Menu
header photo

Registration Consultant for NGO,Society,Trust,Company

 We provide the fully solution NGO,Society,Trust, Private Limited Company,Proprietorship, Partnership Firm according to their needs. 

Form no 16

Download Form No 16

31 July, 2018 is the due date to file your income tax returns (ITR) for FY 2017-18 (AY 2018-19).

FAQs

  1. Capital gains can be invested multiple times to buy a new residential house property.
    Income Tax allows exemption on the long term capital gain if you invest in a new residential property subject to certain conditions.Now recently ITAT Delhi has allowed multiple-year exemption
  2. Do NRI need to disclose foreign bank account information in tax returns ?
    It is not mandatory for NRI to disclose the detail of their overseas bank accounts while filing return in India.In case of refund,they should mention the bank account held by them in India.
  3. Received Income Tax Notice for Mismatch in Income with Form 16/16A? Here’s What You Need to Do
    A step-by-step guide on how to reply to a income tax notice on mismatch in return income with Form 16/16A.
  4. Second Phase of Operation Clean Money: 5.56 Lakh New Taxpayers Identified for Scrutiny
    Income Tax Department launched the second phase of Operation ‘Clean Money’ on 14th April,2017 to detect the flow of black money into the banks after demonetization. During this phase, 5.56 lakh new persons have been iden
  5. How to e- verify your return using Demat Account
    After you have successfully filed your income tax return, the next step is to verify it. The Income Tax Department starts processing your return when it is verified.You can e-verify using demat account number
  6. Update on Sec 269ST – Clarification on the repayment of Loan Instalments in Cash
    You can repay your loan amount to any HFC (Housing finance company) or NBFC (Non-banking finance company) in cash provided each loan instalment is less than Rs 2 lakh.
  7. Aadhaar Mandatory for PAN application from Ist July,2017
    Aadhaar has to be quoted mandatorily while applying for PAN. If you do not have Aadhaar but has applied for it, then you can also quote your 28-digit enrolment id.
  8. Know About Form 16C and Challan 26QC for deducting TDS on Rent
    individual/HUF not covered under tax audit are also required to deduct TDS @ 5% if the payment of rent is Rs 50,000 or above.TDS deducted should be paid within 30 days from the end of the month in which tax is deducted.
  9. How to E-verify your Income Tax Return using Bank Account
    E-verification of the return is done by generating Electronic Verification Code(EVC). EVC is a 10 digit alphanumeric code which is sent to registered mobile number. EVC can be generated using bank account
  10. Do I Need to Pay Tax on Dividend Income?
    Dividend received from an Indian company is exempt from tax, whereas the dividend received in excess of Rs 10 lakhs is taxable.
  11. Running a Business : Be Careful about claiming Payments made to Relatives
    Section 40A(2) gives power to the income tax officer to disallow any expense if payment is made to specified persons and he considers it to be excessive in regard to fair market value of goods or services provided
  12. What to do if you have two PAN
    Every person should possess only one PAN number. It’s illegal for a person or company to have two PAN.You can apply for surrender of PAN Offline & online
  13. How to Apply for PAN
    NSDL website & UTIITSL website have been authorized by the govt.to carry out PAN transactions on behalf of the Income Tax Department.
  14. Tax Planning Under MAT
    Know about MAT (Minimum Alternative Tax) which is tax payable under Income tax Act. Check out the concepts of MAT & how to calculate MAT.
  15. Can You Save Tax by Transferring Money to Wife’s Account?
    Find out if you can save tax by transferring money to wife’s account. Check out how is the income from such transfer treated from income tax standpoint.
  16. How to Respond to a Defective Return Notice?
    Check out how should you respond to a defective income tax return notice and revise your income tax return in response to the notice
  17. How to Respond to a Demand Notice from Income Tax Department?
    A step by step on how to respond to a demand notice from Income Tax Department. Check out where can the details of the demand be accessed.
  18. Basics of Income Tax for Beginners
    Here is the simplified guide on income tax basics for beginners. Know about terms like tax year, salary, deductions, medical expenses, heads of income.
  19. How to request for a refund reissue?
    A step by step guide with screenshots on how to make a refund reissue request from the income tax department. Check out what does refund unpaid mean.
  20. Income Tax Slabs | Income Tax Rate for 2017-2018 and 2016-2017
    Find out the Income Tax slab tax rates for FY 2017-18 (AY 2018-2019) & FY 2016-17. The Income tax slab determines how much you will pay in taxes.
  21. How to Link Aadhaar card to PAN
    A step by step guide with screenshots on how to link aadhar to PAN. It is compulsory to provide both Aadhaar & PAN number while filing income tax return.
  22. Did you Receive Intimation under section 245 of the Income Tax Act?
    Find out why you have received intimation under section 245 of income tax act. Know how to respond to the Assessing Officer regarding this intimation.
  23. Landlord’s PAN Mandatory for HRA Exemption
    Income Tax Department has made PAN card mandatory for HRA Exemption. Find out what to do in case your landlord doesn’t have PAN.
  24. Can you claim both HRA & deduction on home loan interest?
    Find out whether you can claim both HRA & deduction on home loan interest? See if you can avail house property-related tax benefits to lower taxable income.
  25. House Rent Allowance
    Find out what is HRA, how is tax exemption from HRA calculated. Check whether you can claim HRA and Deduction on home loan interest as well?
  26. Revised rules related to Submission of Form 15CA and Form 15CB
    Check out the rules revised by income tax department relating to the preparation & submission of Form 15CA and Form 15CB which are effective 1st April 2016.
  27. Filing Form 10E is Mandatory to Claim Relief under Section 89(1)
    to claim relief for arrears salary received, you will have to file form 10E. This is a step by step guide to file form 10E. This form is required to be filed on Income Tax Website before filing your income tax return.
  28. Handbooks on Taxation for Individuals, Freelancers, Traders & Investors
    Download the Tax Handbook for individuals, freelancers, Traders & Investors. Use the guide to find out How to Deal with Taxes?, How Taxes work etc.
  29. Getting ESOP as salary package? Know about ESOP Taxation
    Understand how ESOP is taxed and find out the instances where it is taxed. Read about key terms involved in ESOP taxation.
  30. Did you receive a notice from Income Tax Department regarding Non Compliance & Non Filing of Returns?
    Did you receive an Income Tax Notice to file returns? Here’s the step by step guide to submit the compliance form online at Income tax department website.

Tags: incometaxindia, Income Tax, efiling of income tax, tax slab, taxindiaonline, e return, incometaxindia login, income tax slab for fy 2017 18, income tax slab 2017 18, efiling india, tax slabs in india

FiLing Income Tax Returns Online

Start Filing Your Income Tax Return        (Easiest way to e-File Income Tax Return)

Income tax definition and common terms

What is Income Tax?

Income tax is tax levied on the income of a person by the Government of India as per the provisions contained in the Income Tax Act 1961. It is levied on income earned during the year starting from 1 April and ending 31st March.

What is Previous Year and Assessment Year ?

Previous Year is the financial year in which the income is earned. The income earned during this previous year is charged to tax in Assessment Year, which is the year after previous year. For example for the Income earned in Financial Year (Previous Year) 2016-2017 the assessment of tax is carried out in 2017-2018. Thus 2017-2018 is the Assessment Year.

Who is Liable to pay Income Tax ?

Every person is liable to pay tax in India if his total income is more than the income notified by the government in the slab rates. Here, the definition of person includes :

  • An Individual
  • A Hindu Undivided Family (HUF)
  • A Company
  • A Firm
  • An Association of Persons (AOP) or a Body of Individuals (BOI)
  • A Local Authority
  • Artificial Juridical Persons

On What Amount is Income Tax Calculated ?

For calculating income tax, notified slab rates are applied to the taxable income of a person earned during previous year. Taxable income is to be calculated as per the provisions and rules contained in the Income Tax Act, 1961. One has to calculate income under various heads of Income and net them after deducting deductions available under Chapter VI-A to get Net Income Chargeable to Tax.

How do I Make the payment of Income Tax to Government ?

The payment of income taxes can be made to the government by either physical mode i.e. cash/cheque in any designated bank branch or e-payment on NSDL website. Payment is to be made in Challan 280 in both the cases. The challan is to be filled very carefully as its accuracy is important for further processing.

Who is Required to File Income Tax Return ?

What is Income Tax Return ?

An Income Tax Return is a statement of income earned to calculate tax liability and payment or refund of taxes. Thus, the purpose of filing the return is to report our income and taxes paid thereon to the government.

Any person whose income exceeds the basic exemption limit as specified in the Income Tax Act,1961 is required to file an Income Tax Return. Now, the basic exemption limit changes from year to year. At present the limit is Rs. 2,50,000 for individuals of less than 60 age, Rs. 3,00,000 for individuals in the age bracket of 60-80 years, and Rs. 5,00,000 for individuals of more than 80 age. It is compulsory to file an income tax return if any of the condition is applicable to you :

  • If your taxable income is more than slabs notified in Finance Act for that Year. Example for an Individual Resident below 60 years of Age the Slab is 2,50,000 /-(A.Y. 2017-2018) and for senior citizen it is 3,00,000. Thus if his income is more than 2,50,000/- ( or 3,00,000 in case of senior citizen) then it is mandatory for him to file Income Tax Return.
  • If you are an entity registered as a firm or a company, irrespective of the income or loss during the year.
  • If you have losses under any head and want to carry forward those losses to next year.
  • If you want to claim refund of taxes already paid i.e., TDS, Advance Tax etc.
  • If you are a resident individual holding any kind of Foreign Asset e.g. Immovable property, Bank account etc. or are a signing authority in a foreign bank account then you are compulsorily required to file the return.

Which Income Tax form is applicable for me ?

The type of return form in which you should file your return varies as per the category of Assessee.

  • For Individuals/HUF: ITR-1, ITR-2, ITR-3, and ITR-4
  • For Company: ITR-6, ITR-7
  • For other than Individuals and Company: ITR-5

Registrationindia ITR filing software helps in the correct selection of form for you. You just need to fill the details relevant to you and Registrationindia will itself generate the correct XML.

If I am an Individual, which return form should I file ?

On the basis of source of Income an Individual can file return in form ITR-1, ITR-2, ITR-3 and ITR-4 :

ITR 1: Salaried Individuals not having capital gain, income from business or profession, income from more than one house property and income from maintaining and owning race horses.

ITR 2: Salaried individuals/HUF having income from business or profession from a Partnership Firm.

ITR 3: An individual/HUF having income from business or profession from a Proprietorship Firm.

ITR 4: An individual/HUF opting for Presumptive Taxation Scheme.

Who can file IT Return in ITR-1 ?

You can file return in ITR-1 (Sahaj) if you are an Individual having :

  • Income from other sources
  • Salary
  • Pension
  • Income from up to one house.
  • Agriculture Income less than Rs. 5,000.
  • Total Income is less than Rs. 50 lakh.

Who can file IT Return in ITR-2 ?

  • You can file return in ITR-2 if you are an Individual or HUF having :
  • Income from items in ITR 1 which is more than Rs. 50 lakh.
  • Income from capital gains.
  • Foreign Income.
  • Agricultural Income more than Rs. 5,000.
  • Income from Business or Profession under a Partnership firm.

Who can file IT Return in ITR-3 ?

You can file return in ITR-3 if you are an Individual or HUF having :

  • Income from items mentioned in ITR 2.
  • Income from Business or Profession under a Proprietorship Firm.

Who can file IT Return in ITR-4 ?

You can file return in ITR-4 (Sugam) if you are an Individual or HUF having :

  • Section 44AD – Business (Deemed Profit-8% or 6%)
  • Section 44ADA –Profession(Deemed Profit-50%)
  • Section 44AE – Transporters (Deemed Profit- Rs. 7500/vehicle per month)

Who can file IT Return in ITR-5 ?

You can file return in ITR-5 if you are an Individual or HUF having :

  • Firm
  • Limited Liability Partnerships
  • Association of Person
  • Body of Individuals
  • Artificial Juridical Persons
  • Local Authority or Co-operative Society

How to file my Income Tax Return ?

The return can be filed both physically & electronically. For e-filing download the government utility from Income tax portal (in excel format or java utility). Complete all the fields and information required, pay the tax due and generate the xml. You can upload this xml on government portal by logging into your account. Once the xml is uploaded download the acknowledgement in ITR-V. This ITR-V can either be verified using EVC code or can be couriered to CPC Bangalore for further processing. OR you can simply use the Registrationindia return filing software for filing return in less than 5 mins and uploading them directly on the government portal.

Is having PAN, mandatory for Income Tax filing ?

Yes, a person must have PAN in order to proceed for filing of income tax return.

What are the benefits of filing Income Tax Return ?

Filing of ITR is basically a legal obligation which everyone who falls under is required to comply with. But, it also helps in getting bank loans, visas, for claiming refund against excess income tax paid, as a proof of income certificate and most importantly for tax payer’s self-satisfaction.

Do, I need to attach any documents with my IT Return ?

No, documents are not required to be attached with the return. However one should preserve these documents as proof in case demanded by tax authorities.

What is 26AS ? It is required to file Income Tax Return?

26AS is a consolidated statement showing the tax credit associated with our PAN. It shows how much tax has been received by government by way of TDS deposited by deductor (employer, bank) on our behalf, Advance tax deposited by us, self-assessment tax deposited etc. It is important to match tax payments and TDS deducted with 26AS before filing your income tax return to get tax credit as we can take tax credit of only those items appearing in our 26AS.

How Can I view my 26AS?

26AS can be viewed only by those taxpayers who are registered on Income tax Portal. User is redirected to traces portal when he makes a request to view 26AS. The statement can be viewed and downloaded for the selected Assessment year. LegalRaasta automatically fetches information from your 26AS form.

I have already paid my taxes, Do I still need to file my return ?

Yes, return filing is mandatory if your taxable income is above the slab irrespective of whether taxes have been paid or not. You can claim benefit of tax credit or get refund only if your return is filed.

What if I Fail to submit my income tax return on time ?

The return can be submitted after due date u/s 139(4). An assessee who fails to file return within due date will have to pay interest u/s 234A.

Within what time can belated or late return to be filed ?

The belated return can be filed on or before 31st March of the relevant Assessment Year.
What to Do if a mistake is made in filing the Return ?
If any error is discovered after the return is filed then return can be revised u/s 139(5). Revised Return of Income Tax can be filed by an assessee any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

What are the Due dates for filing Income Tax Return ?

Type of Tax Payer Due Date
Company30th September
Persons whose accounts are required to be Audited u/s 44AB30th September
Working Partner in a firm (where firm’s accounts are required to be audited)30th September
Individuals, HUF,AOP,BOI etc. whose accounts are not required to be audited u/s 44AB31st July

Income Tax Basics

Everyone who earns or gets an income in India is subject to income tax. (Yes, be it a resident or a non-resident of India ). Also read our article on Income Tax for NRIs. Your income could be salary, pension or could be from a savings account that’s quietly accumulating a 4% interest. Even, winners of ‘Kaun Banega Crorepati’ have to pay tax on their prize money. For simpler classification, the Income Tax Department breaks down income into five heads:
Head of Income Nature of Income covered
Income from SalaryIncome from salary and pension are covered under here
Income from Other SourcesIncome from savings bank account interest, fixed deposits, winning KBC
Income from House PropertyThis is rental income mostly
Income from Capital GainsIncome from sale of a capital asset such as mutual funds, shares, house property
Income from Business and ProfessionThis is when you are self-employed, work as a freelancer or contractor, or you run a business. Life insurance agents, chartered accountants, doctors and lawyers who have their own practice, tuition teachers
Tax Slabs
People’s incomes are grouped into blocks called tax brackets or tax slabs. And each tax slab has a different tax rate. In India, we have four tax brackets each with an increasing tax rate.
  • Income earners of up to 5 lakhs
  • Income earners of between 5 lakhs and 10 lakhs
  • And those who make more than 10 lakhs per year
Income Range Tax rate Tax to be paid
Up to Rs.2,50,0000No tax
Between Rs 2.5 lakhs and Rs 5 lakhs5%5% of your taxable income
Between Rs 5 lakhs and Rs 10 lakhs20%Rs 12,500+ 20% of income above Rs 5 lakhs
Above 10 lakhs30%Rs 1,12,500+ 30% of income above Rs 10 lakhs
This is the income tax slab for FY 2017-18 for taxpayers under 60 years. There are two other tax slabs for two other age groups: those who are 60 and older and those who are above 80. A word of note: People often misunderstand that if they earn let’s say Rs.12 lakhs, they will be paying a 30% tax on Rs.12 lakhs i.e Rs.3,60,000. That’s incorrect. A person earning 12 lakhs in the progressive tax system, will pay Rs.1,12,500+ Rs.60,000 = Rs. 1,72,500. Check out the income tax slabs for previous years and other age brackets.

Exceptions to the Tax Slab

Capital gains are taxed depending on the asset you own and how long you’ve had it.
Type of capital asset Holding period Tax rate
House PropertyHolding more than 24 months Holding less than 24 months20% Depends on slab rate
Debt mutual fundsHolding more than 36 months Holding less than 36 months20% Depends on slab rate
Equity mutual fundsHolding more than 12 months Holding less than 12 monthsExempt 15%
Shares (STT paid)   Shares (STT unpaid)Holding more than 12 months Holding less than 12 monthsHolding more than 12 months Holding less than 12 monthsExempt 15%  20% As per Slab Rates  
FMPsHolding more than 36 months Holding less than 36 months20% Depends on slab rate
Indians living abroad or Indians earning foreign income are also taxed differently based on their residential status and their income in India. If you are a NRI, only your income earned or accrued in India is taxable. If you are resident Indian for that financial year, then your global income is taxable.

Calculating Income Tax in India

You’ll just need your payslip. The government provides plenty of tax benefits and credits that taxpayers you can take advantage of. Read our article on Section 80C to know more. The government keeps introducing and altering tax slabs, schemes and tax benefits, so it’s a good idea to keep up with the Budget.

Income Tax deductions

There are broad themes to what the government incentivizes. These are covered under Section 80 of the Income Tax Act. Here they are:
Home ownership
  • Stamp duty and Registration under Section 80C
  • Home loan principal and interest
  • First time homeowner benefit of Rs.50,000 under Section 80EE

Tax deduction on home purchase with a home loan in FY 2017-18

Deduction on Maximum allowed (for self-occupied house property) Maximum allowed (for property on rent)
Stamp duty and registration + principalRs.1,50,000 within the overall limit of Section 80CRs.1,50,000 within the overall limit of Section 80C
Deduction on home loan interest under Section 24Rs.2,00,000No cap (but rental income must be shown in the income tax return)
Deduction for first-time homeowners under Section 80EE *certain conditions applyRs.50,000
Home renting
  • House Rent Allowance or HRA (for salaried only) Given how many Indians move cities for work, this is a common allowance most salaried individuals can find in their payslips. If you are renting an apartment, be sure to claim this in your tax return.
  • Section 80GG (if you are renting and don’t get HRA) If you are not salaried, or you are still salaried, but don’t get HRA, then you can claim deduction for rent under Section 80GG. Learn more.
Health
  • Life insurance under Section 80C
  • Medical insurance under Section 80D
  • Preventative health checkups
  • Medical bills (for salaried only)

Tax Deductions for health insurance under Section 80D in FY 2017-18

Person insured Maximum deduction Below 60 years Maximum deduction 60 years or older
You, your spouse, your childrenRs.25,000Rs.50,000
Your parentsRs.25,000Rs.50,000
Preventative health checkupRs.5,000Rs.5,000
Maximum deduction (includes preventative health checkup)Rs.50,000Rs.1,00,000
 
Long-term savings

Employee provident fund (for salaried only) Companies cut 12% of your basic salary and put it in a fund managed by EPFO. Public provident fund Individuals can open a PPF account from a post office or a public sector bank like State Bank of India and ICICI Bank. Pension under Section 80CCD(1B)

Other investment avenues
Investment Risk Interest Guaranteed Returns Lock-in Period
ELSS fundsEquity-related risk12-15% expectedNo3 years
NSCRisk-free8.1%Yes5 years
5-Year FDsRisk-free7-9% expectedYes5 years

Here are 10 benefits of filing ITR even if you are below the taxable bracket

If you don’t file ITR, the belated return could lead to extra interest at 1% per month for the remaining tax payable by you

1. Most millennials think that if their salaries fall below the taxable bracket they shouldn’t be filing ITR (Income Tax Returns). However, that is not true. One needs to file income tax return the time they enter a job and start earning. Experts say that apart from being a good corporate citizen, an income tax return also serves as a proof of income earned by an individual and total taxes paid. So it is always advisable to file one’s tax return even when the taxable income falls below the basic exemption threshold.

2. ITR Receipt is an important document| Having an ITR receipt is important because it is more detailed than Form 16, entailing your income and taxation along with revenue from other sources.

3. Use as address proof| ITR receipt is sent to your registered address, which can serve as residential proof.

4. Helps the bank loan documentation process easier| Being a diligent income tax filer makes it easier for banks to assess your source of income when you apply for loans like an auto loan, home loan etc.

5. Compensate losses in the next financial year| Unless you file the ITR, you cannot recompense your expenses/losses in the previous financial year to the current. As per the income-tax provisions, if tax returns are not filed on time, unadjusted losses (with some exceptions) cannot be carried forward to future years. Hence, to ensure that the losses are carried forward for future adjustment, a tax return would be required to be filed.

6. Helps to avoid extra interest| If you don’t file ITR, the belated return could lead to extra interest at 1% per month for the remaining tax payable by you. For example, banks would deduct tax from interest on fixed deposits exceeding a certain threshold. To claim a refund of tax deducted by the bank (if any) on the interest income, a tax return would be required to be filed regardless of the taxable income.

7. Avoid penalties or scrutiny from the tax department| From FY 2017-18 Rs 10,000 would be levied for non-filing of ITR. This black mark will remain for years to come.

8. Credit Card Processing| Banks can reject your credit card application if you haven’t filed your ITR.

9. For a hassle-free visa application procedure| At times visa authorities ask for copies of past tax returns, hence to apply for a visa a tax return would be required to be filed. Embassies, especially those of US, UK, Canada etc. when processing your foreign visa application, are particular about your tax-compliance.

10. To buy an insurance policy with a higher cover| If insurance companies have reasons (non-compliance) to believe that you are a tax-evader, they will not give you policies with more cover.