Income tax return (ITR) is the tax form which is used by taxpayers to file information about the…
Tags: Income Tax Return, Taxes, Tax Returns, Itr Filing, Income Tax Return Filing

Income tax return (ITR) is the tax form which is used by taxpayers to file information about the income earned and tax applicable with the income tax department.

Keeping in view the challenges faced by individual taxpayers in meeting the statutory and regulatory compliances owing to the current pandemic, the government has recently extended income tax return (ITR) filing deadline for FY2019–20 by a month till December 31. The due date of furnishing ITRs for taxpayers whose accounts need to be audited has also been extended till January 31, 2021. Here are a few things you need to know before filing the ITR.

Is it mandatory to file income tax return if my earning is below Rs 250,000?

No, it is not mandatory to file an income tax return if your annual income is below Rs 250,000. However, even those who are out of the tax net should consider filing a ‘Nil Return’ to maintain a record. There are several instances where income tax returns are considered proof of employment — for instance, when you are applying for a passport or taking a loan.

2. If I have paid excess tax, how will it be refunded to me?

You are eligible to receive an income tax refund if you have paid more tax to the government than your actual tax liability.

Process to claim a tax refund:

In order to claim an income tax refund, it is mandatory to file an ITR.

Once you have filled up the ITR form, click on the validate button on the ‘Taxes paid and Verification’ sheet. The system will auto calculate the refund due to you and the refund amount will appear in the ‘Refund’ row.

Remember that this is the refund amount that you have claimed, not necessarily the amount that will be accepted and paid by the I-T department. Once the income-tax department has verified your ITR and the refund claim made by you, it will communicate the outcome to you. If you have filed ITR electronically, the I-T department will send you an e-mail or an SMS.

Alternatively, one can track the refund status by visiting tin.tin.nsdl.com/oltas/refundstatuslogin.html.

Refund, if accepted as due, will normally be directly credited to the bank account you had given for this purpose in your tax return.

3. What is form 16 and why is it so important?

In the easiest of words, Form 16 is an important yet a basic Income Tax form. Organizations use Form 16 to offer their employees the required details of the deducted tax. On the other hand, an individual can see Form 16 as their TDS certificate. If in case, the income from your annual salary is above the basic tax exemption limit; then, your employer is asked to subtract TDS from your pay and deposit it to the Indian government.

Employer provides Form 16 to their employees as proof of filing the Income Tax Returns for them. If in case, your annual income is lesser than the exemption limit, no TDS is deducted from your salary, and you shall receive your full salary from your organization.



Concussing all the information in simple words, Form 16 is nothing but a certificate that is given by your company or organization that certifies details regarding the salary you have received during the financial year and the amount of TDS that has been subtracted from your pay regularly.

4. What should one do in case of discrepancies in actual TDS and TDS credit under Form 26AS?

Often, mismatches and discrepancies in actual TDS and TDS credit under Form 26AS are attributed to wrong information provided in the TDS return. Approach your employer/deductor to file a revised TDS return after making the necessary corrections.

The income-tax department allows an assessee to mention the reason for mismatch in the online portal in answer to a notice sent by it.

Filing an ITR is a delicate process so some of us hires Chartered Accountants to file it in behalf of us and they charge a certain amount of fee for it. On the other hand, there are many website where you can file it yourself but they also charge certain amount of money for it. So, if you are out of cash and need money urgently then you can always apply for instant personal loan through online loan apps like SmartCoin. Once you apply for the loan, the amount will get deposited in your bank account within few minutes.