ITR-1 for the FY 2020-21 – Assessment Year 2021-22 – Frequently Asked Questions compiled by Income Tax Department.
1. Who is eligible to file ITR-1 for AY 2021-22?
ITR-1
can be filed by a Resident Individual whose:
– Total income does not exceed ₹ 50 lakh during the FY
– Income is from salary, one house property, family pension income,
agricultural income (up to ₹5000/-), and other sources, which include:-
* Interest from Savings Accounts
* Interest from Deposits (Bank / Post Office / Cooperative Society)
* Interest from Income Tax Refund
* Interest received on Enhanced Compensation
* Any other Interest Income
* Family Pension
– Income of Spouse (other than those covered under Portuguese Civil Code) or
Minor is clubbed (only if the source of income is within the specified limits
as mentioned above)
2. Who
is not eligible to file ITR-1 for AY 2021-22?
ITR-1
cannot be filed by any individual who:
– is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
– has total income exceeding ₹ 50 lakh
– has agricultural income exceeding ₹ 5000/-
– has income from lottery, racehorses, legal gambling etc.
– has taxable capital gains (short term and long term)
– has invested in unlisted equity shares
– has income from business or profession
– is a Director in a company
– has tax deduction under section 194N of Income Tax Act
– has deferred income tax on ESOP received from employer being an eligible
start-ups
– owns and has income from more than one house property
– is not covered under the eligibility conditions for ITR-1
3. What
are the changes in ITR-1 as compared to previous years?
In
ITR-1 for AY 2021-22, there is an addition of section 115BAC. If you wish to
opt for the new tax regime under section 115BAC, select Yes in the new ITR
form, else select No. Please note that option for new tax regime u/s 115BAC
will be available only till due date of filing of return u/s 139(1).
4. What
documents do I need to file ITR-1?
You
would need Form 16, house rent receipt (if applicable), investment payment
premium receipts (if applicable). However, ITRs are annexure-less forms, so you
are not required to attach any document (like proof of investment, TDS
certificates) along with your return (whether filed manually or electronically).
However, you need to keep these documents for situations where they need to be
produced before tax authorities such as assessment, inquiry, etc.
5. What precautions should I take while filing the return of
income?
–
Download Form 26AS (Annual Information Statement) and check the actual TDS /
TCS / tax paid. If you see any discrepancy, you should reconcile it with the
Employer / Tax Deductor / Bank.
– Compile and carefully study the documents to be referred to when filing your
ITR, like bank statement / passbook, interest certificates, receipts to claim
exemptions or deductions, Form 16, Form 26AS (Annual Information Statement),
investment proofs, etc.
– Ensure details like PAN, permanent address, contact details, bank account
details, etc. are correct in the pre-filled data.
– Identify the correct return for you (from ITR-1 to ITR-7). Provide all the
details in the return such as total income, deductions (if any), interest (if
any), taxes paid / collected (if any), etc. No documents are to be attached
along with ITR-1.
– e-File the return of income on or before the due date. The consequences of
delay in filing returns include late filing fees, losses not getting carried
forward, deductions and exemptions not being available.
– After e-Filing the return, e-Verify it. If you want to manually verify your
return, send the signed physical copy of ITR-V Acknowledgement (by ordinary
post or speed post) within 120 days of filing the return to Centralized
Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).
6. How do I know which ITR I need to file?
Different tax returns are prescribed for
filing by individual taxpayers depending on their source of income and
residential status. To determine the correct ITR to file, you can use the Help
me decide which ITR Form to file option. You can then proceed based on
questions displayed to determine the correct ITR to file.
7. What is Form 26 AS (Annual Information Statement)?
Form 26AS is an annual information
statement which shows various details including Tax Deducted / Collected at
Source, Advance Tax / Self – Assessment Tax, Specified Financial Transactions
Demand / Refund Pending / completed Proceedings for a taxpayer’s PAN as per
ITD’s database.
A taxpayer may pay tax in any of the following forms:
– Tax Deducted at Source (TDS)
– Tax Collected at Source (TCS)
– Advance Tax or Self-Assessment Tax
The Income Tax Department maintains a database of the total tax paid by all
taxpayers, which is called tax credit in the taxpayer’s account. The ITD
generally allows taxpayers to claim the credit of taxes as reflected in their
Form 26AS.rs and omissions in my Form 26AS (Annual
Information Statement)?
8. What should I do if there are errors and omissions in my Form
26AS (Annual Information Statement)?
Errors or omissions in your Form 26AS
(Annual Information Statement) may happen due to several reasons, such as:
* Non-filing of TDS return by Deductor
* Non-payment of TDS by Deductor
* Quoting of wrong AY or wrong PAN (or no PAN)
* Incorrect challan details in the TDS returns submitted
* Challan details wrongly quoted in the TDS return by Deductor or in details
uploaded by the bank
You can take the following action to correct the details in your Form 26AS:
1. Provide a correction statement (via NSDL website) for only those records
that require correction.
2. In cases of a mistake made by the Deductor (e.g., your employer), you should
contact the Deductor and request them to:
* File the TDS return if it is still pending
* Furnish a revised TDS return if they filed the return with incorrect details
/ wrong or no PAN
* If there is a mistake made by the bank (e.g., in tax amount, PAN), you should
request the bank to rectify it in the challan details uploaded by the bank
Especially in cases of tax amount being wrong, it is mandated that you get it
corrected – else you will not get a tax credit for deductions that are not
mentioned in Form 26AS
9.
There is a mismatch between the details in my Form 26AS and TDS certificates
(Form 16 / 16A). What should I do?
Some of
the common errors leading to mismatch between Form 26AS and Form 16 are as
follows:
* Non-filing of TDS return by Deductor
* Wrong PAN number of the employee quoted by the Deductor.
* Wrong PAN / TAN of Deductor / AY quoted
* Wrong Challan Identification Number (CIN) of TDS payment quoted in TDS Return
* Omitted detail of TDS payment
* Challan-wise annexure in TDS Statement does not mention details of the
employee (e.g., name or gender)
* False / Excess TDS amount claimed in the return
Compare the figures in Form 26AS with that of Form 16 and Form 16A. Mismatches
between your Form 26AS and Form 16 or TDS certificates may lead to less refund
or more taxes payable. If you find that any of the above details don’t match:
* You need to inform the party responsible for deducting TDS from your income
(i.e., your employer).
* The employer has to file a revised TDS Return. Ensure that the details are
correct in the revised TDS return to avoid another mismatch.
10. I
am a joint owner of a house with my spouse. We do not have any additional
property. Can I file ITR-1 in AY 2021-22?
Yes, you can file ITR-1 for the AY
2021-22 in case the following conditions are met:
* If you are a single or joint owner of a single property, you can file ITR-1
for AY 2021-22
* If you own more than one property, you can’t file ITR-1 (even as a single
owner)
11. What precautions should I take to avoid issues while filing
my ITR?
To
avoid issues while filing your return and getting your refund, ensure you do
the following:
* Link Aadhaar and PAN.
* Pre-validate your bank account where you want to receive your refund.
* Choose the correct ITR before filing it; else filed return will be treated as
defective and you will need to file a revised ITR using the correct form.
* File the return within the specified timelines.
* Verify your return and you can opt for e-Verification (recommended option –
e-Verify Now) is the easiest way to verify your ITR.
* File the responses for the notices received from the ITD within the specified
timelines.
12. What is Advance Tax?
For
salaried individuals, advance tax is mostly taken care of through TDS by
employers. But other forms of income such as interest on savings bank accounts,
fixed deposits, rental income, bonds, or capital gains increase the tax
liability. One’s tax liability needs to be estimated beforehand. If tax amounts
to more than ₹10,000/- per year, taxpayers need to pay advance tax in quarterly
instalments (June, September, December and March).
13. How is Advance Tax and Self-Assessment Tax calculated and
paid?
Advance
Tax: Advance Tax must be calculated as given below:
a) In case of all assessees (other than the eligible assessees as referred to
in section 44AD and 44ADA of the Income Tax Act):
At least to 15% On or before 15th June
At least to 45% On or before 15th September
At least to 75% On or before 15th December
100% On or before 15th March
14. What is the
difference between allowance and perquisite? Are these considered as my
income?
Allowances
are fixed periodic amounts, apart from salary, which are paid by an employer,
e.g., conveyance allowance, travelling allowance, uniform allowance, etc.
Allowances are considered income and will increase your gross total income on
which you will be taxed. Allowances can be taxable, partially exempted, and
fully exempted. Perquisites are benefits you receive because of your official
position, and are over and above your salary or wage income. These perquisites
can be taxable or non-taxable depending upon their nature.
b) In case of eligible assessee as referred to in section 44AD and 44ADA:
100% On or before 15th March
Any tax paid on or before 31st March will be treated as Advance Tax paid during
the same FY. The deposit of Advance Tax is made through challan ITNS 280 by
ticking the relevant column, i.e., Advance Tax.
Self-Assessment Tax: After filling out your ITR form with the TDS and advance
tax details (if paid), the system computes your income and checks whether tax
is still payable. You need to pay it and then fill in the challan details in
the return before submitting it.
15. Are all donations 100% exempted from tax?
No, not
all donations qualify for 100% exemption from tax. The categories for tax
deduction, based on whom you donated to (charitable institution, fund set up by
Government, scientific research, etc.) are as follows:
1. Donations entitled for 100% deduction without qualifying limit
2. Donations entitled for 50% deduction without qualifying limit
3. Donations entitled for 100% deduction subject to qualifying limit
4. Donations entitled for 50% deduction subject to qualifying limit
You need to check the exemption limit on your donation receipt and claim
deduction accordingly while filing your return.
16. Is e-Filing and e-Payment the same thing?
No.
e-Filing is the process of electronically submitting your Income Tax Return on
the e-Filing portal and e-payment is the process of electronically paying tax.
17. I made a calculation mistake in my filed ITR. Can I correct
it and re-submit my return?
Yes,
you can re-submit return in case you have already filed your Income Tax Return
and later discover that you have made a mistake. This is called a Revised
Return. Your return has to be revised three months before the end of the
relevant AY. For AY 2021-22, the due date for filing revised return is 31st
December 2021.
18. Can I file ITR for last 3 years now?
No, you
can only file Income Tax Return for one AY in the current financial year. Tax
filing beyond the last one year is only possible when you receive a notice from
the Income Tax Department.
19. What happens if I file Income Tax Return after the due date
u/s 139(1)?
In case
you miss filing the ITR within the due date u/s 139(1), you can still file your
Income Tax Return but you maybe required to pay a late filing fee of up to
₹5000/-. Additionally, you will also be required to pay interest on the tax
liability (if any).
20. Do I need to file returns if tax has been deducted by my
employer / bank?
Yes,
employers and banks deduct tax at source on salary and interest income
respectively. You still need to disclose the income on which tax has been
deducted and claim credit for TDS in the Income Tax Return.
21. Will I get a refund if I have paid excess tax?
Yes, any excess tax paid by you can be claimed as refund by filing your Income Tax Return. After your return is processed, ITD checks and accordingly accepts your refund claim, and then the amount is credited to your bank account. You will also get a message on your email ID registered on the e-Filing portal.
0 comments:
Post a Comment