Income Tax is an annual tax which every earning individual, corporate firms, local authority and company has to pay. And the tax depends on the annual income of a person or entity where the cycle starts from 1st April in a year and ends on 31st March of the next year.
And every individual, firm or a company should file their income tax returns for a financial year on or before the 31st of July of the next financial year. Under section 139 (1), the normal due dates for filing of income tax return is:
|Where the taxpayer is
2. Any person mandatorily required to get his tax audit done
3. A working partner of a firm whose accounts are required to be audited
|30th September of the Assessment Year|
|In case of any other category of taxpayer i.e. Salaried / self-employer who are not required to get their tax audit done||31st July of the Assessment Year|
However, if you have missed your due date for filing your income tax return, you can do so belatedly under section 139 (4).
Belated Return of Income Tax
As discussed if a taxpayer fail to file income tax returns on or before above-mentioned date under section 139 (1) can still pay it belatedly, or
If the taxpayer receives any notice under section 142 (1) from the income tax officer in case income tax return is not filed stating to file the required tax within the time specified in the notice and he has missed the due date of the notice as well can still file the income tax return. Such income tax returns which are filed after the due date are called “Belated Return”.
And one can file the belated return at any time of their convenience before the end of the relevant assessment year.
Also, ponder upon following points regarding Belated Return:
- Considerable Assessment date means the due date on which the order of assessment is passed and not on which the taxpayer has received the order
- If the return is filed after the assessment which gets cancelled, the return would still be considered as valid
- Belated return of loss from business/profession is not applicable after the normal due date
- Under the Finance Act 2016, Belated Returns filed under section 139 (4) can be revised, which is applicable from Assessment Year 2017 – 18 onwards.
- The taxpayers are required to pay interest of 1% (simple interest) per month along with tax under section 234 A in case the return is filed after the income tax due date.
What are the penalties for late filing Income Tax Return?
Late filing income tax return is subjected to penalty i.e. penalty of Rs. 5000. Although this penalty has to be paid once the taxpayer receives a notice from the income tax officer, else the penalty is not automatically levied. Hence this penalty depends on the assessment officer.
An Income Tax Refund is a refund which is issued to the taxpayer by the Income Tax Authorities when his tax liability is less than the actual taxes he/she paid. The Income Tax Department offers an online facility to check the Income Tax Refund Status.
The taxpayers can see their Income Tax Refund Status after 10 days the refund has been sent. You just need your PAN Number and then select the desired Assessment Year for which you want to check.
Check Income Tax Refund Status
- Visit the official website of e-Filling Portal- incometaxindiaefilling.gov.in
- Login using the details: PAN, Password, Date of Birth and Captcha Code.
- Go to “My Account” and click on “View Returns/Forms”.
- Select the “Income Tax Returns” and choose the relevant assessment year for which you want to check the refund status.
- Click on the acknowledgement number which is a hyperlink.
- A pop-up appears on the screen which displays the timeline of the filling of return activities. This includes the date and time when your ITR was filed and verified, date of completion and processing, date of issue and refund etc.
- It will also show the details of the assessment year, status, reason for failure, mode of payment.
Eligibility for Income Tax Refund
The different criteria’s for the eligibility of the Income Tax Refund is as follows:
- If the taxpayer has paid more tax as the self-assessment but should have paid less for the regular assessment.
- If the TDS deducted by the bank or the employer of the taxpayer is more than the latter’s tax liability through a regular assessment.
- If the same income of a taxpayer has been taxed in a foreign country (with which the Government of India has an agreement to avoid double taxation) and in India as well.
- If the taxpayers have not declared some of the investments which provided the tax benefits to him.
- What if you have e-Filed an Income Tax Return but have not received the refund yet?
If you haven’t received your refund to date, then there could be three possible reasons:
- Your Income Tax has not been processed yet.
- Your Income Tax Return has been processed but the Income Tax Department has determined no refund.
- Your Income Tax Return has been processed and a refund has been determined but the Cheque/ECS credit could not reach you.
- What if you have checked the status of the IT Return and it is displayed as “Refund Returned”. How can we apply it again?
Visit the official e-filling website and go to “My Account” section. From the drop-down menu of “My Account” select “Refund Re-Issue Request”. Select the mode of re-receiving the refund. ECS or Cheque. Provide the bank account number, if in case you have changed and provide the address details.
This same process goes for all the other cases such as the following:
- If in case your Bank Account Number has changed and you want to change the bank account number.
- If in case you have changed your address.
House rent allowance (HRA) is the housing benefit provided by the employer as a part of the employee’s salary. If a person gets housing allowance and he or she lives in a rented accommodation then he or she can claim for tax exemption on the housing allowance under section 10 (13A) of the Income tax act. An employer can make partial payment or full payment of the house rent.
Further, this allowance is available only for people living in a rented accommodation. In case a person is not living in a rented houses, then the entire housing allowances provided by the employer is taxable.
Eligibility for HRA Tax Exemption
- The amount of house rent allowance that will be provided depends upon the residential area of the person. If a person stays in a rural area then 40% of the house rent will be provided. However, if he or she stays in an urban area then 50% will be provided.
- If the rent paid is more than one lakh/ annum then the PAN card of the landlord is must.
- In order to make Tax exemption claim the rent receipt must be provided
- Tax exemption claim can also be made if a person is paying rent to his or her family member except of a person’s spouse. A person cannot claim for tax exemption by showing a receipt of rent paid to his or her spouse.
- In case a person owns his or her house then he or she is not eligible for HRA exemptions.
- Tax is exempted on excess amount of rent paid over 10% of the total salary.
How HRA is Calculated
Thus, the following factors are taken into account while calculating the House Rent Allowances:
- Total Salary
- Amount of HRA received as a part of the salary
- Total amount of rent
- Location or residential area
Let us understand how HRA is calculated with the help of the following example.
Mr Ajay receives a monthly salary of Rs 30000. He lives in an apartment where he pays a monthly rent of Rs 15000.Therefore depending upon his residential area he can claim for 40 to 50% of allowances as HRA from his employer. The amount on which the tax is exempted can be calculated as:
Section 80GG allows an employee to claim HRA deduction even when he or she does not get any house rent allowances from the employer. Benefits under section 80 GG can be claimed on the following grounds:
- If a person lives in rented accommodation but does not get any allowances from the employer
- When a person is self-employed or in business
- When a person does not own any property
- The house which is inhabited, or business is carried out should not be in the name of the spouse or children
If all of the above mentioned criteria met then a person claim for 25% or Rs 5000 or 10% less than the actual income for tax exemption under section 80GG.
HRA And TAX Deduction
Tax exemption on HRA is calculated on the basis of the guidelines provided under section 10(13A) of the Income Tax Act. A person who is self-employed cannot claim for HRA exemption under 10(13A), he or she will have to claim tax exemption under section 80GG of the income tax Act. Further, if a person pays more than Rs 1 lakh as rent then the PAN card of his or her landlord must be provided. If in case the landlord does not have a PAN card then a declaration of the same must be provided by the landlord along his or her name and address to the employer. PAN card of the landlord is asked so as to calculate the tax deduction on the person’s property.
Documents Required for HRA
The following documents must be provided while making a HRA claim:
- Form 12BB: It is a declaration comprising of the employer’s name, address and Permanent Account Number.
- Document to prove the claim like lease agreement, electricity bill, water supply bill, housing society addressing the tenancy or proof of payment of bill
How to Claim HRA For Parents with an Example
In case a person receives House Rent Allowance from his or her employer but lives with his or her parents then tax exemption can be claimed entering into a rental agreement with the parents.
In such a case, a person pays back to his or her parents and also reduces the tax burden. But the rent receipts must be provided to the employer to make tax exemption claims.
For example, Mr Raj works with multi-national company in Mumbai. He gets House rent allowances every month from his employer. He lives with his parents and pays rent to them as an act of good gesture. His parents have entered into a rental agreement with him so as to reduce his tax burden. In such a case Raj’s parents will have to claim for tax returns and Raj can claim for tax exemption on house rent by providing the receipt he received from his parents. In this way, the money will stay with the family itself.
India has witnessed its first post GST (Goods and Service Tax) budget; Budget 2018. The budget this year was highly disappointing for people as there is no change has been introduced in the tax slabs. It has in turn raised the liability of citizens except some categories such as senior citizens. The senior citizen tax has come down by almost Rs. 15, 450 due to the tax exemption for up to Rs. 50, 000 interest earned from bank deposits and Post Office Schemes.
Other than few of these exceptions, the budget has hiked the percentage on tax from 3 % to 4 % for all tax payers. According to this, a tax payer who earns 60 lakh in a year will pay Rs. 13,354 more in tax and on the other hand a high – income tax payer who earns nearly 1.2 crore will pay 33,868 more.
On this matter, one of the dealers said that
However, in the budget, Arun Jaitley has announced that standard deduction of Rs. 40,000 will be granted for salaried individuals.
Let us look at the below mentioned chart to see the impact of budget 2018 on tax:
- Retired Pensioner
Income 9 Lakh
Sec 80 C 1.5 lakh Medical Insurance 30,000 Existing Tax 55,620 After Budget 41,600
Savings In Tax – 14,020
- Low – Income Earner – Negligible Tax Cut, Gross Income – Rs. 6 lakh
Sec 80 C 1.5 lakh NPS Contribution 50,000 Medical Insurance 15,000 Existing Tax 6,953 After Budget 6,718
Savings In Tax – 234
Mid Income with Home Loan, Gross Income – Rs. 12 lakh
Sec 80 C 1.5 lakh NPS Contribution 50,000 Medical Insurance 20,000 Home Loan 2 lakh Existing Tax 70,555 After Budget 70,033
Savings In Tax – 521
- High Income Earner, Gross Income – Rs. 60 lakh
Sec 80 C 1.5 lakh NPS Contribution 3.5 lakh Medical Insurance 25,000 Home Loan 2 lakh Existing Tax 15.81 lakh After Budget 15.93 lakh
Additional Tax Payable – 13,354
- Very High Income Earner, Gross Income – Rs. 1.2 Crore
Sec 80 C 1.5 lakh NPS Contribution 5.5 lakh Medical Insurance 55,000 Home Loan 2 lakh Existing Tax 37.02 lakh After Budget 37.36 lakh Additional Tax Payable – 33,868
Filing an Income Tax Return by Post is quite easy just like a child’s play. You just need to get a form printed out which will take a few seconds and then post it to the required Income Tax Office Address which is located in Bangalore. Let us know the complete details about the process of Filling ITR offline by Post.
An Income Tax Return is the type of tax-form which is used to file income tax with the Income Tax Department. The Tax Return is usually a predefined worksheet formula with the income figures which are used to calculate the tax liability in the documents.
The Law states that the tax must be filled every year for an individual or business that received income during the year, whether through the regular income/wages, dividends, interests, capital gains or other sources.
Tax Return, regardless of whether it relates to an individual or a business, must be filled by a specific date. If the return shows that an excess amount of tax has been paid during a given year the assesse is eligible for a “Tax Refund”, subject to the departments, interpretations, and calculations.
How to fill ITR Offline by Post
For sending the ITR file through speed post a unique Pin Code (560500) is introduced and allocated to the Centralized Processing Center (CPC), Income Tax Department located in Bengaluru.
Steps from filling up the form offline to Posting and Sending It to CPC Bangalore.
Step 1. Visit the official website of the Income Tax Department. Download the ITR-V form the website.
Step 2. If you have downloaded the ITR-V form then you require a password to open it.
Password Format to Open ITR-V
The Password is your PAN Number in lower case letter along with the date of birth.
Date of Birth- 01/01/1982
After receiving the ITR-V (acknowledgment) you need to send it to the CPC, Bangalore within a time period of 120 days of e-filling your income-tax return.
An ITR-V form is called Income Tax Return- Verification form. It is basically a one-page document. It is received only when you file your IT Return Online without using a digital signature. This document is sent by the IT Department. Then the IT Department verifies the authenticity of your e-filing which does not have your digital signature. On the receipt of a form of ITR-V, you need to sign the copy of the form in blue ink.
Step-3. Send the form to the following address
Address of CPC Bangalore, for Speed Post:
Post Bag No. 1
Electronic City Post Office
This will take a period of 3-4 days to receive the documents. After receiving the documents, the CPC Bangalore sends an email acknowledgment on the receipt of ITR-V. It takes a minimum of 4-5 days.
You can check your status on the https://incometaxindiaefiling.gov.in/
if your ITR-V has not been marked as received after 10 years you can call on the Government Helpline Number 1800 4250 0025 / +91 80 2650 0025 from 9 am- 8 pm.