How to file income tax

How to Register with Income Tax Department to filing of Income Tax Returns for the first time?
  • Open the Income tax e filing Website by clicking on the below link: https://incometaxindiaefiling.gov.in/
    You will be taken to the Income tax portal; Click on Register Yourself which is on the right hand corner on the face of the website.
  • You will be taken to the next page which shows you to select the user type : Select Individual and click on Continue.
  • Enter Your Basic Details : Only the fields marked with asterisk (*) are mandatory; all the details whether or not mandatory, should be as per the details of PAN card.
    Enter required details and click continue
  • By clicking continue you will be taken to next page :
  • Here the registration details page should be displayed and you have to enter all the personal details:
    Password details:
  • User ID will be automatically filled by the system, which is entered in the Basic details.
  • Password should be between 8 – 14 characters and should contain one number one alphabet and at least one special character.
  • Confirm password– Reenter the password entered above to confirm the password.
  • Primary Secret Question/ Answer –select any one question from available in the drop down and enter the answer for the question in the below field.
  • Secondary Secret Question/ Answer–select any one question from available in the drop down.
  • Make sure that you remember your password or at least one of the secret question answers as they are useful for password reset if in case you forget the password.
    Personal Details:
  • These details can be prefilled from the data entered at the time of entering basic information.
  • Contact Details & Current Address:
    Enter all the details in fields marked with asterisk (*):
  • Give the mobile number and mail ID which are active as you will get OTP for completing the registration process.
  • Enable alerts and subscribing to mails will be automatically selected and this will be helpful to get alerts and mails form Income Tax India.
  • Finally click on Submit. You will be displayed with a message saying Registration is successful and a link has been sent to your mail along with a one time password (OTP) for your mobile given above.
  • Click on the link given in mail you receive and you will be directed to Income Tax Department website where you have to enter the OTP received to your mobile.
  • Click on the link given below it will take you to Income Tax Website:
  • https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html
  • There you can see an option to resend activation link, click on the option available;
  • You will be taken to next page where you are asked to select the user type select Individual from the drop down menu appearing;
  • After selecting the User type you have to fill the details of your PAN, Date of Birth, Password, New Email ID, New Mobile number.
  • You will be displayed with a message saying Registration is successful and a link has been sent to your mail along with a one time password (OTP) for the mobilenumber given above.
  • Click on the link given in mail you received and you will be directed to Income Tax Department website where you have to enter the OTP received to your mobile.
  • For a Non-Resident, Mobile Number is not mandatory for registering in e-Filing portal. A valid email id will be sufficient to register. All the relevant verification PINs and intimations will be shared to such email id.
    It is possible that you're typing in the Name details differently from what you have mentioned while applying for PAN card. Please call Income Tax Departments toll-free number, 1800 180 1961and get the correct details and then try registering in the e-Filing application.
    For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as “Tax Deducted at Source”, commonly known as TDS.
    Under this system tax is deducted at the origin of the income. Tax is deducted by the payer and is remitted to the Government by the payer on behalf of the payee.
    The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc.
    In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.
    PAN stands for Permanent Account Number and TAN stands for Tax Deduction Account Number. TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his TAN.
    PAN cannot be used for TAN, hence, the deductor has to obtain TAN, even if he holds PAN.
    However, in case of TDS on purchase of land and building (as per section 194-IA), the deductor is not required to obtain TAN and can use PAN for remitting the TDS.
    PAN obtained once is valid for life-time of the PAN-holder throughout India.
    It is not affected by change of address or change of Assessing Officer etc.
    However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes or Correction in PAN Data”.
    A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN.
    A penalty of Rs. 10,000/- is liable to be imposed under Section 272B of the Income-tax Act, 1961 for having more than one PAN.
    If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).
    It is not mandatory to file return of income after getting PAN.
    Return is to be filed only if you are liable to file return of income as under :
  • If your Gross total Income for financial Year 2017-18 (Income before allowing Sec80 Deductions) is more than Rs.2,50,000/-. (The limit is Rs.3, 00,000/- for the persons of age between 60-80years and Rs.5, 00,000/- for the persons above 80 years age).
  • If you wish to claim Refund of taxes deducted/ paid.
  • If you wish to carry forward losses to be set off in the next years return, then you have to declare losses for the current year by filing return.
  • If you are resident and having any asset outside India orhaving financial interest in any entity outside India then you have to file return of income even though you are not having any other incomes.
  • Return filing is compulsory even if you being a resident have signing authority in a foreign account.
  • In the above two points resident means only a resident and ordinary resident (ROR); it does not include resident but not ordinary resident (RNOR) or Non resident (NRI).
  • If you are having any exempt long term capital gains of more than Rs.2, 50,000/- in a financial year then you have to file the return compulsorily even though such gains are exempt from tax.(Here exempted long term capital gains include sale of equity shares, sale of units in equity oriented mutual funds, sale of units of a business trust)- effective form FY 2016-17.
  • If you are in receipt of any income derived from property held under a charitable or religious trust or a political party, educational institution, hospital, trade unions, any non profit organization, any authority, body or a trust etc., you have to file the income tax return compulsorily.
  • If you are planning to get any loan from bank or any other financial institution you may be asked copy of Income Tax Return.
  • In respective of a firm or a company, Return of Income needs to be filed irrespective of the income/loss of the firm or company during the financial year.
  • If the PAN card is lost then you can apply for duplicate PAN card by submitting the Form for "Request for new PAN Card or/ and Changes or Correction in PAN Data" and a copy of FIR may be submitted along with the form.
    If the PAN card is lost and you don't remember your PAN, then in such a case, you can know you PAN by using the facility of "Know Your PAN" provided by the Income Tax Department. This facility can be availed of from the website of Income Tax Department - incometaxindia.gov.in
    You can know your PAN online by providing the core details like Name, Father's Name and Date of Birth. After knowing the PAN you can apply for duplicate PAN card by submitting the "Request for new PAN Card or/ And Changes or Correction in PAN Data".
    There are four ways to reset a password for a registered user:
  • Answer secret Question
  • Using OTP (PINs)
  • Using Aadhaar OTP
  • Using DSC
  • For all the four Processes we have the following steps as common:
  • Click on the link given which will take you to income tax portal: https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html
  • There you can see a link for forgot password, clink on the link;
  • Give the PAN number for User ID; Enter Captcha code and mobile number; and click continue;
  • Then you will be taken to next page select the appropriate option suitable for you and follow the steps given below;
  • 1. Answer secret Question:
    If you select the option of Answering secret question you have to follow the below steps:
  • Select ‘Answer Secret Question’ from the drop down options available and click CONTINUE button;
  • Enter the Date of Birth (date of Incorporation in case of other than individual);
  • Select the Secret Question from the drop down options available;
  • Enter the ‘Secret Answer’ and Click on “Submit”;
  • On success, you will be asked to enter the New Password and confirm the password; Click on “SUBMIT”;
  • Once the password has been changed a success message will be displayed. You can login with new password.
  • 2. Using OTP (PINs):
    If you select the option of Using OTP(PINs) you have to follow the below steps:
  • Select ‘Using OTP (PINs)’ from the drop down options available and click on CONTINUE button;
  • You must select one of the options mentioned below
  • Registered Email ID and Mobile Number
  • New Email ID and Mobile Number
  • Let’s go for the option of Registered mail ID and Mobile number first:
  • You will have to select this option if you have access to registered mail and mobile. Click on “VALIDATE”;
  • Enter the PINs received to the registered Email ID and Mobile Number and Click on “VALIDATE”.
  • On success, you have to enter the New Password and confirm the password and Click on “SUBMIT”;
  • Once the reset password request has been submitted, a success message will be displayed. You can login with new password after the time specified in Success message displayed.
  • Now if you opt to go byNew Email ID and Mobile Number:
  • Select this option if you don’t have access to any one of your registered Mail ID or mobile number or both. Give the new mobile number and mail ID, however you have to validate your details by any of the three options available:
  • 26 AS TAN: Use this option if TDS has been deducted during the current or previous financial year. You have to give the details of TAN of the deductor, total TDS deducted by him and the Assessment year in which TDS is deducted.
  • OLTAS CIN: Use this option if you have paid Taxes in the previous years, you have to give the details of BSR code, Challan Date and Challan serial Number.
  • Bank Account Details: For this option you have to enter the bank account number which you have given for filing of Return in the previous year.
  • Click on validate and you will get the PIN numbers to your new mail and mobile. Reset the password using the PINs.
  • On success a message will be displayed, you can login with new password after the time specified in Success message displayed.
  • 3. Using Aadhaar OTP:
  • This option will be useful only if you have linked your Aadhaar with PAN card;
  • Select ‘Using Aadhaar OTP’ from the drop down available and click on CONTINUE button; Click Generate Aadhaar OTP.
  • Enter the OTP you receive to the mobile number registered with Aadhaar; Create New password and click submit;
  • Once the password has been changed a success message will be displayed. User can login with new password.
  • 4. Using DSC:
    You have two options in this:
  • New DSC: This option will be useful when you have not registered your DSC before with Income tax Department
  • Registered DSC: This option will be useful when you have already registered your DSC before with Income tax Department
  • You have to upload Signature File generated using DSC Management Utility and click on the “VALIDATE” button. The DSC is validated. Now you can reset the Password.
  • Once the password has been changed a success message will be displayed. You can login with new password.
  • Click on the link given: https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html
  • You will be directed to Income Tax portal; Here select the link- e-filing Login Trough Net Banking;
  • Select the bank in which you have net banking facility from the list of banks displayed.
  • After login to Net Banking account, click on the link "Login to the IT e-Filing account" e-Filing user Dashboard screen shall be displayed.
  • To change the password go to the profile settings >> Change Password; here you can change the password.
  • You have to send the ITR V signed copy within 120 days from the date of filing the Income tax return. After the expiry of 120 days the Return will be considered Invalid by the Income Tax department.
    The ITR V Signed copy has to be sent Speed Post or Ordinary Post without Folding - at the following address:
    Centralized Processing Centre (CPC),
    Income Tax Department,
    Bengaluru- 560500
    Karnataka
    The password to open the ITR V Document is PAN number in small letters followed by date of birth in the format ddmmyyyy (e.g. If ABCDE1234F is the PAN number and 21-01-1990 then the password will be abcde1234f21011990).
    You can send more than one ITR V in one envelope cover, but the thing you have to see is the barcode present on the ITRV copy should not be folded. So, you are suggested to send the document without folding to the department.
    The Password to open Form 26AS is your date of birth in the format- ddmmyyy (e.g. If your Date of birth is 21-01-1990 then the password to open 26 AS will be 21011990
    Once the return is filed online and it is e-verified or ITR V is sent to the department, the return will be processed, you will generally get the refund amount within 2-6 months after filing the return of income.
    You can check the refund status by using the following link, giving the PAN number and relevant Assessment year: https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
    Income Tax Return filed by the taxpayer is not treated as valid until it is verified by the taxpayer. In the existing process, taxpayer can verify the return using Digitally Signed Certificate (DSC) or by sending signed ITR-V to CPC. As per Rule 12 vide Notification No. 41/2015, Income Tax department has introduced e-Verification of returns as an alternate for ITR-V. Taxpayers who are NOT mandated to use DSC are eligible for e-Verification.
    If the return has been e-verified then there is no need to send ITR V to CPC.
    You can e-verify your return using any of the following options:
    1. EVC received in Registered Mobile number and e-mail; (Electronic Verification Code (EVC) is a 10 digit alphanumeric code which can be generated through e-Filing portal and is valid for 72 hours).
    2. Aadhaar OTP;
    3. Login to e-Filing through Net Banking;
    4. EVC-Through Bank Account Number;
    5. EVC-Through Demat Account Number;
    6. EVC-Through Bank ATM.
    In case of return already filed, you can e verify the return by login to your e- filing portal >> My Account >> e-verify return
    After you click no the e-verify Return you will get four options:
    Option 1: “I already have an EVC to e-Verify my return”
  • Select this option if you have received an EVC (Electronic Verification Code) at the time of e-filing the return, this EVC generated at the time of e-filing will be valid up to 72 Hours.
  • Click on the link and enter the EVC click on submit; Success message will be displayed. No further action is required.
  • Option 2: “I do not have an EVC and I would like to generate EVC to e-Verify my return”
    Here in this option you will get three options:
  • Through Net Banking
  • Through Bank Account Number
  • Through Demat Account Number
  • Through Net Banking:

  • By clicking on this you will be displayed with steps ,click on continue, select the bank from the list of banks available
  • Login to net banking and e filing portal, the screen will display the returns pending for e verification; click on e-verify and the returns will be e-verified automatically
  • Success message will be displayed. No further action is required.
  • Through Bank Account Number:

  • For this step your bank account must be pre-validated before you start to e verify the return.
  • If the account is Pre-validated then a message will be displayed asking to generate EVC click yes;
  • You will receive an EVC message to your mobile registered wit bank account
  • Enter the EVC in the box displayed and click submit;
  • Success message will be displayed. No further action is required.
  • Through Demat Account Number:

  • For this step your demat account must be pre-validated before you start to e verify the return.
  • You will receive an EVC message to your mobile registered with Demat account
  • Enter the EVC in the box displayed and click submit;
  • Success message will be displayed. No further action is required.
  • Option 3: Generate Aadhaar OTP:
  • To generate Aadhaar OTP, PAN and Aadhaar must be linked.
  • By clicking on the link you will displayed with a Text box. Enter Aadhaar OTP in the text box provided and click on Submit.
  • Success message will be displayed. No further action is required.
  • Generate EVC through Bank ATM:
  • This is a different method of doing e-verification, as one has to go to the bank ATM
  • After swiping the ATM card and entering ATM PIN, you are provided with an extra option of “PIN FOR INCOME TAX FILING”
  • EVC will be sent to the registered mobile number and e-mail ID after selecting the option.
  • After you get the EVC login to e-filing to portal >>My account >>E-Verify return >> Enter EVC.
  • Success message will be displayed. No further action is required.
  • Every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”
    A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) if he is not having any income from business or profession is not liable to pay advance tax.

    Advance tax is to be paid in different instalments. The due dates for payment of different instalments of advance tax are as follows:

    Assessee

    By 15th June

    By 15thSeptember

    By 15th December

    By 15th March

    All assesses

    (except those who opted for presumptive taxation)

    Up to 15% of advance tax

    Up to 45% of advance tax

    Up to 75% of advance tax

    Up to 100% of advance tax

    Taxpayers who opted for presumptive taxation

    Nil

    Nil

    Nil

    Up to 100% of

    Advance tax

    A company and a person whose are required to get audited shall pay taxes only through the electronic payment mode using the internet banking facility of the authorized banks.
    Any other taxpayer can pay tax either by electronic mode or by physical mode by depositing the challan at the receiving bank.

    Pay Tax online

    This Payment procedure is for payment of taxes online
    Step 1:

    Click on this link https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp (Here you will be taken to government website)

    Step 2:

    Click on the CHALLAN NO./ ITNS 280
    You will be displayed the following screen, fill in the details as required and click on proceed
    Step 3:

    After clicking on proceed verify the details as shown on the screen and fill in the details of taxes to be paid and proceed for payment
    Step 4:

    After payment download the challan (OR) make the print screen picture of challan details.

    How to view form 26AS

    The following details have been provided in 26AS statement:
  • Advance tax, Self-Assessment Tax and Regular Assessment Tax paid by self
  • Tax paid through Tax Deducted at Source (TDS) or TCS on behalf of users own presence
  • Refund issued by the Department to self
  • Information received from various agencies on high value transaction carried by self.
  • This statement is presented yearly, which reflects the transaction of the concerned year. 

    Perform the following steps to view or download the form:
    Step 1:
    Logon to the 'e-Filing' Portal www.incometaxindiaefiling.gov.in
    Step2:
    Go to the 'My Account' menu located at upper-left side of the page ⇒ Click 'View Form 26 AS (Tax Credit)', User is redirected to TDS-CPC Portal
    Step 3:
    View the disclaimer ⇒ Click 'Confirm' ⇒ Agree the acceptance of usage ⇒ Click 'Proceed'
    Step 4:
    Click 'View Tax Credit (Form 26AS)'
    Step 5:
    Select the 'Assessment Year' and 'View type' (HTML or Text ).
    Step 6:
    For downloading PDF file, first view as HTML and then click on export to PDF.

    Knowing Refund Status

    Step 1:
    Click on this link https://tin.tin.nsdl.com/oltas/refundstatuslogin.html, this will take you to NSDL website.
    Step 2:
    Enter your PAN; Select the Assessment Year for which you want to check the refund status  and enter the text as shown in the image

    Step 3:
    If the refund is processed by the Assessing Officer the status of the refund will be shown, if the refund is not processed then this below screen will be displayed that means you have to wait for some more time.

    How to e-Verify

    Income Tax Return filed by the taxpayer is not treated as valid until it is verified by the taxpayer. In the existing process, taxpayer can verify the return using Digitally Signed Certificate (DSC) or by sending signed ITR-V to CPC. As per Rule 12 vide Notification No. 41/2015, Income Tax department has introduced e-Verification of returns as an alternate for ITR-V. Taxpayers who are NOT mandated to use DSC are eligible for e-Verification.
    If the return has been e-verified then there is no need to send ITR V to CPC.
    You can e-verify your return using any of the following options:
  • EVC received in Registered Mobile number and e-mail;(Electronic Verification Code (EVC) is a 10 digit alphanumeric code which can be generated through e-Filing portal and is valid for 72 hours).
  • Aadhaar OTP;
  • Login to e-Filing through Net Banking;
  • EVC-Through Bank Account Number;
  • EVC-Through Demat Account Number;
  • EVC-Through Bank ATM.
  • In case of return already filed, you can e verify the return by login to your e- filing portal >> My Account >> e-verify return

    After you click no the e-verify Return you will get four options:
    Option 1: “I already have an EVC to e-Verify my return”
  • Select this option if you have received an EVC (Electronic Verification Code) at the time of e-filing the return, this EVC generated at the time of e-filing will be valid up to 72 Hours.
  • Click on the link and enter the EVC click on submit; Success message will be displayed. No further action is required.
  • Option 2: “I do not have an EVC and I would like to generate EVC to e-Verify my return”
    Here in this option you will get three options:
  • Through Net Banking
  • Through Bank Account Number
  • Through Demat Account Number
  • Through Net Banking:

  • By clicking on this you will be displayed with steps ,click on continue, select the bank from the list of banks available
  • Login to net banking and e filing portal, the screen will display the returns pending for e verification; click on e-verify and the returns will be e-verified automatically
  • Success message will be displayed. No further action is required.
  • Through Bank Account Number:

  • For this step your bank account must be pre-validated before you start to e verify the return.
  • If the account is Pre-validated then a message will be displayed asking to generate EVC click yes;
  • You will receive an EVC message to your mobile registered wit bank account
  • Enter the EVC in the box displayed and click submit;
  • Success message will be displayed. No further action is required.
  • Through Demat Account Number:

  • For this step your demat account must be pre-validated before you start to e verify the return.
  • You will receive an EVC message to your mobile registered with Demat account
  • Enter the EVC in the box displayed and click submit;
  • Success message will be displayed. No further action is required.
  • Option 3: Generate Aadhaar OTP:
  • To generate Aadhaar OTP, PAN and Aadhaar must be linked.
  • By clicking on the link you will displayed with a Text box. Enter Aadhaar OTP in the text box provided and click on Submit.
  • Success message will be displayed. No further action is required.
  • Generate EVC through Bank ATM:
  • This is a different method of doing e-verification, as one has to go to the bank ATM
  • After swiping the ATM card and entering ATM PIN, you are provided with an extra option of “PIN FOR INCOME TAX FILING”
  • EVC will be sent to the registered mobile number and e-mail ID after selecting the option.
  • After you get the EVC login to e-filing to portal >>My account >>E-Verify return >> Enter EVC.
  • Success message will be displayed. No further action is required.
  • File 26 QB (TDS on Sale of Property)

    As per Finance Bill of 2013, TDS is applicable on sale of immoveable property where in the sale consideration of the property exceeds or is equal to Rs.50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser (Buyer) of the property at the time of making payment of sale consideration.
  • Deduct tax @ 1% from the sale consideration
  • TDS of 1% should be deducted on amount excluding of taxes.
  • As per the CBDT notification no. 30/2016 dated April 29, 2016, the due date of payment of TDS on transfer of immovable property is thirty days from the end of the month in which the deduction is made.
  • Due date of filing will be by 7th of the next month of the month for which transaction is reported. If filing has not been done with in time then Late filing fee u/s 234E will be charged @ Rs.200/- per day.
  • Due date of TDS deposit will be by 7th of the next month of the month for which transaction is reported. If TDS is not deposited with in time then Late Payment Interest u/s 200A and  u/s 154 read with Sec 201(1A) will be charged @1.5% per month on TDS amount.
  • Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.
  • While completing the Online form, please note the following points:-
  • Fields marked with * are mandatory
  •  Do not enter double quotes (“ ") in any of the fields.
  • TDS amount as per Form 26QB should be entered in the field ‘Basic Tax’ (Income Tax) on the Bank’s web-portal
  • TDS certificate (Form 16B) will be based on “Basic Tax” (Income Tax) only
  • Taxpayer/ Buyer are advised to save the Acknowledgement Number for downloading the Form 16B from TRACES website
  • TDS certificate (Form 16B) will be available for download from the TRACES website after at least 2 days of deposit of tax amount at the respective Bank.
  • Click on View Acknowledgment Number under TDS on Property by providing the relevant details for retrieving the Acknowledgment Number
  •  Link - https://www.tin-nsdl.com/faqs/tds-on-sale-of-property/TDS-Introduction.html
    STEP -1
    By clicking on the link, the below page will be displayed. Click on Form 26QB as highlighted in the image.
    Link - https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

    STEP -2
    By selecting the Form 26QB the following page will be displayed, fill all the mandatory fields and additional fields as required with help of hints given.




    After filling all the details click on proceed, it will navigate to confirmation page. Once you had confirmed all the details 26QB will be generated and take print of the Form 26QB. Regarding mode of payment of taxes has been mentioned below.

    Mode of Payment – There are two options available for payment
  • e-tax payment immediately
  • e-payment on subsequent date
  • 1. e-tax payment immediately (Online mode) : It is an online mode where you can make payment immediately. In this mode you will get two options for making payment –
    i) Payment through Net Banking – If you select payment through Net banking option at the time of payment, it will navigate to your respective banking site. The following is the list of banks accepted for Net Banking facility -

    ii) Payment through Debit card -  The following is the list of banks accepted for Debit card paymenet
    List of Banks for Payment through Debit Card
    1. HDFC Bank
    2. ICICI Bank
    3. Indian Bank
    4. Punjab National Bank
    5. State Bank of India
    2. e-payment on subsequent date : Once you had selected this option, you will get a Acknowldement receipt after confirming the details.   There will be two options available once you select the e-payment on subsequent date:
    OPTION 1 :- e-Payment of taxes by visiting any of the Bank - Take the Acknowledgment receipt to any of the authorized bank branches, Bank branches would use the URL for e-Tax payment on subsequent date to re-enter the required details as provided in the acknowledgment receipt.  On completion of the above, the Bank will make the payment through its net banking facility and provide you the challan counterfoil as acknowledgment for payment of taxes.
    OPTION 2 :-  E-tax payment on Subsequent Date  -  In case you desire to make the payment through e-tax payment (net banking account) subsequently, you may access the link of ‘E-tax payment on subsequent date’ given below. For making the payment you have to give the details in your acknowledgment receipt.   
    Link - https://onlineservices.tin.egov-nsdl.com/etaxnew/PopServletOffline

    File 26 QC (TDS on Rent of Property)

    As per Finance Act, 2017, “TDS on Rent” under section 194-IB is liable to be deducted by Individuals or HUFs (other than an individual who are not liable for Tax Audit u/s 44AB) who is paying to a resident monthly rent exceeding Rs.50,000. Section 194-IB of the Income Tax Act, 1961 states that for all the transactions with effect from June 1, 2017, tax @5% should be deducted by the Tenant/ Lessee/ Payer of the property at the time of making payment of rent (to Landlord / Lessor/ Payee). Tax so deducted should be deposited to the Government Account through any of the authorized bank branches.
    Applicability:
    Individual or HUF who are not liable for tax audit under section 44AB.
    Limit & Rate:
    Rent of Rs. 50,000 for a month or part of the month @ 5%.
    Note - This section does not applies to those rent which are covered under Section 194-I.
    Highlights of Section 194-IB
    No need to obtain TAN - Under this section, Tax payer need not to obtain TAN.
    Deduction, once in a year - Under this section, Tax payer is required to deduct tax at source only once in a financial.
    Time of deduction - The tax should be deducted at the time of credit or payment (whichever is earlier) of rent for the last month of the tax year or last month of tenancy if the property is vacated during the year, as applicable.
    Example – Mr A is a tenant of a property for which he is paying rent of Rs.60,000/- per Month and Mr A is not liable to tax audit u/s 44AB. Mr A is residing in the same property for whole Financial year 2018-19(April’18 to March’19).
    In the present case Mr A has to deduct TDS @ 5% while paying the rent for the month of March’19. The total amount of TDS to be deducted is Rs.7,20,000(60,000*12 = 7,20,000) X 5% is Rs.36,000/- .
    If the Rent/Lease agreement has been completed in between the Financial year, TDS should be deducted in last month of tenancy if the property is vacated during the year.
     
    Comparison between 194-IA & 194-IB
    Basis
    194 - IA
    194   - IB
     
    Applicability
    i) Every person paying rent (except individual & HUF)
    ii) Individual & HUF if doing business and covered in tax audit
    Every Individual & HUF not covered in 194-I
     
    Limit
     
    Rs. 1,80,000 Per annum
    Rs. 50,000 per month or part of the month during financial year
    TDS Rate
    10 %
    5 %
    TAN requirement
    TAN is required
    TAN is not required, PAN is enough.
  • All individuals or HUFs (except those liable to audit under clause a and b of section 44AB) paying monthly rent to a resident in excess of Rs. 50,000 are liable to deduct TDS under section 194-IB
  • Deduct tax @ 5 % from the rent payment made to the Landlord.
  • Collect the Permanent Account Number (PAN) of the Landlord and verify the same with the Original PAN card.
  • PAN of the Landlord as well as Tenant should be mandatorily furnished in the online Form for furnishing information regarding the rent.
  • Do not commit any error in quoting the PAN or other details in the online Form. For the purpose of error rectification you have to contact Income Tax Department.
  • Download and furnish TDS certificate in Form 16C from TRACES and issue to the Landlord / Lessor/ Payee within 15 days from the due date of furnishing of the challan-cum-statement in Form 26QC.
  • If the Landlord / Lessor/ Payee is a non-resident, liability to deduct TDS arises under section 195 of the Income-tax Act, 1961
  • STEP -1
    By clicking on the link, the below page will be displayed. Click on Form 26QC as highlighted in the image.
    Link - https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

    STEP -2
    By selecting the Form 26QC the following page will be displayed, fill all the mandatory fields and additional fields as required with help of hints given.




    After filling all the details click on proceed, it will navigate to confirmation page. Once you had confirmed all the details 26QC will be generated and take print of the Form 26QC. Regarding mode of payment of taxes has been mentioned below.

    Mode of Payment – There are two options available for payment
  • e-tax payment immediately
  • e-payment on subsequent date
  • 1. e-tax payment immediately (Online mode) : It is an online mode where you can make payment immediately. In this mode you will get two options for making payment –
    i) Payment through Net Banking – If you select payment through Net banking option at the time of payment, it will navigate to your respective banking site. The following is the list of banks accepted for Net Banking facility -

    ii) Payment through Debit card -  The following is the list of banks accepted for Debit card paymenet
    List of Banks for Payment through Debit Card
    1. HDFC Bank
    2. ICICI Bank
    3. Indian Bank
    4. Punjab National Bank
    5. State Bank of India
    2. e-payment on subsequent date : Once you had selected this option, you will get a Acknowldement receipt after confirming the details.   There will be two options available once you select the e-payment on subsequent date:
    OPTION 1 :- e-Payment of taxes by visiting any of the Bank - Take the Acknowledgment receipt to any of the authorized bank branches, Bank branches would use the URL for e-Tax payment on subsequent date to re-enter the required details as provided in the acknowledgment receipt.  On completion of the above, the Bank will make the payment through its net banking facility and provide you the challan counterfoil as acknowledgment for payment of taxes.
    OPTION 2 :-  E-tax payment on Subsequent Date  -  In case you desire to make the payment through e-tax payment (net banking account) subsequently, you may access the link of ‘E-tax payment on subsequent date’ given below. For making the payment you have to give the details in your acknowledgment receipt.   
    Link - https://onlineservices.tin.egov-nsdl.com/etaxnew/PopServletOffline

    Who should mandatorily file their Income Tax Returns

    It is not mandatory to file return of income after getting PAN.
    Return is to be filed only if you are liable to file return of income as under :
  • If your Gross total Income for financial Year 2017-18 (Income before allowing Sec80 Deductions) is more than Rs.2,50,000/-. (The limit is Rs.3, 00,000/- for the persons of age between 60-80years and Rs.5, 00,000/- for the persons above 80 years age).
  • If you wish to claim Refund of taxes deducted/ paid.
  • If you wish to carry forward losses to be set off in the next years return, then you have to declare losses for the current year by filing return.
  • If you are resident and having any asset outside India orhaving financial interest in any entity outside India then you have to file return of income even though you are not having any other incomes.
  • Return filing is compulsory even if you being a resident have signing authority in a foreign account.
  • In the above two points resident means only a resident and ordinary resident (ROR); it does not include resident but not ordinary resident (RNOR) or Non resident (NRI).
  • If you are having any exempt long term capital gains of more than Rs.2, 50,000/- in a financial year then you have to file the return compulsorily even though such gains are exempt from tax.(Here exempted long term capital gains include sale of equity shares, sale of units in equity oriented mutual funds, sale of units of a business trust)- effective form FY 2016-17.
  • If you are in receipt of any income derived from property held under a charitable or religious trust or a political party, educational institution, hospital, trade unions, any non profit organization, any authority, body or a trust etc., you have to file the income tax return compulsorily.
  • If you are planning to get any loan from bank or any other financial institution you may be asked copy of Income Tax Return.
  • In respective of a firm or a company, Return of Income needs to be filed irrespective of the income/loss of the firm or company during the financial year.
  • What happens if we don't file the return within due date

    A new section 234F has been inserted in Income Tax Act, 1961 with effect from Assessment Year 2018-19 (Financial Year 2017-18).
     
    Under this section, fee/penalty is levied if the Income-tax return is filed after the due date specified by the department. Earlier this penalty was levied by Assessing Officer at his discretion. But now, the same is payable before filing of Income-tax return.
     

    Total Income

    Return Filed

    Fee/Penalty

    Less than or
    equal to Rs. 5,00,000
    Return filed any time after due date
    Rs. 1,000
    More than
    Rs.5,00,000
    Return filed on or before 31st December of Assessment Year
    Rs. 5,000
    In any other case
    Rs. 10,000

    Can you still file your Income Tax Return if there is any tax liability

    If you file the return with Tax Liability, you will receive a notice from the department under sectin 139(9) stating the return filed as defective. You have to respond to the notice with in 15 days from the date of receipt of notice other wise the return will be treated as invalid that means the return is treated as if it is not filed at all.

    If my income is below the taxable limits, can I still file my Tax Returns

    Yes you can still file your income tax return but it is not mandatory

    Steps to link Aadhaar with PAN

  • Go to E-filing website, https://incometaxindiaefiling.gov.in
  • Click on "Link Aadhaar" under services column.
  • Enter "PAN', Aadhaar Number, Name as per Aadhaar and Captcha Code and click on 'Link Aadhaar".
  • After submitting these details, a message is displayed stating that an email will be sent about the linking status.
  • After verification from UIDAI which is the government website for Aadhaar, the linking will be confirmed. In case of Name, Date of Birth or Gender in PAN database does not match with Aadhaar database
  • Note:-
  • Please ensure that the date of birth, Gender and Aadhaar number is per Aadhaar details.
  • If date of Birth and Gender fully match and Name as per Aadhaar is not exactly matching then user has to additionally provide Aadhaar OTP to proceed with partial Name Matching.
  • If Your Aadhaar is already linked with PAN with Same name and want to verify the correctness, the alert message will be displayed on to the screen "Your PAN is already linked to the Aadhaar  Number"
  • How can I get pending refunds?

    Step 1: Click on this link https://tin.tin.nsdl.com/oltas/refundstatuslogin.html, this will take you to NSDL website.
    Step 2:Enter your PAN; Select the Assessment Year for which you want to check the refund status and enter the text as shown in the image

    Step 3: If the refund is processed by the Assessing Officer the status of the refund will be shown, if the refund is not processed then this below screen will be displayed that means you have to wait for some more time.
    Follow few simple steps we will help you to get the refund 

    I have recevied a defective Notice. What should I do?

    Notice u/s 139(9) is basically intimation from the Income Tax Department for the Income tax return filed for a financial year being defective due to following common reasons:
  • The assessee having filed in the return the details of taxes paid, but failed to provide income details, the Income Tax Department deems the return as defective.
  • The assessee having claimed the tax deducted at source (TDS) as refund, failed to provide income details in the return. In such cases the return will be deemed to be defective.
  • The assessee having liability to pay taxes fails to pay the taxes in full before filing the return.
  • The Assessee who is required to maintain balance sheet and profit and loss statement as per the provisions of Income tax Act, 1961, but fails to provide such statements while preparing the income tax return.
  • When there is a mismatch of name in the return filed with the name as per PAN card.
  • In order to clear the defects in the original return filed i.e. in response to the notice sent by the department u/s 139(9), the assessee is required to file response within 15 days of the receipt of intimation or within such other time as extended by the AO on a written request filed for the same. For filing the response one should mention in the return the section under which the return is being filed and the communication reference number which is already there on the intimation given by the department.
  • If you don’t reply with in specified time for the notice under section 139(9), your retrun will be considered as invalid that means it will treated the return is not filed at all.
    Talk to our experts, we will help you to resolve the notice

    Answering notices and intimations

    Although an intimation received by an assessee u/s 143(1) within a period of 1 Year from the end of Financial Year in which the Return of Income was filed for the year under assessment can be considered as Assessment by the authorized Assessing Officer, however it is a matter of judgment where 143(1) is taken as a mere Intimation rather than Assessment order.
    Case Law: TATA AIG GENERAL INSURANCE PVT LTD Vs DCIT ITAT (Mumbai)- ITA No.968 (MUM)2015.
    Assessment under section 143(1)
    This is intimation from the CPC and is a computer generated statement. All the data available in the Income Tax Return is validated by CPC with reference to the data available in the records of the income tax department.
    Scope of assessment under section 143(1)
    Intimation under section 143(1) is like primary verification of the return of income filed. At this stage of verification detailed examination of the return of income is not carried out. At this stage, the total income or loss is computed after making the adjustments (if any). Some of the adjustments made can be for the following matters:-

  • The arithmetical errors in the return of income filed; or
  • Any incorrect claims made in the return of income;
  • Any loss claimed will be disallowed, if return of the previous year for which set-off of loss is claimed was furnished after the due date specified for filing the return of income;
  • Any expenditure mentioned in the audit report will be disallowed if it is not taken into consideration for the computation of total income in the return filed;
  • Any deduction claimed u/s 10AA, 80IA to 80-IE will also be disallowed, if the return is furnished after the due date specified for filing the return of income; or
  • Any additional income appearing in Form 26AS which was not included in computing the total income in the return of income.
  • However, no adjustment shall be made by CPC unless intimation is given to the assessee of such adjustment either in writing or in electronic mode. So, the assessee will get the intimation about the adjustment. If the assessee gives any response, such response shall be considered before making any adjustment, and if no response is received within 30 days from the issue of the intimation, adjustments shall be made by the department.
    After successful filing of Return of Income by an assessee u/s 139, the major notices that can be expected to come within a period of 1 year from the end of Financial Year in which the said return was filed is Intimation Notice U/s 143(1), Notice for Scrutiny Assessment u/s 143(2) ( within a period of 6 months from the end of the Financial Year in which the said return was filed) and Notice for Best Judgement Assessment u/s 142(1).
    In addition to above, a notice u/s 133C as inserted by the Finance (No.2) Act 2014 w.e.f 01/10/2014 can also be issued by the prescribed Income Tax authority for Return of Income filed for AY 2015-16 and onwards within a time period of 4 years or 6 years as prescribed u/s 153.
    Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. The Income Tax Department examines the return of income for its correctness. The process of examining the return of income by the Income Tax department is called as “Assessment”. Assessment also includes re-assessment and best judgment assessment under section 144.
    Under the Income-tax Law, there are four major assessments given below:
  • Assessment under section 143(1), i.e., Summary assessment without calling the assessee.
  • Assessment under section 143(3), i.e., Scrutiny assessment.
  • Assessment under section 144, i.e., Best judgment assessment.
  • Assessment under section 147, i.e., Income escaping assessment.
  • All the above mentioned notices are issued which leads to the given assessment proceedings.
    Notice u/s 139(9) is basically intimation from the Income Tax Department for the Income tax return filed for a financial year being defective due to following common reasons:
    The assessee having filed in the return the details of taxes paid, but failed to provide income details, the Income Tax Department deems the return as defective.
    The assessee having claimed the tax deducted at source (TDS) as refund, failed to provide income details in the return. In such cases the return will be deemed to be defective.
    The assessee having liability to pay taxes fails to pay the taxes in full before filing the return.
    The Assessee who is required to maintain balance sheet and profit and loss statement as per the provisions of Income tax Act, 1961, but fails to provide such statements while preparing the income tax return.
    When there is a mismatch of name in the return filed with the name as per PAN card.
    In order to clear the defects in the original return filed i.e. in response to the notice sent by the department u/s 139(9), the assessee is required to file response within 15 days of the receipt of intimation or within such other time as extended by the AO on a written request filed for the same. For filing the response one should mention in the return the section under which the return is being filed and the communication reference number which is already there on the intimation given by the department.
    Notice for scrutiny assessment u/s 147 is issued u/s 148 if the Assessing Officer(AO) has reason to believe that any income has escaped assessment which should be chargeable to tax . The main objective of
    How the scrutiny assessment can be made by the assessing officer (AO)?
    For making the scrutiny assessment the AO has to issue a notice to the assessee (i.e., the tax payer) u/s 148 and assessee should be given an opportunity of being heard. The time-limit for issuance this notice u/s 148 is a period of 4 years from the end of the relevant assessment year. If the income escaped by the assessee is Rs. 1,00,000 or more and certain other conditions are satisfied, then notice can be issued upto 6 years from the end of the relevant assessment year.
    In case the income which is escaped relates to any asset located outside India, notice can be issued upto 16 years from the end of the relevant assessment year.
    Notice under section 148 can be issued by AO only after getting prior approval from the prescribed authority.
    The objective of carrying out assessment under section 147 is to bring under the tax net any income which has escaped assessment in original assessment under sections 143(1), 143(3), 144 & 147 (as the case may be).
    In the following cases, it will be considered as income having escaped assessment:
  • Where no return of income has been furnished by the taxpayer, although his total income or the total income of any other person in respect of which he is assessable during the previous year exceeded the maximum amount which is not chargeable to income-tax.
  • Where a return of income has been furnished by the taxpayer but no assessment has been made and it is noticed by the Assessing Officer that the taxpayer has understated the income or has claimed excessive loss, deduction, allowance or relief in the return.
  • Where the taxpayer has failed to furnish a report in respect of any international transaction which he was required to do under section 92E.
  • Where an assessment has been made, but:
  • income chargeable to tax has been under assessed; or
  • income has been assessed at low rate; or
  • income has been made the subject of excessive relief; or
  • excessive loss or depreciation allowance or any other allowance has been computed;
  • Where a person is found to have any asset (including financial interest in any entity) located outside India.
  • Where a return of income has not been furnished by the assessee and on the basis of information or document received from the prescribed income-tax authority under section 133C(2), it is noticed by the Assessing Officer that the income of the assessee exceeds the maximum amount not chargeable to tax.
  • Where a return of income has been furnished by the assessee and on the basis of information or document received from the prescribed income-tax authority under section 133C(2), it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return.
  • alk to our experts, we will help you to resolve the notice