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Frequently Asked Questions:

Talk about Income Tax  or about Investments, lot many questions or doubts or queries bother us. Sometimes questions are simple and easily resolved by just surfing on google. But when complicated queries struck in real life; it requires the opinion of an expert.

For such questions TDS Master - Arpita is there to resolve your issues. Just write to me and I will try to either resolve the issue completely or to guide you about what should be the course of action. 

Here I have summed up some commonly asked questions with their appropriate solution/answer:

Q-1
Who is required to File Income Tax Return?

Every individual whose total income is more then a certain amount(Basic Exemption limit) is required to file Income Tax Return. Basic Exemption limit for Financial Year 2019-20 (Assessment Year 2020-21) are
Additionally from 1st April 2020 applicable from financial year 2019-20, anyone meeting any of the following conditions is required to file Income Tax Return:
  • Deposited more then ₹ 1.00 crore in current account/accounts
  • Spent more then ₹ 2,00,000 on foreign travel for self or for any other person
  • Paid electricity bill of more then ₹ 1,00,000


Q-2
Which Income Tax Return (ITR) Form should I file?

Firstiy Income Tax Return Forms are decided on the basis of Income of the Individuals. Secondly Income Tax Return Forms are notified every year afresh. So its not necessary that every year same ITR Form will be filed.
However for Financial Year 2019-20 (Assessment Year 2020-21) the basic guideline to decide on the applicable ITR Form is:
  • ITR-1 - For Salaried individuals having total income upto ₹ 50 lacs and having other incomes only like interest and Income from one house property
  • ITR-2 - For salaried individual having some other incomes like FD interest/capital gains or having income from two house properties
  • ITR-3 - For individuals having business Income
  • There are other ITRs too which are to be selected on the basis of income as well as type of Assessee
Download excel file to know about which ITR Form you need to file from here-Calculators



Q-3
Who should file Income Tax Returns Electronically?

Almost everyone is required to file Income Tax return electronically. However super senior citizen(above 80 years of age) can file a paper return if he/she has to furnish ITR-1 or ITR-4.



Q-4
Why should I file my Return when all due taxes have been deducted by my employer?

Income Tax paid by you and Tax deducted on your income by your employer will be accepted as due from you on self assessment of your income. When you file your Return, you in a way intimate the government of your self assessment and give them the right to finalise your income and accept the taxes paid/deducted. Thus Income Tax Return filing is critical and has been made mandatory to complete the process.

Failure to file Income Tax Return may attract Penalty.

Q-5
I dont need to file my return as my income is below the tax limit. My Bank has deducted Tax on my interest income, so now what should I do?

As bank has deducted Tax, you should file your Income Tax Return to claim the deducted tax as refund. On filing your Income Tax return with correct bank details, you will receive the refund of TDS in your bank account.

In future you may submit Form 15G/15H to your bank so they do not deduct Tax on your income. Form 15G/15H are a declaration to bank that your total income is below taxable limit so Tax should not be deducted.
Read in detail about Form 15 G and Form 15H



Q-6
I missed to enter the details of Tax paid by me in my Income Tax return?

You need to file a revised Return with the details of taxes paid by you. You need to e-verify or send the ITR V of both the returns ie. original return as well as the revised return.
Any mistakes in the original return can be corrected by filing a Revised Return.
Read in detail about Revised Return



Q-7
I have received an intimation showing demand of ₹ 5. How should I pay it and why demand of such negligible amount?

Its not required to pay the demands of less then ₹ 100. As per CBDT demand of less then ₹ 100 is not enforceable but is liable to be adjusted against future refunds.
Read in detail about demand of less then ₹ 100

Still if you want to pay you may pay it as tax on regular assessment.
Read in detail about how to pay taxes


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