20 FAQ FOR FILING INCOME TAX RETURN BY SALARIED PERSONS

Ques-1: My Income is more than exemption limit and due tax has been deducted by employer. Further ,I have saving bank interest ,of Rs 9000...

Ques-1: My Income is more than exemption limit and due tax has been deducted by employer. Further ,I have saving bank interest ,of Rs 9000 which is exempted u/s 80C. So no need to file Income Tax return.Is it correct ?

Ans:Please note that ,if your employer has deducted your full Income tax due from you and you have no other income ,in that case also filing of Income Tax return is mandatory.

The persons who are required to file Income tax return are given here under.

Who is required to file Income Tax return 

1. Every Company :(Whether earn profit or loss)
2. Every Firm :(whether earn profit or loss)
3. Individual /HUF/AOP/BOI or artificial Judicial person :If Total Income plus Deduction under chapter VIA(Section 80C to 80U) and exemption under section 10,10B,10BA is more than maximum amount which is not chargeable under Income Tax Act.
4. Other :If income more than maximum amount which is not chargeable under Income Tax Act.

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Maximum amount which is not chargeable under the Income Tax act or Exemption Limit for various person are as under

1. For very senior citizen (age 80 or more)                :Rs 500000
2. For resident Senior citizen  (age 60-80)                  :Rs 300000 
3. For others (age less than 60)                                   :Rs 250000

Example : Suppose An Individual (age less than 60 years) having Taxable salary Income of Rs 3,70,000 and claim a deduction of Rs 1,50.000 under Section 80C (Chapter IV) and net Taxable income of 2,20,000 is required to file Income tax return as his income before deduction of chapter VI(80C in this case) is more than  maximum amount which is not chargeable under Income Tax Act i e Rs 2,50,000 for Ay 2016-17.

So if your income before deduction is less than Rs 250000/- for assessment year 2016-17 and your age is less than 60 then no need to file income tax return(subject to other condition applicable for foreign income and bank accounts) .

Further Income from saving bank Interest is eligible for deduction under 80TTA not u/s 80C subject to maximum limit of Rs 10000.

Interest on FD and RD is not eligible for deduction under section 80TTA

Further Bank Fixed deposit Interest /Recurring deposit Interest/saving plus account interest(auto FDR account) is not covered under section 80TTA.

Ques-2 :Which amount is to be filled in ITR-1(SAHAJ) in salary Income with reference to Form 16 ?

Presently,Form 16 have two Parts ,PART-A and Part-B

Form 16-PART-A: shown tax deduction details and amount of salary paid /credited.The amount shown under salary head in PART-A is to be filled in TDS schedule-1 of the Income Tax return not and please note that it may be different from Taxable salary amount.

Form 16-PART-B :In form 16-PART-B salary word is used with gross salary , add perquisites , less allowance etc etc . But in income tax return form, we have to fill amount shown with the description " Income Chargeable under the head salary " .In standard Form 16 ,this is given at sr number 6. (as shown in the Picture below)

But these days employers are using non standard forms also,. To dealt with non standard form just look out figure after all the addition and deduction from the salary in form 16 .Figure related to salary which comes last.

Ques-3:I have received salary from two employers and both have deducted the tax as per salary paid by them ,what next I should do?

Please note that Income Tax is to be calculated on your total income after adding Income from both the employers .So you have to recalculate income tax and have to deposit balance tax (if any)

First: Add your income chargeable under the head salary(as explained above chargeable income under head salaries)  from both the employers and Fill in the ITR-1 sr Number -1.(income from salary/pension).

Second :You have to provide TDS details from both the employers at Sch-TDS-1 ( TDS sheet/Tab) also if not already populated by Income tax department.

Further you may use ITR-1 in this case also,However only if you  have income only from Salary/pension /interest /House property from one house.

Ques-4 :I have retired from my company in Fy 2015-16 and have both income from salary as well as Income from pension,which ITR form should I use ? and where the income of salary/Pension is to be filled .

As per Income Tax Act /rules ,salary includes Pension also,so both are covered under head 'income under the head salaries"

In fact ,if you are getting salary and pension from same department then they have issued combined form 16 .If yes then please refer point 2 which column of form 16 is to be taken in ITR form.

If combined form 16 has not been issued then Add Income taxable under salary and income taxable under pension and put total figures in Sr number B-1 in ITR-1.

Read more which ITR form should I use ?

Ques-5 : I am salaried person but my Employer has not allowed HRA benefit while calculating the tax due to non submission of proof by me ,whether I can claim HRA exemption while filing the return .

This the most asked FAQ that my employer has not given me deduction of HRA .

The answer Yes.You can claim deduction /exemption if your employer has not allowed the deduction of house rent allowance.To claim these you have to take calculate the taxable amount of salary after deduction of HRA exemption amount.The instruction in this regard also given in guidelines issued by income tax department.

1. Take Income chargeable under the head salaries  as per form 16 :Rs XXXXX

2: Less : Exemption of HRA as per your calculation( calculate here):Rs XXXXX

3 Net taxable salary : (1-2) =XXXX

Figure calculated as per sr number 3 should be filled at Sr number B-1 of ITR-1.

However Please note that in TDS schedule ,income as per form 16 PART-A is to be shown as it is and should not be reduced by HRA exemption amount calculated  above .

So in such case salary shown in ITR-1 column B-1 should not be equal to  salary shown TDS schedule of ITR-1.(check How to calculate HRA exemption)

Ques-6 :My Employer have, not consider Saving proofs under section 80C, 80D  and not allowed other deductions which otherwise allowed ,whether this can be claimed Now ?

Nothing to worry, you can show actual saving under section 80C or 80D deduction for medical/Health insurance even then it has not been considered by employer in form 16.

Similarly if you are eligible for other deduction then you can claim it while filing the income tax return form.

Ques-7 : My Bank has deducted Tax @ 10 % , But I am under 20/30% slab , Do I have to pay Balance tax

Yes ,first you have to fill the Interest under Income from Other sources column and have to calculate tax after that.

Further ,you have to pay balance tax if any through challan 280 

Ques-8 : What is My ward number circle number ?

For E filing of return this field is not mandatory ,so keep it Blank .Fields with red color descriptions are mandatory only. However if you want to check then visit this link , fill pan number and Know your pan name , ward circle /area code etc will be shown.

Ques-9: What is IFSC code ?From where I can check this ?

IFSC code is a 11 digit alphanumeric code of your bank branch , you will get it from First page of Your passbook as well as as from cheque book .If not found then you may confirm from your bank branch or Google search is also a option.

Ques-10 : Is Bank account mandatory, if no refund due ?

Yes, Details of all Saving and current accounts held on your name during last financial year  is required to be filled even there is no Income tax refund is due in your account .

However accounts not used since last three years are not required to be given (read instructions also)

Que-12: What is Interest under section 234A,234B,234C?How it can be calculated?

Ans : Fill your all income details in Income tax return online form ,interest if any will be calculated automatically .Senior citizen are not required to deposit interest under section 234B and 234C .

Interest 234A :1% per month  or part thereof on Balance Tax due after due date of return filing ,for salaried person due date is 31.07.2016 .so if you pay your taxes before 31.07.16 then no interest is payable under this section.

Interest 234B :1% per month  or part thereof on  Balance Tax due from 01.04.16 till date of deposit.

Interest 234C :1% per month for shortfall in deposit of advance tax 

Read more about Interest on 234A ,234B and 234C

Ques-13:What is the due date to file income tax return for financial year 2015-16 assessment year 2016-17 salaried persons ?

Ans : Due date is 31.07.2016

Ques-14. What  if  I am not able to file return by due date 31.07.2016 ,what is the penalty.

Ans :If you have already paid your balance tax ,or you have nil tax due to tds deducted by your employer or other deductor Like bank etc then there is no other penalty on late filing of Income tax return as such.

However late return can not be revised .Further there are other things linked with due date of Income Tax return .

Ques-15: I have purchased a house few years ago through Home loan .I have paid 30000/- EMI this year out of which 18000 is interest and 12000 is principal .Where I can show these amounts? House is self occupied .

Ans : You should calculate the House loan as under .Further if amount is negative as in your case put minus sign against the amount. (read related Link of Income from House property). Principal amount paid for House loan is covered under section 80C Limit.

Ques-16 :What is new system of Electronic verification of return /Code (EVC) ? Whether ITR-V is to be send to CPC Banglore or not ?

Ans :EVC is a 10 digit alphanumeric code ,which will be send to you through SMS/Email or generated and filed automatically be used to verify the Income tax return and may  be used within 72 hours from generation time.

After verification through EVC , no need to send ITR-V to CPC, Bangalore ,however this scheme is optional and if you are not able to generate the EVC for any reason ,you have option of sending ITR-V through post to CPC, Bangalore.

Method available to generate EVC are 

1. Generate EVC Directly through E filing site in one click ,(However this method can be used only by persons having Income up to Five lakh and having no refund due.)
2. Generate OTP  after Linking Aadhaar card at e filing site.
3. Generate EVC through Net banking
4. Generate EVC through ATM  (SBI has started this facility)

Ques-17 :Which Income Tax return Form should I Use?

Most of the Salaried person may file ITR-1 .The exemption Limit of Rs 5000 placed up to last year.Now You may use ITR-1 even if you have exempted income more than Rs 5000 without any upper ceiling .If you have more than one house then ITR-2A is correct .However if you have Income from capital gain also then ITR-2 is to be used.(read which form is correct)

Ques-18 : My Income from Salary is 6,00,000 and Saving under 80C is 1,50,000 so net taxable limit is 450000,whether I can file Income tax return on Paper.

Ans: Yes , if Taxable Income is up to Rs 500000  then you may file Income Tax return on Paper also, However if Income tax refund is due to you then e filing is mandatory (which mode is correct mode for return filing read details here ) 

Ques-19:  Following message is shown as"Income details/Part BTI" is less than 90% of Salary reported in Schedule TDS1",what should I do ?

Ans : The above message shown when Taxable salary shown under the head salary is less than 90% of Salary paid reported in schedule TDS-1 (as shown in Part A of Form 16 ).First we have to understand why there is difference is salary paid shown in schedule TDS-1 and Taxable salary. 

Reason is simple ,In salary paid few allowance which are not taxable/exempted are also included which are not included in Taxable salary.

Suppose :You total salary is 500000 and Hra exemption is 30000 then salary paid is shown as 500000 and taxable salary shown as 470000.

Further if in above example if HRA exemption is 60000 then net taxable salary will be 440000 ,which is less than 90% of salary paid .In this case the above message is shown.However this message is shown as a warning message so that you can check everything again and verify your figures.Do not change figures due to this message only ,change only if figures was entered incorrectly.

If all things are ok then ignore this message and proceed further.

Ques 20:In TDS SCH TDS2(TDS other than salary) column deducted year 2016 is not an option. Pls suggest, What is to do.

Ans : If tax has been deducted in year 2015-16 then "2015" is to be filled not "2015"

List is not complete ,if you have any any query regarding Income Tax return you may ask us in comment section.