FAQs

Form 26AS is a consolidated annual tax statement issued by Income Tax Department of India. It shows all the tax related information against your PAN for a particular financial year and ensures that the tax deducted by the others is actually deposited with the Government.

ITR-U, or the updated income tax return, is a document that enables taxpayers to amend their income tax returns by correcting mistakes or filling in missing information. It also permits individuals who have not submitted their returns by the deadline to file their ITR, even if they have overlooked the chances to file a belated or revised return, within a period of FOUR YEARS following the conclusion of the relevant assessment year. This is a chance provided by the income tax department for taxpayers to report and pay taxes on that income via ITR-U. Depending on the circumstances, the income tax department might take necessary actions.

For Individuals having Income from Salaries, one house property, other sources (other than winning from lotteries and horse races) and having total income upto Rs.50 lakh. In case spouse and minor child are clubbed then their income also should come under the above income heads. Income arises from long term capital gain provided that such income should not exceed Rs.1.25 lakh per annum.

Individuals and Hindu Undivided Families (HUFs) with an income greater than Rs. 50 lakh, provided they do not earn income from Profit and Gain of Business or Profession (PGBP) and do not have PGBP income in the form of interest, salary, bonus, commission, or any type of remuneration received from a partnership firm. If the income of the spouse and minor child is combined, it should also fall under the specified income categories above.

Individuals and Hindu Undivided Families (HUFs) earning income from Profit and Gains of Business or Profession (PGBP), as well as those receiving income categorized as interest, salary, bonus, commission, or any form of remuneration from a partnership firm. If the income of a spouse or minor child is included, it must also fall under the specified income types mentioned above.

a) Individaual / HUF / AOP / BOI (not audited)-31st July

b) Individual / Firm / LLP (requiring audit)-31st Oct

c) Companies (mandatory audit)-31st Oct

d) Taxpayers required to furnish TP Report (3CEB)-30th Nov

e) Belated / Revised Return-31st Dec

A Resident individual,Under old regime:

1) Income doesnot exceed Rs.5,00,000 and

2) Maximum rebate allowed is 100% of tax or upto Rs.12,500.

Under new regime:

1)Income doesnot exceed Rs.7,00,000 and

2) Maximum rebate allowed is 100% of tax or upto Rs.25,000.

A Non Resident cannot claim relief u/s 87A.

Any individual who pays amount towards medical insurance premium upto a maximum of Rs. 25,000 and amount paid for preventive health check up of family up to Rs. 5,000. Above mentioned limit of Rs.25,000 includes both insurance premium and preventive health checkup. A limit of Rs. 25,000 in addition to the above mentioned limit is available to the parents of individual.

In case of senior citizen , Any individual who pays amount towards medical insurance premium upto a maximum of Rs. 50,000 and amount paid for preventive health check up of family up to Rs. 5,000. Above mentioned limit of Rs.50,000 includes both insurance premium and preventive health checkup. A limit of Rs. 50,000 in addition to the above mentioned limit is available to the parents of individual.

Section 80E provides tax deductions on the interest paid for education loans taken for higher studies. This deduction is available to individual taxpayers and can be claimed for loans taken for self, spouse, children, or a student for whom the individual is a legal guardian. The entire interest paid in a financial year can be claimed as a deduction. The deduction is available for a maximum of 8 consecutive years, starting from the year repayment begins, or until the interest is fully repaid, whichever is earlier.

Section 80EEB of the Income Tax Act, introduced in the Union Budget 2019, offers a tax deduction of up to ₹1.5 lakh on the interest paid for loans taken exclusively to purchase electric vehicles (EVs). This provision aims to promote the adoption of eco-friendly transportation by providing financial incentives to individual taxpayers. The loan must be sanctioned between April 1, 2019, and March 31, 2023, from a financial institution or a non-banking financial company (NBFC).

Clubbing of Income refers to the inclusion of another person's income, typically a family member's, into the total income of the taxpayer for tax calculation purposes. This provision, outlined in Sections 60 to 64 of the Income Tax Act, 1961, aims to prevent tax avoidance through the transfer of income or assets within family members without adequate consideration.

1) Income earned by your spouse from assets transferred by you without adequate consideration is clubbed with your income.

2) If your spouse receives remuneration from a concern in which you have a substantial interest, and the remuneration is not due to their technical or professional qualifications, then also it is clubbed with your income.

Income of a minor child (including stepchild or adopted child) is clubbed with the income of the parent whose total income is higher. But there are certain exceptions,

a) If the minor earns income through manual work or by applying their skill, talent, specialized knowledge, or experience (e.g., winning a competition or performing in shows), such income is taxed separately.

b) If the minor is suffering from a disability specified under Section 80U of the Income Tax Act, their income is not clubbed with the parent's income.

No, in India, losses from agricultural income cannot be set off against any taxable income. This is because agricultural income is exempt from tax under Section 10(1) of the Income Tax Act, 1961. As a result, any loss incurred from agricultural activities cannot be adjusted against taxable income from other sources such as salary, business, or capital gains. such agricultural losses can be carried forward for up to 8 assessment years immediately succeeding the year in which the loss was incurred and set-off only against agricultural income in future years.

Yes, to carry forward most types of losses under the Indian Income Tax Act, it is mandatory to file your Income Tax Return (ITR) within the prescribed due date under Section 139(1). Failing to do so generally disqualifies you from carrying forward these losses to offset against future income.

Yes, if your total income including capital gains exceeds the basic exemption, short-term and long-term capital losses can be carried forward for 8 years, but only if the ITR is filed before the due date.

When a person fail to include a financial transaction that was reported by a Source or Reporting Entity in your Return of Income, a computerized method is used to identify the discrepancy. A request for confirmation of the transaction or data supplied by the Source/Reporting Entity is made. By amending its previously filed statements, the Source/Reporting Entity has the option to either validate the information it has supplied or to declare that it has reported incorrectly. if the Source/Reporting Entity validates the information then e-verification will be initatied for the taxpayer.

No, both are completely different. e-verification of return is done after filing the ITR to complete the return filing procedure. where e-verification scheme is if a person fails to include any tranction reported by Soure/Reporting Entity in return of income.

This is mostly an initial check based on data that the IT Department has received from different reporting organizations. In this instance, no order is necessary because this is not a notice for evaluation or reevaluation its just for confirmation. After information is confirmed to be accurately reflected in an ITR, the Income Tax Department is not permitted to take any further action regarding the verified information. The taxpayer may edit the tax return as previously indicated if information is missing from the income return.

A notice will be issued to the taxpayer, electronically(speed postin some exceptional cases) through the Compliance Portal which is accessible through https://eportal.incometax.gov.in, seeking explanation/evdience to support why the transaction has not been considered/included in the ITR.

The taxpayer through electronic means using Compliance Portal gives expalnation. Based on the explanation provided, a view will be formed by the Prescribed Authority about the transaction having/not having been reflected in ITR. After this process a communication will be sent to the taxpayer informing:

a)The taxpayer is not currently required to provide any additional clarification on the matter under verification proceedings, or

b) The explanation provided is deemed insufficient to account for the discrepancy in the particular information, and the taxpayer may, if qualified, update the income return in accordance with Section 139(8A) of the Act.

In case if any person fails to file ITR with in due date, is liable to pay late filing fee of Rs. 5,000. If total income of the person does not exceed Rs. 5 lakh then only Rs. 1,000 is liable to pay.