FAQ’s on ITR
My income is already subject to TDS, do I need to pay further tax while filing ITR?
The TDS on the income may differ from the actual tax liability on the income earned. In general, TDS rates are a fixed percentage of the payments, while your income gets taxed at slab rates. In case the TDS is lower, you may need to pay the balance tax due. In case the TDS is high, you may claim a refund. In any case, while filing your ITR, you should aggregate the annual income from all sources and calculate the tax due/claim refund.
Are there any interest liabilities on the tax due calculated on my annual income?
In a case where your tax payable before claiming TDS exceeds Rs 10,000, you may have an interest liability. The interest liability is 1% per month calculated on the balance tax. You can reduce the interest liability by an early payment of tax dues. You need to pay the balance tax along with any interest dues before filing the ITR.
You can avoid the interest liability by planning your tax payments under ‘advance tax’ within the financial year.
Has the due date for filing ITR extended for AY 2020-21?
The due date to file ITR for AY 2020-21 is 10th January. The usual due date stands extended due to the outbreak of the pandemic COVID-19. However, in case you have balance tax payable above Rs 1 lakh, you should pay by 31 July 2020. A failure to pay by that date makes you liable for penal interest at 1% per month. The penal interest is in addition to interest liabilities if any on your tax payable.
How can I claim a tax rebate under section 87A on tax and a refund of TDS?
In case your total income after claiming tax deductions and exemptions is up to Rs 5 lakh, you can claim a rebate on the tax payable. The maximum rebate is Rs 12,500. In such a case, you can claim a refund of the TDS paid on your income.
Should I file an ITR in the case of a loss from business or house property or sale of shares?
Yes, you should file an ITR in case of losses, which may be from business or sale of shares or interest paid on a home loan. An ITR filing helps you to set-off the loss and also carry forward the loss to the future years. Do note that you should file ITR on or before the due date.
What is the late fee for filing ITR after the due date?
The late fee is Rs 5,000 for a return filing after the due date but before 31 December 2020. For the AY 2020-21, a late fee of Rs 5,000 is payable for a return filing from 1 December 2020 to 31 December 2020. The late fee is Rs 10,000 for a return filing from 1 January 2021 to 31 March 2021.
However, the late filing fee shall not exceed Rs 1,000 if the total income of a taxpayer does not exceed Rs 5 lakh.
How to check the ITR status?
You can check the status of your ITR and about ITR processing status at https://eportal.incometax.gov.in/iec/foservices/#/pre-login/itrStatus using your PAN and ITR acknowledgement number.
How can I check the status of IT refund?
You can check your IT refund status at https://tin.tin.nsdl.com/oltas/refund-status-pan.html
How can I calculate my income-tax?
You can calculate income-tax using tax calculator https://www.incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx
How can I apply for a PAN card?
You can apply for PAN card online. To know the step wise procedure to apply for PAN card.
Can I get an instant PAN using Aadhaar?
You can get an instant PAN using Aadhaar through an Aadhaar based OTP received on your mobile number.
How to link PAN to Aadhaar?
You can link PAN to Aadhaar in a simple two-step procedure and also through your e-filing login on the income tax portal.