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  1. ITR-1 or ITR-2?
    TaxMunshi will help you select the return form that you need to submit through its simple questionnaire. ITR-1 is for Individuals with the following sources of income: For Individuals having Income from Salary / Pension / Income from One House Property (excluding loss brought forward from previous years) / Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)] ITR-2 is for Individuals /HUF with the following sources of income: This Return Form is to be used by an individual or an Hindu Undivided Family whose total income for the assessment year 2010-11 includes:- (a) Income from Salary / Pension; or (b) Income from House Property; or (c) Income from Capital Gains; or (c) Income from Other Sources (including Winning from Lottery and Income from Race Horses).. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories. 3. Who cannot use this Return Form This Return Form should not be used by an individual whose total income for the assessment year 2010-11 includes Income from Business or Profession.
  2. Can a return be filed after the due date?
    Yes. It may be furnished at any time before the expiry of two years from the end of the financial year in which the income was earned. For example, in case of income earned during FY 2007-08, the belated return can be filed before 31st March 2010
  3. What are different ITRs for Assessment Year 2011-12?
    ITR-1 SAHAJ : Indian Individual Income tax Return ITR-2 : For Individuals and HUFs not having Income from Business or Profession ITR-3: For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship SUGAM (ITR-4S) Sugam: Presumptive Business Income tax Return ITR-4: For individuals and HUFs having income from a proprietory business or profession ITR-5: For firms, AOPs and BOIs ITR-6 :For Companies other than companies claiming exemption under section 11 ITR-7 :For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) ITR-V:Acknowledgment
  
  Basic Information  
 
  1. Assessment Year (AY)
    It is the twelve-month period from1st April to 31st March immediately following the previous year . In the Assessment year a person files his return for the income earned in the previous year. For example for Financial Year (FY):2009-10 the AY is 2010-11.
  2. Financial Year (FY)
    Income earned in the twelve months contained in the period from 1st April to 31st March is called Financial Year [FY]. This is the period for which the Income Tax is calculated. Under the income tax Act this period is called Previous year
  3. How to navigate this website?
    To move from section to section, press the 1,2,.. thru 6 tabs on the top. To complete the ITR interview use the back & next button at the bottom of the form
  4. How to navigate this website?
    To move from section to section, press the 1,2,.. thru 6 tabs on the top. To complete the ITR interview use the back & next button at the bottom of the form
  
  Personal Information  
 
  1. Residential Status
    The residential status of a person is required to be determined for each financial year in order to determine the scope of total taxable income. There are three types of residential status under the law. They are 1) Resident 2) Resident but not ordinary resident [RNOR] and 3) Non-resident. Resident An individual is resident for tax purposes if s/he satisfies any one of the two conditions below: (a) S/he is in India for at least 182 days in the financial year, OR (b) S/he is in India for at least 60 days in the financial year and has been in India for a total of at least 365 days in the four preceding financial years combined. Exceptions: The law gives certain concessions for Indian citizens traveling or staying abroad. If an Indian citizen goes abroad for employment purposes, the period of 60 days will be substituted by 182 days. This relaxation is also extended to an Indian citizen who leaves India as a member of crew of an Indian ship. Therefore, s/he will be resident only if s/he is in India for at least 182 days in the financial year. Similarly, in the case of an Indian citizen or in the case of a non-resident Indian who lives abroad and comes on a visit to India, s/he will not be treated as resident unless s/he stays in India for at least 182 days in the financial year. In the case of an individual, we have to further see if residential status is 'resident' and 'not ordinarily resident [RNOR].' RNOR – A resident individual will be Not Ordinarily Resident if s/he further satisfies any one of the following conditions: (i) S/he is non-resident (as per basic conditions) in 9 out of 10 immediately preceding financial years OR (ii) S/he has been in India for a maximum period of 729 days in the 7 immediately preceding financial years. If the individual is resident but not ordinarily resident (RNOR), certain types of income will not be taxable in India. But, if s/he fails to satisfy the additional condition/s stated above, s/he will be resident and ordinarily resident (ROR) and will be taxed accordingly. Residential status of HUF A HUF is non-resident if its control and management in any financial year is wholly outside India. In all other situations, it is resident. A HUF also has to be categorized as ROR (ordinarily resident) or RNOR (not ordinarily resident). A HUF is RNOR if its Karta is not ordinarily resident, i.e. (i) S/he is non-resident (as per basic conditions) in 9 out of 10 immediately preceding financial years OR (ii) S/he has been in India for a maximum period of 729 days in the 7 immediately preceding financial years.
  2. Physical or Mental disability
    An individual who is suffering from more than 40% of any of the following disabilities is considered to have physical or mental disability and is eligible to claim the special deduction – a) blindness; b) low vision; c) leprosy-cured; d) hearing impairment; e) locomotor disability; f) mental retardation; g) mental illness; h) autism; i) cerebral palsy; j) multiple disability.
  3. Severe Disability
    An individual is said to be severely disabled if s/he is suffering from 80 per cent or more of any of the following disabilities – a) blindness; b) low vision; c) leprosy-cured; d) hearing impairment; e) locomotor disability; f) mental retardation; g) mental illness; h) autism; i) cerebral palsy; j) multiple disability.
  4. What is a PAN ?
    Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department. A typical PAN is AABPS1205E.
  5. Where and how to apply for a PAN
    Pls. go to http://www.incometaxindia.gov.in/PAN/Overview.asp for latest information from Income Tax department of India. In order to improve PAN related services, the Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers. PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL (www.incometaxindia.gov.in,www.utiisl.co.in or tin.nsdl.com) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centers and TIN Facilitation centers.
  6. Assessing Officer Code
    Assessing Officer code may be obtained from Income Tax Office where you submit your return of income. Applicants who have never filed return of income may find out Assessing Officer code with the help of IT PAN Service Center or TIN Facilitation Center or jurisdictional Income Tax Office.
  7. Why do You need a PAN ? Details
    http://www.paisaa.in/blog/?p=68
  8. How can I find the Designation of Assessing Officer (Ward/Circle)?
    You can find it by going to the following ITD website: http://www.incometaxindia.gov.in/ao/firstlevel.asp Pls. note: the above works best with Internet Explorer
  
  Salary  
 
  1. Type of Employer
    Government /PSU Company or organization in which Central or State government has direct or indirect control over its affairs Others Company or organization which are not called Government Undertaking
  2. Date of Joining
    If a person is employed by the Central government or any other employer on or after 1st January 2004, then s/he is eligible for a deduction for contribution made to the Pension Scheme notified by the Central government.
  3. Form No.16
    Form 16 is a certificate issued by your employer which confirms all your receipts from employment and tax deducted from such receipts. It also carries information about the tax paid to the Government. In the absence of Form No.16, you will not be in a position to provide the necessary information to complete your tax return like; allowances, deductions, tax deducted etc. For e.g. Tax is deducted for each month by your employer from your salary, information of each payment of tax by the employer is required to get credit of the tax deducted, such information is part of the Form 16.
  4. What is Gross Salary
    Gross Salary consists of three parts: salary, perquisites, and profits in lieu of salary. It includes i) wages, ii) annuity or pension iii) gratuity iv) fees, commission v) leave encashment vi) advance salary, provident fund contribution in excess of prescribed limit etc. Your Salary certificate in Form 16 will provide these three fields of gross salary. You should enter the required information in the fields provided here. However, if any field is not present in your Form 16, it should be left blank.
  5. Value of Perquisites
    A “perquisite” is any extra benefit allowed to an employee, in addition to the normal salary, by virtue of holding a post or position in a company. Examples are rent free accommodation, accommodation at concessional rent, provision of a sweeper, gardener, watchman by the employer, educational facilities for the family members of the employee, etc.
  6. Profits in Lieu of Salary
    Certain payments in lieu of or in addition to salary and perquisites are treated as profits in lieu of salary. These payments include i) termination compensation received from the employer or former employer ii) payment from an unrecognized provident fund ii) payment under Key Man Insurance policy and iv) any amount received before the employment commences or after the employment ceases.
  7. Relief u/s 89
    When the individual is assessed to tax for income more than 12 months due to receipt of i) salary in arrears, ii) gratuity iii) commutation of pension etc. and income is assessed at a rate higher than regular rate applicable. The relief under Section 89 can be claimed by submitting details in Form No.10E to the employer.
  8. Allowances
    “Allowances” are fixed or predetermined amounts paid or granted to the employee for personal use or for the performance of official duties. These are generally exempt from tax either wholly or partly. Examples are i) House Rent allowance ii) Children Education allowance iii) Transport allowance iv) sum paid at the time of job transfer for packing and transportation of personal effects v) Leave Travel Concession vi) Leave Encashment etc.
  9. Basic Salary
    In the salary structure, your Basic Salary and Dearness allowance would be separately defined than all the other allowances and perquisites. e.g. Basic salary is the base figure used for calculating PF contribution or gratuity.
  10. Dearness Allowance
    This allowance is an additional payment over and above the salary for meeting the high cost of living, separate from other allowances in your salary structure.
  
  House Property  
 
  1. Share of ownership
    Share of ownership is your individual share as one of the owners in a jointly-owned property. After calculating annual income for a property under this head of income, this share of ownership will be considered to calculate your share of taxable income for the property proportionately.
  2. Self-occupied
    The property occupied by you and/or your family without any payment of rent is termed as ‘Self-occupied property’. If you own more than one house property, only one house property can be considered as ‘Self-occupied property’ for exemption and all other properties will be considered as ‘Rented out property’ for the purpose of ‘Income from House Property’. The annual value of Self occupied property is taken as NIL if the property is fully utilized for own residential stay during the year or if the property is not actually occupied as owner and is also not let out. If a property is let out for only a part of the year, proportionate annual value will be calculated.
  3. Rented out
    The property which is not occupied by you (owner) but given on rent or on lease to another person is considered as ‘Rented out property’. However, if you have more than one property and have not given any property on rent or lease to another person, even then only one property of your choice will be treated as self-occupied. Every other property is considered as ‘Rented out’ for the purpose of ‘Income from House Property’ and under tax law, known as “Deemed Let out”.
  4. Means of Finance
    Means of finance includes ‘Self Fund’ and ‘Borrowed Fund’.
    If you have taken any ‘Loan’ or ‘Borrowed Fund’ for the purpose of purchasing, constructing, repairing, renovating, or reconstructing the property, the interest paid on such a ‘Loan’ or ’Borrowed Fund’ can be claimed as a deduction from ‘Income from House Property’.
  5. Rent of earlier year
    ‘Rent’ due in the earlier year but not received in that year, now received in the current year is termed as ‘Rent of earlier year’. In other words it means ‘unrealized rent of earlier year/s’ received in the current year.
  6. Arrears of Rent
    Arrears of rent refer to receipt of rent which was due but outstanding and the same was not offered for tax in the year in which it should have been received. Non-receipt of ‘agreed rent’ of ealier year, on receipt in current year, is also known as ‘Arrears of Rent’.
  7. Interest paid
    Interest paid on loan or borrowed fund taken for the purpose of purchasing, constructing, repairing, renovating, or reconstructing of a house property. If interest is paid on loan or borrowed fund taken for purchasing a house property under construction, then do not include the Pre-construction interest.
  8. Pre-construction Interest
    Interest paid on loan or borrowed fund up to the year of completion of construction of the property is known as ‘Pre-construction interest’. 1/5th of the total pre-construction interest is available for every year spread over 5 years. e.g. a House Property under construction is purchased on 01-01-2006 and a loan is taken to purchase the same simultaneously. Assume the construction is completed and possession is given to the purchaser on 31-12-2007. Then… The interest paid for the period 01-01-2006 to 31-03-2007 is pre-construction interest. The deduction of this pre-construction interest is available in five equal parts, 1/5th every year. The interest for the period 01-04-2007 to 31-03-2008 will be interest paid during the year. Therefore for Interest paid during the year enter the amount of interest paid for period 01-04-2007 to 31-03-2008 and for Pre-construction Interest enter the total interest paid for the period 01-01-2006 to 31-12-2007. The 1/5th will be automatically calculated.
  9. Financial Year of Loan
    Financial Year of Loan... ...is the year in which a ‘Loan’ is taken for the purpose of purchasing, constructing, repairing, renovating, or reconstructing a house property. As per the above example it would be 2005-2006.
  10. Financial Year of Purchase / Construction
    Financial Year of Purchase / Construction... ...the financial year in which the property is either purchased or in which construction is completed and possession is given to the purchaser. As per the above example it would be 2007-2008.
  11. Rent receivable
    Rent receivable is the total amount to be paid by the tenant to the owner for use of the property for that year. It will also include expenses of the owner borne or paid by the tenant.
  12. Fair Rent
    Fair rent means the rent which a similar property in the same or similar locality, would fetch or obtain for that year.
  13. Rent as per Municipal Valuation
    Rent as per Municipal Valuation... ...is the valuation of the property determined by the Municipal Authorities as per certain parameters for collecting municipal tax on such property. However in the case of a society, the annual valuation certificate of a flat should be obtained from the society.
  14. Rent Control Act
    In order to prevent exploitation of tenants, various states in India have passed Rent Control Acts. The standard rent that can be charged from the tenant by the landlord can be ascertained from this Act.
  15. Property remained vacant
    If a property is available for renting but could not be rented, then the months in which it could not be rented is the period for which the property remained vacant.
  16. Municipal Tax
    Municipal Tax... ...the tax levied by the local Municipal Authority on valuation of such property, determined on the basis of certain parameters. In the case of a flat in a society the maintenance bill for the year would include the municipal tax amount, separately shown.
  17. Rent not realized
    Rent not realized... ...is that part of the ‘agreed rent’ receivable for the year, that is not received during the year.
  18. No. of month let-out
    No. of months property was available for let-out is... ...is the total number of months for which the property was available for renting out during the year i.e. empty for giving it on rent.
  19. What is the tax on House Property Income
    Tax is on the annual value of the house property after allowing certain deductions. House Property consists of any building, flat, shop etc., and the land attached to the building.
  20. Loss on House property
    The Income-Tax Act allows you to offset your losses against your income/profits and carry them forward to subsequent financial years (FYs). One needs to understand the provisions for this and carrying forward losses to be able to fully ascertain the net impact on your taxable income. Losses from house property Loss from house property can be offset against income from any other head, including salary in the same FY. If there is no sufficient income against which such a loss can be offset, the remaining loss can be carried forward up to eight FYs. In subsequent FYs, such a loss can be offset only against income from house property.
 
  Capital Gain - Shares  
 
  1. Shares & Securities
    It includes equity shares and preference shares of a ‘Company’ whether quoted or not quoted on a recognized stock exchange.
  2. STT
    Section 98 of Chapter VII of Finance (No. 2) Act, 2004,provides for charge of securities transaction tax (STT). It is provided that in th case pf sale oa a derivative, where the transaction of such sale is entered intop in a recognized stock exchange, the securities transaction tax will be at the rate of .017% and will be payable by the seller.
  3. What is Capital Gain?
    If any Capital Asset is sold or transferred, the profits arising out of such sale are taxable as capital gains in the year in which the transfer takes place. Definition of capital asset Capital Asset means all movable or immovable property except trading goods, personal effects, agricultural land other than within municipal areas or within 8 kilometers from it wherever notified and gold bonds. Jewelry and ornament are not personal effects and their sale will attract capital gains.
  4. Long Term Capital Losses
    Losses under this are categorised as short term and long-term capital gains. Short-term capital loss can be offset against any capital gain — long term or short term. Long-term capital loss can be offset only against a long-term capital gain. Any capital loss after the offset can be carried forward up to eight FYs. A short-term loss which is carried forward can be set off against any capital gains. A long-term capital loss which is carried forward can be offset against only long-term capital gains. Both long-term and short-term capital losses can’t be offset against income from any other source.
  5. What is Short Term Capital Gain
    Short Term Capital Gain (STCG) If shares or equity MFs are held for less than 12 months before selling, the gain arising is classified as Short Term Capital Gain. [The only condition here is that the shares / equities should be sold on a recognized stock exchange (for example, BSE or NSE), and a securities transaction tax (STT) should be paid on it. If the sale of shares is off-market (that is, if the sale is not on a stock exchange), the gain would be classified like that for other capital assets.
  6. What is Long term capital gain
    If shares or equity MFs are held for more than 12 months before selling, the gain arising is classified as Long Term Capital Gain.
  
  Capital Gain - Mutual Funds  
 
  1. Mutual Funds
    It includes units of a mutual fund whether equity-oriented or Debt-oriented.
  
  Capital Gain - Bonds/Debentures  
 
  1. Bonds & Debentures
    It includes debenture, bonds and government securities.
  
  Capital Gain - Property  
 
  1. Property
    It includes ‘Residential’, ‘Agricultural’ or ‘Other Properties’. The property utilized for the purpose of residing is a residential property. The property utilized for the purpose of agricultural activity is an Agricultural Property. Other property means, any property other than the above.
  2. Capital Gains Account Scheme (CGAS)
    If you get long term capital gains , Income Tax Act provides certain exemptions under section 54,54B,54D,54F and 54G .In short these exemption are for capital gains earned on account of * Sale of a residential house (Sec 54) * Sale of agricultural land (Sec. 54B) * Compulsory acquisition of land & building (Sec. 54D) * Sale of any long term capital asset (Sec. 54F) * Transfer of assets in case of shifting of industrial undertaking. (Sec 54G) In all these cases, an assessee is given exemption if the sale proceeds are utilised for some specific purpose. But it happens that the money can not be utilised within short span of time. In that case, there is provision that the money is deposited in designated bank in a special kind of account called Capital Gains Account Scheme and utilise the money for that specific purpose within extend period given in those section. Therefore , all those assessees who are eligible for exemption u/s 54, 54B, 54D, 54F & 54G are eligible for applying for accounts under Capital Gains Account Scheme.
  
  Capital Gain - Intangible Assets  
 
  1. What is Intangible Asset
    An intangible asset is an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes
  
  Capital Gain - Other Capital Assets  
 
  1. Other Capital Assets
    All assets which are be not specifically covered under Shares and Securities, Mutual Fund, Bonds and Debentures and Property, are catogorised as Other capital assets. They can be of any kind, movable or immovable, tangible or intangible.
  
  Other Sources - Interest  
 
  1. Interest Income
    Interest income includes receipt of interest from Saving/FDR Bank Account, Debenture Interest, Interest on securities (NSC, Kisan Vikas Patra, Bonds etc.), Interest on Income-tax refund, Interest on loan advanced etc.
  
  Other Sources - Dividend  
 
  1. Dividend Income
    Dividend income is the amount received on shares of a company or units mutual fund owned by you.
  
  Other Sources - Rental Income  
 
  1. Rental Income
    Rent income for any machinery, plant or furniture given on rent or hire is to be included here. Any other rent income not covered here or under income from house property will fall under Residual Income.
  
  Other Sources - Gifts  
 
  1. Gifts received
    Any money received voluntarily as a gift is to be included here. One can receive any amount from her/his relatives and need not pay any income tax on it as there is no gift-tax at present. Gift can be received from: - Spouse - Relatives like sibling, spouse’s sibling, siblings of parents , lineal ascendant or descendant of the individual or his/her spouse ( lineal descendant is a person who is in direct line to an ancestor, such as child, grandchild, great-grandchild and on. Similarly, a lineal ascendant is parent, grandparent, great-grandparent and so on.) , spouse of a sibling or spouse of the above relatives. -Non-relatives: This comprises of anyone who does not fall in the above 2 categories. Non-relative gifts from are exempt only up to Rs. 50,000 aggregate per financial year.A Hindu Undivided Family (HUF) cannot have relatives - any gifts received by a HUF in excess of Rs. 50,000 in a year would be liable to full income tax. -Tax-Exempt Gifts from Other Persons: Other than gifts received from a relative or on the occasion of an individual's marriage, the following are the other gifts which are completely exempt from tax as provided in the proviso to Section 56(2)(vi) of the I.T. Act: A. Gift received under a Will or by way of inheritance; B. Gift in contemplation of death of the donor; C. Gift from any local authority; D. Gift from any fund or foundation or university or other educational institution or hospital or any trust or any institution referred to in Section 10(23C); E. Gift from any trust or institution, which is registered as a public charitable trust or institution under Section 12AA.
 
  Other Sources - Family Pension  
 
  1. Family Pensions
    Regular monthly income received by a legal heir or person belonging to the family of an employee after his/her death, is to be included here
  
  Other Sources - Aggriculture Income  
 
  1. Agricultural Income
    Income earned from agricultural land or from any operations related to agricultural activity, is to be included here. It will also include rent of agricultural land.
  
  Other Sources - Race Hourse  
 
  1. Income from owning and maintaining racehorses
    Income earned from activity of owning or maintaining of race horses, is to be included here.
 
  Other Sources - Winning from Lottery/Gambling  
 
  1. Winnings from Lottery, Gambling etc.
    Winnings from various sources like lotteries, crossword puzzles, races including horse races, prizes, card games, gambling or betting, are to be included here.
  
  Other Sources - Residual Income  
 
  1. Residual Income
    Any income earned and does not form part of other specific category under this head is to be included here, for e.g. Director Fees, Royalty, Commission , Tution fees, remuneration as member of parliament etc.
  
  Special Situation  
 
  1. Unadjusted losses of earlier years
    Any past losses for 1) House property 2) Short Term Capital Assets and 3) Long Term Capital Asset, incurred from 1.4.1999 onwards and remains unadjusted, shall be mentioned here. However, any past losses in respect of an activity of owning and marinating of race horses, incurred from 1.4.2003 onwards and remains unadjusted, shall be mentioned here. Earlier years return of income must have been filed within due date Before providing any details of any past losses in respect of 1) short term capital loss, 2) Long Term Capital Loss and 3) Activity of owning and maintaining of race horses, one should ascertain that the return of income of the year in which the loss was incurred was filed on or before the due date. However, such condition is not applicable in case of loss from House Property.
  2. Brought Forward Short Term Loss
    Brought forward short term capital loss can be adjusted against Taxable Long Term capital gain or short term capital gain of current assessment year. Short term capital loss can be carried forward upto 8 Assessment years provided you have filed return showing loss within due date under section 139(1) of IT act. The short term capital loss should be adjusted against the INCOME UNDER THE HEAD CAPITAL GAIN. The loss remaining after set off can be carried forward for remaining assessments years of 8 years
  
  Specified Investment - Shares/Units of Mutual Funds  
 
  1. DeductionMainsummary
    Certain Investments made or expenditure incurred are allowed as deduction from taxable income of the year, such investments or expenditure should be included here. Investments: Investments that are eligible for deduction are: capital gain bonds, units of mutual fund, premium paid for specified Insurance policy, provident funds, bank or postal schemes, residential property, agricultural property and specified tax saving bonds. Expenditure : Expenditure eligible for deduction are medical, housing, education, charitable contribution and other contribution.
  2. Capital Gain Bonds
    Capital Gain Bonds are issued by National Highway Authority of India or Rural Electrification Corporation. investments in these bonds can save tax on capital gain and are to be included here.
  3. Units of Mutual Fund
    Investments made in units of Mutual fund schemes like Equity Link Saving Scheme (ELSS), Notified Pension Fund or Other Specified schemes of Mutual Funds is to be included here to claim deduction from taxable income.
  
  Specified Investment - Payment of Insurance Plans  
 
  1. Insurance Policy
    Any contribution or premium paid towards an Insurance scheme like Life insurance, Annuity Plan of LIC, Deferred annuity plan, ULIP, etc. is to be included here to claim deduction from taxable income.
  
  Specified Investment - Providend Fund  
 
  1. Provident Funds
    Any contribution made to Recognized Provident Fund, Statutory Provident Fund, Public Provident Fund or Superannuation Fund is to be included here to claim deduction from taxable income.
  
  Specified Investment - Bank & Postal Scheme  
 
  1. Banks and Postal Schemes
    Any amount invested in Term Deposit with a Schedule Bank (for 5 years or more), National Saving Certificate, Time Deposit with Post Office or Senior Citizen Saving Scheme, is to be included here to claim deduction from taxable income.
  
  Specified Investment - Tax Saving Bonds  
 
  1. Tax Saving Bonds
    Amount invested in notified infrastructure bonds issued by HUDCO, NABARD or any other tax saving bond, is to be included here.
  
  Specified Investment - Other 80C  
 
  1. Residential Property
    Any amount invested in New Residential House Property to save tax on long term capital gain received on sale of old Residential House Property or any Other Capital assets, is to be shown here.
  2. Agricultural Property
    Any agricultural land purchased to save taxable capital gain received on sale of agricultural land which was used by you or your parents for agricultural purposes for a period of two years before the date of sale, shall be included here. However, the new agricultural land purchased to save tax has to be purchased within a period of two years from the date of sale of original agricultural land.
  3. What is the Limit on 80CCF Deductions
    SECTION 80CCF -DEDUCTION FOR INVEST IN LONG TERM INFRASTRUCTURE BONDS The new section 80CCF, will offer a deduction of Rs 20,000, in addition to the deduction of Rs 1 lakh under sections 80C, provided the investments are in notified long term infrastructure bonds. The government has proposed this section to promote investments in infrastructure projects in the country. Deduction under this section is available only to individual and HUFs tax payers. In the event that any applicant applies for the bonds in excess of Rs 20,000 p.a., the aforestated tax benefit shall be available to such applicant only to the extent of Rs 20,000 p.a. The long term infrastructure bonds will have tenure of 10 years. Minimum lock in period of 5 years.
  
  Specified Expenditure - Medical Treatment  
 
  1. Medical Expenditure
    Personal Medical Premium Paid Medical insurance premium paid by cheque or through credit card, on the health of taxpayer, spouse, dependent parents and/or dependent children shall be included here. Any premium paid by HUF on the health of any member of the family shall also be included here. Maximum deduction allowed towards such expenditure is Rs.15,000 (Rs.20,000 in case of a Senior Citizen). Medical Expenditure paid on the health of any handicapped and dependent member of the family. Any expenditure paid for the medical treatment, training and rehabilitation of handicapped (disable) dependent family member, shall be included here. Any amount paid or deposited towards the scheme of LIC of India (for e.g. Jivan Aadhar) or any other insurer for such purpose, shall also be included here. Flat deduction is available of Rs.50,000/-, however in case of sever disability such deduction will be of Rs.75,000/-. Disability means a person suffering from Blindness, low vision, mental illness/retardation, multiple/locomotor disability. Medical Expenditure for medical treatment of self or any of the family member suffering from specified disease Any medical expenditure paid for the specified disease and ailments of dependent relatives , is to be included here. Specified diseases includes 1) Malignant Cancer 2) Parkinsons Disease 3) Thalassemia etc. Maximum amount of Rs.40,000 is allowed as deduction ( Rs.60,000/- in case of a senior citizen dependent relative).
  2. Specified Diseases
    1. For the purposes of section 80DDB, the following shall be the eligible diseases or ailments :
      1. Neurological Diseases where the disability level has been certified to be of 40% and above,—
        1. Dementia
        2. Dystonia Musculorum Deformans
        3. Motor Neuron Disease
        4. Ataxia
        5. Chorea
        6. Hemiballismus
        7. Aphasia
        8. Parkinsons Disease
      2. Malignant Cancers
      3. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
      4. Chronic Renal failure
      5. Hematological disorders :
        1. Hemophilia
        2. Thalassaemia.
 
  Specified Expenditure - Housing & Education  
 
  1. House & Education Expenditure
    Expenditure by way of repayment of principal of Housing Loan Any installment for repayment of amount borrowed towards the Housing Loan taken for purchase or construction of such residential house property which is subject to tax under the head ‘Income from House Property’ can be claimed here. Expenditure by way of interest on Higher Education Loan Any amount paid towards interest by the tax payer for the higher education of Self, Spouse or Children, is to be shown here. Borrowing can be from bank or approved charitable institutions. however deduction can be claimed for eight years , starting from the year in which the tax payer starts repaying interest on such borrowed loan.
  
  Specified Expenditure - Charitable Organization  
 
  1. Charitable Contributions
    Any donation made by a taxpayer to an approved fund or charitable institution, shall be stated here to claim deduction from taxable income. For e.g. Donation paid to Prime Minister National Relief Fund, National Defence Fund, CRY, Prime Minister Draught Relief Fund or any notified Tample, Church, Gurudwara, etc.
  
  Specified Expenditure - Other Organization  
 
  1. Other Contributions
    Donations made to scientific research or rural development. Donations or Contributions made to any approved association, institution, university, college, or PSU/Local authority engaged in scientific research, research in social science, statistical research r rural development, shall be shown here. Contribution to a political party. Any amount of contribution made to a political party shall be included here.
  
  Tax Credit - Tax Payment  
 
  1. Tax Payment
    Details of advance tax and self assessment tax paid shall be stated here. This will include details such as 1) Name of the Bank, 2) Branch, 3) BSR code (provided on challan by bank), 4) Date of Depsit, 5) Challan Serial No. and 6) Amount of tax paid.
  2. Bank BSR Code
    If you don't know your Bank BSR Code then please go to this link here http://www.tin-nsdl.com/OLTASListOfBSR.asp
  3. What is e-payment ? Can I e-pay my taxes?
    e-Payment facilitates payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the banks listed in the link below, which are the only banks offering this facility at present. https://onlineservices.tin.nsdl.com/etaxnew/Index.html
  4. Challan to Deposit Tax
    Pls. review this form on ITD website and follow instructions: http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/challanITNS-280.pdf
  5. What is TAN?
    TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.
  6. Bank Account Number for Income Tax Department
    Please provide an active bank account information. Remember that ITD may take several months to process your refund, so the account you provide needs to be active at the time your refund is processed.
 
  Tax Credit - TDS/TCS  
 
  1. Tax Credit
    To claim tax credit for taxes paid either by way of Advance Tax, Tax Deducted at Source (on income other than salary) or self assessment tax, is to be mentioned here. Or The following tax information can be entered in this section Tax Deducted at Source from income other than salary Advance tax paid Self-assessment tax paid.
  2. TDS / TCS
    The details of Tax Deducted or Tax Collected from all sources (other than salary) for e.g. income from Interest on securities, Interest other than on securities, Winning from lotteries, acquisition of immovable property, etc. , should be mentioned here. The details will include 1) Name and complete address of the person deducting tax 2) Tax Deducted at Source number (TAN) of the person deducting tax 3) Nature of payment such as Interest, Intrest on securities, Winning form lottery etc. 4) Date of payment/credit of amount 5) TDS /TCS amount 6) Amount taken as credit for the year All the above details can be taken from the form no.16A (TDS /TCS certificate) provided or issued for such purpose.
  3. What is TAN
    TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.
  4. How to view tax credit
    You can go to the following site and follow the steps mentioned. http://www.tin-nsdl.com/panregistration.asp
  
  Print & File  
 
  1. What is MICR code
    MICR stands for MAGNETIC INK CHARACTER RECOGNITION (MICR) In MICR technology the information is printed on the instrument with a special type of ink which is made up of magnetic material. On insertion of the instrument in the machine, the printed information is read by the machine. MICR system is beneficial as it minimizes chances of error, clearing of cheques becomes easy and transfer of funds becomes faster in order to facilitate operations. MICR code consist of 9 digit First three digit (1-3) denotes city and are same/identical first three digit of your pin code for example first three digit of Pin code of New Delhi =110 so first three digit of MICR code of all the bank branches located in New Delhi must be 110. 4-6 digit denotes for Bank each bank has given a three digit code,4-6 digit is= bank code eg. SBI code is "002"so 4-6 digit of MICR code all the the branches of SBI is "002" irrespective of location in the india. (7-9)Last three digit denotes branch code,it is in serial wise ,means if delhi has only one branch of SBI and its MICR code will be 110(FOR CITY) 002(FOR BANK) 001(FOR BRANCH) "110002001" so if you are located in delhi & your client has given you a Micr code of the bank located in New Delhi , doesn't begin with "110",you can easily tell him your Micr code is wrong. HOW CAN I KNOW MY BANK BRANCH MICR CODE 1. From your bank branch 2. from your cheque book from cheque book ????yes ,if your bank branch has a Micr code than it is also printed on your cheque book,check your cheque book if there is a nine digit code and first three digit of the code=first three digit of your pin code than you can have got your MICR code. so please fill MICR code to get the income tax refund directly into bank account.
  
  AIR  
 
  1. AIR
    As per Section 285BA of the Income Tax Act, 1961, read with Rule 114E of the Income Tax Rules, 1962, specified entities (Filers) are required to furnish an Annual Information Return (AIR) in respect of specified financial transactions registered/recorded by them during the financial year (beginning on or after April 1, 2004) to the income tax authority or such other prescribed authority.
  
  Using TaxMunshi  
 
  1. What forms does TaxMunshi Prepare?
    Currently TaxMunshi only prepares Forms ITR-1 and ITR-2.
  2. Why should I use TaxMunshi
    Easy to use and simple interface Integrated help - each page has its own specific help on the same screen Register for free and pay only when you are ready to print or file No limit to number of employers, number of deductions, number of investments or number of tax payments you can add Enables both paper filing and e-filing options. TaxMunshi generates ITR -1/2 pdf and XML file for uploading at Income Tax Department's website E-file returns directly at the Income Tax Department
  3. How do I become a TaxMunshi user?
    Becoming a TaxMunshi user is extremely easy. Follow the following steps to use TaxMunshi 1. On the home page www.paisaa.in, click on TaxMunshi or "Start for Free". A new window will open up. 2. Click on new user and register your information. 3. Check your email and click on the link send by us. 4. Create your password and you are ready to take advantage of the market leading, easy to use and accurate tax preparation service from TaxMunshi.
  4. How do I use TaxMunshi?
    Using TaxMunshi is extremely easy. The application will ask you to fill in relevant information and prompt you to make changes in case you have missed anything. Click on "Take A Tour" on our homepage to see how easy it is to use TaxMunshi. The application is divided into six separate steps - 1. Basic Information- name, email , phone number etc. 2. Personal Information - address, father's name etc. 3. Earnings - You can select relevant earnings applicable to you. For example, salary, housing, pension, rental , investment etc. 4. Deductions - You can select deductions applicable to you. For example, medical, insurance, mutual funds, 80C, 80CC, 80D etc. All deductions available for tax savings purposes are available. 5. Tax Credit/Payment - Enter all your advanced tax payments or tax deductions at source. Select from drop downs to decrease data entry time. 6. Print - In this step, you will be allowed to review all your data entry. Once you feel comfortable, you can pay us and generate your ITR form and XML file.
 
  How to File My Tax returns  
 
  1. How can I file my paper return?
    We highly recommend that you eFile and not do manual filing as that helps with expedited return processing. However, if you want to file manually, TaxMunshi also provides a complete and accurate ITR-1/2 in pdf version. Print this form and sign it based on teh instructions provided. You can submit the form physically to your Local Income Tax office by July 31st for the previous Assessment Year.
  2. How can I e-file my return?
    Following are the steps to e-file your returns 1. You will be provided an option at the end of your ITR preparation to a. eFile with Digital Signature b. eFile without Digital signature 2. Chose the option that is applies to you. If you do not already have a Digital Signature, we recommend eFile without Digital signature. If you have a Digital signature that you want to use , pls. make sure it is registered at with Income Tax Department 3. Once we eFile your return successfully, you will receive an acknowledgement email from ITD 4. Incase the return is digitally signed; on generation of "Acknowledgement" the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record. 5. Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers on colour printer. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be mailed to "Income Tax Department - CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka" within 120 days after the date of transmitting the data electronically. In case, Form ITR-V, is furnished after the above mentioned period, it will be deemed that the return in respect of which the Form ITR-V has been filed was never furnished and it shall be incumbent on the assessee to electronically re-transmit the data and follow it up by submitting the new Form ITR-V within thirty days. This completes the Return filing process for non-digitally signed Returns.
  3. What is e-filing?
    Currently, the Income Tax Department provides a unique functionality to tax payers via its efiling website. Using this functionality, any tax payer can just upload an XML file that is compatible to Income tax Department's requirements
  4. Paper based tax filing vs. e-filing?
    Currently, the Income Tax Department provides tax payers two options to file their taxes. One is to use paper based ITR forms and the second option is to use e-filing at Income Tax Department's website mentioned below. We encourage our users to use e-filing since it is more convenient, less time taking and much more accurate. It is also environment friendly.
  5. What are the benefits of efiling with digital signature certificate (DSC)?
    There is only one benefit to using Digital Signature Certificate. If you use Digital Signature Certificate, you will not need to physically send the ITR-V. However, this comes at an additional cost and we at Paisaa Innovative Solutions encourage our customers to directly mail the ITR-V to the Income Tax Department , CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka within thirty days after the date of transmitting the data electronically. Even if you decide to purchase a Digital Signature Certificate, you can use our service to generate accurate XML file at a very low cost and upload it at the Income Tax Department website.
  
  Promotions  
 
  1. What are the promotions available for TaxMunshi?
    We change our promotional offers very frequently. Please look at "Special Offers" section of our website for any current/new offers.
  
  Support  
 
  1. What can I contact TaxMunshi support for?
    You can contact support@paisaa.in for the following issues: 1. Login/Registration issues 2. Application support issues 3. Payment related issues 4. Money Back Guarantee related issues 5. Any feedback
  2. How soon can I expect a reply from TaxMunshi Support?
    We typically provide a response within 24 hours.
  
  Payment Methods  
 
  1. How do I pay for TaxMunshi?
    You can use multiple payment methods available thru our payment gateway CCAvenue 1. Credit Card s - Master Card, Visa, Diners Club and JCB cards 2. Debit Cards from major Indian banks 3. Net Banking accounts of more than 30 Indian banks 4. Easy Cash Card
  
  Security  
 
  1. How does TaxMunshi protect your online security?
    We take your financial security very seriously. All the key financial data is encrypted. Apart from that we have upto 256 bit SSL for added security. For your payment transactions, we do not keep any data on our site. All your payment transactions take place directly at our payment gateway CCAvenue which is India's leading payment gateway.
  
  Tax Credit - Relief  
 
  1. Relief under section 89
    If you received salary in advance or in arrears, or gratuity in excess of the specified limits, or compensation on termination of employment, then you can claim relief under Section 89.
  
   
     
   
     
 
 
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