action to be taken when notice is received from ITD
  • Refund tracking/follow up

Tax E-Filing – FAQs

All the reasons for making a wise decision for opting for E-filing at TaxSpanner.com:

What is a return of income?

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 is communicated to the Income tax department after the end of the financial year. Different forms are prescribed for filing of returns for different Status and nature of income.
What are the benefits of filing my return of income?
Filing of return is your constitutional duty and earns for you the dignity of consciously contributing to the development of the nation. This apart, your IT returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits etc.
Will I be put to any disadvantage by filing my return?

No, on the contrary by not filing your return in spite of having taxable income, you will be laying yourself open to the penal and prosecution provisions under the Income-tax Act.
What is the due date for filing returns of income/loss?
For an individual or HUF, 31st July of assessment year is the last day for filing return of income/loss.
Why is return filing mandatory even though all my taxes and interests have been paid and there is no refund due to me?

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 return. Only then does the government acquire rights over the prepaid taxes as its own revenue. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.
When is it mandatory for an individual to file return of income?

Individuals are mandatorily required to file return of income if their income from all sources – salary, interest income, etc. – exceeds basic exemption limit of Rs. 2.5 lakhs. For senior citizens and super senior citizens, this limit is Rs. 5 lakhs.
So far, I have never paid any tax. If I file a return this year will the IT department ask me about my earlier year’s income?

It is never too late to start honoring your constitutional obligations for payment of tax. The department may ask you to file return of income for earlier years if it finds that you had taxable income in those years.
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 its positive income, you must make a claim of loss by filing your return before the due date.
My taxable income is above 5 lakh, do I need to file return of income electronically?

Yes, as per notification from CBDT (The Central Board of Direct Taxes) dated 01.05.2013, it is mandatory to file return of income electronically (E-filing).
From where can I get a return form?

The Public Relation Officer [PRO] can be contacted for this purpose. The form can also be downloaded from the site http://www.incometaxindia.gov.in/ (Click on ‘Downloads’ and select ‘Income Tax Returns’).
Which return form is applicable for me on the basis of my Total Income or Sources of income?

Any individual having an annual income of up to Rs. 50 lakhs from salaries, a house, interest income, family pension income, etc., has to file ITR 1-Sahaj form. However, if an individual earns upto Rs. 50 lakhs annually, but also have a house, deposited more than Rs 1 crore in a bank account or incurred Rs. 2,00,000 on foreign travel or Rs. 1,00,000 on electricity bill, they have to file ITR 4-Sugam form.
Where and how am I supposed to file my return?

A return is to be filed before your Assessing officer. It may even be sent by post or filed electronically. Nowadays returns are also being received at designated post offices.
Who is an Assessing officer?

He / She is an officer of the Income tax department who has been given jurisdiction over a particular geographical territory or class of persons. You can find out from the PRO or from the Departmental website http://www.incometaxindia.gov.in/ as to your jurisdiction.
I am going out of India. Who will file my income tax return for this period?
You can authorize any person by way of a Power of Attorney to file your return. A copy of the Power of Attorney should be enclosed with the return.
If I fail to furnish my return within the due date of filing, will I be fined or penalized?
Yes. This may take the form of interest if the return is not filed before the end of the assessment year. Fees for late filing of return [Section 234F]

[Applicable for ITR 1 to 7]

Up to Assessment Year 2017-18, if assessee fails to file the return of income before the end of the assessment year, penalty under Section 271F may be imposed by the Assessing Officer. This penalty provision was omitted by the Finance Act, 2017.

In lieu of such penalty, the Finance Act, 2017 levies a new fees if assessee does not furnish the return of income on the due dates prescribed under Section 139(1).

The amount of such late filing fees shall be:

A. Rs. 5,000 if return is furnished after the due date but before December 31 of the assessment year [Rs. 1,000 if total income is up to Rs. 5 lakhs].

B. Rs. 10,000, in any other case.

After introducing this new provision, the assessees shall now be required to pay the late filing fees under section 234F along with interest under section 234A, 234B and 234C before filing of return of income. The Income-tax Dept. shall not be required to initiate the penalty proceedings separately to levy such fees on late filers.

Relevant changes have been incorporated in the new ITR forms wherein a new row is added to enable the assessee to fill the details of late filing fees.

Can a return be filed after the due date?

Yes. It may be furnished at any time before the expiry of one year from the end of the financial year in which the income was earned. For example, in case of income earned during FY 2018-19, the belated return can be filed before 31st March 2020.
If I have paid excess tax how and when will it be refunded?
The excess tax can be claimed as refund by filing your income tax return. It will be refunded by issue of cheque or by crediting to your bank account. The department has been making efforts to settle refund claims within four months from the month of Filing return.
There are various deductions that have not been reflected in the Form 16 issued by my employer. Can I claim them in my return?

If I have committed any mistake in my original return, am I permitted to file a revise return?
Yes, but only before completion of assessment year provided the department has not completed assessment. However, it is expected that the mistake in the original return is of a genuine and bona fide nature. For example, for Assessment year 2020-21 you can revise your return upto 31-March-2021.
How many times can I revise the return?

Theoretically a return can be revised any number of times before the end of the assessment year or before assessment by the department is completed; whichever event takes place earlier. For example, for Assessment year 2020-21 you can revise your return upto 31-March-2021.
Am I required to keep a copy of the return filed as proof and for how long?

Yes. Since legal proceedings under the income tax act can be initiated up to six years prior to the current financial year, you must maintain such documents at least for this period.
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 6 months to 7 years and fine.
Who should pay advance tax and why?

Taxpayers are required to make advance tax payments if their total tax liability (including income from other sources and so on) in a financial year is more than Rs 10,000. However, most salaried people believe that they don’t have to pay it since tax is already deducted at source from their salaries. As a salaried taxpayer, you can be liable to pay advance tax if you have not reported other sources of income such as interest income to your employer. Penal interest on shortfall in advance tax is payable at 1 percent under section 234B and also under Section 234C, separately, depending on the amount of shortfall in advance tax and dates by which it was not paid as required.
How do I pay tax to the government?
The process to pay ‘tax due’ online to NSDL is:

  1. Visit the link: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
  2. Select Challan No 280
  3. Select code 0021 for tax applicable, relevant assessment year (mention current year filing), and Type of payment as ‘300’ for self assessment tax or ‘100’ for advance tax
  4. Enter the whole amount of the tax due under the head Basic Tax, leaving all other entries blank
  5. Save the soft copy of the challan generated by your bank on your PC
Why should I choose TaxSpanner for Filing My ITR?
Here are the Top 10 reasons to choose TaxSpanner to file your income tax returns:

  1. Always there for your support
  2. Awesome UX
  3. It’s Fast
  4. Leaves nothing on chance
  5. All you may need in one place
  6. Data Privacy & Confidentiality
  7. Your data is always secure
  8. Complete solutions
  9. No mis-selling
  10. No hidden fees

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