Income tax department has been very proactive from last one year and working too hard on making the compliance as strong as possible in our country. From introducing the provision u/s 234F for non filing of income tax returns to making- most of processes online by eliminating the traditional paper based compliances; the objective of the department is very clear that it wants your files to be clean and compliant with the law.

In this article, we will share the most crucial information that you must know while filing of your income tax return(ITR) for FY 2018-19(AY 2019-20).

In this guide, we have covered all the information that you must know for e-filing your ITR for FY 2018-19(AY 2019-20). This guide shall cover :

Due Date Extended !!

Due date for Income Tax Return filing has been extended from 31st July 2019 to 31st August 2019 by the Income Tax Department

Q What is Income Tax Return?

ITR means Income Tax Return. Income Tax Return is a statement that shows how much income you have earned and taxes paid against that, to the government during a financial year. ITR contains all the details of income and investment in a financial year.The tax department has notifies 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7, for filing Income Tax Return.

In short, we can say that ITR is the document which allows a taxpayer to submit all the income ,tax saving expenses and investments details to the government.


Q What is E Filing of Income Tax Return?

E-filing of Income tax return is filing your Income tax return online. Basically, there are two ways to file your ITR: one is the traditional method i.e. offline in paper format, where the return is submitted physically to IT department and the other is the electronic mode, where you submit your return on the e filing portal of Income Tax Department.

Now, everyone is required to e-file their ITR’s except for super senior citizens (aged 80 years and above) who are allowed to file their ITR via offline mode.


Q Am I required to e-file IT return?

Every Indian including NRI need to file an IT return where Total Income exceeds the basic exemption limit i.e Rs. 2,50,000 in the case of individual; Rs. 3,00,000 in case of senior citizen and Rs. 5,00,000 in case of super senior citizen.

Total Income comprises income from all sources i.e. income from salary, house property, business income, capital gains or any other income.It does not include any deductions like 80C,80D, 80DDB etc.

Residents of India are required to compulsory file their return irrespective of income criteria, when :-
  • You are a beneficial owner of any asset located outside India.
  • Have any financial interest in entity located outside India.
  • Beneficiary of any asset located outside India.

In simple words, if you have any foreign income connect, you have to file your ITR on or before the due date.

Let’s take a few quick and easy examples of real life situations to understand it better:-

Particulars Case-1 Case-2 Case-3 Case-4 Case-5
Income from salary 2,90,000 2,71,000 8,92,000 4,98,000 1,90,000
HRA, Medical and other allowances- EXEMPT 8,000 74,000 2,43,000 1,00,000 0
Net taxable salary 2,82,000 1,97,000 6,49,000 3,98,000 1,90,000
Other Income 31,000 - - - -
Capital Gains - - 1,30,000 - -
Gross Total Income 3,13,000 1,97,000 5,19,000 3,98,000 1,90,000
Deductions (80C,80D etc.) 45,000 - 1,90,000 1,50,000 -
Total Income Taxable 2,68,000 1,97,000 3,29,000 2,48,000 1,90,000
ITR filing required Yes NO Yes Yes NO

To know more click here.
(Refer to column 6 of your form-16 to know the taxable income from salary)

(Refer to column 4- “Gross total income” in the ITR form 1 to know the total income)


Q Is ITR required to be filed in case income is less than Taxable Income?

It is always beneficial to file an income tax return irrespective of the gross total income. There are several advantages of filing ITR, some are as follows:

Accidental Claims In case of accidental death of a person or persons, during the trial of court insurance companies required the ITR to determine the amount of accidental claim. In case if any ITR is missing of the last 3 years then it may end up with no claim or lower claim amount.
Proof of Income ITR is also acts as the proof of income. Especially a self-employed person does not have any income proof i.e-form 16, pay slips etc. So in that case it serves as a very important document.
Refund In case you have paid extra taxes due to any reason then to claim refund you will be required to file your Income Tax Refund. Without filing ITR you can not get your refund back.
Helps in Loan Whenever a person required any loan i.e Educational loan, home loan, personal loan or vehicle loan. Bank officials demand the Income Tax returns for the past 3 years to check the credibility of the individual.
Carry forward capital losses If in a financial year you have incurred capital losses, then you can carry forward it and settle in future.
High life cover plan While buying life cover plan , one is required to submit income proofs for the last three years and income tax return is a reliable certificate for the income proof.
Visa Application When one applies for visa, one is required to present income proofs for the same. For the persons who are self employed, income tax return is perfect income proof to submit.
Accumulated Savings When you deposit your savings in a bank after a long period of time , income tax department asks for the source of income for the same, then itr filed comes to the rescue.

Q When can I file ITR for AY 2019-20

Income Tax Return for AY 2019-20 officially begins from 1st April 2019 i.e. since the beginning of the assessment year itself one is eligible to file ITR. But, practically the filing of return begins once Income Tax Return forms are issued by CBDT. For AY 2019-20 the income tax department is already into the process of releasing forms in phases. Still, the full fledged information has not been rolled out. Once it is done you can start with filing of your ITR for FY 2018-19: AY 2019-20.The due date for filing ITR for AY 2019-20 is 31st July 2019(Now 31st Aug 2019) for individual assesses and those eligible to get their accounts audited, the due date is 30th Sep 2019.


Q What is the last date for filing income tax return FY 2018-19 (AY 2019-20)?

The Due date(or last date) of filing of your income tax return for individuals and non-audit cases for the FY 2018-19 (Assessment year 2019-20) is 31st July, 2019(Now extended to 31st Aug 2019).

In special circumstances :
Missed the due date

File your ITR by end of relevant assessment year. For FY 2018-19, AY 2019-20 filing the date would be 31st March, 2020. (It is called a belated return i.e. late filed return (After the due date) but with the payment of late fees u/s 234F.)

Made a Mistake

Revise your file ITR by the end of relevant assessment year. For FY 2018-19 ,AY2019-20 filing the date would be 31st March, 2020.

Check all the due dates to stay a step ahead from Income Tax


Q What will happen if I don’t file my Income Tax Return?

If you have taxable income , then you are required to file online income tax return, failing to do so will put you to face some serious Income Tax Sleuths. There are various consequences on non-filing of ITR. Some of them are:

  • Notice under section 142(1) and 148
  • Unable to carry forward losses except house property loss
  • Penalty under section 270
  • Interest under section 234A/B/C

Q What will happen I e-file my ITR after the deadline?

Missing a deadline is not a new thing for an Indian,keeping this in mind, the government has given a chance to redeem ourselves by filing belated return or late return,which can be filed till the end of the relevant A.Y. or before the completion of assessment whichever is earlier. But everything comes with a price, penalty under 234F is required to be paid for late filing of return.

Suppose, you forgot to file an income tax return for the Assessment Year 2019-20(F.Y. 2018-19) then you could still file an income tax return by way of filing belated return of this Assessment Year by 31st March 2020.

Check all the consequences before missing a deadline


Q Things to remember before e-filing ITR

Filing a return gives us relief but that relief can be a pain, if important things are not kept in mind while filing return. We have prepared a list of Dos and don'ts’ for the taxpayers and return filers:

Choose Correct Form

Income Tax Department has given 7 ITR forms and depending on the income, an individual is required to select the correct ITR form. If wrong ITR form is filed then it can result in to defective return.

Report all your income

It is advised to all the persons to disclose all the incomes while efiling Income Tax Return. Non-disclosure of any income may result into penalty or notice from the government.

Verify ITR after e-filing

Only filing of Income Tax Return is not sufficient in fact it is needed to be verified within the 120 days of submitting the ITR It can be verified by both online or offline methods. Through income tax return efiling website ITR can be verified online and by sending the signed copy of ITR-V to CPC Bangalore you can verify it offline.

Report correct details

Income Tax Department has clearly mentioned that a person while filing his or her Income Tax Return should report all the information clearly and should not hide any thing.

Pay all taxes in time

Paying all taxes on time is a smart move to save yourself from late fee, notices and penalty. Every individual should file their Income Tax Return before the due date every year.

Check your 26AS

It is like your passbook for your income tax account.It contains all the details of the TDS deducted on your PAN number. Many a time there is a mismatch in TAN of deductors or amount of TDS, because of which tax payers are unable to claim to credit of TDS deducted, thus leading to double taxation.

Check the complete list of Do’s & Don’ts before filing Income Tax Return.


Q What is the procedure for E-Filing of Income Tax Return Online?

Income Tax online filing is a simple process and can be done by sitting at home for free with Tax2win. One thing is to be remembered that before starting the filing you should keep your PAN, Aadhaar, Form 16 and Bank details handy and then select how you wish to file- Through eCA or Self filing?

Steps to e-file your ITR through self filing for free-
Step 1: Visit tax2win website. Here, click on option “File ITR Now”.
Step 2: Here Select your source of Income and click on continue.
Step 3: If you're salaried individual, Just Upload your Form 16.If you do not have any form 16 then you can simply skip the option and move further.
Step 4: Enter the Financial Year, PAN & Aadhaar details and other basic details like your Employment Details, Deductions(If Any), bank details. After giving the details of all the information,
Step 5: Review your tax computation and click on “File My ITR” button.

Q What ITR form should I use for filing of 2019 ITR?

The applicability of the ITR form depends on the source and quantum of income and residential status . Check the correct applicable form to you for FY 2018-19(AY 2019-20) -

ITR FORM Type of TaxPayer Residential status Who can file? Who cannot file?
ITR 1 Individuals* -Resident -Ordinary Resident Income From -
  • Salary/ Pension
  • One House property
  • Other Sources
  • More than 1 house property
  • Income from winnings, lottery, race horse etc.
  • Income from business, profession, capital gains from the sale of shares, land etc.
  • Agriculture income of > Rs. 5000
  • Loss under any head except one house property upto Rs. 2 Lakh.
  • Have assets located outside india or having any income from outside india (Income from foreign)
  • Total income exceeds Rs.50 Lacs in the financial year
ITR 2 Individuals and HUFs -Resident -Ordinary Resident -Non-resident (NRI_ -Non-Ordinary Resident Income From -
  • Salary
  • More than One House property
  • Other Sources
  • Capital Gain
Company’s director or an individual holding investment in unlisted equity shares of a company
  • Income from business or profession
ITR-3 Individuals and HUFs -Resident -Ordinary Resident -Non-resident (NRI_ -Non-Ordinary Resident Income From -
  • Salary
  • More than One House property
  • Other Sources
  • Capital Gain
  • Business or profession
  • Director of the company
  • Partner of the firm
 
Any other body corporate
ITR-4 Individuals ,HUFs and Firms (other than LLP) -Resident -Ordinary Resident -Non-resident (NRI_ -Non-Ordinary Resident
  • Salary
  • House property
  • Other Sources
  • Presumptive Income
 
  • More than 1 house property
  • Income from winnings, lottery, race horse etc.
  • Income  from capital gains 
  • Agriculture income of > Rs. 5000
  • Loss under any head except one house property upto Rs. 2 Lakh.
  • Have assets located outside india or having any income from outside india (Income from foreign)
ITR-5 Firms (including LLPs) AOP BOI Local Authority Artificial Jurisdiction Person
-
  • House property
  • Other Sources
  • Capital Gains
  • Lottery Income
  • Agriculture Income more than INR 5000
  • Having Foreign Assets
  • Carry forward losses
  • Business Income
 
Not for :
  • Individuals
  • HUFs
  • Companies
  • Trusts
ITR-6 Companies
  • House property
  • Other Sources
  • Capital Gains
  • Lottery Income
  • Agriculture Income more than INR 5000
  • Having Foreign Assets
  • Carry forward losses
  • Business Income
Not for: Companies claiming exemption u/s 11
ITR-7
  • Charitable Trusts
  • Polictical Parties
  • Research Institution
  • News Agency
  • Institution u/s 10(23A) and 10(23B)
  • Every University and institution
  • Business Trust
  • Investment Fund

  • House property
  • Other Sources
  • Capital Gains
  • Lottery Income
  • Agriculture Income more than INR 5000
  • Having Foreign Assets
  • Carry forward losses
  • Business Income
Not For:
  • Individuals
  • HUFs
  • Companies
  • Firms(including LLPs)
  • AOP, BOI


Q What documents are required to file ITR?

One thing is to be kept in mind that you should collect few documents before filing the Income Tax Return. Although, documents differs with the income source but still there are few documents that are common while filing ITR. To file ITR one needs:

PAN Card

PAN Card- PAN card is the mandatory requirement while filing the Income Tax Return. Your name on ITR should be the same as written in PAN card.

Aadhaar Card

Aadhaar Card- Government has also made it compulsory for all the taxpayers to use Aadhaar while filing ITR. In addition to this if your PAN is not linked to aadhaar you can not file your Income Tax Return now. Last date to link PAN-Aadhaar is 30th September 2019..

Bank Account Statements

Bank Account Statements- To find Interest on Saving bank account etc.

Bank Account Details

Bank Account Details- Your details of all the bank accounts i.e-Account number, IFSC code and Bankis needed to be mentioned while filing the ITR.

Challan Details

Challan Details- It includes details such as the payment of Advance Tax, Self Assessment Tax, Deducted TDS on buying property, paying rent above Rs 50,000 per month

Original Return/Notice

Original Return/Notice- If an individual is filing a revised return or a return in response to notice received, then he is required to keep original return and details of notice.

Check the complete list of documents for ITR filing when you have income from salary, house property, capital gains and other sources.

Important point to note is that you don’t need to submit any documents while filing ITR. However, section 149 of Income Tax requires you to the documents with you for 7 years from the end of the financial year. So, this would mean that if you have filed ITR for FY 2018-19, then you must keep the related documents with you till the end of FY 2025–26.


Q How to e-file ITR with Form 16?

The procedure to e-file return with form -16,for the F.Y. 2018-19 is as follows:

  • Choose “File It Yoursefl” button tax2win.in and select your source of income.
  • Upload your Form 16. After uploading the form 16, Tax2win software will auto-fill the data.
  • Verify your tax computation now and edit if required.
  • Click “File ITR Now” button and you are done!.

Q Can I e-file ITR without Form 16?

Yes, you can still e-file your Income Tax Return even if you do not have form 16 with you.

Q What will be the next steps after efiling of Income Tax Return?

The post filing procedures are same as before and there are no major changes this year, once you are done with efiling of icome tax return, you must:-

  • Check all figures thoroughly in your filled ITR form or ITR-V once more for any error, mistake etc
  • Verify the Income tax return by sending physical copy to CPC bangalore or e-Verify online.
  • Once verification is done, please confirm status that it has been successfully e-Verified by checking the same on your income tax account.
  • Check the eMail id which is given in your income tax return, You shall receive communication regarding successful filing and successful e-Verification of your Income tax return, along with ITR-V copy attached (Save for your records as this is required as a qualifying document for loan, visa applications etc.)

Once the return has been successfully e-Verified- the return filing procedure ends here and now your job is done. In case you have refund in your tax return you shall receive in your bank accounts in within 45 days and you can also keep checking the refund status here.

Note:- Verification or e-Verification of an ITR AFTER its filing is an important step and without which your return filing process is not completed. Until you have e-Verified the same, your income tax return shall be “Invalidated” and considered as null and void which means, No Income Tax Return has been filed, It’s like an undelivered parcel which is ordered-packed-dispatched-shipped to doorstep but it’s still undelivered.


Q What is the last date to e-verify my FY 2018-19 ITR return?

In the endless world on internet where even your bank account is not 100% secure, one can hack your income tax account and file your income tax return with any ‘x’ or ‘y’ amount. Imagine of Mr. Paur Sharma with bank balance of Rs.90,120 as on 31st March, 2019 and ITR filed on 31st July, 2019 showing income of some Rs.21.89 Crores.

Hence, after filing of your income tax return, the department wants to ensure via physical or electronic verification that it’s you only who has filed the income tax return and no one else misused the account. For this an acknowledgement is generated which is commonly termed as ITR-V and you are required to verify the same by either signing it manually or electronically, as under:-

  • You need to e-Verify within 120 days of filing your income tax return, else your return will be treated as invalidated which means- No such return has ever been filed at all. There are various option available to e-Verify your income tax return like Aadhar OTP, Bank EVC etc. you can find out details here.
  • Another alternative to Verify your return is by signing & sending the acknowledgement receipt i.e. ITR-V to the CPC Bangalore address, which is mentioned in the footer itself of ITR-V.

Until now, you have understood that

  • Whether you are eligible to file your income tax return or not
  • if required then which form you are required to file
  • what are various due dates, options etc and
  • how to verify your income tax return.

One major mile stone of filing your income tax return is achieved as soon as you have done with verification/ e-Verification of return filed.
The tax journey probably ends here for a normal salaried person, provided he has furnished accurate details, paid taxes and filed timely his Income tax return. But in case of any discrepancy there are penalties, prosecutions etc. etc. Let’s go through the relevant laws and provisions in the next part of this story.


Q How to e-verify the ITR?

There are various methods to e-verify ITR:

  • Through Net banking
  • Through Bank ATM
  • Aadhaar OTP
  • Bank Account number
  • Demat Account.
  • Physically sending ITR-V.

Check the complete guide on e-verification.


Q What is the latest amendment made by law u/s 234F i.e. Fees for filing of Income tax return AFTER the due date and other consequences of non filing or late filing of income tax return?

With a view of improvising tax compliance and effective utilization of information in tax administration, it is important that returns are filed with the due dates. Keeping this view the finance act 2017 imposes certain fees u/s 234F in case the returns are not filed on time, as under:-

If return is filed on or before the due date i.e. 31st July, 2019(now 31st Aug’19)- No Fees
If return is filed after the due date but before 31st Dec., 2019 - Fee of Rs. 5,000
In any other case- Fee of Rs. 10,000

NOTE:- In case if your TI ( Total Income) is upto Rs. 5,00,000 then in such case maximum penalty for late filing of income tax return for F.Y. 2018-19 will be Rs. 1,000 only instead of Rs. 5,000 or 10,000/-.

Further, provisions related to fees for delayed filing of income tax returns are applicable from Financial year 2018-19 (Assessment year 2019-20) onwards only.

Note: In case total income is upto 5 Lacs then amount of penalty will be Rs. 1,000 in all cases irrespective of timing of filing of your return.

Q Apart from 234F, you need to pay interest under 3 sections of act on the tax amount which is unpaid :-

  • 234 A- @1% per month or Part of the month for delay in filing your income tax return
  • 234 B- @1% per month or Part of the month for non-payment or short payment of advance tax.
  • 234 [email protected]% per month or Part of the month for Non-payment or short payment of individual installment or installments of advance tax (i.e., deferment of advance tax)

Refer to detailed guide on 234A, 234BC, 234C interest to know more about these sections and how these may impact you. Click Here


In this Guide, We have tried to cover almost all relevant subject matters and amendments which you should be aware of while filing your income tax return for Financial year 2018-19.

An important piece of advise that we would like to pass on to all our readers is that:- The Income tax department and tax laws in country have become more strict in recent times and it will be more compliant & strict with time passing by, but when we will look back again to this time down the line 4-5 years, we will find this(current) period to be still soft and lenient. :-)

Hence without any delay start making your Income Tax files clean and stronger from 2019 year itself. File accurate, strong and clean income tax returns; And if you do need any help or assistance in filing of strong and clean Income Tax Returns.

Take assistance of our experts and 4.9 star service rated team of chartered accountants. Please send your queries, feedback and suggestions to [email protected]

Frequently Asked Questions

Q- What is Income Tax?

Income Tax is the amount required to be paid to the government(Income Tax Department) directly on the basis of your income.


Q- Is linking of Aadhar PAN compulsory to e-file ITR?

As per the press release issued by the Income Tax Department on 31/08/2017 linking of PAN with Aadhaar is necessary for processing the ITR. CBDT has recently issued the circular in which last date to link Aadhaar with PAN has been further extended to 30/09/2019 and you will not be able to file your Income Tax Return if your PAN and Aadhaar is not linked.


Q- How to link Aadhar Number with PAN Card?

  • Online Using Income Tax e-filing Website with Login-
  • Online Using Income Tax e-filing Website without Login-
  • Linking of PAN and Aadhaar can also be done through SMS. Type UIDPAN <Space><12 Digit Aadhaar No.><Space><10 Digit PAN> and send an SMS to 567678 or 56161. For Ex- UIDPAN 111122223333 AAAPS1111A
  • Link Aadhaar-PAN manually by filling Annexure-1 through visiting PAN/UTIITSL/NSDL centres.
To read it more detail click here

Q- Who can file the return Offline (In paper form)?

ITR can be offline filed by individuals if-
Total Income of individual is less than Rs. 5,00,000 in a financial year and there is no refund to be claimed under that
Individuals whose age is 80 years or more during the financial year


Q- How to calculate how much tax should I pay?

You can easily calculate your tax by using our Income Tax Calculator. Here you just need to fill the required information in an orderly manner and at last you will get the amount required to be paid as tax.


Q- How to pay tax incase there is a tax payable coming?

Every individual can pay taxes by Online or Offline method stated by Income Tax Department.

  • Online Method of Tax Payment-
    1. Visit the tin-nsdl.com and select the “Pay Taxes Online” tab.
    2. Here you will be redirected to a different page. Now Select CHALLAN NO./ITNS 280 from NON-TDS/TCS. After selecting it a new page will be opened on your screen.
    3. Now select “(0021) Income Tax (Other than Companies)” Select the type of payment and enter the details i.e. PAN, Assessment year, address and at last fill the captcha code and click on Proceed.
    4. Select any of the mode of payment- Debit card or Net banking. It is to be noted that while paying through debit card you can use only these 6 banks- State Bank of India, Canara Bank, Indian Bank, Punjab National Bank, HDFC Bank and ICICI Bank.
    5. Check all the information correctly, enter the captcha code and click on Proceed.
    6. Further you will be redirected to a different page, here also you will be required to confirm that all the information mentioned by you is correct. Click on 'Submit to the bank'.
    7. Now you will be landed to your bank’s page. Fill the details of your net banking or debit card and enter the amount of tax to be paid.
    8. After making the payment, you will get the receipt of payment on your screen. Save this for security purpose.
  • Offline Method of Tax Payment-
    1. Visit the bank and take the tax payment challan form-280
    2. Fill the details asked in the form
    3. Visit the bank again and submit one copy of challan along with the money. Do not forget to get a receipt from bank official.

Q- I have filed my return, when will I get a refund?

Normally it takes 45 days to get your refund after filing your Income Tax Return. You can track the live refund status from here.


Q- How to correct a mistake made while filing ITR?

In case if you have done a mistake while filing the Income Tax Return, you do not need to worry. As per the Section 139(5) of the Income Tax Act, an individual can file a revised return to rectify the mistake. It is clearly stated in under the section that ITR can be revised before the completion of the assessment or completion of the relevant Assessment year whichever is earlier.


Q- What is Form 26AS and how it is helpful in filing income tax return?

Form 26AS is a statement where consolidated details about the taxes paid by directly or indirectly. Form 26AS is helpful as it is a comprehensive statement of Form 16 and Form 16A. You can always check or confirm your TDS deducted or advance tax paid by you through Form 26AS.


Q- How to report income from investments?

While filing ITR, Form -16 is not only document through which return can be filed. There are many other income such as interest on fixed deposit , rent received on house property , capital gain on sale land or any other property are also required to be reported. The whole procedure is simplified for you by us. Just let us know all about? incomes and we report them when and where required.To know more visit our website


Q- Do I need to file returns even if my company has deducted tax on my salary?

Yes, you are required to file your return even though TDS has been deducted by your employer if your income exceeds basic exemption limit. Also when TDS deducted by your employer is more than actual tax, to claim excess tax paid you are required to file our return.

Q- What is ITR-V?

ITR-V is the acknowledgement of your return filed. It is required to be e-verified or signed by the assessee.


Q- Is it necessary to attach documents while e-filing ITR?

No, documents are not required to be attached but they are required as a proof or evidence while filing returns and if asked by the Income Tax Authority.


Q- Can I file my ITR for A.Y. 2018-19?

No.If you have not filed your return until due date i.e. 31st July 2018, then belated return can be filed.The last date for filing of income tax return for A.Y. 2018-19 was 31st March , 2019.


Q- How to file income tax return for salaried employee for 2018-19?

For efiling income tax return online with Tax2win,you just have to follow some simple steps :

  • Visit Tax2win portal
  • Upload Form 16 and data will be automated
  • Review tax computation and changed if required
  • Then file your return.

Q- Which ITR should be filed for salary from commission?

If you have income from commision , then you are required to file ITR-3 because commision is treated as business income However, if you have income from both salary and commission and income from salary is your primary source of income that means if salary is more than commission income , then you can file ITR-1 and can show commission income as income from other sources, otherwise you have to file ITR-3.


Q- Is it mandatory to file an income tax return for income less than 5 lakhs?

Yes, as per section 139(1) of the Income Tax Act, 1961, every individual is required to e-file return if their income exceeds INR 2, 50,000.So, if your income is INR 5 lakhs, then you are required to file ITR, even if no taxes are required to be paid.


Q- Is it mandatory to file an income tax return below 2.5 lakhs?

As per section 139 of the Income Tax Act, 1961, return filing is mandatory even if your income does not exceed the basic exemption limit if:

  • You are beneficiary or beneficiary owner of any asset located outside India
  • You have a financial interest in any organisation located outside India.

Q- What is the minimum income for income tax?

For individuals, there is no income tax till INR 5 lakhs, however you required to file a return if income exceeds INR 2.5 lakhs.Any income exceeding INR 5 lakhs is liable to pay income taxes.


Q- Which ITR form to fill if income is from interest earned on FD only?

If you are an individual or HUF earning income from interest from FD only, then you can file ITR-1.


Q- I have an income from my salary as well as capital gains. So which ITR form do I need to select: ITR-1 or ITR 2?

ITR-2 is applicable on all those individuals and HUFs whose earnings are from salary, house property, capital gains and other sources but not from business income.Hence, you are required to file ITR-2.


Q- Which Income tax return form should I fill if I am an NRI with no income in India?

An NRI is only required to file a return if he has earned or received any income in India.If there is no income in India NRI is not required to file return.


Q- What should I write in the capacity column of the ITR 1 form?

Capacity column indicates the status of the person who has filed the return . For individuals, if individual himself has filed return , then in capacity column mention himself and if any other person as acted , the details of the said person should be mentioned in column.


Q- How do small shopkeepers file an income tax return?

If small shopkeepers have turnover of upto Rs. 2 crore, then they can file their return under presumptive scheme under section 44AD , for which ITR-4 is required to be filed in case income does not exceed 50 lakhs otherwise ITR-5.


Q- I worked for two companies last year. Do I need to use an ITR-2 for e-filing?

You can file ITR-1 even if you have two employers in last year provided income does not exceed INR 50 lakhs.. ITR-2 is required to be filed by those individuals and HUFs whose earnings are from salary, house property, capital gains and other sources .


Q- What will happen if I don't e-verify my income tax return ?

You are required to either e-verify your return or send it to CPC BAngalore within 120 days of filing of return, failing to do so will result in invalidation of return meaning return has not been filed. You can file belated return if you have not verified your return in the stipulated time.


Q- Can a buyer of a car claim TCS in his income tax returns?

Yes, the buyer of a car can claim tcs in his return.Any amount paid as taxes by the individual can be verified with Form 26AS and so can be claimed and if no taxes are required to be paid while return , you can claim TCS refund from the government.


Q- What if I have forgotten my user ID in income tax return?

User id for income tax portal is your PAN by default. However if you have forgotten your password, you can reset it by clicking on forgot password and follow the steps.


Q- How do I file an Income Tax Return for the internship stipend in India?

If stipend is paid for persons' education , then it can be considered as scholarship and need not be taxed. However, if any benefit is provided same as employee , then it is taxable.For example, if during internship, you are provided accommodation just like other employees, then stipend is taxable.


Q- Do I need to file the balance sheet with the income tax return in India?

If you have income from business , then only you are required to file balance sheet along with return but there is an exception to it, in case of presumptive income, only certain disclosures are required.


Q- How do I identify a fake income tax return?

There are various ways to identify.

  • We could check by Login into E-Filing Home Page, Income Tax Department, Government of India.
  • We can visit income tax department and can enquire if this is fake.

Q- Do I have to file (nil) income tax return if I fill Form 15G?

If your income exceeds 2.5 lakhs, then only you are mandated to file return Also, there will be not be deduction of tax since you have filed Form 15G. Therefore, no requirement to file returns to claim refund as well.


Q- Can I use my income tax return copy as an income certificate for college admission?

Yes it’s a valid and reliable certificate of the income. It’s the most reliable source to show income for the last financial year.


Q- How do I file a revised income tax return after a refund has been paid to my account?

You can file revised return if there is any mistake in the return even though refund has been claimed by you. The last date revised return is end of the relevant assessment year.


Q- How do I register in e filing income tax if I don't have any surname, which is a mandatory field?

In case you don’t have surname we can show first name directly in surname field as first name field is not mandatorily required.


Q- Is it necessary to report intraday trading losses in income tax return?

Yes, it is necessary to report intraday trading losses for income tax. Intraday trading is considered a speculative activity should be reported as business income.

However Audit will be required when :

  • Turnover of more than INR 1 crore in a financial year.
  • Profit is less than 8% of the turnover.
  • There is loss during the financial year.

Q- What is meant by 'return submitted and not verified' status for an ITR?

Return submitted means return has been filed with the income tax department but it is processed further only after it is e-verified. Therefore, “return submitted and not verified” means return has not be processed further in absence of e-verification of return

ITR-V has to be sent to the CPC, Bangalore within 120 days of e-filing. You can also verify your tax returns electronically. It can be done through any one of the means.

  • (a) Net Banking
  • (b) Aadhaar OTP
  • (c) EVC code through department’s website
  • (d) Giving bank account details on e-filing website or
  • (e) Giving DEMAT account details on income tax e-filing website.

Q- What should I do if I forgot to pay the late fee of Rs. 1000 while filing income tax?

In case you have forgotten to pay late fees, then you should wait for the notice from Income Tax stating demand pf late fees, then it can be paid at that time or you can file revised return and pay fee at that time.

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. 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.