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5 things to note before you file your income tax return

July 12, 2013 . Vidya Bala
Personal Finance

If you are a salaried individual and have got your Form 16 from your employer, then its time to file your return or pay additional taxes on other income. Here are a few things you should make note of before starting your weekend project.

1. Online or offline?
If your salary income is greater than Rs 5 lakh then you will have to mandatorily go for e-filing.
People whose salary income is less than Rs 5 lakh but have other sources of income that takes the total income to over Rs 5 lakh will also have to do e-filing. In other words, if your total income for the year exceeds Rs 5 lakh (excluding savings bank interest if it is less than Rs 10,000) you will have to file online.

So when can you go for offline filing? If your salary/total income is less than Rs 5 lakh and your savings bank interest is less than Rs 10,000 then e-filing is not mandatory.

But you may still opt to file online. Remember, refund claims etc., may be processed faster when returns are filed online.

Save Tax Upto 1.5 Lakhs Under Sec 80C

Filing online does not mean you will have to do it yourself. If you are used to filing through an auditor, he/she may well do the online process for you and take a printout for you to sign.

If you are doing it yourself, you may use any of the paid websites (do a quick online search) or do it free of cost using the Income tax website. The former, of course, is more user friendly, especially if you are a first timer.

If you are a salaried individual, you need not have a digital signature. It would suffice if you take a print out of the final copy and send it to the central processing cell in Bangalore.

2. Form ITR1 (Sahaj) or Form ITR2?
If you file online, the paid websites may guide you as to what you should do. If not, you should first understand which form to use for filing returns. Choosing the wrong form may mean an error in filing returns and require you to file again. Here we will stick to discussing about forms used by salaried individuals.

itr

First read the instructions given in both the forms. You will find that both appear similar and are used by individuals with salary income and other sources of income (other than business income).

But the key difference is that if you have exempt income of over Rs 5000 a year, then you cannot use ITR 1. You will have to choose ITR2 instead.

What is exempt income? To know this, first take the Form 16 given by your employer and see the column – ‘allowance to the extent exempt under Section 10’. This would typically have allowances such as HRA, LTA, medical or conveyance. These are part of exempt incomes. (Readers may pl. note that the opinion on whether salary exempt under Section 10 should be included in ‘exempt income’ is divided. You may pl. verify with an auditor or accountant). 

If the total deduction allowed on these heads of income exceeds Rs 5000 a year, then you will have file using ITR 2.
Besides, this, if you have any other exempt income, such as agricultural income or interest income or dividend income totaling Rs 5000 or more, you would have to choose ITR2.

Save Tax Upto 1.5 Lakhs Under Sec 80C

In other words, if the sum total of all your exempt income (from employer and other income) exceeds Rs 5000 a year, you will have to go for ITR2.
Also, any taxable capital gain can be declared only in ITR2. If you have income from more than 1 property, here again, ITR 2 is your form.

Remember, you may file a refund claim in both ITR 1 and ITR 2. But it is more important that you choose the right form based on the above criteria.

3. Exempt income
There is a column provided in both ITR 1 and ITR2 for exempt income. Such income could be interest income on tax-free bonds or dividend income, agricultural income or long-term capital gain that is exempt. Hence, it may be better that you declare them for record purposes.

4. TDS deducted
Whether you are filing offline or online, you will likely have TDS deducted by various sources- your employer or bank or a company. If they all issued Form 16 (employer) or TDS certificates, you will do well to ensure that they tally with the Form 26AS credit statement.
In case you have never heard of this, go and register with the tax department or simply login to your internet banking account and you will likely see it in the menu. Click it and it will link you automatically to the Income Tax website.

This statement will show the summary of all tax deducted, including advance tax paid or any refund to be made etc. by various entities. Ensure that the individual TDS certificates or the amount mentioned in Form 16 tallies with this.

Sometimes, there could be delays in updation (for FY-13, it should be updated by now) of Form 26AS but you will do well to check with your employer or the deducting entity (bank or corporate), if there is any difference.

5. Mail physical copy
If you are filing the return online, ensure that the ITR V acknowledgement sheet is signed (in blue) and sent by ordinary or speed post (the tax dept. does not take too well to courier) within 120 days of filing your return. This is all the more important, if you have paid self-assessment tax or are expecting a refund. Ensure that you receive an e-mail acknowledging your receipt.

And do ensure you provide your personal e-mail id for the taxman to communicate. You do not want the id (office id) becoming inaccessible if you switch jobs.

Save Tax Upto 1.5 Lakhs Under Sec 80C

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190 thoughts on “5 things to note before you file your income tax return”

  1. Thanks a lot Vidya Ji,

    I was madly searching for th exempt income, and was totally confused in which ITR frm should i file my taxes.

    I have under section “Less: Allowance to the extent exempt under section 10” as a salaried professional we have 9,600 under Conveyance allowance… that meaning i should be filing ITR-2 am i right???

    Please clarify,
    Sunil.

      1. Hi Vidya,

        I think the information about exempted income is not correct.Exempted income more than rs 5000 here mean Interest income from saving account ,dividend etc ,it is not related with the exemptions under section 10.

        Please have a look again

      2. i have income from salary which is about 180000 pa and have some income from agriculture which is about 100000 pa which ereturn should i fill and also have some deduction of tds which is 2600/-.
        please help me

        1. Hello Amit, ITR2 will be your form. You can claim TDS deducted in the respective column. Tks.

  2. Thanks for the reply Vidya,

    I have another question (last though), while declaring all my documents, i have forgot to give Rent paid proof’s to my employer, under which section should i input this details while filing tax Online, so that i can get refund for the House Rent paid – I get nearly 1.5 lac as House Rent Allowance, and hence want to know how to get the Refund???.

    FYI – I am using cleartax.in for filing online.

    Many Thanks,
    Sunil.

    1. Hi Sunil, Normally, HRA or any other deduction not claimed is allowed to be claimed at the time of filing returns. But I am wondering since you will not be submitting any proof (since no document other than ITR V should be mailed to IT dept), whether it is enough to simply claim online and keep the proof ready in hand. I suggest you discuss this with a known auditor since the exemption you are talking of is rather high. tks, Vidya

  3. madam,
    it was a very useful article and thanks for the same.will you be kind enough to explain the intricacies of filing returns in other forms?

    1. Hello sir, Thanks for your suggestion. We were focussing on the salaried class. The usage of other forms (like ITR 4 for Business income) has more nuances and I may not be well placed to cover it. Thanks, Vidya

  4. Hi Vidya,

    Thanks a tonn!! This is exactly what I was looking for. You’ve cleared my confusion over which form to choose ITR1 or ITR2. Now that I know it’s ITR2 for me its a big relief!

    Also, as I understand, savings bank interest (exempt under 80tta) should go in EI section under Interest Income column, could you please confirm, as there is a small confusion between this and Income from other resources that includes interest?

    And, do I need to declare my LIC policy interim proceeds which are not taxable in my hand? If yes, which column do I need to put this amount in ITR2 for record purpose?

    Thanks once again for your assistance.

    Regards,
    -Vaibhav

    1. Hello Vaibhav,

      Income under 80TTA is a deduction and not an exempt income. Savings bank interest is therefore ‘other income’. The decution upto Rs 10000 is to be shown separately in a schedule called Schedule VIA in the form.

      If you are sure that your LIC proceeds are tax free (if exempt under one of the provisions Section 10), then you may shown in under Exempt Income. Pl. check with your agent on the nature of proceeds.

      Tks
      Vidya

      1. Thanks for the reply, Vidya.

        Now I understand that this interest income is ‘other income’, but where do I specify that In ITR2? I didn’t find any such field ‘Income from other sources’ like that of in ITR1. I’m assuming this specified ‘other income’ will then be compensated against the one that I’ll be specifying in VIA schedule to avail 80tta deduction?

        Can you please clarify?

        Regards,
        -Vaibhav

        1. Pl. see Pg 2 of ITR2 Item no. 4 (a). That is where it will be added. Its corresponding schedule is OS, where you will give all other income break up. The place where you claim deduction is Sch VIA. In case you feel you are not familiar, you may also consider taking the service of TRPs (certified tax return preparer) who will be available in the Income tax office once spl. counters are set up. Of course they charge a small fee. tks, Vidya

          1. Thanks once again. I’ve been referring to the excel ITR2 form and now could figure out that it is in ‘CG-OS’ schedule, point 1b row 89.

      2. Hi Vidya

        You have nicely clarified about section 80 TTA. However, I have filed return mentioning savings bank interest under EI.

        Please let me know if I need to file revised return. And also what is the process of filing revised return.

        With best wishes
        Vinod

        1. Hello Vinod, Technically yes. If youa re filing online with a portal, there will be provision for revised return, else you have to simply fill the same form again and mark the column mentioned as ‘revised return’ tks, Vidya

  5. Dear Madam,

    This is regarding section 80 C for 1 Lakh exception, I have not submitted all documents to my employer so they have not considered total 1 lakh in form 16 and deducted TDS. Now, I have full 1 Lakh certificates while filing tax returns shall I consider full exception and ask for a refund ! Any other alternate suggestions from your end !!! Pl reply!

    1. Hello sir,

      Yes, deductions left out by employer can be claimed at the time of filing returns. Tks, Vidya

  6. Hello Vidya,

    I have already filed and submitted ITR-1 and have received the acknowledgement also.
    But from your post it looks like, I fall in the ITR-2 category.
    What should I do? Is there a need to file ITR-2 again/

    1. Hello Sumit, We do not know what classifies you as an ITR-2 category tax filer. You may even check with a known auditor or your office accountant on this. There is provision to file a revised return before the due date, without any charge or penalty.

      1. Hello Vidya,

        Sum total of all my exempt income (as per Section 10 of form 16) exceeds Rs 5000 per year. So as per your post I fall under ITR-2. On checking with the ofiice accountant/tax return submitter, I was told that we should fill ITR-1 only. So I am in a fix whether to go for revised return or not?

          1. Hi vidya
            As I was going through this debate of itr1 or 2, I think D20 suggests income which is expemted and for reporting purposes (like dividends etc.) which are not part of income.
            Please correct me if I am wrong
            Regards

          2. Hi Pankaj,

            You are partly right. But it also includes all incomes exempt under Section 10…as I mentioned typically conveyance allowance, HRA, medical allowance or LTA allowed etc. The key here is, the definition of ‘exempt income’ is a wide one.

            tks
            Vidya

          3. i am govt employee & getting Training allowance , i think it is not taxable as per income tax act 10(14) but it is not deducted in form 16, so how can i get refund on tds for that, please advice

          4. Hello Kiran, I am not aware 10(14) section allowing training allowances. yes, certain expenses directly incurred for the course of carrying out one’s office duties comes under this section. But unless your employer can confirm that it is meant to be a deductible allowance, you may be at risk claiming exemption for it. tks, Vidya

  7. Dear Madam,

    This is regarding section 80 C for 1 Lakh exception, I have not submitted all documents to my employer so they have not considered total 1 lakh in form 16 and deducted TDS. Now, I have full 1 Lakh certificates while filing tax returns shall I consider full exception and ask for a refund ! Any other alternate suggestions from your end !!! Pl reply!

    1. Hello sir,

      Yes, deductions left out by employer can be claimed at the time of filing returns. Tks, Vidya

  8. Hi Vidya,

    By mistake I submitted black ITR form online.
    Now what I will do to correct it?

    1. Hello Aparna, I don’t follow your question on ‘black ITR’. The filed online ITR has to be taken as a print out in black and white and submitted.

      1. Hey Vidya,

        While filling ITR form online by mistake I submitted the form only with my personal information rest all tabs were blank.

  9. Hi Vidya,

    By mistake I submitted black ITR form online.
    Now what I will do to correct it?

    1. Hello Aparna, I don’t follow your question on ‘black ITR’. The filed online ITR has to be taken as a print out in black and white and submitted.

      1. Hey Vidya,

        While filling ITR form online by mistake I submitted the form only with my personal information rest all tabs were blank.

  10. Hi Vidya,

    Very useful article. Thank You.

    Can you also publish an article explaining:
    – ITR3, ITR4 etc
    – How to handle MF, NCD & stock investment returns losses.

    Maybe, FundsIndia could help its members with tax filing too. Say, for a fee. What do you think?

    1. Hello Anand, Thank you for your suggestions. We may not be well palced to deal with ITR forms for business/profession as we deal with inidvidual investors, mostly salaried class. At present we do not have any provision for customers to file tax through us. Thanks, however, for your feedback.

      Rgds
      Vidya

      1. Hi Vidya, while filling ITR2 and calculating the total income, the form does not deduct allowance under section 10 from the total income while the employer has subtracted it from the total income. Can you please help explain what needs to be done? Thanks, Bharat

        1. Hi Bharat, The salary income you show in ITR 2 should be net of Section 10 exemptions. It can be separately shown in a column available for exemptions (sch EI)

  11. Hi Vidya,

    Very useful article. Thank You.

    Can you also publish an article explaining:
    – ITR3, ITR4 etc
    – How to handle MF, NCD & stock investment returns losses.

    Maybe, FundsIndia could help its members with tax filing too. Say, for a fee. What do you think?

    1. Hello Anand, Thank you for your suggestions. We may not be well palced to deal with ITR forms for business/profession as we deal with inidvidual investors, mostly salaried class. At present we do not have any provision for customers to file tax through us. Thanks, however, for your feedback.

      Rgds
      Vidya

      1. Hi Vidya, while filling ITR2 and calculating the total income, the form does not deduct allowance under section 10 from the total income while the employer has subtracted it from the total income. Can you please help explain what needs to be done? Thanks, Bharat

        1. Hi Bharat, The salary income you show in ITR 2 should be net of Section 10 exemptions. It can be separately shown in a column available for exemptions (sch EI)

  12. Hi Vidya,
    I have a PPF account. Its passbook shows this years interest more than Rs 5000?-. Should I fill ITR-2? Is PPF interest is exempt interest. Is there any column to mention it in ITR-2 without entering in the total income for the e-filling form?
    Regards
    Sankar

    1. Hi Sankar, yes, it would be exempt income over Rs 5000 under ITR 2. It will be shown under Schedule EI and not in total income. tks, Vidya

  13. Hi Vidya,
    I have a PPF account. Its passbook shows this years interest more than Rs 5000?-. Should I fill ITR-2? Is PPF interest is exempt interest. Is there any column to mention it in ITR-2 without entering in the total income for the e-filling form?
    Regards
    Sankar

    1. Hi Sankar, yes, it would be exempt income over Rs 5000 under ITR 2. It will be shown under Schedule EI and not in total income. tks, Vidya

  14. Hi Vidya,
    In the ITR form the 80G have PAN of donee. Is it, that someone donating to Prime ministers relief fund should write the PAN of Prime minister? Note that it is compulsory entry
    Sankar

    1. The fund will have some PAN number, if you received an acknowledgement from them. Tks, Vidya

  15. Thanks for this information. However I read several articles on this and found many discrepancies in interpretation of exempt income.

    For example, ET articles says “Rs 5,000 limit for exempt income does not include HRA, LTA and other allowances that a taxpayer receives from an employer as part of the salary package.”
    http://articles.economictimes.indiatimes.com/2013-07-01/news/40307943_1_returns-offline-tax-returns-e-filing/2

    I get HRA, LTA etc. as a part of my salary which is more than 5K, however I get only ITR-1 choice while filling ITR online and could not see ITR-2 option and availed a house loan for one house.

    Please suggest.

    1. Hello Chintan, Thanks for sharing this article. Looks like opinion is divided on this. Chartered accountant clubs have held that deductions such as HRA, travel allowance etc under Section 10 are in the nature of exemptions. the same ET newspaper carried a different version in May: http://articles.economictimes.indiatimes.com/2013-05-24/news/39502317_1_tax-return-form-income-tax-department-form-26AS. Just check with a known auditor and follow what they say. Personally, I feel as long as there is no capital gain or rental income from 2 properties, filing in ITR-1 won’t be rejected. Tks, Vidya

      1. Vidya ,

        I don’t think exemption under section 10 come under the definition of ‘Rs 5000’ a simple reason most of the salaried employees got Rs 800 conveyance allowance per month so 9600 per year ,so does it mean all the salaried employees has to file return under form 2 .No I don’t think so.Also last year i filled return under Form 2 and I declared my exempted income which include dividend etc not section 10 exemption .

        Thanks

        1. Hi Amit, Yes, information on the same is divided. Some CAclubs have held all salary exemptions under Section 10 (that includes travel HRA etc) are in the nature of ‘exemptions’ and will therefore fall under this category. While others have opined what you just said. It would be good to consult an known auditor on this. I shall also make a note of this in the article. Tks, vidya

          1. Also, if a salaried employee gets many allowances, exempt under Sec 10 is shown in form 16 as
            ‘Allowance to the extent Rs 15000/- exempt under sec 10’
            and this amount deducted from earnings before arriving at
            ‘Income chargeable under head salaries’.
            Now – does this amount of Rs 15000 have to be separately shown under the head of Exempt Income in Form ITR1 or ITR 2?

          2. Hello Mantosh, There is provision in both forms to show Exempt Income. But the opinion amoung CAs s divided on whether this should be shown in the exempt column. This also becomes important as it is a deciding factor for choosing ITR1 and ITR2 (exempt income more than 5000 means ITR2 has to be chosen). If you do not have capital gains then you may check with an auditor and use ITR1. Tks, Vidya

      2. Hi everybody

        In ITR 2 in worksheet named Part B-TI- TTI-SAL of the return filing Excel utility, there is a row with number 2 under Schedule S for “Allowances exempt under Section 10”. In view of this row, it does not appear that exempt allowances received from employer such as Education allowance, LTA, Conveyance etc need to be declared in Schedule EI since the information is being captured under the Salary information for record.

        However this needs confirmation from tax consultants/authorities.

        Regards

        Rajasekaran

  16. Hi Vidya,
    In the ITR form the 80G have PAN of donee. Is it, that someone donating to Prime ministers relief fund should write the PAN of Prime minister? Note that it is compulsory entry
    Sankar

    1. The fund will have some PAN number, if you received an acknowledgement from them. Tks, Vidya

  17. Thanks for this information. However I read several articles on this and found many discrepancies in interpretation of exempt income.

    For example, ET articles says “Rs 5,000 limit for exempt income does not include HRA, LTA and other allowances that a taxpayer receives from an employer as part of the salary package.”
    http://articles.economictimes.indiatimes.com/2013-07-01/news/40307943_1_returns-offline-tax-returns-e-filing/2

    I get HRA, LTA etc. as a part of my salary which is more than 5K, however I get only ITR-1 choice while filling ITR online and could not see ITR-2 option and availed a house loan for one house.

    Please suggest.

    1. Hello Chintan, Thanks for sharing this article. Looks like opinion is divided on this. Chartered accountant clubs have held that deductions such as HRA, travel allowance etc under Section 10 are in the nature of exemptions. the same ET newspaper carried a different version in May: http://articles.economictimes.indiatimes.com/2013-05-24/news/39502317_1_tax-return-form-income-tax-department-form-26AS. Just check with a known auditor and follow what they say. Personally, I feel as long as there is no capital gain or rental income from 2 properties, filing in ITR-1 won’t be rejected. Tks, Vidya

      1. Vidya ,

        I don’t think exemption under section 10 come under the definition of ‘Rs 5000’ a simple reason most of the salaried employees got Rs 800 conveyance allowance per month so 9600 per year ,so does it mean all the salaried employees has to file return under form 2 .No I don’t think so.Also last year i filled return under Form 2 and I declared my exempted income which include dividend etc not section 10 exemption .

        Thanks

        1. Hi Amit, Yes, information on the same is divided. Some CAclubs have held all salary exemptions under Section 10 (that includes travel HRA etc) are in the nature of ‘exemptions’ and will therefore fall under this category. While others have opined what you just said. It would be good to consult an known auditor on this. I shall also make a note of this in the article. Tks, vidya

          1. Also, if a salaried employee gets many allowances, exempt under Sec 10 is shown in form 16 as
            ‘Allowance to the extent Rs 15000/- exempt under sec 10’
            and this amount deducted from earnings before arriving at
            ‘Income chargeable under head salaries’.
            Now – does this amount of Rs 15000 have to be separately shown under the head of Exempt Income in Form ITR1 or ITR 2?

          2. Hello Mantosh, There is provision in both forms to show Exempt Income. But the opinion amoung CAs s divided on whether this should be shown in the exempt column. This also becomes important as it is a deciding factor for choosing ITR1 and ITR2 (exempt income more than 5000 means ITR2 has to be chosen). If you do not have capital gains then you may check with an auditor and use ITR1. Tks, Vidya

      2. Hi everybody

        In ITR 2 in worksheet named Part B-TI- TTI-SAL of the return filing Excel utility, there is a row with number 2 under Schedule S for “Allowances exempt under Section 10”. In view of this row, it does not appear that exempt allowances received from employer such as Education allowance, LTA, Conveyance etc need to be declared in Schedule EI since the information is being captured under the Salary information for record.

        However this needs confirmation from tax consultants/authorities.

        Regards

        Rajasekaran

  18. Hi,

    By mistake I filed the returns for the assement year 2013-14 with my old form 16 (I mean the form 16 was for yeat 2012-13)…
    How to rectify it and file the returns with the new form 16 which is for assessment year 2013-14.

    Thanks,
    MY

      1. Thanks so much Vidya…

        I need to select “revised 139(5)” under return filed under section and also as” Revised” under whether its a original or revised? Correct.

        Do I need to make any other changes apart from those two.
        please advice.

        thanks,
        MY

  19. Thanks so much Vidya…

    I need to select “revised 139(5)” under return filed under section and also as” Revised” under whether its a original or revised? Correct.

    Do I need to make any other changes apart from those two.
    please advice.

    thanks,
    MY

  20. Hi,

    By mistake I filed the returns for the assement year 2013-14 with my old form 16 (I mean the form 16 was for yeat 2012-13)…
    How to rectify it and file the returns with the new form 16 which is for assessment year 2013-14.

    Thanks,
    MY

      1. Thanks so much Vidya…

        I need to select “revised 139(5)” under return filed under section and also as” Revised” under whether its a original or revised? Correct.

        Do I need to make any other changes apart from those two.
        please advice.

        thanks,
        MY

  21. Thanks so much Vidya…

    I need to select “revised 139(5)” under return filed under section and also as” Revised” under whether its a original or revised? Correct.

    Do I need to make any other changes apart from those two.
    please advice.

    thanks,
    MY

  22. AY 12-13 ITR2 returns filed on line few days ago. I now realise that I have reported ‘Saving bank interest’ of Rs 6000 under ‘Exempt Income – interest’. Please advise if it is ok to leave it as it is or I need to revise the return?

      1. Thanks Vidya! My confusion arose because I read somewhere that it should be shown under Sec 80TTA? Hence my querry!

        1. I think you are right, Mantosh. Savings account interest should go to Income from other resources and also under 80TTA, to avail the deduction for upto Rs. 10,000/-.

          There’s difference between exempt income & deduction.

          IMO, Interest under EI schedule refers to PPF interest, so should not be confused with savings account interest.

          Vidya, can you please confirm?

          Thanks,
          -Vaibhav

          1. Hello Mantosh and Vaibhav, I think I replied to Mantosh yesterday on savings income as being exempt. Was inadvertent. As Vaibhav said, 80TTA is a deduction not an exemption. Hence the total savings income si to be shown as other income and deduction claimed in the Sec 80 deduction schedule under 80TTA. Hope this clarifies. thanks Vaibhav. tks, Vidya

          2. Thanks Vidya, Vaibhav for the clarification!
            So that means that I should file a revised return by first adding the Savings interest to the ‘Other Income’ and then show it as a deduction under Sec 80 TTA?
            There is no way that I can let it remain as it is?
            Does filing revised returns have any other repercussions in terms of inviting special scrutiny etc?

          3. What I really mean is that I have not concealed any income – and revising returns will not change my tax liability – so in that case is it a big crime to let it remain as it is or revise the returns and suffer the consequences if any in terms of inviting special scrutiny etc? Just clarifying my concern!

          4. Hello Mantosh, Normally one would not worry too much as there is no tax liability. Also revised return does not specifically invite special scrutiny. I have done it myself more than once! But the repurcussions of not going for a revised return are best discussed with an auditor. Tks, vidya

  23. AY 12-13 ITR2 returns filed on line few days ago. I now realise that I have reported ‘Saving bank interest’ of Rs 6000 under ‘Exempt Income – interest’. Please advise if it is ok to leave it as it is or I need to revise the return?

      1. Thanks Vidya! My confusion arose because I read somewhere that it should be shown under Sec 80TTA? Hence my querry!

        1. I think you are right, Mantosh. Savings account interest should go to Income from other resources and also under 80TTA, to avail the deduction for upto Rs. 10,000/-.

          There’s difference between exempt income & deduction.

          IMO, Interest under EI schedule refers to PPF interest, so should not be confused with savings account interest.

          Vidya, can you please confirm?

          Thanks,
          -Vaibhav

          1. Hello Mantosh and Vaibhav, I think I replied to Mantosh yesterday on savings income as being exempt. Was inadvertent. As Vaibhav said, 80TTA is a deduction not an exemption. Hence the total savings income si to be shown as other income and deduction claimed in the Sec 80 deduction schedule under 80TTA. Hope this clarifies. thanks Vaibhav. tks, Vidya

          2. Thanks Vidya, Vaibhav for the clarification!
            So that means that I should file a revised return by first adding the Savings interest to the ‘Other Income’ and then show it as a deduction under Sec 80 TTA?
            There is no way that I can let it remain as it is?
            Does filing revised returns have any other repercussions in terms of inviting special scrutiny etc?

          3. What I really mean is that I have not concealed any income – and revising returns will not change my tax liability – so in that case is it a big crime to let it remain as it is or revise the returns and suffer the consequences if any in terms of inviting special scrutiny etc? Just clarifying my concern!

          4. Hello Mantosh, Normally one would not worry too much as there is no tax liability. Also revised return does not specifically invite special scrutiny. I have done it myself more than once! But the repurcussions of not going for a revised return are best discussed with an auditor. Tks, vidya

  24. On the official income tax website, http://incometaxindiaefiling.gov.in/, there is a number where you can dial to clarify doubts, ASK : 1800 180 1961
    I ASKed them which form should I fill if I have PPF income of more than 5000 — I was told to fill ITR-2. (PS – the person I talked to didn’t inspire a lot of confidence but by far, this is the official answer I got). Hope this helps 🙂
    –Malind

    1. Hi Malind, Thanks. Readers may pl make note of the help line no. of Income Tax: 1800 180 1961. Tks, Vidya

  25. Hi Vidya,

    I am a corporate salaries employee. I get HRA tax excemption greater than 5000. I filed ITR1 already. Do I need to rectify it? Also, I am seeing only two options ITR1 or ITR4 while online filling at http://incometaxindiaefiling.gov.in. There is no option of quick file for ITR2. So is ITR1 will be fine or I need to download ITR2 and send rectification request.

    Please clarify. Thanks in advance.

    Vineet

    1. Hi Vineet, As mentioned, the opinion is still divided on this. Pl. contact IT CPC 18001030344 for assistance. Tks, Vidya

  26. On the official income tax website, http://incometaxindiaefiling.gov.in/, there is a number where you can dial to clarify doubts, ASK : 1800 180 1961
    I ASKed them which form should I fill if I have PPF income of more than 5000 — I was told to fill ITR-2. (PS – the person I talked to didn’t inspire a lot of confidence but by far, this is the official answer I got). Hope this helps 🙂
    –Malind

    1. Hi Malind, Thanks. Readers may pl make note of the help line no. of Income Tax: 1800 180 1961. Tks, Vidya

  27. TRACES for AY 2013-14 shows that two banks have deposited TDS that they have deducted against my Fixed Deposits. The TDS is deducted at the rate of 10%. But I fall in 20% bracket. Both the fixed deposits are yet to mature.

    Should I add the total amount credited (as shown in TRACES) in my overall salary income and recalculate the tax? If I do that I will have to pay tax as Self Assessment before filing the return for this year.

    OR

    Should I wait for fixed deposits to mature this year and add the interest amount in the current year’s income?

    Also, which form will be applicable in this case? I assume it should be ITR-1

    1. Hello Rajan, It may be better to link the TDS and the respective income in the same year and pay Self-assessment tax if any for the income shown, even if it is only accrued and not received. That way your tax credit will match 26AS, which is important for the IT dept.

      1. Thank you so much Vidya!!!!!!!
        I appreciate you are taking your valuable time out to answer all queries.

        Thanks to FundsIndia to create such platform.

        Rajan

  28. Hi Vidya,

    I am a corporate salaries employee. I get HRA tax excemption greater than 5000. I filed ITR1 already. Do I need to rectify it? Also, I am seeing only two options ITR1 or ITR4 while online filling at http://incometaxindiaefiling.gov.in. There is no option of quick file for ITR2. So is ITR1 will be fine or I need to download ITR2 and send rectification request.

    Please clarify. Thanks in advance.

    Vineet

    1. Hi Vineet, As mentioned, the opinion is still divided on this. Pl. contact IT CPC 18001030344 for assistance. Tks, Vidya

  29. TRACES for AY 2013-14 shows that two banks have deposited TDS that they have deducted against my Fixed Deposits. The TDS is deducted at the rate of 10%. But I fall in 20% bracket. Both the fixed deposits are yet to mature.

    Should I add the total amount credited (as shown in TRACES) in my overall salary income and recalculate the tax? If I do that I will have to pay tax as Self Assessment before filing the return for this year.

    OR

    Should I wait for fixed deposits to mature this year and add the interest amount in the current year’s income?

    Also, which form will be applicable in this case? I assume it should be ITR-1

    1. Hello Rajan, It may be better to link the TDS and the respective income in the same year and pay Self-assessment tax if any for the income shown, even if it is only accrued and not received. That way your tax credit will match 26AS, which is important for the IT dept.

      1. Thank you so much Vidya!!!!!!!
        I appreciate you are taking your valuable time out to answer all queries.

        Thanks to FundsIndia to create such platform.

        Rajan

  30. Hi, I am a salaried person, changed my job in Dec. Also i teach in classes on Weekends. As a result i have 2 form 16 and also TDS is deducted onthe income obtained from classes. Kindly let me know ITR1 or ITR2 is to be filled by me? Also let me know where should i mention while filling e-return??

    1. Hi Sweety, Having 2 form 16 does nto change the tax status. e-filing will allow to to login 2 form 16 detaisl separately. Only the other criteria mentioned in the article will matter. tks, Vidya

  31. Hi, I am a salaried person, changed my job in Dec. Also i teach in classes on Weekends. As a result i have 2 form 16 and also TDS is deducted onthe income obtained from classes. Kindly let me know ITR1 or ITR2 is to be filled by me? Also let me know where should i mention while filling e-return??

    1. Hi Sweety, Having 2 form 16 does nto change the tax status. e-filing will allow to to login 2 form 16 detaisl separately. Only the other criteria mentioned in the article will matter. tks, Vidya

  32. Hi Vidya,

    Thanks for the article.

    Few banks use to give cash back if money is spend through debit card. Is the cash back amount taxable?

    My understanding is cash back is nothing but a gift from the bank and gift is exempt to tax. Please correct me if I am wrong.

    Thanks,

    Raj

    1. Hi Raj, I am afraid you will have to get this clarified from the bank. tks, Vidya

  33. Hi
    when my CA filled return of AY 11-12 . I was getting refund of 7130

    apparently he did some mistake . I told him to revise it . Then he file revise return
    I check I was suppose to get refund of 11980.

    but Receipt for this revised form were never shown on income tax site. They didn’t get the hard copy of revised form.

    Please help how can I can apply for that revised form to be processed.
    Considering it is already 2 yr old return.

    Also as 1st ORIGINAL return got processed so I must get the refund of 7130.
    but I got only Rs .4155
    rest amount it is showing (toward government ) apparently they collected it as tax for the assessment year 2009-10 as given below.

    1 2,500.00 18-May-2012
    2 475.00 18-May-2012

    How come they are collecting tax of some previous year from my refund ?

    Please clarify me on these 2 Question

    1. Hi Ashwini, Thanks for the detailed. I am not equipped to handle your question. Either talk to the IT CPC help line or meet an IT PRO in your jurisdiction. they can certainly help. Tks, vidya

  34. Hi Vidya,

    Thanks for the article.

    Few banks use to give cash back if money is spend through debit card. Is the cash back amount taxable?

    My understanding is cash back is nothing but a gift from the bank and gift is exempt to tax. Please correct me if I am wrong.

    Thanks,

    Raj

    1. Hi Raj, I am afraid you will have to get this clarified from the bank. tks, Vidya

  35. Hi
    when my CA filled return of AY 11-12 . I was getting refund of 7130

    apparently he did some mistake . I told him to revise it . Then he file revise return
    I check I was suppose to get refund of 11980.

    but Receipt for this revised form were never shown on income tax site. They didn’t get the hard copy of revised form.

    Please help how can I can apply for that revised form to be processed.
    Considering it is already 2 yr old return.

    Also as 1st ORIGINAL return got processed so I must get the refund of 7130.
    but I got only Rs .4155
    rest amount it is showing (toward government ) apparently they collected it as tax for the assessment year 2009-10 as given below.

    1 2,500.00 18-May-2012
    2 475.00 18-May-2012

    How come they are collecting tax of some previous year from my refund ?

    Please clarify me on these 2 Question

    1. Hi Ashwini, Thanks for the detailed. I am not equipped to handle your question. Either talk to the IT CPC help line or meet an IT PRO in your jurisdiction. they can certainly help. Tks, vidya

  36. I have filed my Return of ITR 1 eventhough the exempt income is of Rs 9600 but i have not yet submitted it to bangalore what is the procedure for rectification Please help me out as early as possible

  37. I do have one more question if i want to show deduction u/s 80TTA then whether to use ITR1 or ITR2 it is less than rs. 5000 and what to do if more than rs. 5000 please help me out.
    Thanks in advance

    1. Hello Gayatri, you would do well to check with an auditor on ITR1 or ITR2 as far as exempt income is concerned. Or call the ITR help line. There are multiple interpretations on this.As for 80TTA, it is not an exempt income, it is only a deduction. Hence show in in income from other sources and claim deduction under Ch VIA in any form (whichever is applicable to you as far as the other exempt income are concerned)

  38. Hi Vidya,
    I have an doubt to choose between ITR 1 and ITR 2.
    I dont have any capital incomes.
    But my worksheet says “Total of Allowance to the extent exempt under Section 10” in some 5 digits value (which includes Conveyance allowance, HRA, and medical reimbursement ).

    So what should i choose? ITR1 or ITR 2?

    Please help.
    Sathish.

    1. Hello Sathish, This issue is now under contention. It is best to as your company accountnant or a known auditor. Tks Vidya

  39. I have filed my Return of ITR 1 eventhough the exempt income is of Rs 9600 but i have not yet submitted it to bangalore what is the procedure for rectification Please help me out as early as possible

  40. I do have one more question if i want to show deduction u/s 80TTA then whether to use ITR1 or ITR2 it is less than rs. 5000 and what to do if more than rs. 5000 please help me out.
    Thanks in advance

    1. Hello Gayatri, you would do well to check with an auditor on ITR1 or ITR2 as far as exempt income is concerned. Or call the ITR help line. There are multiple interpretations on this.As for 80TTA, it is not an exempt income, it is only a deduction. Hence show in in income from other sources and claim deduction under Ch VIA in any form (whichever is applicable to you as far as the other exempt income are concerned)

  41. Hi Vidya,
    I have an doubt to choose between ITR 1 and ITR 2.
    I dont have any capital incomes.
    But my worksheet says “Total of Allowance to the extent exempt under Section 10” in some 5 digits value (which includes Conveyance allowance, HRA, and medical reimbursement ).

    So what should i choose? ITR1 or ITR 2?

    Please help.
    Sathish.

    1. Hello Sathish, This issue is now under contention. It is best to as your company accountnant or a known auditor. Tks Vidya

  42. I filed online using a digital certificate 10 days ago. However, this year I had donated some money to charity under section 80G. I have tax receipt etc. as physical documents, but since I filed online, they are still with me. Do I need to send them separately to IT office, because the online website didn’t ask for any scanned documents to be attached ?

    1. Hi Mitesh, Hold the proof (not just receipt but the tax benefit form from the charity institution). You need not send it.

      tks

  43. Hi
    one more question . This year I have income from 2 employer and FD interest.

    out of 2 employement

    one was contract type job and
    one is full time.

    So which ITR should I fill. ITR 4 or ITR 2.

    Can I show contract type job salary in ITR 2
    .
    They seems deducted my tax under some 194j category as seen in income tax site. and didn’t provided me the form 16

  44. I filed online using a digital certificate 10 days ago. However, this year I had donated some money to charity under section 80G. I have tax receipt etc. as physical documents, but since I filed online, they are still with me. Do I need to send them separately to IT office, because the online website didn’t ask for any scanned documents to be attached ?

    1. Hi Mitesh, Hold the proof (not just receipt but the tax benefit form from the charity institution). You need not send it.

      tks

  45. Hi
    one more question . This year I have income from 2 employer and FD interest.

    out of 2 employement

    one was contract type job and
    one is full time.

    So which ITR should I fill. ITR 4 or ITR 2.

    Can I show contract type job salary in ITR 2
    .
    They seems deducted my tax under some 194j category as seen in income tax site. and didn’t provided me the form 16

  46. Hi Vidya,

    First of all, Thanks for sharing information, which helps the common mass.
    I have a simple question, I submitted ITR 2 due to income arising from capital gains, however by mistake I put the wrong address and the acknowledgement also came with wrong address to me.
    However, I went to efiling website immediately and updated my contact details & right address there.
    Now my question is, shall I send this acknowledgement with the wrong address to the CPC or do I need to file again? Does that address matter.

    Kindly help.

    Thanks
    Ankit

    1. If you do an updation, it has to be a revised return. So you will have to file again and get a fresh ITR V and then mail that. tks, Vidya

  47. Hi Vidya,

    First of all, Thanks for sharing information, which helps the common mass.
    I have a simple question, I submitted ITR 2 due to income arising from capital gains, however by mistake I put the wrong address and the acknowledgement also came with wrong address to me.
    However, I went to efiling website immediately and updated my contact details & right address there.
    Now my question is, shall I send this acknowledgement with the wrong address to the CPC or do I need to file again? Does that address matter.

    Kindly help.

    Thanks
    Ankit

    1. If you do an updation, it has to be a revised return. So you will have to file again and get a fresh ITR V and then mail that. tks, Vidya

  48. I am a salaried employee have HRA,Medical allowance will go more than rs5000 and have one RD of 2 years which will meture on dec 2013 and interest will be thinks so more than rs10000 i already filed return with form ITR 1 do i need to revised it with all this info added to that and where to put plz suggest me

    1. The RD maturing in Dec 2013 will be taken as taxable incoem only for FY-14. As for ITR1 or 2 pl contact IT CPC helpline as there is a debate on, in this subject. Tks Vidya

  49. My form 26 AS shows the tax deducted by my employer correctly and i also have one FD for which tax deducted by bank is shown in 26 AS correctly.

    However when i notice the tax mismatch column link (after filing return) ,it is showing that the last quarter returns filed by my employer and the bank is not taken into account and that is showing as mismatch.I noticed for one of my friends (working in diff company) that when he downloaded the pre -filled XML again it was not showing the fourth quarter tax details even though it is shown in form 26 as…
    Has anybody else faced this issue?

  50. Sir,
    I am salaried person more than 5 lakhs per annum. I want to file file e return I donot know how to file e returns. Hence I request you sir please tell how to file e return . my email id is vce1700@gmail.com

    please help me.

    thanking you sir

  52. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  53. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  54. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  55. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  56. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  57. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  58. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  59. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  60. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  61. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  62. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  63. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  64. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  65. Thanks for the reply Vidya,

    I have another question (last though), while declaring all my documents, i have forgot to give Rent paid proof’s to my employer, under which section should i input this details while filing tax Online, so that i can get refund for the House Rent paid – I get nearly 1.5 lac as House Rent Allowance, and hence want to know how to get the Refund???.

    FYI – I am using cleartax.in for filing online.

    Many Thanks,
    Sunil.

    1. Hi Sunil, Normally, HRA or any other deduction not claimed is allowed to be claimed at the time of filing returns. But I am wondering since you will not be submitting any proof (since no document other than ITR V should be mailed to IT dept), whether it is enough to simply claim online and keep the proof ready in hand. I suggest you discuss this with a known auditor since the exemption you are talking of is rather high. tks, Vidya

  66. madam,
    it was a very useful article and thanks for the same.will you be kind enough to explain the intricacies of filing returns in other forms?

    1. Hello sir, Thanks for your suggestion. We were focussing on the salaried class. The usage of other forms (like ITR 4 for Business income) has more nuances and I may not be well placed to cover it. Thanks, Vidya

  67. Hello Vidya,

    I have already filed and submitted ITR-1 and have received the acknowledgement also.
    But from your post it looks like, I fall in the ITR-2 category.
    What should I do? Is there a need to file ITR-2 again/

    1. Hello Sumit, We do not know what classifies you as an ITR-2 category tax filer. You may even check with a known auditor or your office accountant on this. There is provision to file a revised return before the due date, without any charge or penalty.

      1. Hello Vidya,

        Sum total of all my exempt income (as per Section 10 of form 16) exceeds Rs 5000 per year. So as per your post I fall under ITR-2. On checking with the ofiice accountant/tax return submitter, I was told that we should fill ITR-1 only. So I am in a fix whether to go for revised return or not?

          1. i am govt employee & getting Training allowance , i think it is not taxable as per income tax act 10(14) but it is not deducted in form 16, so how can i get refund on tds for that, please advice

          2. Hello Kiran, I am not aware 10(14) section allowing training allowances. yes, certain expenses directly incurred for the course of carrying out one’s office duties comes under this section. But unless your employer can confirm that it is meant to be a deductible allowance, you may be at risk claiming exemption for it. tks, Vidya

          3. Hi vidya
            As I was going through this debate of itr1 or 2, I think D20 suggests income which is expemted and for reporting purposes (like dividends etc.) which are not part of income.
            Please correct me if I am wrong
            Regards

          4. Hi Pankaj,

            You are partly right. But it also includes all incomes exempt under Section 10…as I mentioned typically conveyance allowance, HRA, medical allowance or LTA allowed etc. The key here is, the definition of ‘exempt income’ is a wide one.

            tks
            Vidya

  68. Thanks a lot Vidya Ji,

    I was madly searching for th exempt income, and was totally confused in which ITR frm should i file my taxes.

    I have under section “Less: Allowance to the extent exempt under section 10” as a salaried professional we have 9,600 under Conveyance allowance… that meaning i should be filing ITR-2 am i right???

    Please clarify,
    Sunil.

      1. Hi Vidya,

        I think the information about exempted income is not correct.Exempted income more than rs 5000 here mean Interest income from saving account ,dividend etc ,it is not related with the exemptions under section 10.

        Please have a look again

      2. i have income from salary which is about 180000 pa and have some income from agriculture which is about 100000 pa which ereturn should i fill and also have some deduction of tds which is 2600/-.
        please help me

        1. Hello Amit, ITR2 will be your form. You can claim TDS deducted in the respective column. Tks.

  69. Hi Vidya,

    Thanks a tonn!! This is exactly what I was looking for. You’ve cleared my confusion over which form to choose ITR1 or ITR2. Now that I know it’s ITR2 for me its a big relief!

    Also, as I understand, savings bank interest (exempt under 80tta) should go in EI section under Interest Income column, could you please confirm, as there is a small confusion between this and Income from other resources that includes interest?

    And, do I need to declare my LIC policy interim proceeds which are not taxable in my hand? If yes, which column do I need to put this amount in ITR2 for record purpose?

    Thanks once again for your assistance.

    Regards,
    -Vaibhav

    1. Hello Vaibhav,

      Income under 80TTA is a deduction and not an exempt income. Savings bank interest is therefore ‘other income’. The decution upto Rs 10000 is to be shown separately in a schedule called Schedule VIA in the form.

      If you are sure that your LIC proceeds are tax free (if exempt under one of the provisions Section 10), then you may shown in under Exempt Income. Pl. check with your agent on the nature of proceeds.

      Tks
      Vidya

      1. Thanks for the reply, Vidya.

        Now I understand that this interest income is ‘other income’, but where do I specify that In ITR2? I didn’t find any such field ‘Income from other sources’ like that of in ITR1. I’m assuming this specified ‘other income’ will then be compensated against the one that I’ll be specifying in VIA schedule to avail 80tta deduction?

        Can you please clarify?

        Regards,
        -Vaibhav

        1. Pl. see Pg 2 of ITR2 Item no. 4 (a). That is where it will be added. Its corresponding schedule is OS, where you will give all other income break up. The place where you claim deduction is Sch VIA. In case you feel you are not familiar, you may also consider taking the service of TRPs (certified tax return preparer) who will be available in the Income tax office once spl. counters are set up. Of course they charge a small fee. tks, Vidya

          1. Thanks once again. I’ve been referring to the excel ITR2 form and now could figure out that it is in ‘CG-OS’ schedule, point 1b row 89.

      2. Hi Vidya

        You have nicely clarified about section 80 TTA. However, I have filed return mentioning savings bank interest under EI.

        Please let me know if I need to file revised return. And also what is the process of filing revised return.

        With best wishes
        Vinod

        1. Hello Vinod, Technically yes. If youa re filing online with a portal, there will be provision for revised return, else you have to simply fill the same form again and mark the column mentioned as ‘revised return’ tks, Vidya

  70. My form 26 AS shows the tax deducted by my employer correctly and i also have one FD for which tax deducted by bank is shown in 26 AS correctly.

    However when i notice the tax mismatch column link (after filing return) ,it is showing that the last quarter returns filed by my employer and the bank is not taken into account and that is showing as mismatch.I noticed for one of my friends (working in diff company) that when he downloaded the pre -filled XML again it was not showing the fourth quarter tax details even though it is shown in form 26 as…
    Has anybody else faced this issue?

  71. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  72. I am a salaried employee have HRA,Medical allowance will go more than rs5000 and have one RD of 2 years which will meture on dec 2013 and interest will be thinks so more than rs10000 i already filed return with form ITR 1 do i need to revised it with all this info added to that and where to put plz suggest me

    1. The RD maturing in Dec 2013 will be taken as taxable incoem only for FY-14. As for ITR1 or 2 pl contact IT CPC helpline as there is a debate on, in this subject. Tks Vidya

  73. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  74. Sir,
    I am salaried person more than 5 lakhs per annum. I want to file file e return I donot know how to file e returns. Hence I request you sir please tell how to file e return . my email id is vce1700@gmail.com

    please help me.

    thanking you sir

  75. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  76. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  77. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  78. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  79. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

  80. i have file itr 2 instate of itr 4 for the assessment year 2013-14 and such case under income tax office what is a procedure for such case

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