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ITR Filing: 11 Frequently Asked Questions on Income Tax Return Filing

Updated on: 23 Nov, 2023 01:22 AM

When it comes to filing Income Tax Return (ITR), most of us get scared.
We have created an air of fear around the whole concept of income tax.
This fear is nothing but lack of knowledge & guidance related to income tax return filing.
With the aim to relieve everyone of this fear & reluctance. We bring 11 most common Frequently Asked Questions (FAQs), asked by common people like you & me.
So buckle-up your seat-belts & let's tackle your tax queries one-by-one.

Why I should file ITR?

This is the most basic question on everyone's mind. Well, you should file income tax return because it's a legal obligation.

If your total income before any deductions exceed ?250000/ ?300000/ ?500000. Then it's compulsory for you to file income tax return. For detailed discussion, refer to our blog.

I am filing ITR for the first time. What should I do?

If you are a first time income tax return filer, just follow some basic steps to file return.

First of all, you need to register yourself on Income Tax Efiling website. Visit the link & register yourself using very basic details like your PAN, Mobile No., Email-ID etc. PAN is an important document because it acts as your ID for income tax department.

Once you get registered, simply download relevant ITR form applicable on you. In case, you are filing ITR 1 Sahaj Form FY 2017-18, option of filing it online is also available.

Otherwise, download the required ITR form in excel utility format. Fill-in all your income sources. At the end, your total tax liability as well as interest (if any) will be calculated. After this, visit the income tax website & upload your ITR in XML format.

It is highly recommended to keep documents like Form 16, Form 26AS, bank statements etc in handy while filing ITR.

How to e verify ITR-V?

ITR-V is nothing but an acknowledgement, that your income tax return is filed with the department. But many of us confuse filing & verification as same. This is totally wrong!

If you do not verify your tax return within 120 days of filing, then your ITR will be considered as invalid.

E verification of ITR is a very easy process. You have the option to e verify using 3 methods i.e. digital signature, OTP or posting ITR-V to CPC Bangalore. Suggested read, our guide on e verification.

Should I file Income Tax Return with no income?

It is suggested to file ITR even if you do not have taxable income. This keeps your tax record straight & improves your image with the department.

It's a very well known fact, how tax return helps in getting loan from banks & faster processing of VISA. Know many other benefits as well.

Which ITR Form is applicable on me, ITR 1 or ITR 2?

ITR 1 Sahaj Form is the most commonly used return filing form. You need to file ITR 1, if your total income is up to ?50 Lacs & have income from 1 house property, no capital gain income, no business income, no c/f & b/f of losses etc.

In case, your total income exceeds ?50 lacs or you have any taxable capital gain of even ?100 then you need to file ITR 2.

If you earn income form business or profession then file return using ITR 3. For detailed discussion on different ITR forms, refer to our guide.

What if I miss ITR deadline?

Till FY 2016-17, if any person who is mandatorily required to file ITR, miss the deadline & does not file it till end of relevant AY (i.e. 31-3-2018). Then penalty u/s 271F of ?5,000 was levied.

But from FY 2017-18 (AY 2018-19), if you miss ITR deadline (31st July, 2018). Then as per new Sec 234F, late filing fee of ?5,000 & ?10,000 (if filed after 31 Dec, 2018) will be levied. However, this fee will become ?1,000 if your total income is ?5 Lac or below.

You will be required to pay late filing fee before uploading your ITR online.

How to check ITR e verification?

As we shared above, there are many ways to e verify your ITR V. But many people face confusion about, Whether their ITR V is verified or not?

If ITR is filed online, then you have option to e verify using OTP, digital signature or through post.

If you e verify using OTP or digital signature, then an acknowledgement is sent on your registered mobile number. This serves as proof that your ITR is verified.

If you send ITR-V print out to CPC bangalore, then a message is displayed on your e-filing account, stating that your ITR V is received. You will also receive a mail on your registered e-mail ID.

Where I can find gratuity amount in Form 16?

If you have received any gratuity amount then you easily can find it in your Form 16. It shall be visible in Annexure provided with Form 16 under Salary break up as per Sec 17(1).

Your total amount of gratuity will be included in 17(1). Any exemption given on it will be shown under head Details of Allowance exempt u/s 10 in the Annexure.

What are income tax return filing charges?

Basically there are no charges for income tax return filing. It all depends upon your sources of income & the complexity in tax computation.

For e.g. if you have taxable capital gain, then you may require to consult a tax professional (like a CA). These consultation charges vary from professional to professional.

But you can easily file ITR with Tax2Win using our software, all by yourself for FREE. ITR filing using Tax2Win is simple because of step-by-step process to make it more user friendly. Visit & file now!

Where should I fill my Section 80 deduction in ITR 1?

It is very easy to fill you tax deduction benefit details in ITR 1 Sahaj Form 2017-18. There is a portion dedicated to Section 80 deductions in the form. You can read in detail about this in our blog.

How can I track my income tax refund?

Use our uber cool & user friendly tool to track income tax refund status. Track now!

The list we've compiled above is definitely not the only FAQs which people have in mind. But we've tried to cover the most common one's.

Still if any of your query is unsolved, simply get in touch with our eCAs. They are here to help you 24×7.

Also keep following Tax2Win blog & social media pages for more such cool tips. Happy Filing ????

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.