Answers to Frequent Tax Questions

Pre tax filing
Post tax filing
Filing with
H&R Block
Basics of tax filing
Saving taxes
Advance tax needs to be paid by all those who have income other than salary and having tax liability of more than Rs. 10,000. When a person has income only from salary then he is not required to pay any Advance Tax as his employer deducts TDS from his payments. However in case his TDS is deducted less than what is required to be deducted, then there will be an Advance Tax liability that needs to be paid.
Following is the list of few important steps/points/precautions to be kept in mind while filing the return of income:

The first and foremost precaution is to file the return of income on or before the due date. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income:
  • Loss (other than house property loss) cannot be carried forward.
  • Levy of interest under section 234A.
  • Penalty of Rs. 5,000 under section 271F can be levied.
  • Exemptions/deductions under section 10A, section 10B, 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE are not available.
  • Belated return cannot be revised under section 139(5).

Apart from this the tax payer should do the following
  • Download Form 26AS and should confirm actual TDS/TCS/Tax paid. If any discrepancy is observed then suitable action should be taken to reconcile it.
  • Compile and carefully study the documents to be used while filing the return of income like bank statement/passbook, interest certificate, investment proofs for which deductions is to be claimed, books of account and balance sheet and P&L A/c (if applicable), etc. No documents are to be attached along with the return of income.
  • Identify the correct ITR Form applicable to him.
  • Carefully provide all the information in the ITR form.
  • Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.
  • If any tax is payable as per the return of income, then the same should be paid before filing the return of income, otherwise return would be treated as defective return.
  • Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.
  • After filling all the details in the return of income and after confirmation of all the details, one can proceed with filing the return of income.
  • In case return is filed electronically without digital signature do not forget to post the acknowledgement of filing the return of income at CPC Bengaluru (as discussed earlier).
  • For details on e-filing please logon to www.hrblock.in
Return of income can be filed either at the local office of H&R Block or can be electronically filed at www.hrblock.in. We provide self e-filing services where you may file your return of income yourself with chat support for 100% FREE. Alternatively, you can also file your tax return using our assisted online tax e-filing service where qualified and trained tax experts will prepare and e-file your returns.
Voluntarily one can file a maximum of 2 prior year of returns. For e.g. : if one is filing their returns in July 2015, they can file for Financial Year 2014-15 and 2013-14.
You need to prepare your ITR in order to assess your actual tax liability. This amount is the actual amount due to the government in form of taxes. Refund is the amount of difference if any between the tax liability as per the ITR and the TDS deducted from your salary/receipts. You are eligible for claiming a refund from the IT department only when you file the return of income. This is also known as claiming your TDS credits from the government.
ITR-V needs to be sent to Bengaluru Centralised processing Centre within 120 days of filing the return online as a proof of return filed as a part of the verification process that the ITR filing is complete. The tax department has now introduced Electronic Verification Code whereby you may electronically verify your tax returns using any one of the 4 methods given by government.
You can login to the https://incometaxindiaefiling.gov.in website and provide basic details like PAN and Assessment Year to which refund relates in order to check status of refund .
Yes, provided the original return has been filed before the due date and the Department has not completed the assessment. It is expected that the mistake in the original return is of a genuine and bona fide nature and not rectification of any deliberate mistake. However, a belated return (being a return filed after the due date) cannot be revised.

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 2014-15, the due date of filing the return of income (considering no audit) is 31st July, 2015 (this was extended to 31st August this year). If the return of income is filed on or before 31st July (31st August in this case), 2015 then the return can be revised upto 31st March, 2017 (assuming assessment is not completed by that date). However, if return is filed after 31st July (31st August in this case), 2015, then it will be a belated return and a belated return cannot be revised.
Once your tax expert has e-filed your Income tax returns, the acknowledgement ITR-V will be ready for download from your account. We will be keep the document available in your account, whenever and wherever you need it. Alternatively you may also now electronically verify your returns using the EVC – Electronic Verification Code .
Please send one print out of ITR-V, signed by you directly to the Income Tax Department within 120 Days of E-filing at below mentioned address through ordinary or speed post:
Centralized Processing Center (CPC),
Income Tax Department
Post Box No.1,
Electronic City Post Office,
Bengaluru – 560100, Karnataka.
Yes, please go to the following link www.hrblock.in to file your tax returns for free today!
We have tax support staff available via chat or phone to help with the filing process, once you register and login to our “Free online Income Tax E-filing” application.
Yes you can read our blog for articles on different Income Tax topics. We also have a Guides section where we have included information on important tax filing and tax savings topics to ease the tax filing process for you.
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Yes. You can file your taxes with us by providing us Form 16 from all the employers. Our intelligent application will calculate the taxes for you. In case you want assistance of an expert you may also use our Assisted service where a tax expert helps you file taxes online.
H&R Block provides tax filing only to salaried individuals. Hence only salaried individuals can file taxes using our application.
You can e-file using our “Free Online Tax E-filing” application which is an intuitive, secure, simple online platform through which taxes are filed. Just submit your basic details, upload your Form 16 and our application will pre-populate the return for you. Check the return and file it yourself.

You can alternatively do this by logging in to the https://incometaxindiaefiling.gov.in

To get experts prepare and e-file your returns just register with our Assisted Online Tax e-filing and we will assign you a tax expert. This expert will prepare your tax return and file it for you.
You may pay these online through a payment gateway for payment of taxes on the Income Tax website of the government.

1. Select challan 280 to pay taxes which is an option to pay Income Tax or corporation tax.
2. Select the Assessment Year for which you are paying taxes and fill in all details like PAN, Address, phone number, email address etc. Here you need to select the option Self-Assessment Tax if you are paying tax due for the FY that has just ended.
3. Here you will be re-directed to the net banking page where you need to pay tax. There are spaces for surcharge, interest and education cess that need to be kept blank.
4. On payment of tax you should receive your challan 280 that contains details of tax paid by you.

Generally for salaried individuals taxes are deducted at source and hence no taxes are due on the return filing date. However, you may be liable to pay taxes when you have income from sources other than salary e.g. from house property income, income from capital gains, sale of shares, income from other sources etc. In this case you may still have to pay taxes on the income earned from these transactions.

These taxes may be paid at the time of filing your return of income i.e. on or before 31st July.
You do not need to pay inheritance taxes in India . You need to pay taxes only when you sell the property in India as capital gains tax.
Persons earning income of more than Rs. 500,000 in a year are compulsorily required to e-file their Income Tax Returns. Paper returns are not accepted.
TDS means Tax Deducted at Source. It is the amount withheld from payments of various kinds such as salary, contract payment, commission etc. This withheld amount can be adjusted against your tax due.
You can file a self-declaration to the banker in form 15H stating that your income is below taxable limit. The form is available with your banker or the local Income-Tax office and can be downloaded from the website http://www.incometaxindia.gov.in/. This form should be filed before the interests begin to accrue in the fixed deposit account, since the declaration has no retrospective effect.
The employer is bound by law to issue TDS certificates or Form 16 to the employees. He will have to pay a penalty of Rs. 100 per day of default u/s 272A(2)g. You may complain to the assessing officer in case you do not receive this certificate. You cannot get the credit of taxes paid unless Form 16 details are filled in the ITR Form.
The ultimate responsibility to pay tax rests on the person who has earned income. If the employee deposits such tax with the employer in form of TDS then the employer will be liable for interest and penalty for failure to deduct tax.
Yes you do need to deduct TDS u/s 195. In case you have any doubt regarding the amount on which TDS is to be made, you may file an application with the officer handling non-resident taxation who will pass an order determining the TDS to be made. Alternatively, if the recipient feels that the TDS is more he may file an application with his Assessing officer for non-deduction.
In the case if you have tax payable then, yes, if you have not furnished the return within the due date, you will have to pay interest on tax due. If the return is not filed up to the end of the Assessment Year i.e. 31st March of the relevant assessment year then in addition to interest, a penalty of Rs. 5,000 may be levied by the assessing officer under section 271F.
Yes, if one could not file the return of income on or before the prescribed due date, then he can file 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. Return filed after the prescribed due date is called as a belated return. A belated return attracts interest and penalty.

E.g., In case of income earned during FY 2014-15, the belated return can be filed up to 31st March, 2017 (which is one year after the end of the Assessment Year 2015-16). However, if return is filed after 31st March, 2017, penalty under section 271F (as discussed in previous FAQ) can be levied.
Amounts paid as Advance Tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing of the return of income. Only then the Government assumes rights over the taxes paid by you. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.
A taxpayer may pay tax in any of the following forms:
1. Tax Deducted at Source (TDS)
2. Tax Collected at Source (TCS)
3. Advance tax or Self-assessment Tax or Payment of tax on regular assessment.

The Income-tax Department maintains the database of the total tax paid by the taxpayer (i.e., tax credit in the account of a taxpayer). Form 26AS is an annual statement maintained under Rule 31AB of the Income-tax Rules disclosing the details of tax credit in his account as per the database of Income-tax Department. In other words, Form 26AS will reflect the details of tax credit appearing in the Permanent Account Number of the taxpayer as per the database of the Income-tax Department. The tax credit will cover TDS, TCS and tax paid by the taxpayer in other forms like advance tax, Self-Assessment tax, etc.

Income-tax Department will generally allow a taxpayer to claim the credit of taxes as reflected in his Form 26AS.
Under the Income-tax Law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms).

The forms of return prescribed under the Income-tax Law for filing of return of income for the Assessment Year 2014-15 (i.e., Financial Year 2013-14) are as follows (*):
Return Form Brief Description
ITR – 1 Also known as SAHAJ. It is applicable to an individual having salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses) and exempt income except agriculture income of more than Rs5,000.
ITR 2A It is applicable to individuals having income from salary/pension, income from more than one house property, income from other sources including income from race horses and lottery. No income from capital gains, foreign assets or foreign income.
ITR – 2 It is applicable to an individual or a Hindu Undivided Family having income from any source other than "Profits and gains of business or profession". This includes salary/pension, income from house properties, other sources and capital gains.
ITR – 3 It is applicable to an individual or a Hindu Undivided Family who is a partner in a firm and income chargeable to income-tax in his/its hands under the head "Profits or gains of business or profession" does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm.
ITR – 4S Also known as SUGAM is applicable to individuals and HUFs who have opted for the presumptive taxation scheme of section 44AD/ 44AE.
ITR – 4 It is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietary business or profession.
ITR – 5 It is applicable to a person being a firm, LLP, AOP, BOI, artificial juridical person, co-operative society and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or139(4C) or 139(4D) shall not use this form (i.e., trusts, political party, institutions, colleges, etc.)
ITR – 6 It is applicable to a company, other than a company claiming exemption under section 11 (charitable/religious trust can claim exemption under section 11).
ITR – 7 It is applicable to persons including companies who are required to furnish return under section 139(4A) or139(4B) or 139(4C) or 139(4D) (i.e., trusts, political party, institutions, colleges, etc.).
ITR – V It is the acknowledgement of filing of return of income.

(*) The aforesaid table gives only a brief overview of the return forms and is not an exhaustive discussion. For more provisions of applicability/non-applicability of the ITR Forms, the readers should go visit https://incometaxindiaefiling.gov.in/.
Form 16 is a certificate or a document that is issued to salaried personnel in India by their respective employers. The Form 16 is provided by an Employer to the Employee and is used by the employee as reference as well as proof of TDS while filing Income Tax Returns.

Form 16 is divided in two parts – Part A and Part B. Part A is the certificate of TDS issued by employer. Part B is annexure containing details of salary paid, other income and tax deducted.
Filing of return is every taxpayer’s 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.

You may also receive notices and demands for non-filing of Income Tax Returns if you do not file your returns in time.
Filing your individual tax return is mandatory by Income tax Law if the gross total income exceeds the basic exemption limit. Even if TDS is deducted from your salary by the employer, Income Tax filing is a proof that these taxes have been deposited in the government account. In many cases you are eligible for refunds and you can claim these only when you file your returns with the ITD.
If you do not file your return the following implications would have to be faced:

1. 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.
2. You will be issued a notice by the Income Tax department for non-filing of return
3. There could be additional interest and penalties levied
4. You will not be able to carry forward your losses if any

Also, in certain cases while applying for visas you will be asked to present your past 3 years IT return.
Income tax filing is essentially a disclosure of your income and a proof that you have paid your rightful taxes to the government.

It is essential that you file your taxes since you may get some important benefits from this.

1. Where you have incurred a loss and you wish to carry forward the same to future years. For example, you may have housing loan in India. In most cases, you will have a loss under the head Income from House Property occurring due to interest on such housing loan. You can file tax return showing such loss. This loss can be utilized to offset positive income from properties in future years.
2. Similarly, you may consider filing tax return if you have incurred any capital losses on sale of shares, etc.
3. Where taxes on certain incomes are deducted at source and you wish to claim a refund of the taxes so deducted. For example, the banks may have deducted tax on interest on NRO accounts or tenant has deducted tax on rental payments, etc.
4. Where you think you would be required to submit copies of your tax returns for visa purposes or for loan purposes.
An individual is required to file his Income Tax Return for a Financial Year if his taxable income for that year was in excess of the amount of basic exemption.

For, FY 2014-15 the amount of basic exemption applicable to individuals (other than resident senior citizens and resident super senior citizens) is Rs. 2,50,000, and therefore all such individuals with income more than Rs. 2,50,000 are required under the law to file their tax return. Senior citizens with annual income exceeding Rs. 3,00,000 need to file for their taxes. In case the income earned exceeds Rs. 5,00,000 then the person needs to compulsorily e-file his taxes.
There are some disadvantages of filing after due date:
  • You will not be able to revise your return
  • You cannot carry forward losses incurred under ‘Capital Gains’ or ‘Profits and Gains of Business or Profession’
  • There may be additional interest and penalty levied for the delay in filing
The different heads of income under which an individual’s income may be classified are – salary, house property, income from business and profession and income from other sources. Our tax experts at H&R BLOCK will help you understand how you can file your taxes and which forms are applicable. You can file them online with us using our retail service of In-Person tax filing .
The government offers an array of schemes in which you may invest your money and the amount invested is deductible from your taxable income as well as offer you a very good return on money invested.

The various tax saving schemes that save you money and are allowed as a deduction under section 80C are
1. Provident fund
2. Voluntary provident fund
3. Life insurance premium
4. Equity linked saving scheme
5. National savings certificate
6. Mutual fund/ SIP
7. Unit linked insurance plans (ULIP)
8. Fixed deposit/ Post office time deposit schemes

These are the most popular schemes of tax savings. Apart from this there are certain schemes under different sections like 80D for investment in medical insurance premium, 80CCC for investment in certain specified pension funds, 80CCD for investment in central government pension schemes by government employees. Apart from the above if you invest in the National Pension scheme (NPS) then you are eligible for a deduction from your total income.

While claiming these deductions one must remember that the total deduction available under sections 80C, 80 CCC, 80 CCD and the NPS is Rs. 1,50,000 in total.
Income tax Act gives deductions from total income for housing loan repayments separately for interest and principle repayment component. Housing loan is a very commonly availed loan and it takes away a big portion of your income. Income tax Act therefore offers a huge tax benefit for home loan repayments.

Interest deduction

The interest portion can be claimed as a deduction u/s 24 up to a maximum of Rs. 2 lakhs for self-occupied property. In case the property is not self-occupied then there is no limit on amount of deduction. Interest deduction comes down to only Rs. 30,000 if the construction of the house property for which the loan is taken does not get complete within three years of Financial Year in which loan was taken.

Section 24 explicitly states that interest on loan can be claimed as a deduction only after the construction of property is complete. Interest deduction for pre-construction period can be claimed once the construction is complete. The entire interest amount for the pre-construction period can be divided into 5 equal instalments and claimed equally over a period of five years.

The principle amount can be claimed u/s 80C subject to the overall limit of Rs. 1,50,000.

Deduction u/s 80EE

In the Budget 2013 an additional deduction of Rs1 lakhs was announced by the then finance minister Mr P Chidambram. The deduction was given in addition to the existing deduction u/s 24 and u/s 80C. The deduction can be claimed provided
1. The loan is sanctioned between 01/04/2013 and 31/03/2014
2. The buyer does not possess any other house property on the date of purchase
3. The value of house property does not exceed Rs. 40,00,000
4. The loan amount does not exceed Rs. 25,00,000
5. The deduction of Rs. 1,00,000 can be claimed only in FY 2013-14

If the deduction of Rs. 1,00,000 is not claimed in FY 2013-14 then the remaining deduction can be claimed in later years up to a maximum of Rs. 1,00,000.
Yes. Apart from tax saving investments there are a lot of incomes that are exempt from Income Tax and hence are reduced from your taxable salary while making TDS calculations. The commonly allowable exemptions are

1. House Rent Allowance
2. Leave travel allowance
3. Medical allowance
4. Transport allowance

There is a limit for certain allowances and others are exempt subject to certain conditions.

Apart from this there are a lot of special allowances that are allowed u/s 10(14).

Disclaimer
Note: The information given in this web portal is to convey the general understanding of TDS and TCS provisions. For detailed information Income Tax Act 1961 shall be consulted. The changes in the Act may be incorporated in the information as and when required.
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