It is a prescribed form through which the particulars of income earned by a person
in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.​Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.

​​No, on the contrary by not filing your return inspite of having taxable income, you will be
liable to the penalty and prosecution provisions under the Income-tax Act.​

​​​​Filing of return is your 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.​​

​​​​​​Income-tax Department has established an independent portal for e-filing of return of
income. The taxpayers can log on to for e-filing the return of income.​

​​​​​​​​E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns
filed manually.​​

​​If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date.​​

​​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.​​​

​​​​​​​​Agricultural income is not taxable. However, if you have non-agricultural income too, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for rate purpose. For meaning of Agricultural Income refersection 2(IA)​ of the Income-tax Act.

​​​​​​​ITR return forms are attachment less forms and, hence, the taxpayer is not required to
attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

​​​​​​​​​​​​​​​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, in addition ​to interest,
a penalty of Rs. 5,000 shall be levied undersection 271F​​. [No penaltysection 271F​​ would be levied w.e.f. Assessment Year 2018-19]
Note: W.e.f. assessment year 2018-19, fee as persection 234F is required to be paid if return is furnished after due date. Fee for default in furnishing return of income will be as follows:
i. Rs. 5000 if return is furnished on or before the 31st day of December of the assessment year;
ii. Rs. 10,000 in any other case However, late filing fee shall not exceed Rs. 1000 if the total income of an assessee does not exceed Rs. 5 lakh.

​​​​​​​​​​​​​​​​​​​​The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. The department has been making efforts to settle refund claims at the earliest.​​

​​​​​​​​​​​​​​​​​​​​​Original return can be revised undersection 139(5) within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier if person furnished original return on or before the due (till assessment year 2016-17). In assessment year 2017-18, any original return (which is furnished on or before or after due date) 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. From the assessment year 2018-19 return of income can be revised (original return is filed on or before due date of after due date) at any time during the assessment year or before the assessment made whichever is earlier. If original return has filed in paper format or manually, then technically it cannot be revised by online mode or electronically.
​If a person is furnished original return and finds any mistake, omission or any wrong statement, then return should revised within prescribed time limit

​​​​Yes, since legal proceedings under the Income-tax Act can be initiated up to four or six
years (as the case may be) prior to the current financial year, you must maintain such documents at least for this period. However, in certain cases the proceedings can be initiated even after 6 years, hence, it is advised to preserve the copy of return as long as possible. Further, after introduction of the e-filing facility, it is very easy and simple to maintain the copy of return of income.​​

​​​​​​Yes, it can be claimed if you are otherwise eligible to claim the same.

​Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).

​​​​Form-16 is a certificate of TDS. In your case it will not apply. However, your employer
can issue a salary statement.​

​​​​Form-16 is a certificate of TDS. In your case it will not apply. However, your employer
can issue a salary statement.​

​​​​​Rental income from a property being building or land appurtenant thereto of which the
taxpayer is owner is charged to tax under the head “Income from house property”.​

I own two houses. One is a farmhouse that I visit on weekends and the other is in the
city that I use on weekdays. Is it correct to treat both these residences as self occupied?​

​​No, for the purpose of Income-tax Law you can claim only one property as self occupied
property and other property will be deemed to be let-out property.​

​​No, for the purpose of Income-tax Law you can claim only one property as self occupied
property and other property will be deemed to be let-out property.​

​​​​​​As persections 44AA of the Income-tax Act, 1961, a person engaged in business is required to maintain regular books of account under certain circumstances. To give relief to small taxpayers from this tedious work, the Income-tax Act has framed the presumptive taxation scheme undersections 44AD,sections 44ADA andsections 44AE. A person adopting the presumptive taxation scheme can declare income at a prescribed rate
and, in turn, is relieved from tedious job of maintenance of books of account.

The scheme ofsection 44AD is designed to give relief to small taxpayers engaged in any
business, except the following businesses:​​​​​​

i. Business of plying, hiring or leasing goods carriages referred to insections 44AE.
ii. A person who is carrying on any agency business.
iii. A person who is earning income in the nature of commission or brokerage
iv. Any business whose total turnover or gross receipts exceeds two crore rupees.​

In case of a person adopting the provisions ofsection 44AD, income will be computed on presumptive basis,i.e., @ 8% of the turnover or gross receipts of the eligible business for the year. Income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system. In other words, in case of a person adopting the provisions ofsection 44AD​, income will not be computed in normal manner as discussed in previous FAQ (i.e.,Turnoverless Expense) but will be computed @ 8%/6% of the turnover.Income at higher rate,i.e., higher than 8% can be declared if the actual income is higher than 8%.​

​​​​​​The presumptive taxation scheme ofsections 44ADA​ can be adopted by a person resident in India, carrying on specified profession whose gross receipts do not exceed fifty lakh rupees in a financial year. Following professions are specified profession:​

  1. Legal​
  2. Medical​
  3. Engineering or architectural​
  4. Accountancy​
  5. Technical consultancy​
  6. Interior decoration​
  7. Any other profession as notified by CBDT​

No, you cannot claim deduction of personal expenses while computing the taxable income.

Any profit or gain arising from transfer of a capital asset during the year is charged to tax under the head “Capital Gains”.​

​​​Senior citizens and a very senior citizen are granted a higher exemption limit as
compared to normal tax payers. Exemption limit is the quantum of income up to which a person is not liable to pay tax. The exemption limit granted to senior citizen and very senior citizen for the financial year 2018-19 is as follows :

  • Senior citizen (Age 60 to 80) : The exemption limit for the financial year 2018-19
    available to a resident senior citizen is Rs. 3,00,000.
  • Very senior citizen (Age 80 or above ) : The exemption limit for the financial year 2018-
    19 available to a resident very senior citizen is Rs. 5,00,000.
  • The exemption limit for non-senior citizen is Rs. 2,50,000

​​​​​​​​As persection 208, every person whose estimated tax liability for the year is Rs. 10,000
or more, shall pay his tax in advance, in the form of "advance tax". However,section 207 gives relief from payment of advance tax to a resident senior citizen. As persection 207​ a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession, is not liable to pay advance tax.