FAQ'S Related to Income Tax Filing

1. When would I get my refund?

   Refund processing by the tax department starts only after the return is e-verified by the taxpayer. Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund. The filed ITR has to be processed within nine months from the end of the financial year in which the ITR was submitted. If the ITR is not processed within this time period, the tax department has to flag the submitted ITR for further scrutiny, etc. It cannot happen that the ITR was filed but not processed, i.e., ITR cannot be stuck in limbo.

2. Is my responsibility under the Income-tax Act over once taxes are paid?

   No, you are thereafter responsible for ensuring that the tax credits are available in your tax credit statement and TDS/TCS certificates received by you and that full particulars of income and tax payment are submitted to the Income-tax Department in the form of Return of Income which is to be filed before the due date prescribed in this regard.

3. Is Family pension taxed as salary income?

   A family pension is a regular payment made to the spouse or children of a deceased employee. It is different from the pension received by an employee after retirement. Family pension is not taxed as salary income but as income from other sources. The tax treatment of family pensions depends on the amount received. Uncommuted pensions or periodical family pension payments are fully taxable as they fall under their income. Family pension exemptions apply to commuted pensions or lump-sums for certain cases. Employees of the government, a United Nations Organization, and Army Forces enjoy tax-exempted commuted pensions while non-government employees are partially exempted. Family pension exemptions on uncommuted pensions are set to a maximum of ₹15,000 or a third of the pension received - whichever is lower.

4. Is standard deduction applicable to family pensioners?

   Family pension is taxed under the “Income from Other Sources” head in India. The family pension beneficiaries can claim a standard deduction of 1/3 of the amount of the family pension received, or Rs 15,000, whichever is less, as per section 57 (iia) of the Income Tax Act. This deduction has to be mentioned in the last row under the “Income from Other Sources” section to get the benefit. Family pension received by members of the armed forces is exempt from tax. However, family pension received by other categories of employees is taxable.

5. My spouse and I jointly own a house in which both of us have invested equally out of independent sources. Can the rental income received be split up between us and taxed in the individual hands?

   Yes, the rental income received can be split up between the husband and wife and taxed separately in the individual hands. If a house property has more than one owner, then the rental income from that property will be split according to the ownership share of each co-owner, and each co-owner has to pay tax on their own share of income.

6.  What if I miss ITR deadline?

   If you missed filing ITR for previous years, you can file a belated return on or before 31st December of the relevant assessment year. The following are the disadvantages of filing a belated return:

   1. Interest may be applicable under sections 234A, 234B and 234C.
   
   2. A late fee will be levied under Section 234F while filing a belated return
   
      Gross total income up to Rs. 2.5 lakh                     -No Penalty
      Gross total income Rs. 2.5 lakh – Rs. 5 lakh          -Late fee Rs 1,000
      Gross total income more than Rs. 5 lakh              -Late fee Rs 5,000
   
   3. If you have incurred losses, like business and capital losses, they cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late.
   
   4. Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.

7. How can I track my income tax refund?

   If you have paid more taxes than your actual liability, you can request a refund for the excess amount. The Income Tax Department offers an online facility for tracking your Income tax refund status. If you are concerned about your tax refund status, you can check the status of the income tax refund by following the steps:

   Step 1: Visit the income tax portal and log in to your account
   Step 2: Click on 'e-File', choose 'Income Tax Returns' and then select ‘View Filed Returns’
   Step 3: You can see the status of your current and past income tax returns.
   Step 4: Click on 'View details,' and you'll see the status of your income tax refund

8. What to do in case salary recieved from more than 1 employer (multiple form 16)?

   Income (Salary) from all the employers is to be aggregated and to be shown while filing Income Tax return. When employees move from one employer to the another, it is advisable to disclose the previous employer’s income to the current employer based on which Income Tax TDS is calculated and deducted during the year. In many cases, when employees do not disclose previous employer’s Salary / Income, Income Tax TDS is deducted based on the current employer’s earning and Tax might be deducted on lower slabs and additional Income Tax is to be paid while filing Income Tax Return. Interest on additional tax to be paid is applicable.

9. How To Claim Relief u/s 89(1)?

   If the assessee has received arrears of Salary, Pension (also Includes arrears of family pension), gratuity, and compensation he can claim relief u/s 89(1). You can calculate the relief amount as specified in the Income tax act and claim in the return but relief will not be granted by the department until you upload Form 10(E) online.
   
   Video available on YouTube.
   Relief u/s 89(1)- Part 1
   Relief u/s 89(1)- Part 2
   

10. How can I ensure the successful filing of my income tax return?

    After a successful filing, the IT department issues an automated acknowledgment. To check the income tax return status, look for this acknowledgment on your registered email. If you receive the mail, your return has been filed. If not, you need to check the income tax portal for any missing steps to be done such as e-verification of return or submitting the saved draft.

11.  Is it Compulsory to E-File Income Tax Returns or One Can File Returns in Paper Form?

    E-Filling is compulsory for the assessee (being individual or HUF) who is claiming a Refund or whose Total Income exceeds Rs. 5,00,000/-

12. What is Form 10IEA?

    All the individuals who want to choose the old tax regime, need to select the option specifically by going through the required process. Form 10IEA is a form that can be used by taxpayers to exercise their right to choose between the old or the new regime. By filling this form, the taxpayers can inform the income tax department of their choice regarding the tax regime.

13. Can I swich tax regime from old to new or new to old?

    Every financial year, a salaried person is free to choose between the new and old tax regime. The taxpayer can simply switch to their preferred tax regime when completing their ITR, even if they have selected the new tax regime for TDS during the year. Any individual with an income from a business or profession is not eligible to switch regimes more than once. For instance, once you choose the new tax regime, you can only switch back to the old regime once in your lifetime. People who make money from sources other than their business or profession, however, are free to change their regimens once a year.

14. Should Income Tax return be filed for Deceased (expired) person for the period he is alive?

    Income Tax return has to be filed for expired persons for the period, he / she is alive by their legal heirs. Legal heir / Family member has to register (apply) themselves as the Authorised Representative of the Expired person in the Income Tax website in the login of Legal Heir / Family member by providing the below documents

    1. Death Certificate of the expired 
    2. PAN of the expired 
    3. Legal Heir Certificate / Family member certificate issued by the appropriate authority 
    4. PAN of the Legal Heir / Family member.
    
    Once approval is received from Income Tax department for the appointment of Legal Heir / Authorised Representative. The Legal Heir / Authorised representative can file the Income Tax return of the deceased for the period he / she is alive. Legal Heir / Authorised representative has to be pay the Tax / Interest / Penalty, etc., of the deceased person. The maximum amount payable by the legal heir can be limited to the amount he receives from the property of the deceased person.

15. What to do in case full TDS not reflected in 26AS at the time of income tax return filing?

    Tax Deducted at Source (TDS) applies to various income sources, including salaries, business income, property sales, and interest on bank deposits. When a payer deducts TDS from your income, they essentially withhold a portion of your tax liability. This deducted amount is then credited to your tax account and is supposed to be reflected when you file your tax return. However, there can be instances where this TDS credit isn’t immediately available in your tax records. This may happen due to numerous reasons like non-deposit of TDS to the Government by the counter party, due to mismatch in details or any other reason. The remedies available in these cases by which the taxpayers can claim such TDS as per the procedures laid down by the Government are

    1. Section 276B of The Income Tax Act provides that if a person fails to deposit TDS deducted, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine. The deductee should approach their Jurisdictional Assessing Officer (JAO) and apply to consider initiation of proceedings under Section 276B against the defaulting deductor. Even if the deductor has committed some errors in filing his TDS return, the deductor shall be triggered to rectify the error if action is initiated by the JAO.
    
    2. There may be a situation where the TDS Credit is not allowed in the assessment u/s 143(1) by the Government. In such cases, the assessee should simultaneously file rectification application u/s 154 and appeal u/s 246A. The assessee is eligible for both the reliefs simultaneously.
    
    3. there might be a situation where the TDS deductor has deducted the TDS in the current financial year (FY) and the deductee has shown the income in the next FY. In such a situation, deductee has to be careful so as to not avail the TDS Credit in the current FY but carry it forward to the next FY. This carry forward should be done in the Income Tax Return (ITR) itself for the current year. In the next year’s ITR, such credit should be availed, being brought forward.
    
    4. There might be a reverse situation where any income has been included in the ITR furnished by an assessee for the current AY and TDS on such income has been deducted and paid to the Government in a subsequent FY. In such a situation, the assessee can file Form 71 to claim TDS credit. Form No. 71 will get issued electronically under a DSC if ITR is needed to get provided under a digital signature; or through an electronic verification code.

16. Can I revise my income tax return and how many times?

    Revised return is a return filed under Section 139(5) to correct mistakes or omissions made in the original return.

    Section 139(5) of the Income Tax Act, 1961, allows you to file a revised return if you discover mistakes in your initial filing. You can even revise a belated return. You can file a revised return by 31st December of the relevant assessment year or before the completion of assessment, whichever is earlier. The last date to file a revised return is 31st December of the assessment year or before the completion of the assessment by income tax authorities, whichever is earlier. When you file a revised income tax return, it completely replaces the original one. Once the revised return is submitted, it is considered your final income tax return. There is no limit to the number of times you can file a revised tax return. You can make corrections or updates as many times as needed.

17. Why am I still required to pay tax even after TDS was taken out of my earnings?

    The employer, who presumes your tax threshold and salary income, deducts TDS from your pay. You will be required to pay extra tax on your earnings if you have additional revenue streams or if your taxable income varies. TDS is typically withheld from other wages at the appropriate amounts. However, you must pay the extra tax if your overtax is 20 or 30 per cent.

18. 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.

19. Are there any mandatory attachments to the ITR forms?

    All the forms are designed to attachment less for the convenience of the taxpayer, however, the assesse is required to maintain the documents for future reference and to submit to the income tax officer if called for.

20. What are the precautions that I should take while filling-up the tax payment challan?

    While making payment of tax, apart from other things, one should clearly mention following 

    1. Head of payment, i.e., Corporation Tax/Income-tax (other than companies)
    2. Amount and mode of payment of tax
    3. Type of payment [ i.e., Advance tax/Self-assessment tax/Tax on regular assessment/Tax on Dividend/Tax on distributed Income to Unit holders/Surtax]
    4. Assessment year
    5. The unique identification number called as PAN [Permanent Account Number] allotted by the IT Department.​
    
    YouTube video link  Payment of Taxes