Categories: Direct Tax

FAQs on ITR Filling Forms- Guide to select correct ITR

FAQs on ITR Filling Forms- Guide to select correct ITR

Q.1 What does Form ITR-V and form ITR-Acknowledgement means?

Form ITR-V is the form issued by IT department, where the taxpayer furnishes the data in any of the Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5 and ITR-7, but the same has not been e-verified electronically by them.

However, Form ITR-Acknowledgement is issued, where the taxpayer files the information in any of the form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5 and ITR-7 and the same is duly verified electronically by them.

Q. 3 Who is required to file their ITR in Form ITR-1?

This form is applicable to individuals who are residents and have total income of up to Rs 50 lakh constituting of Income from Salary, one house property, income from other sources (including family pension and interest income), and income from agricultural activities maximum up to Rs 5000. This ITR form does not apply to a Director in a company or made investment in unlisted equity shares or even in cases where TDS got subtracted as per section 194N where the ESOP taxation aspect has been deferred under new relaxation.

Q.4 where a person received income from more than one house property, which form is to be selected for filing ITR?

Form ITR-2 can be opted for the taxpayer if the income is generated from more than one house property.

Q.5. What all information is provided under section 139 (4A), 4(B), 4(C), 4(D), 4(E) and 4(F)?

The following information is provided –

  • Section 139(4A): – Individuals earning income from the property held for religious or charitable purpose as a trust.
  • Section 139 (4B): – political parties whose total income exceeds the exemption limit.
  • Section 139(4C): – An institution or association under section 10(23A), medical or educational institution, scientific research association or news agency.
  • Section 139(4D): – Institutions such as universities and colleges.
  • Section 139(4E): – It includes business trust.
  • Section 139(4F): – Investment Funds under Section 115UB.

Q.6. What does self-assessment tax mean?

Self-assessment tax refers to the tax which an individual is required to pay before filing of their income tax return. It is calculated based on the amount of TDS and advance tax to be paid.

Q.7. What happens where the taxpayers pay excess amount of tax?

Where excess amount of tax has been paid, the same is refund and is credited to the registered bank account of the tax payer.

Q.8. How long does it take for income tax refund to be credited in bank account?

The IT department initiates the refund, once the ITR of the said person has been processed by the tax department, the said refund has been claimed by the department. Once the said refund is initiated, the same gets credited in 2-3 working days.

Q.9 Does the taxpayer have to tax on the refund received?

The income tax refund received is not charged to tax. However, in case any interest is received on such refund, the same shall be subject to tax, as per the income tax slab applicable.

Q.10. What is the amount of standard deduction in salary?

A taxpayer receiving income from salary, is allowed a flat standard deduction of Rs 50,000/ the said deduction can be claimed on the income from salary or pension before arriving at the net income charged to tax.

Q.11. What is the time period for e-verification of ITR?

Every taxpayer is required to validate and verify their ITR, within 120 days from the date of filing and the same can be done either electronically or though physical sending ITR-V to the income tax department.

Q.12. How to do e-verification of ITR?

e-verification of ITR can be done using different options available like – Aadhaar-based OTP, EVC via Net-banking, EVC via bank account, EVC via demat account and EVC via bank ATM.

Q.13. What shall be selected in the “residential status”, by a NRI not having TIN?

In case, the NRI is not having TIN, being allotted from the jurisdiction of residence, they shall mention their passport number instead of TIN. And the name of the country in which the passport was issued, be mentioned in the column of “jurisdiction of residence”.

Q.14 How does a director file their ITR, where the person is director of a foreign company?

In this case the person should choose “foreign company” in the drop-down menu under the “type of company”. Under this option, the person will not be asked to provide their PAN. However, where PAN is allotted to such foreign company, the same be mentioned.

Offline and Online Utility of ITR-3 for AY 2024-25 is available for filing

Guide to select correct Income Tax Return.

Central Board of Direct Taxes extends the deadline for submitting businesses’ income tax returns for AY 2023-24

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