P RE REQUISITE S IN E-F IL ING

INC OM E TA X RET UR N S
Dr. Kailash Kalyani
 DIRECT & INDIRECT TAX
DIRECT TAX

Tax on your income - Paid by you - Directly to the Government.

E.g. - Income Tax, Corporate Tax, Capital gain Tax, etc.

INDIRECT TAX

Tax that somebody else collects on your behalf - Pays to the

Government
E.g. – GST, VAT, Restaurants etc.
 INCOME TAX
Income Tax = TAX ON YOUR INCOME.

Everyone who earns or gets an income in India is subject to IT.

Your income could be salary, pension or could be your bank interest.

May be you are a winner of ‘KBC’.

Illegal trading or earning income illegally or through unlawful means.

All kinds of  income, profits & gains are chargeable under income tax
except exempted income.
Failure to pay the tax on time, may attract penalties.
 INCOME TAX HEADS
Head of Income Nature of Income covered

Income from Salary Salaries, pensions, annuity, gratuity, fees, commission,

profits etc.

Income from Other Sources Bank Interest, Lottery, Prizes etc.

Income from House Property Preferably rental income etc.

Income from Capital Gains Income from sale of a capital asset such as mutual funds,
shares, house property etc.

Income from Business and Self-employed, freelancer or contractor, or businessman,

Profession Life insurance agents, chartered accountants, CMAs,
doctors and lawyers, tuition teachers etc.

Section 14 of the Income Tax Act provides classification of income into Heads.
  WHY THIS CLASSIFICATION?

Tax is a tedious phenomenon

Different rules of computation under each head
Computation is done after applying such rules.
Income has been further classified as
Exempt Income Taxable Income
Total income Gross Total Income
There is only one tax on the income calculated under various
heads.
 G R O S S T O TA L I N C O M E ( S E C T I O N 8 0 B ( 5 )
GTI is the aggregate of all the income earned during a specified period.
Sec. 14 of IT Act 1961, income of a person or an assessee can be categorised as
• Income from Salaries
• Income from House Property
• Profits and Gains of Business and Profession
• Capital Gains
• Income from Other Sources
GTI = Income from 05 heads + Clubbing of Income - Set-off of Losses
It is the amount required to be disclosed while filing Income Tax Return

Deductions under Chapter VI A are deducted from GTI to arrive at the taxable
or total income
 TAX FROM GTI

 GTI does not include any tax saving investments made under
Section 80C to 80U under Income Tax Act 1961.
Total Income = GTI – these Deductions
Section 288A – Rounding off Total Income (in 10s)
On total income during F.Y., tax is levied on A.Y. as per rates
prescribed under Finance Act and special rates prescribed
under Income Tax Act.
 W H E N I S T H E TA X C H A R G E D I N S A M E
YEAR?

Normal rule says the income earned during any PY is assessed or charged
to tax in the immediately succeeding AY
However, in certain circumstances the income is taxed in the same year in
which it is earned.
The exceptions are as follows:
• Shipping business of non-residents [Section 172]
• Assessment of persons leaving India [Section 174]
• Assessment of association of persons or body of individuals or artificial
juridical person formed for a particular event or purpose [Section 174A]
• Assessment of persons likely to transfer property to avoid tax [Section 175]
• Discontinued business [Section 176]

Purpose : To safeguard the collection of taxes so that assessees, who may

 IMPORTANT TERMS

PAN (Permanent Account Number )

TAN (Tax Deduction Account Number)
TDS (Tax Deducted at Source)
TCS
FORM 16/16A
FORM 26AS
PERMANENT ACCOUNT NUMBER
An unique 10 character alpha-num identifier for all judicial entities 

PAN provides an electronic system to record all tax related

information of a person/company against a single number.
Acts as primary key for storage of info. & is shared across country.

Hence no two tax paying entities can have the same PAN.

It can be applied physically or e-PAN also.

Foreign nationals (investors subject to valid Visa) FORM 49AA

So cant be considered as proof of Indian Citizenship.

Penalty of ₹ 10,000 for more than one PAN (Section 272B).

Name Of Authority issuing PAN Income Tax Department,
Govt. of India
Inception of PAN Card 1972
Validity Of PAN Card Life Time
Number Of Enrolments 25 crore (approx.)
 WHY PAN IS REQUIRED?
Proof of Identity Operate Bank Accounts
Proof of Address Phone Connection
Mandatory for Filing Taxes Gas Connection
Registration of Business Mutual Fund
Financial transactions e-KYC for investments
A – Association of Persons, B – Body of Individuals, C – Company
F – Firms, G – Government, H – Hindu Undivided Family, L – Local
Authority J – Artificial Judicial Person, P – Individual, T – Association of
Persons for a Trust
 TA X D E D U C T I O N A C C O U N T N U M B E R

TAN is a 10 digit alpha numeric number

Is to be obtained by person responsible to deduct tax (deductor) or to
collect tax.
PAN cannot be used for TAN.
Mandatory to quote in all TDS returns (Section 203A)
Two types of TAN applications:
• New TAN (Form 49B) for those who never applied for a TAN or does not
have a TAN.
• Form for Change or Correction in TAN data for TAN Allotted
 T D S ( TA X D E D U C T E D AT S O U R C E )
TDS is a kind of advance tax and needs to be deducted irrespective of the mode of
payment.
Every person/company require to deduct TDS as per the provisions.

The company who is deducting tax at source is called deductor.

The person/ company who is receiving the payment after TDS is called deductee.

The burden of deduction lies with deductor.

Examples : Interest payments by banks, Salaries, Consultation fee, Rent,

Professional fee, Commission fee
TDS is a part of income tax, both deductor and deductee’s PAN is linked to it.

‘CHALLAN NO. ITNS 281 is utilized for TDS/TCS

 S I X C H A L L A N S A S S P E C I F I E D BY
I N C O M E TA X D E PA RT M E N T
Challans Purpose
ITNS 280 For depositing Income Tax, Wealth Tax, Corporation Tax

ITNS 281 For depositing TDS and TCS

ITNS 282 For payment of Gift Tax, Estate Duty, Expenditure Tax,
other miscellaneous taxes

ITNS 286 Payment under Income Tax Declaration Scheme, 2016

ITNS 287 Payment under PMGKY (Pradhan Mantri Garib Kalyan

Yojana) Scheme, 2016

ITNS 26QB For payment of TDS on sale of property

 T D S R E T U R N F O R M ( Q U A R T E R LY
RETURNS)

TDS Return Form Deductee Type

Form 24Q Deductions made in case of salaried employees

Form 26Q Deductions made in case of other than

salaried employees
Form 27Q Deductions made in case of Non-Resident
 TDS CERTIFICATE
 Certificate issued by the person or company deducting TDS to the
assessee for tax deduction is called TDS certificate.
 TDS certificate include complete information of the TDS deducted based
on the nature of the payment.
 Form 16, Form 16 A, Form 16B, and Form 16C are all TDS certificates.
 The employer issues form 16 for deducting TDS on salary, whereas the
bank issues form 16A for deducting TDS on interest income.
Form Nature Of Certificate Due Date
Form 16 TDS on salary payment 31st May
(Yearly)
Form 16A TDS on non-salary 15 days from due date of
payments (quarterly) filing TDS return
Form 16B TDS on sale of property 15 days from due date of
(Every transaction) filing TDS return
Form 16C TDS on rent (Every 15 days from due date of
transaction) filing TDS return
 FORM 15G AND 15H
Form 15G and Form 15H are forms are submitted to prevent TDS deduction on your
income. For example, for F.D./TDRs in Banks
Form 15H is for senior citizens, 60 years or older;

While Form 15G is for everybody else.

These can be submitted online or preferably offline.

Some banks allow you to submit these forms online through website.

PAN is compulsory to quote.

Both the forms are valid for one financial year.

Tax calculated on your Total Income should be NIL.

Other e.g. TDS on EPF withdrawal, TDS on income from corporate bonds, TDS on
post office deposits, TDS on rent, TDS on Insurance Commission etc.
 FORM 16
Form 16 is your salary TDS certificate.

It shows the TDS deducted by the employer

If income from other heads is disclosed to employer, they will consider your total
income for TDS deduction.
If your income is below the basic exemption limit, your employer will not deduct any
TDS and may not issue this form to you. If you have worked with more than one
employer during the year, you will have more than one Form 16.
This Form 16 is a certificate, where the employer is certifying details regarding the
salary you have earned during the year and how much TDS has been deducted.
 PART A & B OF FORM 16
Part A is generated & downloaded by the employer from TRACES. It contains
• Name and Address of the Employer.
• Name and Address of the Employee.
• PAN and TAN of the deductor / employer.
• PAN of Employee.
• Amount paid / credited.
• Tax deducted at source.

Part B is an Annexure to Part A. It contains:

• Break up of Salary.
• Other Income declared by the employee to his employer.
• Deductions under Chapter VI A.
• Relief under Section 89.
• Tax deducted at source.
• Net Income tax which is payable / refundable.

Form 16 is a certificate issued to salaried individuals from their employer when he

 FORM 16A
Form 16A is also a TDS Certificate.

It is applicable for TDS on Income Other than Salary.

Example : (1) Bank for TDS on interest on Fixed deposits,

(2) Insurance Companies – for commission (3) Rent receipts.
TDS on any other income is liable to be deducted.

This certificate also has details of the name and address of deductor/ deductee,
PAN/TAN details, challan details of TDS deposited.
It also has details of income earned and deduction & deposit of TDS.

Details of Form 16A are available on Form 26AS. This can be used to file your
return. However, the same is not in the case of Form 16. Details of Form 16 that
are available in Form 26AS is only TDS deducted by the employer.
 FORM 26AS
It is an Annual Statement
It provides a consolidated record of all tax-related information ( TDS, TCS, &
Refund etc. associated with a PAN.
In short it  provides details of Tax credits.
It indicates that TDS has also been deposited with the Govt.
It contains details of tax deducted on behalf of the taxpayer (you) by deductors
(employer, bank etc.).
It can be used by tax authorities/tax payers Section 203AA, Rule 31AB)
Form 26AS can be downloaded on the TRACES website or or via Net Banking
Facility of authorized banks The password to open is DDMMYYYY.
 WHAT IS ITR?
ITR (Income Tax Return) is a form in which the taxpayers file
information about his income earned & tax applicable to the
income tax department.
The department has notified SEVEN ITR forms till date.
Every taxpayer should file his ITR within stipulated due date.
Applicability depends on sources of income & the category.
Official website is www.incometaxefiling.in.
 WHY TO FILE RETURN?

Taxable income

Earn income other than salary like house property, etc.

Want to claim income tax refund from the department.

Earn from or have invested in foreign assets.

Wish to apply for visa or loan applications.

Company or a firm, irrespective of profit or loss.

ITR Description
Individuals having Income from Salaries, One house property, Other
ITR-1
sources (Interest etc.)
ITR-2 Individuals/HUFs not having Income from Business or Profession
Individuals/HUFs not having Income from Business or Profession &
ITR-2A
Capital Gains and who do not hold foreign assets
Individuals/HUFs being partners in firms and not carrying out
ITR-3
business or profession under any proprietorship
ITR-4 Individuals/ HUFs having income from Business or Profession
ITR-4S Presumptive business income tax return
For persons other than - (i) individual (ii) HUF (iii) company and (iv)
ITR-5
person filing Form ITR-7
ITR-6 Companies other than companies claiming exemption under section 11
Persons including companies required to furnish return under sections
ITR-7
139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)
ITR-V Acknowledgment form of filing a return of income
 ITR-1 OR SAHAJ
It is for resident individual whose total income
includes:
• Income from Salary/ Pension; or
• Income from One House Property (excluding where
loss is brought forward from previous years); or
• Income from Other Sources (excluding Winning
from Lottery and Income from Race Horses)
• Agricultural income up to Rs.5000.
 WHO CANNOT USE ITR 1 FORM?
• Total income exceeding Rs 50 lakh
• Agricultural income exceeding Rs 5000
• If you have taxable capital gains
• If you have income from business or profession
• Having income from more than one house property
• If you are a Director in a company
• If you have had investments in unlisted equity shares at any time during the
financial year
• Owning assets (including financial interest in any entity) outside India) if you
are a resident, including signing authority in any account located outside India
• If you are a resident not ordinarily resident (RNOR) and non-resident
• Having foreign assets or foreign income
• If you are assessable in respect of income of another person in respect of which
tax is deducted in the hands of the other person.
 ITR-2
For individual or a Hindu Undivided Family (HUF) whose TI includes:
• Income from Salary/Pension; or House Property; or
• Income from Other Sources
(Total income from the above should be more than Rs 50 Lakhs)
• If you are an Individual Director in a company
• If you have had investments in unlisted equity shares at any time during the
financial year
• Being a resident not ordinarily resident (RNOR) and non-resident
• Income from Capital Gains; or Foreign Assets/Foreign income
• Agricultural income more than Rs 5,000
• In a case where the income of another person like one’s spouse, child etc. is
to be clubbed with the income of assessee, this Return Form can be used.

Not to be used for Income from Business or Profession.

 MAJOR CHANGES IN ITR 1
F O R AY  2 0 2 0 - 2 1
Individual taxpayers who meet the criteria of
• Making cash deposits above Rs 1 crore with a bank or
• Incurring expense above Rs 2 lakh on foreign travel or
• Expenditure above Rs 1 lakh on electricity should also file ITR-1.

Taxpayer should indicate the amount of the deposit or expenditure.

Condition of individual having income from salaries, one house property, other income
and having total income up to Rs 50 lakhs continues
Resident individuals who own a single property in joint ownership can also file ITR-1
where the total income is up to Rs 50 lakh
Taxpayers should separately disclose the amount of the investment or deposits or
payments towards tax-saving made from 1 April 2020 until 30 June 2020.
 TERMS ONE SHOULD KNOW
Revised Return
• Already filed ITR with mistake, you can re-file the Revised Return.
• For FY 2017-18, you can file your Revised Return till March 31, 2019.

Notice Number: You should fill this in only if you are filing your return in response to a notice from the Income
Tax Department.
Advance Tax: For salaried individuals, TDS mostly takes care of advance tax payments. However you might have
other forms of income – like interest on savings bank accounts, fixed deposits, rental income, bonds or capital gains.
If tax on income is more than Rs. 10,000 per year, you are required to estimate your income and pay Advance Tax.
This has to be paid in quarterly installments in June, September, December and March.
Self Assessment Tax Payments: This is the difference between tax payable and tax paid and it needs to be paid
before you file your return. When you fill out the form for the first time, you won’t know whether Self Assessment
Tax has to be paid or not. So, fill out the form first along with the Advance Tax details, if paid. Compute your
income and if after computing, you find that tax is still payable, pay it and then fill in the details in self-assessment
tax paid section in the return.
Annexure-less Return: ITR-1 Form is an Annexure-less return. This means that you do not have to attach any
documents (such as Form 16/Form 26AS) with the ITR-1 Form.
 E-FILING RETURNS

E-filing or electronic filing is submitting your income tax

returns online.
There are two ways to file ITR
• The traditional way - offline way, where you go the Income Tax
Department’s office to physically file your returns.
• The other way - e-file through the internet.

Now e-filing is mandatory.

 SECTION 139
Sec 139(1) – Mandatory and Voluntary Returns

Sec 139(3) – Filing Income Tax in case of Loss

Sec 139(4) – Late Income Tax Return

Sec 139(5) – Revised Return

Sec 139(4a) – Income Tax Return of Charitable and Religious Trusts*

Sec 139(4b) – Political Party to Furnish the Return on Income

Sec 139(4c) and Section 139(4d) – Income Tax Return of entities claiming
Exemption under Section 10
Section 139(9) – Defective Returns
 L E T T E R O F I N T I M AT I O N U / S 1 4 3 ( 1 )
An ITR an be either filed voluntarily (Section 139) or on demand (Section 142(1)).

The Dept. carries out a preliminary assessment of all the returns filed

It informs taxpayers of the result of such preliminary assessment.

This assessment primarily includes arithmetical errors, internal inconsistencies, tax

calculation and verification of tax payment.
Such communication to the taxpayer post the preliminary assessment is called
intimation under Section 143(1).
The preliminary assessment is wholly computerised and does not have any human
intervention and is delegated to Centralised Processing Center (CPC).
 OTHER NOTICES
Notice under Section 142(1) – Inquiry before assessment
Notice under Section 143(2) – Scrutiny Notice

Notice under Section 143(1) – Letter of Intimation

Notice under Section 148 – Income escaping assessment
Notice under Section 156- Notice of Demand
Notice under Section 139(9) – Defective Return
Notice under Section 245 – Set off of refunds against tax remaining
payable
 MANNER OF
F I L I N G A N D V E R I F I C AT I O N
Electronically on the e-filing web portal of Income-tax
Department (www.incometaxindiaefiling.gov.in) and verified in
one of the following manner:
• digitally signing the verification part, or
• authenticating by way of electronic verification code (EVC), or
• Aadhaar OTP, or
• by sending duly signed paper Form ITR-V - Income Tax
Return Verification Form by post to CPC at the following
address – “Centralized Processing Centre, Income Tax
Department, Bengaluru— 560500, Karnataka” (should reach
within 120 days)
FILING IN PAPER FORM

Mandatorily by E-filing mode except

In paper form, at the designated offices of Income-tax
Department, along with duly signed Form ITR-V. This
mode of furnishing return is permissible only in case of
super senior citizens (i.e. an individual of the age of 80
years or more at any time during the previous year).
 FILING ITR 1

The ITR form contains parts & schedules

Part A contains – General Information

Part B contains - – Gross Total Income

Part C contains - Deductions and Taxable Total Income

Part D contains - Computation of Tax Payable

Part E contains - Other Information (bank details)

 PA RT A – G E N E R A L I N F O R M AT I O N

It includes PAN, Name, DoB, Aadhar or Aadhar Enrolment ID, Mobile
number, Address etc.
Nature of Employment – Govt, PSUs, Pensioners, Others (Private
Sectors), Not Applicable (Family Pension Income)
If return is revised/defective, entering Receipt No. and Date of filing
original return is mandatory.
If filed in response to notice u/s 139(9)/142(1)/148/153A/153C or order
u/s 119(2)(b)- Unique Number/Document Identification Number (‘DIN’)
& Date of such Notice or Order is required.
 SEVENTH PROVISO TO SECTION 139(1)
Total income before deductions under Chapter VI-A or deduction for capital
gains (section 54 to 54GB) or exempt LTCG (section 10(38)) does not exceeds
max. amt. which is not chargeable to income-tax,

Conditions
Deposit or aggregates of amount exceeding Rs 1 crore in one or more
current accounts;
Incurred expenditure of an amt or aggregate of amount exceeding Rs. 2
lakhs for travel to a foreign country for yourself or any other person;
Incurred expenditure of amount or aggregate of amount exceeding Rs. 1
lakh on consumption of electricity.
 PART B - GTI
Income from Salaries / Pensions
i Gross Salary (ia + ib + ic)
Salary as per section 17(1)
Value of perquisites as per section
17(2)
Less allowances to the extent exempt
u/s 10
Iii Net Salary (i – ii)
Iv Deductions u/s 16
Standard Deduction u/s 16(ia)
Entertainment allowance u/s 16(ii)
Professional tax u/s 16(iii)
v Income chargeable under the Head
‘Salaries
Auto-populated from below
Part B of Form 16
Part B of Form 16
drop down
Auto-populated
Auto-populated from below
as per Part B of Form 16
as per Part B of Form 16
as per Part B of Form 16
Auto-populated
 I N CO M E F RO M H O U S E P RO P E RT Y
Type of House Property To be entered
I Gross rent received/ receivable/ To be entered
lettable value during the year
Ii Tax paid to local authorities Actual amount
Iii Annual Value (1-2) auto-populated field
Iv 30% of Annual Value As per calculations
V Interest payable on borrowed capital Different as per category
Vi Arrears/Unrealized Rent received To be entered
during the year Less 30%
Vii Income chargeable under the head auto-populated field
‘House Property’ (iii – iv – v) + vi
 ARRIVING AT GTI
Income from other
Sources
Less: Deduction u/s 57(iia)
(In case of family pension
only)
Gross Total Income
Entered if any
1/3 of the amount of family
pension received, or rupees
fifteen thousand, whichever is
less
auto-populated field (Salary +
House Property + Other Sources)
 PA RT- C – D E D U C T I O N S A N D
TA X A B L E T O TA L I N C O M E

Whether, you (If yes, please fill Total deductions Aggregate amount of
have made any schedule DI)Time- deductions claimed under
investment/ limit relaxed to Chapter VI-A.
deposit/ 31.07.2020 as per
payments The Taxation and
between Other Laws Total Income Auto-populated field
01.04.2020 to (Relaxation and (B4-C1) (Gross Total Income [B4]
30.06.2020# for Amendment of - total deductions [C1]
the purpose of Certain Provisions)
claiming any Act, 2020
deduction under
Part B of Chapter Exempt income
VIA? [Yes/No] (For reporting Purposes)
 PA R T- D – C O M P U TAT I O N O F TA X
PAYA B L E
Field No. Field Name Remarks
D1 Tax payable on total income Tax payable as per prevailing rates
D2 Rebate u/s 87A TI of Res Income < 5L 12500/-
D3 Tax after Rebate Tax – Rebate
D4 Health and Education Cess 4% of the tax after rebate
D5 Total Tax & Cess Tax after rebate + Cess
D6 Relief u/s 89 Form 10E / Part B of Form 16
D7 Interest u/s 234A
D8 Interest u/s 234B
D9 Interest u/s 234C
D10 Fee u/s 234F levies late fees
D11 Total Tax, Fee and Interest Total amount
D12 Total Taxes Paid
D13 Amount payable
D14 Refund
 PA R T- E – O T H E R I N F O R M AT I O N ( D E TA I L S
OF ALL BANK ACCOUNTS IN INDIA)

Field Name Instruction

IFS Code of the bank Please enter the IFS Code of the Bank (11
digits)
Name of the Bank Please enter name of the Bank
Account Number Please enter account number of the Bank
 SCHEDULES

Schedule 80G (Donations)

Schedule 80GGA – (Donations for sci. research or rural dev.)

Schedule 80D - (Deduction of health insurance premia)

Schedule-IT: Advance/Self-assessment tax payments

Schedule-TDS: Details of TDS/TCS

Schedule DI: Details of Investments

 PT SLABS

Monthly Income (₹) Tax Per Month (₹)

For Men Upto ₹ 7,500 NIL
For Women Upto ₹ 10,000 NIL
For Men From ₹ 7,501 to ₹ 10,000 ₹ 175
Above ₹ 10,000 ₹ 200 (In February - ₹ 300)
 SOME USEFUL OFFICIAL WEBSITES

1  Income tax https://www.incometaxindia.gov.in

 2  ITR https://www.incometaxindiaefiling.gov.in
 3 TDS purpose https://www.tdscpc.gov.in
 4 TAN (Online Application https://tin.tin.nsdl.com
for TAN (Form 49B))  
 
 5 PAN https://www.pan.utiitsl.com
https://www.onlineservices.nsdl.com
 
THANK YOU