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INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2013-14 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.
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Income Tax Department issues press release to clarify that unlike previous year Salaried Employees with Total Income up to Rs.5 lakhs too have to file ITR (Income Tax Return) this year viz., Assessment year 2013-14.
The full text of Press Release issued by CBDT (Central Board of Direct Tax) is as follows:
The CBDT has, vide notification dated 1-05-2013, made E-filing of Return compulsory for Assessment Year 2013-14 for persons having total assessable income exceeding Five lakh rupees.
The CBDT vide its earlier notifications had exempted salaried employees having total income up to Rs. 5 lakhs including income from other sources up to Rs. 10,000/- from the requirement of filing return of income for assessment year 2011-12 and 2012-13 respectively. The exemption was available only for the assessment year 2011-12 and 2012-13. The exemption was giving considering ‘paper filing of returns’ and their ‘processing through manual entry’ on system.
The CBDT has, vide notification dated 1-05-2013, made E-filing of Return compulsory for Assessment Year 2013-14 for persons having total assessable income exceeding Five lakh rupees.
The CBDT vide its earlier notifications had exempted salaried employees having total income upto Rs. 5 lakhs including income from other sources upto Rs. 10,000/- from the requirement of filing return of income for assessment year 2011-12 and 2012-13 respectively. The exemption was available only for the assessment year 2011-12 and 2012-13. The exemption was giving considering ‘paper filing of returns’ and their ‘processing through manual entry’ on system.
However, this year the facility for online filing of returns has been made user-friendly with the advantage of pre-filled return forms. These E-filed forms also get electronically processed at the central processing centre in a speedy manner. Hence, the exemption provided during the last two years is not being extended for assessment year 2013-14. Taxpayers are encouraged to file their returns electronically. E-filing is an easy, fast and secure method of filing of income tax return. Moreover, Digital signature is not mandatory for these taxpayers and they can transmit the data in the return electronically by downloading ITRs, or by online filing and thereafter submit the verification of the return in From ITR-V acknowledgement after signature to Central Processing Centre. The processing for E-filed returns is faster.
Government of India/Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 31st May, 2013
All the Chief Commissioners of Income-tax
All the Directors General of Income-tax
Subject :- Additional Manpower for the Income Tax Department
I am directed to state that the Government has approved, as per decision taken In Cabinet Meeting held on 23rd May, 2013 (Minutes issued on 27th May, 2013), additional manpower for the Income Tax Department in various cadres as per Annex A of this communication. These posts are created in addition to the existing posts as per restructuring of the Department vide F.No.A-11013/3/98.Ad.VII dated 24th October, 2000 and 7051 additional posts created vide order F.No.A-11013/3/2006-Ad.VII dated 20.11,2006.
2. All the additional posts at different levels as per Annex A stand created with effect from 23rd May, 2013 (the date of the Cabinet Meeting). These posts shall be filled up in accordance with the Cabinet approval in the following manner:-
i. The 166 additional regular posts and 620 additional reserve posts at the level of Assistant Commissioner of Income Tax and 563 vacancies arising in this grade due to promotions to higher grade will be filled up equally by promotion and direct recruitment. Therefore the additional 1349 posts created at this level will be filled over a period of 5 years with 270 posts per year being filled in the next four years and 269 posts being filled In the fifth year. Every year these posts will be filled by promotion and by direct recruitment in equal proportion.
ii. The Cabinet has permitted, as a one-time measure, filling up of the additional posts that are to be filled by promotion immediately, without awaiting amendments in the recruitment rules on the basis of the model recruitment rules issued by DOPT. Accordingly, the process of filling up of all the additional posts that are to be filled by promotion shall be initiated immediately on the basis of the model recruitment rules issued by the DoPT without awaiting amendment in the recruitment rules of the relevant post(s).
iii. The Cabinet has also approved the filling up of the additional posts in the HAG+ with all the existing CCs IT being placed in the HAG+ directly and thereafter a DPC being conducted to place 26 of these CCs IT in the Apex grade. Instructions regarding promotions/placements of the officers in the posts in HAG+ and Apex scales shall be issued separately.
3. The region-wise / charge-wise distribution of the posts at various levels will be intimated separately. Revised sanctioned strength will be notified In the recruitment rules In due course.
4. This issues in pursuance to the approval of the Cabinet conveyed vide Cabinet Secretariat Note No. 20/CM/2013 (I) dated the May 27th 2013.
Joint Secretary to the Government of India
According to a survey by Assocham, a majority of salaried people want Finance Minister P. Chidambaram to raise the exemption limit on income-tax and increase deductions under various allowances so that they are left with more purchasing power.
1. Exemption limit on income-tax: Over 89 per cent of the respondents said that the slab oftax free income has not moved up in line with real inflation. The current basic exemption limit of Rs. 2 lakh should be increased to at least Rs. 3 lakh, while the limit for women should go up to Rs. 3.5 lakh. This will increase the purchasing power of individuals and stimulate demand.
2. Medical re-imbursement limit: With increasing healthcare costs, the existing tax free limit of Rs. 15,000 should be increased to Rs. 50,000, 89 per cent of the respondents said.
3. Transportation allowance: Currently, this is tax-free to the extent of Rs. 800 per month. This limit was fixed more than a decade ago, and definitely needs to be revised upwards to at least Rs. 3,000 per month, given the rising commuting costs across the country, according to the survey.
4. Interest on home loan: The deduction limit for payment of interest (on self-occupied property) has remained constant at Rs. 1.5 lakh since 2001. Since then, property prices have gone through the roof, increasing the quantum of home loan. An increase in the exemption limit to Rs. 2.5 lakh will be a welcome change, the survey found.
5. Investments under Section 80C: This IT Act provides a deduction of Rs. 1 lakh for certain investments. The provision helps people in making forced savings that helps them in the future. A common man expects this limit to be increased to Rs. 2 lakh with a sub-limit of Rs. 50,000 exclusively for insurance and pension.
6. Infrastructure bonds: Over 82 per cent respondents favoured the restoration of infrastructure bonds, considering that the government needs massive funds for the development of the infrastructure sector and also the lock-in period should be restricted to five years.
7. Pension: Over 71 per cent of the respondents demanded that the national pension system (NPS) be brought under the EEE (exempt-exempt-exempt) as against EET (exempt-exempt-tax) at present. This means that investors get a tax exemption at all the three stages of investment, appreciation and withdrawal.
In a pre-budget meeting with Finance Minister P Chidambaram here on Thursday, Congress leaders have asked the UPA government to increase the taxable income exemption limit to Rs 4 lakh from the current Rs 2 lakh, while suggesting a pro-people budget with sops for the middle class and farmers keeping the upcoming elections in mind.
The meeting was held at the Congress party headquarters. With the rise in fuel prices impacting the ‘aam aadmi’, the meeting saw suggestions for varied pricing of petrol, diesel and cooking gas for people living below poverty line and low income group.
Senior party leader Oscar Fernandes suggested there was a need to bring down the dependence on petroleum import and more focus on having alternative sources of energy like ethanol, sources said. Fernandes also wanted the government to reduce tax on bidis, noting that employment levels were coming down in the labour-intensive sector due to current tax slab.
Congress leader Jagdish Tytler suggested that the budget should be formulated in a way that helps the party to connect with people as elections were ahead, sources said. AICC Secretary P Sudhakar Reddy mooted raising the tax exemption limit of Rs 2 lakh to Rs 4 lakh, which was endorsed by many other office bearers.
He also advised linking Mahatma Gandhi National Rural Employment Guarantee Scheme with agriculture to help meet the shortage of farm labour in the sector, besides offering three-year interest-free loans to small farmers for their children’s education.
Suggestions were also made by party leaders for gender budgeting. Reddy advised the Finance Minister that female assessees could be given higher tax exemption limit.
There were also demands by many leaders for bringing more clarity on the service tax as it was being interpreted differently in various states.
Minority Department Chairman Imran Kidwai demanded increase in outlay of the Minority Affairs Ministry and allocation of more funds to minority institutions. He also advised formulation of special scheme for Most Backward Classes for their financial inclusion.
Senior party leader Ajit Jogi complained that central funds were being diverted in many non-congress ruled states by the respective governments, suggesting some mechanism should be developed to check this, “The finance minister told us what are the difficulties and how the Indian economy was kept at a balance despite the tough global economic scenario. Thirty-two of the 46 office bearers present spoke on various issues related to farmers, weavers, education, health and income tax," party general secretary Janardan Dwivedi told reporters after the meeting.
Government Once again urges all Tax Payers to Disclose their true income and pay Appropriate Taxes within the Current Financial Year;
Nodal Cell set up to Capture the Response and take Follow-up Action; an Online Monitoring System to Ensure Follow-up Action and Track Return Filing and Tax Payment of the Target Segment.
The Union Finance Minister Shri P. Chidambaram has repeatedly emphasized that there is need for a non–intrusive tax administration to enable the tax payer to file his return and pay appropriate taxes.
In the statement made by the Revenue Secretary to the media on 10th December 2012, he had stated that there is no advantage in suppressing the true income or avoiding paying income tax that is due because, sooner or later, the information available with the Income Tax Department will lead the department to the doors of such persons.
The Directorate of Systems of the Income Tax Department has undertaken a business intelligence project to identify PAN holders who have not filed Income Tax Return and about whom specific information is available in 148 information codes of Annual Information Return (AIR), Central Information Branch (CIB) data and TDS/TCS Returns. Information in the Cash Transaction Reports (CTRs) of FIU-IND has also been included as part of this data matching exercise. This data analysis has identified target segment of 12,19,832 non-filers linked to more than 4.7 crore information records. Rule based algorithms have been used to identify high priority cases for follow-up and monitoring.
In the first batch, letters are being sent to 35,170 PAN holders by the Directorate of Intelligence and Criminal Investigation. The letter contains the summary of the information of financial transaction(s) along with a customized response sheet and seeks to know whether the person had filed his Income Tax return or not. A Nodal cell has been set up to capture the response and take follow-up action. There will be an online monitoring system to ensure follow-up action and track return filing and tax payment of the target segment.
The Government would once again urge all tax payers to disclose their true income and pay appropriate taxes within the current financial year.
The government will come up with a modified Direct Taxes Code (DTC) Bill after incorporating the suggestions of the Standing Committee on Finance, which among things had suggested raising annual income tax exemption limit to Rs 3 lakh.
“Will come out with modified DTC (Bill) in response to Standing Committee suggestions,” said Advisor to the Finance Minister Parthasarathi Shome at a FICCI event here.
He said the Finance Ministry is looking at the Bill and working on tax structures as suggested by the Parliamentary committee.
The Parliamentary panel headed by senior BJP leader Yashwant Sinha in its report (March 2012) had suggested raising the annual income exemption tax limit to Rs 3 lakh as against Rs 2 lakh proposed in the original DTC Bill. Current tax exemption limit is Rs 1.8 lakh.
It has also suggested that subsequent tax slabs be adjusted accordingly to provide relief to people reeling under the impact of inflation. The DTC will eventually replace the over five decades old Income Tax Act.
“We are trying to see what could be the best in terms of transparency so that issues that are hurting industry could be covered adequately,” Shome said.
He further said the Finance Ministry is also addressing the issue of expenditure control and that remains a major challenge.
“We are looking into expenditure efficiency. We should do more in terms of efficiency. Issues on expenditure side is being addressed. Expenditure control is a major challenge and is being addressed by the Finance Minister,” he said.
The DTC Bill, tabled in August 2010, was referred to the Standing Committee for scrutiny.
Shome also said there has been some improvement on the government’s non-plan expenditure side since the time of financial crisis in 2008.
Finance Minister P. Chidambaram had in November 2012 announced a fiscal consolidation road map wherein he plans to restrict fiscal deficit at 5.3 per cent of GDP in the current fiscal and bring it down to 3 per cent by 2016-17.
Shome further said that the government is showing its intention to bring in clarity in tax laws and reforms in tax administration.
“We have to increasingly do so (tax reforms). That is going to be a vehicle and we won’t put it on back burner,” Shome said.
He also said the Ministry has asked National Institute of Public Finance and Policy (NIPFP) to calculate the impact of the proposed Goods and Services Tax (GST) on the GDP.
Often, investment for most individuals begins and ends with tax planning. Although it is pertinent to avail tax breaks, this should not be the sole focus. Start by jotting down your key financial objectives, the tentative time of money requirement and the corpus needed to achieve those goals. One can use tax saving investments effectively, to achieve financial goals. For example, one can take a children’s plan that also provides tax benefit. Consider the impact of inflation on your needs. After your first few working years, as income goes up, it is wise to invest beyond one’s tax saving investments to achieve your goals. Also, evaluate the life cover requirement, while planning for your taxes.
As you begin your career, you may not have visibility on your needs. In this case, set a target of corpus achievement. For example, how quickly you can hit a corpus of Rs 1 crore from tax savings investments. You can accelerate this by increasing your contribution yearly, keeping in mind salary hikes and inflation.
Having a goal makes the exercise of investing more interesting and there is always the corpus to look forward to. Having clarity will also help you keep track.
There are a range of avenues with different levels of risk, return and liquidity. Choose an appropriate mix of investments to maintain an appropriate asset allocation and to help achieve your financial objectives. Past returns data may be misleading. Example, when markets are at a high and about to fall, equities will give you the best track record. Today, when markets are down, it could be a better time to invest with a three year horizon. The maturity should suit the needs you are planning for. Keep in mind the tax you need to pay on the returns.
Maximising your tax saving
1. Exemptions/reimbursements – Identify the reimbursements available from the company and take maximum advantage of the same. Normal expenses that one incurs could help save tax. Example- Telephone/fuel reimbursements, meal vouchers and company car. A person in lower tax slabs can reduce his tax liability to nil with exemptions alone.
Similarly, salaried employees staying in rented apartments can claim exemption under Section 10(5) of the Act in respect of house rent allowance by making the HRA a component of there salary.
Some of The Popularly Known Exemptions/Reimbursements House Rent Allowance
Minimum of -
1. Actual HRA
2. Rent Paid – 10% of Basic
3. 40a% of Basic (Non-Metros) or 50% of Basic (Metros)
Rs 800 / Month
Leave Travel Allowance
Two trips in a block of 4 Yrs Amount not exceeding Air Economy or Rail AC I Fare shall be for shortest distance and for a single destination
Rs. 15,000 / Annum
Section 80C allows a maximum limit of Rs 1 lakh across investments ranging from provident fund, PPF, infrastructure bonds, fixed deposits (5 years or more), NSC, insurance/pension plans, unit linked insurance, equity linked savings scheme etc. It also includes tuition fees of your children and the repayment of principal on your housing loan.
The interest component on your home loan has a separate limit of Rs 1.5 lakh.
Medical premium upto a maximum of Rs 15,000 qualifies for deduction, with an additional Rs 15,000 for parents. Additional deduction of 20,000 could be availed in case of a senior citizen.You can claim a separate deduction for medical premium of your parents.
A person with disability or those who have spent money on the maintenance (including medical treatment) of dependant persons with disability, could avail deductions under section 80U and 80DD of the Act, respectively.
Individuals paying interest on education loan should obtain the interest payment certificate under section 80E of the Act.
Deduction u/s. 80C for tuition / school fees paid for education of children.
Who is Eligible: Deduction for tuition fees u/s. 80c of the Income Tax Act 1961 is available to Individual Assessee and is not available to HUF.
Maximum Child: Deduction under this section is available for tuition fees paid on two children’s education. If Assessee have more then two children then he can claim tuition fees paid of only two children’s. The Deduction is available for any two children.
Here we would like to mention that husband and wife both have a separate limit of two children each, so they can claim deduction for 2 children each.
Expenditure paid for self education not allowable: - This is the only clause u/s 80 C where assessee can not claim tax benefit for expenditure incurred for self. In other words if assessee has paid tuition fees for his own studies, he will not be eligible for deduction.
Fees paid for spouse: Deduction is not available for tuition fees paid for studies of spouse.
Maximum Limit: Deduction for tuition Fees is available up to Rs.100000. Please Note that aggregate amount of deduction under section 80C , 80CCC and 80CCD shall not exceed Rs. 1,00,000/-
Deduction available on payment basis: - Deduction under this section is available on payment basis. Fees may be related to any period. For example feed paid for April 2009 if Paid in March 2009 will be eligible for deduction u/s. 80C in A.Y. 2009-10.
Deduction not available for part time course:- The deduction is available for Full Time courses only. In our opinion no deduction is available for part time or distance learning courses.
Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C :- The fees should be paid to university, college, school or other educational institution. No deduction available for fees paid for private tuition’s , coaching courses for admission in professional courses or any other type of courses are not covered as that fee is not paid for FULL time education.
Location of University, college, school or other educational institution: University, college, school or other educational institution must be situated in India though it can be affiliated to any foreign institutes.
Allowability of pre-nursery, play school and nursery class fees: - Pre-nursery, play school and nursery class fees is also covered under section 80C (circular 9/2008 & 8/2007).
Not allowable Expenses:-
1. Development fees or donation not eligible.
2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed.
3. Late fees is not eligible for deduction.
4. Term Fees is not eligible for deduction.
5. No deduction for part time or distance learning courses.
6. no rebate for private tuition.
7. Building fund or any donation etc not allowed.
Note: Above list is not exhaustive.
Summary of Above Provisions
1) Deduction from taxable income under Section 80C is available to individual taxpayers up to a maximum amount of Rs1 lakh for education expenses incurred for one’s children.
2) Each parent can claim the deduction for the tuition fees paid for up to two children each, thereby covering a maximum of four children in a family.
3) This deduction is available to the parent who has made the payment, to the extent of the tuition fee actually paid or Rs1 lakh, whichever is lower.
4) The deduction can be claimed only for full-time courses including pre-nursery and playschool. Part-time, distance learning courses, private tuitions and coaching classes are not covered.
5) This deduction can be availed of on the basis of actual payment made, irrespective of the period to which the fee may pertain.
6) Only the tuition fee paid is eligible for deduction. Other expenses, such as transport charges, library charges, hostel charges, development fees or donation, are not covered.
FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C
Q. Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?
Ans: Yes he can. As clause (c ) of subsection 4 of Section 80C only speaks of children’s of Individual. Section 80C is silent on legality of child and it does not say that child should be legal child.
Q. Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?
Ans: Yes you can. As section 80C again silent and do not specify that child should be biological child for the purpose of claiming deduction under clause (xvii) of section 80C.
Q. I have divorced to my wife and have custody of my son with me and paying his school fees. Will I be eligible for deduction u/s 80C of Income tax Act, 1961 for school fee paid on his education?
Ans: Yes you will. As section 80C do not specify that marriage should continue to claim the deduction under clause (xvii) of section 80C.
Q. Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?
Ans: No you can’t claim. Deduction u/s. 80C is available only for tuition fees paid for two children’s education.
Q. I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,10,000/- can we both claim deduction?
Ans: Yes both of you can claim deduction u/s 80C up to a maximum of Rs. 1,00,000 each. You can claim deduction up to 100000/- and your wife can claim deduction of Rs. 70,000/-.
Q. I am currently working and studying. If I pay my tuition fees out my own earnings and do not take an educational loan, will I get any tax benefits?
Ans: The tuition fees paid by you will not make you eligible for any tax benefits. You will not be able to claim any income tax deduction.
Q. I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?
Ans: Payment of tuition fee up to Rs 1 lakh can be claimed as deduction u/s 80C of the I T Act. But the payment of tuition fee for full time course must be for for any two children of individual. It follows therefore one can not claim deduction for payment of tuition fee for his/her spouse.
Q:- Section 80C allows deduction in respect of tuition fee but excludes payments towards development fees, donations or payments of similar nature.
Does this mean that the items not specifically excluded, such as fees for games, magazines, stationery, Parents’ Teacher Association fees, Staff Benefit Fund, Gratuity Fund, and hostel will not qualify for the deduction?
Ans:- None of these will qualify for deduction under Section 80C of the Income-Tax Act, 1961.
The deduction available under this Section is for sums paid as tuition fees (excluding any payment towards any development fees or donation or payment of a similar nature) whether at the time of admission or thereafter to any university, college, school or other educational institutions within India for the purpose of full-time education of any two children of an individual. The principle requirement for qualifying for deduction under this provision would be that the fee paid should be in the nature of tuition fee. All of the items enumerated by you are essentially not in the nature of tuition fee, and so cannot qualify for deduction.
You may note that the development fee or donation or payments of a similar nature even if they are in the nature of tuition fees will not qualify for the deduction under this Section.
Q:- Can Mother claim the benefit of tuition fees paid for his son/daughter.
Ans: Assessee means both mother and father both can take the benefit u/s 80 C for amount paid by them respectively.
Q:- If a couple have four children, can they both claim fees for two children each?
Ans: Yes ,husband and wife both have a separate limit of two children each ,so they can claim deduction for 2 children each.
Q:- If a Couple has one child and paid a fees of 200000 rs can they both claim tuition fess 100000 each ?
Ans: yes ,they both can claim deduction for 100000 each subject to they have actually paid same amount .If husband has paid 1.50lac and wife has paid 50000 then husband can claim 100000 and wife can claim 50000.
Q:- Ram has paid tuition fees for his child 2000/- in February 2011 relates to period march to June 2011 ,how much amount he can claim deduction in assessment year 2012-03?
Ans: He can claim full 2000 Rs in assessment year 2012-13 , as this deduction is available on the basis of payment and it may or may not be related to the period in which it has been paid.
Q:- Is Late fees paid with tuition fees is eligible for deduction ?
Ans: No,late fees is not eligible for deduction.
EXTRACT OF SECTION 80C
Clause xvii of section 80C
xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
(a) to any university, college, school or other educational institution situated within India;
(b) for the purpose of full-time education of any of the persons specified in sub-section (4);
Subsection 4 of Section 80C
“(4) The persons referred to in sub-section (2) shall be the following, namely:
(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.
Note- (Republished with Amendments)
The I-T exemption limit for individuals stands at Rs 2 lakh per annum at present
Trade unions today demanded 12% interest on PF contributions of employees and a hike in income tax exemption limit to Rs 5 lakh in their pre-budget meeting with Finance Minister P Chidambaram.
The unions have also asked the government not to raise FDI cap in financial sectors like insurance and banking.
The I-T exemption limit for individuals stands at Rs 2 lakh per annum at present.
Several unions, including CITU, AITUC, INTUC and BMS, in a joint memorandum to Chidambaram have expressed their opposition to the banking reforms bill saying it would encourage private banking at the cost of public sector banks.
They also demanded that a progressive taxation system be put into place and concrete steps be taken to recover large accumulated tax arrears, effective measures to unearth huge accumulation of black money, including the unaccounted money in tax heavens abroad.
Chidambaram, while making his opening remark at the meeting with the representatives of 12 trade unions, said that a slowdown in the manufacturing sector is creating unemployment and there is a need to create job opportunities.
The Income-Tax Department allows you to claim exemption from tax on leave travel allowance only twice in a block of four calendar years.
With the year end approaching, are you planning a vacation to use up the Leave Travel Allowance (LTA) your office offers? Good idea! But while you’re planning and packing for that holiday, spare a thought for what LTA means for your taxes. With that in mind, here are three aspects about LTA that you should keep note of.
First and the most important is the tax exemption angle. If you have been thinking that the amount you get as LTA is tax-free all the time, you are not correct. The Income-Tax department allows you to claim exemption from tax on this amount only twice in a block of four calendar years.
Instances of alleged corruption for settlement of refund claims and complaints come to notice from time to time. Whenever any such instance or complaints comes to notice, the same is verified and if it is found to be correct, the concerned officers/officials have to face penal consequences depending on the facts and circumstances of the case.
The process of issue of refunds has been streamlined in the course of computerization and encouraging e-filing of returns for speedy processing and issue of refunds through refund banker scheme. A web based status tracking facility for refunds has also been launched. The grievance redressal mechanism has been strengthened for ensuring prompt disposal of all such complaints.
The Income Tax Department has already introduced the provision to know the status of Income Tax Refund through online. As shown in the official website of TIN-NSDL you can verify the status of refund for the assessment year 2003-04 to 2013-14. Taxpayers can view status of refund 10 days after their refund has been sent by the Assessing Officer to the Refund Banker - by entering 'PAN' and 'Assessment Year' in the prescribed place of the webpage. The details are given for recollecting the information...
Tax Information Network of
Income Tax Department
The 'Refund Banker Scheme,' which commenced from 24th Jan 2007, is now operational for taxpayers assessed all over India (except at Large Taxpayer Units) and for returns processed at CPC (Centralized Processing Centre) of the Income Tax Department at Bangalore.
In the 'Refund Banker Scheme' the refunds generated on processing of Income tax Returns by the Assessing officers/ CPC-Bangalore are transmitted to State Bank of India, CMP branch, Mumbai (Refund Banker) on the next day of processing for further distribution to taxpayers.
Due Date of E-Filing of Income Tax Returns for Assessment Year 2012-13 Extended up to 31st August, 2012.
On consideration of the reports of disturbance of general life caused due to failure of power and further in consideration of the fact that the e-filing of returns for a specified category of individuals and HUF has been made mandatory, the Central Board of Direct Taxes (CBDT), in exercise of powers conferred under section 119 of the Income Tax Act, 1961, has extended the ‘due date’ of filing of returns of income for the Assessment Year 2012-13 to 31st August 2012. This has been done in respect of assesses who are liable to file such returns by 31st July 2012 as per provisions of section 139 of Income Tax Act, 1961 .
Income Tax Department Starts Two More Taxpayer Friendly Initiatives : ‘Register for Home Visit’ and ‘Online Tax Help’
In order to make the Income Tax Return filing experience even more convenient, the Income Tax Department has started two more taxpayer friendly initiatives ‘Register for Home Visit’ and ‘Online Tax Help’. To avail these facilities, a taxpayer must visit the website www.trpscheme.com and take help of trained professionals either online or at their homes. The taxpayer can choose between ‘online help’ or ‘home visit’.
On choosing the option of online tax help, the taxpayer can fill in his tax related query along with his contact details. The online query will be resolved by tax experts through Email or Phone within 24 hours.
Central Board of Direct Taxes (CBDT) vide its Notification No. 9/2012 dated 17th February, 2012 has exempted salaried employees from the requirement of filing the returns for assessment year 2012-13. The exemption is applicable only if all the following conditions are fulfilled:-
• Employee has earned only salary income and income from savings bank account and the annual interest earned from savings bank account is less than Rs. 10 thousand.
• The total Income of the employee does not exceed Rs. 5 Lakh (Total Income means Gross Total Income Less deductions under Chapter VIA).
It’s time to file your Income Tax Return for the year 2011-12 (Assessment Year 2012-13). The last date for filing ITR for this year has been fixed as 31st July 2012.
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|1.||What is e-Filing of Returns?||Filing of Income Tax returns is a legal obligation of every person whose total income for the previous year has exceeded the maximum amount that is not chargeable to income tax under the provisions of the I.T Act, 1961. Income Tax Department has introduced a convenient way to file these returns online using the Internet. The process of electronically filing your Income tax returns through the Internet is known as e-filing of returns.|
|2.||How is e-Filing different from the regular filing of returns?|| |
E-filing offers convenience of time and place to tax payers. This facility is available round the clock and returns could be filed from any place in the world. It also eliminates/ reduces interface between assessee and tax officials. The procedure of e- filing is explained on the home page of the website.
|3.||What are the steps in brief to upload the tax returns on this website?|| |
Visit ITD e-filing website incometaxindiaefiling.gov.in
Select appropriate type of Return Form based on Sources of Income and status of taxpayer. Download the excel based utility from the ITD e-filing website.
Fill your return offline in the downloaded excel sheet and generate a XML file. Register your PAN on the ITD e-filing website, if you are using it for the first time. User id / Login id will be the PAN itself. After successful registration an activation link will be sent to your registered email id. Upon activation you can avail various facilities available on e-filing website including submission of income tax return.
After login, click on “Submit Return”. Select the AY and type of form to be uploaded.
Browse to select XML file for uploading in the ITD e-filing website and click on “Upload” button.
On successful upload, acknowledgement details would be displayed. Click on “Download” to download the acknowledgement i.e. ITR-V Form for the taxpayers, who are not using digital signature. This is an acknowledgement cum verification form. The tax payer has to print and duly sign the same and send it to “Income Tax Department – CPC, Post Bag No – 1, Electronic City Post Office, Bengaluru – 560100, Karnataka” within 120 days of uploading the return on the ITD e-filing website by ordinary post or speed post only. Upon receipt of the ITR-V, the ITD will send an e-mail acknowledging the receipt of ITR-V to the email id entered in the return form. No Form ITR-V shall be received in any other office of the Income-tax Department or in any other manner. This completes the return filing process for non-digitally signed returns.
For the taxpayers using digital signature for uploading the form, taxpayer has to register the DSC before uploading the return. In these cases, no ITR-V will be generated. Website will generate ”Acknowledgement” instead and return will be treated as filed. Taxpayer may take a printout of the “Acknowledgement” for his/her record.
|4.||I have forgotten my password. What is to be done to retrieve it ?|| |
Click on the forget password link from the login page in ITD e-filing website. In the password reset page, one of the following can be selected by the taxpayers:
Enter the answer to the secret question, taxpayer has entered in the registration details. OR
Enter the A.Y. and acknowledgement number of any of earlier e-filed return by the taxpayer since A.Y. 2007-08
Enter the new password twice and also the CAPTCHA CODE appearing on the screen. Click on Reset Password to reset the password of your user id.
Further if do not have either, send a email request from registered email-id, which taxpayer has entered in the registration profile, to email@example.com having following details
Name of the assessee as appearing in the PAN card,
Date of Birth / Date of incorporation,
Name of the Father as appearing in the PAN card
Registered email id.
The ITD will send its response via email.
|5.||What to do if there is an "INTERNAL ERROR" at the time of registration?|| |
Kindly try again and if the problem persist, kindly send a email request to firstname.lastname@example.org with the following details required for registration
Date of Birth/Date of Incorporation
Father’s First Name
Father’s Middle Name
Father’s Last Name
|6.||In case, taxpayer has entered the wrong email-id during registration and taxpayer is not able to activate its user id, what is to be done by taxpayer to activate the account ?|| |
Kindly send an e-mail request to email@example.com activation of your user-id with the following details required for registration
Date of Birth/Date of Incorporation
Father’s First Name
Father’s Middle Name
Father’s Last Name
Once the user-id is activated by the ITD, kindly login on the ITD e-filing website and go to My Account to update the email-id, mobile number, answer to the secret question etc. to avoid this problem in future.
|7.||Can a LEGAL HEIR file the return of the deceased assessee for compulsory DSC cases ?|| |
Yes. First, the legal heir has to obtain a DSC in his own capacity. The DSC of the legal heir, so obtained can be registered in the ITD e-filing website as follows:
Date of Birth
Father’s First Name
Father’s Middle Name
Father’s Last Name
have to be sent through e-mail to firstname.lastname@example.org with the documentary evidences (in scanned format) i.e. death certificate of the deceased assessee. After receiving these details by the e-filing administrator, the Legal heir’s PAN will be linked to the deceased assessee and a confirmation email will be sent to email id of the Legal heir and then only, the return of the deceased assessee can be filed electronically by Legal heir.
|8.||My Challan of payment of Advance Tax or Self Assessment Tax does not contain correct PAN or Assessment Year. Will the claim be allowed?||No. You are advised to get it corrected by making written request to Branch of Bank from where payment has been made upto 15 days of payment and thereafter to your Assessing Officer. Detailed challan correction mechanism is available at ChallanCorrectionMechanism_26082011.pdf|
|9.||If the last date of filing falls on Saturday or Sunday or Public Holiday and Income Tax Department is closed on these days, can subsequent Monday be treated as "Last date of Filing"?||Yes, if Income Tax Department is closed on these days. Otherwise, No.|
|10.||The Assessing Officer (AO) designation and code as per 'Know your PAN' is different from Jurisdictional AO that I know?||Please apply before the jurisdictional Assessing officer to initiate the process of acquiring PAN by Jurisdictional Assessing Officer.|
|11.||How can taxpayer find his Assessing Officer (AO) Code?||Click on ”Know your Jurisdiction” Sub Menu under ”Services”menu on the home page of ITD e-filing website.|
|12.||How can I come to know about TAN of my deductor?||Kindly refer to Form 16 or Form 16A issued by the employer for the TAN number. You can also see the details of deductor in the 26AS Tax credit statement made available by the NSDL in its website, which can be easily accessed through ITD e-filing website.|
|13.||How do I know whether my e-return is being processed at CPC Bangalore or the Assessing Officer.||The taxpayer is advised to login to the website using his/her userid and password and select the sub menu option ‘CPC Processing Status’ under the menu option ‘Services’ on the homepage of ITD e-filing website to check the status of return for a given assessment year.|
|14.||What are the due dates for filing of returns for non-corporate and corporate tax payers?|| |
As per the provisions of section 139 of the Income Tax Act, 1961 the due dates for filing of returns of income for different category of assessees are as under:
For all Corporate assessees and all such non corporate assessee, whose accounts are required to be audited, including working partners of such firms, the….. 30th Sept. of the Astt.Year.
For such corporate assessee which is required to furnish a report u/s 92E of the I T Act, 1961, the 30th Nov. of the Astt.Year.
For any other assessees, the 31st July of the Astt.Year.
|15.||Is it mandatory for all firms to file their return electronically?||No. Only those firms, who have to get their accounts audited under 44AB of the Income Tax Act, 1961.|
|16.||Is it mandatory to file return of income after getting PAN?||No. The liability to file return of income arises only when you have taxable income.|
|17.||Who can file the return for a deceased assessee?||A legal heir can file the return in such case.|
|18.||If I have paid excess tax, how and when will it be refunded to me?|| |
To claim the excess paid tax, the assessee has to be file returns of income, irrespective of the fact whether the income is taxable or not. The amount of refund will be remitted to the assessee either through cheque or directly to the back account as mentioned in the ITR form after the processing of the return.
Section 80E of the Income Tax Act, 1961 provides for a deduction to an assessee (being an individual), out of his income chargeable to tax, on account of any amount paid by him in the previous year by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursing his higher education or for the purpose of higher education of his relative.
Under the earlier provisions, the deduction was available only for pursuing full time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics.
The provisions of the aforesaid section 80E were amended vide the Finance (No. 2) Act, 2009 by substitution clause ( c ) of sub-section (3) so as to extend its scope to cover all fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so.
The above-mentioned tax incentive can be claimed by an individual depending on the amount he/she spends by way of interest on loan for higher education. There is no fund earmarked for this purpose. The expense to the Government is in the form of revenue forgone on account of such claims during a financial year. The revenue forgone during the year 2010-11 on account of deduction under section 80E, as reported in the Receipts Budget 2012-13, is Rs. 138 crores.
This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in the Rajya Sabha today.