What is an Assessment Year?

Assessment Year is one year ahead of Financial Year.
For e.g. for Financial Year (FY) starting from 1st April 2017 and ending on 31st March 2018, Assessment Year (AY) is 1st April 2018 to 31st March 2019
i.e. for FY 2017-18, AY is 2018-19.

What is known as Previous Year?

Previous Year (PY) is nothing but Financial Year, for which the return is being filed.
i.e. for AY 2018-19, PY is 2017-18.

What is the difference between Financial Year and Assessment Year?

Financial Year is the duration between 1st of April and 31st of March in which income is obtained. Assessment Year is the corresponding year in which the income from previous financial year is assessed and taxed. In simple terms, Financial Year is when you earn and Assessment year is when you file the tax return for what you have earned.

What are Exempt Incomes?

As per Income Tax Act 1961, some specific incomes are exempt under section 10.
E.g. Income from units of mutual fund, Income on the sale of listed securities through stock exchange held for more than 12 months, Maturity proceeds of Life insurance proceeds, PPF interest etc.

Whether Agricultural Income is taxable?

Agricultural Income is exempt from tax. However, tax on Income from other than Agricultural Income may change because of aggregation of Agricultural Income.

What documents are required for doing Income Tax Return Filing?

Before filing your Income Tax Return, make sure that you have all the below mentioned documents ready. The use of these documents is applicable differently for each case so know which documents will be applicable to you.

The single document which will be applicable for all cases is the PAN.

  1. For salaried employees showing salary Income:
    Form 16 which is issued by the employer
  2. For Income from Interest:
    1.Bank statement/ passbook for the interest from the savings account.
    2. Statement of interest income from fixed deposits.
    3. TDS certificate (Form 16A) issued from the banks/ other financial institutions.
  3. For Investments/ Savings i.e. Investment in PPF, ULIP, NSC etc. the following documents can be used to claim deductions:
    1. Passbook/ Payment receipt towards Public Provident Fund.
    2. School Tuition fees receipt for children.
    3. Premium payment receipt for Life Insurance Policy.
    4. Registration charges and stamp duty charges of House purchase.
    4. Bank statement for repayment of principle amount for Home Loan.
    5. Statement of investment in Mutual Fund etc.
    6. Passbook for investment in 5 years Fixed deposit in Post office / any bank.
  4. Other Documents required:
    1. Bank statement for Interest paid on housing loan. For a self-occupied property, interest amount is exempt up to Rs. 2,00,000 per annum.
    2. Statement of Interest payment towards education loans taken in any Bank.
    3. Statement of stock trading for sale of securities .
  5. Form 26AS::
    Form 26AS is statement of taxes which have been deducted from your income on your behalf and other taxes paid by you. This can be accessed from the Income Tax department’s website. Details required to access the information are your User-id and password for Income Tax Department Account.
What are the due dates for Income Tax Return filing?

Due dates for Income Tax Return filing is 31st July of the Assessment year. This due date is generally applicable for individuals with salaried income or Individual taxpayers.

Income Tax Slab for the FY 2017-18?

Particulars Individual Resident in India below the age of 60 years Individual Resident in India between the age of 60 to 80 years Individual Resident in India above the age of 80 years Tax Rate
Taxable Income Up to Rs. 2,50,000 Up to Rs. 3,00,000 Up to Rs. 5,00,000 No tax
Rs. 2,50,000 – Rs. 5,00,000 Rs. 3,00,000 – Rs. 5,00,000 ----- 5%
Rs. 5,00,000 – Rs. 10,00,000 Rs. 5,00,000 – Rs. 10,00,000 Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 Above Rs. 10,00,000 Above Rs. 10,00,000 30%
How to choose the correct ITR for return filing?

The ITR for filing Income Tax return can be chosen as below:

ITR 1 (SAHAJ): If an individual has an income from any of the following source, then ITR-1 is applicable:

  • Income from salary or pension.
  • Income from one house property.
  • The Individual has worked for only one employer.
  • Income from other sources (excluding winning of lottery and income from horse racing).
online income tax filing bangalore
2016 ITR filing with taxplatter

How To Use TaxPlatter


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( i.e Name, DOB, Contact details, Bank details.)


Enter your Income details

(i.e Salary, House property, Income from any other sources, assets / liability details.)

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Enter your Saving and Investment details.

( i.e. LIC, Housing Loan, Medical insurance, Education loan etc.)


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ITR Returns and e-filing with TaxPlatter
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Verify your details and file your IT return.

Who can file the return through the TaxPlatter?

Any Indian Resident Individual having Income from Salary, Income from House Property, Income from other sources (like Fixed deposit interest etc.) and Exempted Income which includes exempted income from sale of exempted securities, can file return through TaxPlatter.

Whether TaxPlatter have expert to support tax filing?

Yes, TaxPlatter provides expert support through email. User can mail their query to support@taxplatter.com

Why choose TaxPlatter over others?

TaxPlatter is a registered E-Return Intermediary with Income Tax Department. Through this service, TaxPlatter will help you to file your Income Tax Return without logging in to your Income Tax Account at Income Tax Department

What are the technical advantages of TaxPlatter?

TaxPlatter provides you data an all-round security as below:

  • TaxPlatter uses globally accepted 256-bit encryption Secure Sockets Layer (SSL) technology to protect your data while being transmitted from your computer to its data servers. This technology is used by banks globally, and offers the highest level of protection against any third-party interference.

  • TaxPlatter servers are secured with firewalls to safeguard your data from viruses and unauthorized interference attacks. They are monitored around-the-clock for any denial of service or intrusion attacks.

  • As a registered user of TaxPlatter, you can access your data through a unique password, which you create when you register for our service. Since your password is unique to you, only you can access your data. We have implemented a stringent security policy to protect your data against unauthorized access.

What are the other advantages of TaxPlatter?

The advantages of TaxPlatter are as below:

  • Simple design to help faster filing of return.
  • Inbuilt Tax Tips to help the user to understand the details.
  • Help file to help the user to easily file the return.
  • Detailed information helping the user to achieve their objective of filing as well as to know the finer aspects of filing.
Can I check Form 26AS details through your website?

Yes, the details can be checked if you log-in to your Income Tax Department website login with your user-id and password, through TaxPlatter.

Am I required to manually select the ITR type for return filing?

No, the system will recognize and select the required ITR type based on the information provided by you.

What is an Income Tax Return ?

It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.

What are the benefits of filing Income Tax Returns ?

Filing of return is your duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.

What are the benefits of e-filing Income Tax Returns ?

E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns filed manually.

What are the Due Dates for filing Return of Income ?

For Individuals filing ITR 1 due date for filing Income Tax Return is 31st July of the Assessement Year. For AY 2018-19 (FY 2017-18) due date is 31st July, 2018.

If I fail to file my return within the due date, will I be fined or penalized ?

Yes, if you have not furnished the return within the due date, you will have to pay interest on tax due.
Additionally, a fee for late filing has to be paid under section 234F. The fee for late filing is as below;

  • Rs. 5000, if the return is filed after the due date but before 31st December of the Assessment year
  • Rs. 10000, if the return is filed on or after 1st January of the Assessment year Please note that if the total income does not exceed 5 lakh rupees, then the fee payable will be restricted to Rs. 1000

Can a return be filed after the due date ?

Yes, if one could not file the return of income on or before the prescribed due date, then he/she can file a belated return. Return filed after the prescribed due date is called as a belated return. A belated return can be filed within a period of one year from the end of the assessment year or before completion of the assessment, whichever is earlier. A belated return attracts interest and late fee as discussed in previous FAQ.
E.g., In case of income earned during FY 2017-18, the belated return can be filed up to 31st March, 2020.

If I have commited any mistake in my original return, am I permitted to file a revised return to correct the mistake ?

Yes, Return can be revised within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier.
E.g., In case of income earned during FY 2017-18, the due date of filing the return of income (considering no audit) is 31st July, 2018. If the return of income is filed on or before 31st July, 2018 then the return can be revised upto 31st March, 2020. (assuming assessment is not completed by that date)

How many times can I revise my return ?

Theoretically a return can be revised any number of times before the expiry of one year from the end of the assessment year or before assessment by the Department is completed, whichever event takes place earlier.

In case of multiple employers, whether it is necessary to give information of previous salary to next employer?

Even though it is not mandatory, if the salary information of previous employer is given to present employer, estimation of taxable salary will be correct and unnecessary payment of self-tax and interest can be avoided. This might result because of allowing basic exemption limit & chapter VIA Deductions by both the employers.

Whether expenditure for travel from residence to office is allowable as deduction from salary?

If your salary components has transport allowance as a salary head and there is an excess of Rs.1600/- or Rs.3,200/- (in case of Handicapped employee), then an adhoc deduction is allowed to the extent of Rs. 1600/-per month or Rs.3,200/-per month (in case of Handicapped employee).

Whether expenditure for children education is allowed as deduction from salary?

If your salary component has Children Education Allowance as a salary head and there is an excess of Rs.100 per child per month (maximum for 2 children) and/or Children Hostel Allowance of Rs. 300 per child per month (maximum for 2 children), then an adhoc deduction is allowed to the extent of Rs. 100/- per child per month (maximum for 2 children) on Children Education Allowance and Rs. 300/- per child per month (maximum for 2 children) on Children Hostel Allowance.

Whether I can claim exemption for House Rent Allowance, even after having an own house?

Yes. If you are staying in a rented house, you can claim HRA exemption, even though you own a house.

Whether PAN of the owner of the rented house to be compulsorily obtained for claiming HRA exemption?

If the rent paid for the house and claimed for HRA exemption benefit is in excess of Rs.1,00,000 per annum, then PAN of the owner of the rented house is mandatory to be obtained and submitted to your company for claiming HRA exemption.

Can I declare loss from business to my employer, to set off against my salary income?

NO. You can declare only house property loss to adjust against your salary income as per Income Tax circular. Further Business loss cannot be set off against salary income.

Whether salary given to my car driver be claimed as an expense?

NO. The salary given to your car driver cannot be claimed as an expense.

If an employee is provided with salary plus commission on sales turnover, any expenses against commission is allowed as deduction to the employee?

No expenses are allowed against commission as commission paid as part of salary.

Whether arrear of salary is taxable?

If arrear is received during the year & not taxed in the earlier year, it will be taxable on receipt basis i.e. taxed in the year it is received.

Whether equity shares allotted is a perquisite?

Yes, the fair value of such security on the date of excising such option to be considered as perquisite value after reducing amount paid for excising such option by employee.

Are gift received by the employee in kind, taxable?

YES. It is taxable as a perquisite if the aggregate value of such gift in a year exceeds Rs.5,000/-.

Which perquisites are Tax free for the employees?

Below given is list of some of the tax free perquisites;

  • Medical re-imbursement upto Rs.15,000/-
  • Recreational facility provided to employees
  • Any expenditure towards training or refresher courses
  • Use of health club facilities
  • Expense on telephone including mobile
  • Amount paid to employee child as scholarship
  • Free food and non-alcoholic beverages at office and through paid vouchers if cost per meal is less than Rs.50 per meal
  • Tax paid on non-monetary perquisites paid by the employer
  • Employer contribution towards superannuation fund upto Rs.1 lakh per year
What is Form 16?

Form 16 is a certificate from given your employer for the TDS been deducted on your salary. If an employer deducts TDS on salary, he must issue Form 16 as per tax rules of India. Form 16 is issued once in a year, on or before 31st May of the next year immediately following the financial year in which tax is deducted.

What information is available in Form 16?

Any Indian Resident Individual having Income from Salary, Income from other sources (like Fixed deposit interest etc.) and Exempted Income which includes exempted income from sale of exempted securities, can file return through TaxPlatter.

Form 16 contains information that is required to prepare your Income Tax Return. Form 16 is of two parts, Part A and Part B. Form 16 - Part A contains:
  • Name and address, TAN & PAN of the employer
  • Name and address, PAN of the employee
What is a house property as per the Income Tax Act?

A House property can be your home, an office, a shop, a building or some land attached to the building say a parking lot. Income from all types of residential properties is taxed under the head 'income from house property' in the income tax return.

What does a self-occupied house property mean?

A self-occupied house property is used for one's own residential purposes. This may be occupied by the taxpayer's family. A vacant house property can also be considered as self-occupied for the purpose of Income Tax. If more than one self-occupied house property is owned by the taxpayer, only one is considered and treated as a self-occupied property and the remaining are assumed to be let out property.

What does a let-out house property mean?

A house property which is rented for the whole or a part of the year is considered a let-out house property.

What is the Income from Self-occupied House Property?

Self-occupied House Property is used for residence throughout the year and it's not let out or used for any other purpose. Here, the gross annual value of this property is zero. There is no income from your house property. Since the gross annual value of a self-occupied house is zero, claiming the deduction on home loan interest will result in a loss from house property. This loss can be adjusted against your income from other heads.

Whether major repairs to house property can be claimed as the expenditure?

No. Under the Act, a standard deduction of 30% is given, irrespective of expenditure incurred with regard to repair and maintenance. Hence, no claim is allowed on actual basis.

Whether EMI paid for housing loan can be claimed as expenditure against house property income?

Only the interest part of an EMI is allowed as expenditure under house property. Repayment of housing loan principal is allowed as deduction u/s 80C of Chapter VIA Deductions.

Even after claiming HRA exemption, can i also claim deduction for interest for self-occupied property?

Yes. Both rent paid and housing loan interest paid on self-occupied property can be claimed.

If the house is kept vacant for the whole year, whether income is to be declared under income from house property?

No. If the property is not self-occupied, then a nominal rent is to be declared and tax has to be paid if applicable, even though rent is not received.

If I have paid house property tax (Municipal tax) for last three years together in financial year 2017-18, can I claim full amount as deduction?

Yes. The full amount can be claimed on the payment basis.

Whether interest on housing loan paid prior to completion of construction of house be claimed?

Interest paid during construction period to be aggregated and claimed in 5 equal instalments from the year of completion of construction of house property subject to limits specified.

What is the maximum limit & conditions to claim deduction on Housing loan interest paid?

The maximum limit of claim on housing loan interest paid is Rs. 2,00,000 provided the individual fulfil the below given conditions:

  • The home loan must be for purchase and construction of a new property.
  • The loan must be taken on or after 1 April, 1999.
  • The purchase or construction must be completed within 3 years from the end of the financial year in which the loan was taken.
What are the incomes that fall under Income from Other Source?

Other source is a residuary income head, any source of income not covered in income heads like Income from salary, Income from house property, Income from business/profession, Income from capital gain and exempt income covered are under Income from Other Source.
E.g. Income from sub-letting of house property, casual income, insurance commission, family pension, directors sitting fees, interest on deposits and unsecured loans, rent from vacant land, interest on income tax refund etc.

Whether I can claim any expenditure/deduction against Income from Other Source?

Any expenditure which is directly related to such other source income can be claimed as deduction. Following are some of the deductions can be claimed under Income from Other Source:

  • In case of family pension: Rs.15,000/- or 33.33% of pension amount whichever is lower.
  • In case of plant and machinery, plant or furniture, expenses related to repairs of such assets and their depreciation.
Whether interest income from Bank fixed deposit is not taxable, if Form 15G/15H is given?

No. Form 15G/15H is applicable only for those, whose income including such interest income is below taxable limit (i.e. Rs. 2,50,000/- per annum). Interest income from bank is taxable at applicable tax slab of an Assessee. Hence if the Assessee taxable income is above Rs.10 lakh, then the Assessee has to pay tax at 30% on bank interest. Hence higher tax slab assesses have to keep track of such interest and have to pay advance tax.

Whether Gift received is taxable under income from other sources?

Yes. Subject to exceptions that gift will not be taxable, if aggregate value of such gift of property or money received is less than Rs.50,000 in a year. Few exceptions for this condition are:

  • Money /property received from relative or by will /inheritance.

  • Money/property received on the occasion of the marriage of the individual.
Various Deductions under Section 80C, 80CCC & 80CCD

Section 80C

A deduction of Rs. 1,50,000 can be claimed on your total income u/s 80C. This deduction is allowed to an Individual or a HUF.

Below given are several investments, expenses and payments allowed to be claimed under section 80C. Maximum deduction allowed cannot exceed Rs. 1,50,000.

Investments

  1. Investment in Public Provident Fund (PPF):
    A PPF account can be opened and deposit made in the account can be claimed for deduction. A maximum of Rs. 1,50,000 is allowed to be invested in one financial year. The minimum investment required in each year is Rs. 500. Interest is compounded annually and is reset quarterly. Interest on PPF account is fully tax free. The PPF account matures after 15 years. Receipts on maturity or withdrawals are tax free. Amount invested is allowed to be withdrawn after 5 years. PPF account deposit in the name of your spouse or child can also be claimed for tax deduction in your tax return.
  2. Purchase of NSCs:
    National Savings Certificate or NSC are eligible for deduction in the year they are purchased. These can be bought from designated Post Office. Their term is for 5 years and interest earned is compounded annually. Interest earned is taxable. Interest earned is also eligible for deduction under section 80C during the term of the NSCs (except the last year).
  3. Investment in Sukanya Samridhi account:
    A maximum of Rs 1,50,000 can be deposited in the Sukanya Samridhi Account for a girl child. Interest rate is compounded annually. This interest is fully exempt from tax. A minimum of Rs 1,000 must be deposited in a year. Receipts on maturity from the account are tax free. The account matures after 14 years.
  4. Investment in ELSS:
    ELSS or Equity Linked Savings Scheme is a type of a mutual fund investment. Investments made in ELSS funds during the financial year are eligible for deduction under section 80C. These funds have a 3 year lock in period.
  5. ULIPS or Unit Linked Insurance Plan:
    ULIPS sold with life insurance are also eligible for deduction under section 80C. This includes Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanraksha 1989 and contribution to Other Unit Linked Insurance Plan of UTI. Deduction claimed under ULIP will be withdrawn if the policy terminates before paying premium for 5 years. ULIP proceeds after maturity is exempt from tax. ULIPin the name of your spouse or child can also be claimed for tax deduction in your tax return.
  6. Five Year Post Office Time Deposit Scheme:
    This is similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) qualifies for tax saving. Interest is compounded quarterly but paid annually. The Interest is entirely taxable.
  7. Fixed deposit with a bank:
    Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years.
  8. Amount deposited under Senior Citizens Saving Scheme:
    Amount deposited under Senior Citizens Saving Scheme: A recent addition to the list, Senior Citizen Savings Scheme (SCSS) is a small savings schemes but is meant only for senior citizens. Interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax. The account may be opened by an individual,
    • Who has attained age of 60 years or above on the date of opening of the account.
    • Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.
    • No age limit for the retired personnel of Defence services provided they fulfil other specified conditions.
  9. Subscription to any notified securities/notified deposits scheme. e.g. NSS
  10. Contribution to notified Pension Fund set up by Mutual Fund or UTI.
  11. Sum paid as subscription to Home Loan Account Scheme of the National Housing Bank or contribution to any notified deposit scheme/pension fund set up by National Housing Bank.
  12. Subscription to deposit scheme of a public sector, company engaged in providing housing finance (public deposit scheme of HUDCO).
  13. Contribution to notified annuity Plan of LIC (e.g. Jeevan Dhara and Jeevan Akshay) or Units of UTI / notified Mutual Funds.
  14. Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
  15. Subscription to any notified bonds of NABARD (National Bank for Agriculture and Rural Development).
Expenses

1. EPF or Employee's share of PF Contribution

Employee contribution to EPF is eligible for deduction under section 80C i.e. 12% of your Basic + DA is deducted by the employer and deposited as your contribution in Employee's Provident Fund Scheme or Recognized Provident Fund.

2. Life Insurance Premium Payment

The policy must be in the taxpayer's name or spouse's or any child's name (child may be dependent/independent, minor/major, or married/unmarried). The deduction is valid on insurance policies purchased after 1st April, 2012 only if the premium is less than 10% of sum assured. Benefits for existing purchased policies continue. The deduction is also allowed on payments made by Government employees to Central Government Employees Insurance Scheme. Receipts on maturity are tax free. Deduction claimed will be withdrawn if the policy terminates with 2 years.

3. Children's Tuition Fee Payment

Deduction can be claimed for Tuition fees paid to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children (including payments for play school, pre nursery and nursery).

4. Principal Repayments on Loan for purchase of House Property

Principal repayment of loan taken for buying or constructing a residential house property is also eligible for deduction in 80C. Deduction is also allowed for stamp duty, registration fees and other expenses of transfer of such property to the taxpayer. However, if the property is transferred or sold before the expiry of 5 years from the end of the financial year in which its possession was taken; the total deduction allowed for various years shall be taxed in that year.

5. Sum paid for securing Deferred Annuity

Deduction is allowed on sum paid under non commutable deferred annuity for an individual on the life of the taxpayer, spouse or any child. This is also allowed on sum deducted from salary payable to Govt. Servant for securing deferred annuity for self, spouse or child. Payment limited to 20% of salary or actual contribution, whichever is less.



Section 80CCC

Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer The deduction is allowed to an Individual for any amount paid or deposited in any annuity plan of LIC or any other insurer. The plan must be for receiving pension from a fund referred to in Section 10(23AAB). If the annuity is surrendered before the date of its maturity, the surrender value is taxable in the year of receipt.

Section 80CCD

Deduction for Contribution to Pension Account

Employee's contribution – Section 80CCD(1)

Allowed to an Individual who makes deposits to his/her Pension account. Maximum deduction allowed is 10% of salary (in case of taxpayer being an employee) or 20% of gross total income (in case of tax payer being self-employed) or Rs. 1,50,000 whichever is less.

Employer's contribution – Section 80CCD(2)

Deduction is allowed for employer's contribution to employee’s pension account up to 10% of the salary of the employee. There is no monetary ceiling on this deduction.

Deduction for self-contribution to NPS - Section 80CCD(1B)

A new section 80CCD(1B) has been introduced for additional deduction for amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible under this section. Deduction is allowed on contribution up to Rs. 50,000.

Various Deductions under Section 80TTA

This section allows deduction from gross total income for Interest on Savings bank account. A deduction of maximum Rs. 10,000 can be claimed against interest income from a savings bank account.

Interest from savings bank account should be first included in other source income and deduction can be claimed of the total interest earned or Rs. 10,000, whichever is less. This deduction is allowed to an individual or HUF and it can be claimed for interest on deposits in savings account with a bank, co-operative society or post office.

Section 80TTA deduction is not available on interest income from fixed deposits or recurring deposits or interest income from corporate bonds.

Various Deductions under Section 80GG

Deduction is allowed for House Rent Paid where HRA is not received as a salary head. Condition to claim this deduction are as below:

  • Taxpayer or his spouse or minor child should not own residential accommodation at the place of employment.
  • Taxpayer should not have self-occupied residential property in any other place.
  • Taxpayer must be living on rent and paying rent.

Deduction can be claimed minimum of:

  • Rent paid minus 10% of total income
  • Rs. 2000/- per month for FY 2015-16 and Rs. 5000/- per month for FY 2016-17
  • 25% of total income
Various Deduction under section 80EE

This Deduction is allowed on Home Loan Interest for First Time Home Owners. This section was revived in Budget 2016 and is applicable starting FY 2016-17.

The deduction under this section is available only to an Individual who is a first time home owner. The conditions to claim this deduction are as below:

The value of the property purchased must be less than Rs. 50 Lakhs and home loan must be less than Rs. 35 lakhs.

he Loan must be taken from a financial institution and must be sanctioned between 01.04.2016 to 31.03.2017. Under this section, an additional deduction of Rs. 50,000 can be claimed on home loan interest./p>

This is in addition to deduction of Rs. 2,00,000 allowed under section 24 of the income tax act for a self-occupied house property. There is no restriction on the number of years for which this deduction can be claimed.

Various Deductions under section 80CCG

This deduction is allowed for Rajiv Gandhi Equity Saving Scheme (RGESS) which was launched in the year 2012. Investors whose gross total income is less than Rs. 12 lakhs can invest in this scheme. Upon fulfilment of conditions laid down in the section, the deduction is allowed upto 50% of amount invested in equity shares or Rs. 25,000, whichever is lower.

Various Deductions under section 80D

This deduction is allowed for premium paid for Medical Insurance. This deduction is available up to Rs. 25,000/- to a taxpayer for insurance of self, spouse and dependent children. If individual or spouse is more than 60 years old the deduction available is Rs. 30,000.

An additional deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 25,000/- if less than 60 years old and Rs. 30,000 if parents are more than 60 years old. Therefore, the maximum deduction available under this section is to the extent of Rs. 60,000/-. Within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is also available.

For uninsured super senior citizens (more than 80 years old) medical expenditure incurred up to Rs. 30,000 shall be allowed as a deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs. 30,000.

Various Deductions under section 80DD

This deduction is allowed for Rehabilitation of Handicapped Dependent Relative. Deduction is available on:

  • Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative
  • Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

Where disability is 40% or more but less than 80% a fixed deduction of Rs. 75,000 is allowed.

Where there is severe disability (disability is 80% or more) a fixed deduction of Rs. 1,25,000 is allowed. To claim the deduction a certificate of disability is required from prescribed medical authority.

Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.


  • The Certificate can be taken from a Specialist as specified.
  • Patients getting treated in a private hospital are not required to take the certificate from a government hospital.
  • Patients receiving treatment in a government hospital have to take certificate from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in General or Internal Medicine or any equivalent degree, which is recognised by the Medical Council of India.
  • Certificate in Form 10I is no longer required. The certificate must have - name and age of the patient, name of the disease or ailment, name, address, registration number and the qualification of the specialist issuing the prescription. If the patient is receiving the treatment in a Government hospital, it should also have name and address of the Government hospital.
Various Deductions under section 80DDB

The deduction for Medical Expenditure on Self or Dependent Relative is allowed under this section. A deduction of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by taxpayer on himself or dependent relative for medical treatment of specified disease or ailment can be claimed.

The diseases for the claim of expenditure have been specified in Rule 11DD. A certificate in form 10I is to be furnished by the taxpayer from any Registered Doctor.

In case of senior citizens the deduction can be claimed up to Rs. 60,000 or amount actually paid, whichever is less. In case of very senior citizens Rs. 80,000 is the maximum deduction that can be claimed.

Various Deductions under section 80U

This deduction is allowed for Person suffering from Physical Disability. A deduction of Rs. 75,000 is allowed for an individual who suffers from physical disability (including blindness) or mental retardation.

In case of severe disability, deduction of Rs. 1,25,000 can be claimed. A Certificate should be obtained from a Govt. Doctor as specified in Rule 11D. This is a fixed deduction and not based on bills or expenses.

Various Deduction under section 80G

The deduction claimed for donations towards Social Causes is under this section. The various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G. Sec. 80G deduction is not applicable in case donation is done in form of cash for amount over Rs. 10,000.

Donations with 100% deduction without any qualifying limit:

  • National Defence Fund set up by the Central Government
  • Prime Minister's National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National eminence
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a State Government for the medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or to any State Blood Transfusion Council
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
  • National Sports Fund
  • National Cultural Fund
  • Fund for Technology Development and Application
  • National Children's Fund
  • Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund with respect to any State or Union Territory
  • The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996
  • The Maharashtra Chief Minister's Relief Fund during October 1, 1993 and October 6,1993
  • Chief Minister's Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
  • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
  • Prime Minister's Armenia Earthquake Relief Fund
  • Africa (Public Contributions — India) Fund
  • Swachh Bharat Kosh (applicable from financial year 2014-15)
  • Clean Ganga Fund (applicable from financial year 2014-15)
  • National Fund for Control of Drug Abuse (applicable from financial year 2015-16)

Donations with 50% deduction without any qualifying limit:

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister's Drought Relief Fund
  • Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation

Donations eligible for 100% deduction subject to 10% of adjusted gross total income

  • Government or any approved local authority, institution or association to be utilised for the purpose of promoting family planning
  • Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.

Donations eligible for 50% deduction subject to 10% of adjusted gross total income:

  • Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
  • Government or any local authority to be utilised for any charitable purpose other than the purpose of promoting family planning
  • Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
  • Any corporation referred in Section 10(26BB) for promoting interest of minority community
  • For repairs or renovation of any notified temple, mosque, gurudwara, church or other place.
Various Deductions under section 80GGC

This Deduction is claimed on contributions given by any person to Political Parties. This is allowed to a taxpayer for any amount contributed to any political party or an electoral trust and allowed for contribution done by any way other than cash.

Political party means any political party registered under section 29A of the Representation of the People Act.

Various Deductions under section 80RRB

This deduction is with respect to any Income by way of Royalty of a Patent. Deduction on any income by way of royalty for a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available up to Rs. 3 lakhs or the income received, whichever is less. The taxpayer must be an individual resident of India who is a patentee. The taxpayer must furnish a certificate in the prescribed form duly signed by the prescribed authority.

Whether any income is exempt from tax?

Exempt incomes are such incomes which specifically made exempt under section 10 of the income tax act.
E.g. Agricultural income, share of income from partnership firm, Dividend income, interest from PPF Account, Income of political parties, Income from long term capital gain from listed securities, maturity proceeds of life insurance policies, Exempted HRA claim, Scholarship granted to meet the cost of education etc.

Whether I have to declare exempt income in my income tax return?

Yes. You have to declare the exempt income in your income tax return.

What are the different modes of payment of income tax?

Tax Deduction at Source (TDS):

Your employer is liable to deduct tax after computing your taxable income; the same is remitted by him to government. This TDS is then linked to your account after filing tds return by your employer.

Advance Tax:

If you have annual tax dues of more than Rs 10,000, you are required to pay income tax in advance. Usually, for the salaried, these income tax payments are taken care of via TDS deductions by employer.

Situations when you have to pay advance tax:

  • You are salaried but have high income from interest or capital gains or rental income.
  • You are a freelancer.
  • You are running a business.

Due Dates of payment of Advance Tax for FY 2017-18:

On or before 15th June Up to 15% of tax
On or before 15th September Up to 45% of tax
On or before 15th December Up to 75% of tax
On or before 15th March Up to 100% of tax

Non-payment of advance tax can result in penal interest levy under section 234B and 234C.

Self-Assessment Tax:

Your income tax return cannot be submitted to the tax department, unless you have paid tax dues in full. Sometimes, you may see tax payable at the time of filing your return. This income tax must be paid online, so that return is successfully e-filed afterwards. Usually, interest under section 234B and 234C will also have to be paid along with your tax due, if you are paying tax after 31st March. Above said Advance Tax and Self-Assessment Tax can be paid online in the given link This is required to be paid by Challan No. ITNS-280. Tax can also be paid through approved banks, by producing the ITNS 280 Challans.

How can I verify the TDS deducted by employer, whether paid to Income Tax department or not?

The TDS deducted by the employer can be verified by accessing your income tax account at Income Tax department website and downloading the Form 26AS details.

Whether, there is any advantage to Assessee because of TDS?

Assessee can avoid interest payable on non-payment of advance tax due to the deduction of TDS on payment..

Procedure for uploading Form26 AS

Download Form26 AS from Income Tax Department website (Click Here)

  • Login to ITD website by providing User ID, Date of Birth and password
  • Specify Captcha
  • Specify Assessment Year as 2017-18.
  • Select the option PDF/Zip/Text
  • Press download to save the file in your machine, Note the saved location

Upload Form26 AS

  • Press Form26AS upload and press 'Browse' button and select the file just downloaded from ITD website
  • Press upload button
Can I get the refund of the excess income tax paid?

To get income tax refund, first you have to file the income tax return. In the return on declaration of all incomes and investments details and computation of tax, if excess tax paid is determined the same can be claimed in the return. To receive the refund, provide your bank details properly and the refund will be credited directly to your bank account. Get refund due details through web link:
"https://tin.tin.nsdl.com/oltas/refundstatuslogin.html"

What does my refund status mean?

  1. No e-Filing has been done for this assessment year

    Step 1: What does this mean? You may have filed your returns in physical form (paper filing) and not e-Filed or your I-T Return was not filed at all.
    Step 2: What do I do now? Double check the Assessment Year that you have entered to check your refund status.

  2. Not Determined

    Step 1: What does this mean? The Income Tax Department has still not processed your Income Tax Return or determined the refund yet. Please check your refund status after a month to see if it has been updated.

  3. Refund Paid

    Step 1: What does this mean? The Income Tax Department has sent the refund to you (by Cheque or by direct debit to the Bank Account Number you provided while e-Filing).
    Step 2: What do I do now? If your refund status is "Refund Paid", and you haven't received it yet, here's what you need to do:

    • If you had opted for direct debit to your bank account while filing and you haven't received your refund, you need to immediately contact your own bank or the State Bank of India to check for any errors.

    • If you opted for refund via cheque while filing, but haven't received the cheque check out the Speed Post tracking reference number for your cheque on the Refund Banker's website.

  4. No demand no refund

    Step 1: What does this mean? This is the most common case if you filed with no refund and no tax due. In that case, you're all set for this year. OR It could also be that you did file for a refund, but the Income Tax department denied the refund because their calculations did not tally with yours. This generally can happen because of mismatch of TDS data, incompletely or improperly filled sections in the original filing.
    Step 2: What do I do now? If you have forgotten to include some deductions while filing, you can revise your return. When the Income Tax Department differs on the information you’ve provided, they would have also sent you an intimation explaining why. You can now fix the errors and file a rectification to support your refund claim. You can get help from an expert who can go through your tax notices and tax returns to best guide you. The expert can also help you file a rectification.

  5. ITR processed refund determined and sent out to Refund Banker

    Step 1: What does this mean? Your Refund Claim has been accepted by the Income Tax Department. After the Refund Claim has been accepted, the Income Tax Department sends the refund details to the Refund Banker who is tasked with processing your refund.
    Step 2: The Refund Banker service will give you the latest details of your refund that may include speed post tracking, error messages in case of incorrect bank details etc.

  6. Refund Unpaid

    Step 1: What does this mean? The Income Tax Department has sent the refund to you, but the address provided to the IT department is wrong, hence the cheque was undelivered. OR The bank account details (Account Number or IFSC Code) that you submitted to the I-T department is wrong, and hence the refund wasn't processed.
    Step 2: Firstly, confirm the cause of the problem by entering your PAN and Assessment Year on the Refund Banker's website. Once you have identified the cause, you need to login to your Income Tax Department account and then correct the information with the I-T department. After you correct the details, you need to apply for the "Refund Reissue Request" from within your Income Tax Department account.

  7. Contact Jurisdictional Assessing Officer

    Step 1: What does this mean? This typically indicates that the I-T department needs further clarification / Information regarding your Income Tax Return that you filed. The Assessing officer would like to discuss things further with you. In some cases, this could also mean that you have some past taxes outstanding with the I-T department which will be adjusted against the tax refund requested by you.
    Step 2: What do I do now? On receiving such a message, contact the AO (Jurisdictional Assessing Officer) for your region. You may contact your Assessing Officer via telephone or by post.

  8. Demand determined

    Step 1: What does this mean? Your refund request has been rejected, and the I-T department finds that you owe them unpaid taxes instead. You may also have received a notice from the Income Tax Department with the exact amount of tax outstanding and the reason for the same. This can happen because of incompletely or improperly filled sections in the original filing, withholding income information, or mismatch in TDS.
    Step 2: What do I do now? Read the intimation the I-T Department has sent you carefully and figure out where the problem has occurred. Cross check with your own e-Filing records to verify the information you provided was accurate. If you find that your own refund request was indeed erroneous, pay the tax demanded by the I-T department within the time limit mentioned in the intimation. If you think the I-T department made a mistake, you can update your information if necessary and file a rectification supporting your refund claim.

  9. Rectification processed refund determined and sent out to Refund Banker?

    Step 1: What does this mean? The rectified returns may be completely or partially accepted by the IT department. Based on the rectification, the I-T department has calculated the refund amount and forward a refund pay-out request to Refund Banker. Such a message is shortly followed by a revised intimation and the refund amount from the IT department.

  10. Rectification processed demand determined

    Step 1: What does this mean? The rectified returns may be completely or partially accepted by the IT department. However the I-T Department maintains that you have outstanding unpaid taxes. You will also receive intimation with the exact amount that is outstanding and will have to pay this off within 30 days of receipt.

  11. Rectification processed no demand no refund

    Step 1: What does this mean? The rectified returns may be completely or partially accepted by the IT department. Based on the rectification, the department arrives at the conclusion that you neither owe any extra taxes, nor do you qualify for any sort of refund of taxes already paid. You will receive a revised intimation clarifying this fact.

Steps for filing Income Tax return through TaxPlatter?

Login to www.taxplatter.com.

Create you login with TaxPlatter.

If you have your Form 16, upload the form. The required details will be auto taken from the form.

If you do not have Form 16, enter your Salary details, deduction details & Tax Paid details.

TaxPlatter will calculate your Income Tax and display the calculation. You can see Refund or No Tax Due.

Review the tax calculation and authorize TaxPlatter to do e-filing of your Income Tax return.

TaxPlatter will file your return and the Acknowledgement (ITRV) from Income Tax Department will be received at your mail box.

ITRV can be e-verified using different methods provided by ITD (View next point for detailed information on e-verification).

OR

     Download & print the ITRV from your mail box in an A4 size paper. Sign the print out in BLUE INK and enclose it in an A4 size envelope and post it to “Income Tax Department – CPC, Post Box No.1, Electronic City Post Office, Bangalore – 560100, Karnataka" within 120 days of filing your Income Tax Return.

Income Tax Department will send you an acknowledgment of receipt of ITRV.

This completes your Income Tax Return Filing.

Steps to verify your e-filing without sending the ITRV to Income Tax Department?

Your Income Tax return can be verified via different methods after successfully e-filing at Income Tax Department Account.

You can send the ITRV to CPC Bangalore or you verify through Electronic Verification Code (EVC). The EVC is a 10-digit alphanumeric number, unique for each PAN and valid for only 3 days. This can be generated through;

  • Using your Mobile Number & Email
  • Using your Aadhar Card
  • Using you Netbanking Login
  • Using your ATM Card (Specified Banks)
  • Using your Bank account details
  • Using your Demat Account

The below steps will guide you to the process;

  • Login to Income Tax Department e-filing Account.
  • Select “e-filed Returns/Forms” from “My Account” dropdown.
  • Click on "Click here to view your returns pending for e-verification".
  • Click on “e-verify” for the return which is required to be verified.
  • Choose any one option listed on the displayed screen;

    1. If you choose option 1, already generated EVC available with you has to be entered and submitted for verification.
    2. If you choose option 2, EVC has to be generated using sub-options displayed
      • Verification through Netbanking Login. Login to account with banks (with PAN attached with the bank account and the PAN is registered in eFiling portal) through eFiling portal. After login, submit any of the listed items and it will be automatically e-Verified, (EVC will be generated and attached to the item automatically).
      • Verification through Mobile Number & Email Id. EVC will be sent to your registered Mobile Number and Email Id. This verification is applicable only if your Income is below Rs. 5 Lakh and you do not have any refund in your return. Enter the EVC and Submit.
      • Verification through Pre-validated Bank Account. You can generate an EVC using Pre-validated bank account details and the EVC can be used for e-Verification. You must have linked your bank account with eFiling account. Option to link the same is available under Profile Settings ⇒ Prevalidate Bank Account after login to eFiling portal. Currently this option is available for specific banks only
      • Verification through Pre-validated Demat Account Details. You can generate an EVC using Pre-validated Demat account details and the EVC can be used for e-Verification. You must have linked your DEMAT account with eFiling account. Option to link the same is available under Profile Settings ⇒ Prevalidate Demat Account after login to eFiling portal. [Note: National Securities Depository Limited (NSDL) and Central Depository Services (India) Ltd (CDSL) provided the option to pre-validate the Demat account]
      • Verification through Bank ATM. You can generate an EVC through ATM and the EVC can be used to verify the listed items. "PIN FOR INCOME TAX FILING" option can be used in the ATM to generate the EVC. You must have linked your PAN with the respective bank account and the PAN should be registered with eFiling for the same. Upon using the option, you will get the EVC on the registered mobile number (Primary mobile number registered with specific Bank). EVC generated using this option is valid for 72 Hours. Currently this option is available for specific banks only
    3. If you choose option 3, you will be required to link your Aadhaar Number to verify. Follow the steps shown on screen to link and verify your return.
      • After successful verification, confirmation message on verification will be displayed.
      • Download the attachment i.e. ITRV. This will complete you filing process and you will not require sending the ITRV to CPC Bangalore.
    4. If you choose option 4, you will be required to link you bank account details through which your return will be verified. This option can be selected if you do not have net-banking facility for your bank account (Currently this option is available only for Punjab National Bank Customers).
    5. If you choose option 5, you can e-verify your return through SBI ATM. This option is applicable only for SBI Customers who do not hold net-banking facility.
  • After successful verification, confirmation message on verification will be displayed.
  • Download the attachment i.e. ITRV. This will complete you filing process and you will not require sending the ITRV to CPC Bangalore.
File you ITR for year 2016
What is an ITR-V?
  • ITR-V stands for 'Income Tax Return – Verification' form.
  • This form is received when you e-File without using a digital signature.
  • Income Tax Department needs to verify the authenticity of income tax return when filed online without using a digital signature.
  • On receipt of ITR-V you have to sign the copy and submit to the Income Tax Department to complete the filing process.
Can I submit ITR-V anywhere else in India?

No, you cannot. You have to compulsorily mail your ITR-V in a sealed A-4 envelope to the address mentioned above.

Is there any time limit for submitting ITR-V to Income Tax Department?

Yes, ITR-V has to be submitted within 120 days of e-Filing your return.

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