Income Tax Filing

  • Salary Income Tax Filing
  • House Property Income Tax Filing
  • Presumptive Income Tax Filing for Business and Profession, Freelancers 
  • Normal Business Income Tax Filing after Preparation of Balance sheet and Profit and loss account
  • Capital Gain Tax Filing
  • Other Income Sources Tax Filing
  • Advance Tax Payment Assistance
  • Non Resident Individual Taxation Filings
  • Addressing Income Tax Notices Electronically
  • Representation by a Qualified Person on behalf of Client to Assessing Officer
  • Income Tax Refund Assistance
  • Lower Tax Certificate on Sale of Properties by NRI
  • Repatriation of Funds
  • TDS filing on Property Sales
  •  ETDS filing

Income Tax Filing Basics

Tax Slabs

Tax SlabFY 2018-19 Tax Slab 
Up to Rs 2,50,000No taxUp to Rs 2,50,000 
Rs 2,50,000 – Rs 5,00,0005%Rs 2,50,000 – Rs 5,00,000 
Rs 5,00,000 – Rs 10,00,00020%Rs 5,00,000 – Rs 10,00,000 
Rs 10,00,000 and beyond30%Rs 10,00,000 and beyond 

The following source of Income is Taxable

Income from SalarySalary, Allowances, Leave encashment basically all the money you receive while rendering your job as a result of your employment agreement
Income from House PropertyIncome from house or building, this may be owned and self-occupied or may be rented
Income from Capital GainIncome from gain or loss when you sell a capital asset
Income from Business or ProfessionIncome/loss that arises as a result of carrying on a business or profession
Income from Other SourcesThis is the residual head – includes your income from savings bank accounts,fixed deposits,family pension or gifts received

Deductions

PPF

One of the most popular deductions under 80C is deposits to Public Provident Fund or PPF. When you open a PPF account, you need to deposit a minimum of INR 500 and a maximum of INR 1,50,000 in a year. Money deposited in a PPF account compounds, as you deposit more money in the subsequent financial years to claim deductions. PPF is a traditional and safe saving avenue to park your hard earned money. A PPF account can be easily opened with a bank.

Tax Saving FD

Fixed deposits assure capital protection as well as a sizable interest income for investors. To get tax benefits under 80C, you need to stay invested for at least 5 years. It is safe, but the Interest Income from it is taxable.

ELSS Mutual Fund

One of the only mutual fund scheme allowed under 80C, ELSS (Equity Linked Savings Scheme) is gaining popularity among people for its historically higher performance in the recent years. Another perk of ELSS is that it has the lowest lock-in period of 3 years.

Salary Income Tax Filing

Understand your Payslip by these major components

Major Components in your Payslip

Basic Salary

This is a fixed component in your paycheck and forms the basis of other portions of your salary, hence the name. For instance, HRA is defined as a percentage (as per the company’s discretion) of this basic salary. Your PF is deducted at 12% of your basic salary. 

House Rent Allowance

House Rent Allowance, as the term suggests, is an allowance granted by employers to employees to meet their house rent expenses. The HRA of a salaried individual is primarily based on the following factors:

  • City of residence
  • Basic salary

If the individual is not living in a rented accommodation, the entire HRA component of his/her salary is taxable. On the other hand, if he/she is paying rent regularly, a part of the HRA component is exempt from tax.

The taxpayer will have to submit his/her rent receipts in order to avail tax exemption on HRA. In case the individual is living in a rented accommodation and the rent paid exceeds Rs.1 lakh in a financial year, then the PAN details of the landlord need to be submitted along with the HRA claims. The landlord can provide a self-declaration in case he/she doesn’t have a PAN card.

Let us consider the scenario of a salaried individual, Mr. Ganesh, who resides in Delhi. He lives in a rented accommodation and pays a monthly rent of Rs.10,000. This amounts to Rs.1.2 lakh annually. The table below shows his monthly earnings:

Basic SalaryRs.30,000
HRARs.13,000
ConveyanceRs.2,000
Special AllowanceRs.3,000
Leave Travel Allowance (LTA)Rs.5,000
Total EarningsRs.53,000

There is a Provident Fund contribution of Rs.2,000 and professional tax of Rs.200 that is deducted from his salary each month.

As per the income tax rules, the tax-exempt part of the HRA is the minimum of the following amounts:

  1. Actual HRA component of his salary
  2. 50% of his basic salary if he resides in Delhi, Chennai, Kolkata, or Mumbai; 40% if his residence is in any other city
  3. Actual rent paid less 10% of his basic salary

In Mr. Ganesh’s example, the tax-exempt part of his HRA would be the lowest of the following, considering his earnings on an annual basis:

Actual HRA component of salary:Rs.13,000 * 12 = Rs.1.56 lakh
50% of his basic salary, as he stays in Delhi:50% * Rs.30,000 * 12 = Rs.1.80 lakh
Actual rent paid minus 10% of basic salary:(Rs.10,000 * 12) – (10% * Rs.30,000 * 12) = Rs.1.2 lakh – Rs.36,000 = Rs.84,000

Since Rs.84,000 is the lowest value above, this is the amount of tax-exemption Mr. Ganesh can receive on HRA. The rest of the HRA amount received will be taxed as per his income slab.

Leave Travel Allowance

The exemption is restricted only to the travel cost incurred by the employee.

.The exemption is not available for more than two children of the individual born after October 01, 1998. Exemption is allowed for only two travels within a block of four years. The current block is between 2018-2022.

  • The Leave Travel Allowance is applicable only for travel expenses
  • The individual can travel only with India
  • The individual has to keep proof of travel as it can be required for tax auditing purposes
  • The exemption under Leave Travel Allowance is not available for more than two children born after October 1, 1998
  • One can claim LTA only twice in a block of four years
  • If LTA isn’t claimed in a particular block, it can be carried over to the next block and used in the first year of the next block itself.
  • LTA exemption offers cover for the family of the individual too. A family, under LTA, includes immediate family which is the parents, siblings, spouse, and children.

Bonus

The bonus is usually paid once or twice a year. Bonus, performance incentive, whatever may be its name, is 100% taxable. Performance bonus is usually linked to your appraisal ratings or your performance during a period and is based on the company policy.

Employee Contribution to Provident Fund

Provident Fund or PF is a social security initiative by the Government of India. Both employer and employee contribute a 12% equivalent of the employee’s basic salary

Standard Deduction

The employee can now claim a flat Rs. 50,000 deduction from the total income

Professional Tax

Deducted by the employer and deposited with the state government. In your income tax return, professional tax is allowed as a deduction from your salary income.

TDS on Salary

For a salaried employee, TDS forms a major portion of an employee’s income tax payment. Your employer will provide you with a TDS certificate called Form 16

Form 16

Form 16 is a TDS certificate. Income Tax Department mandates all employers to deduct TDS on salary and deposit it with the government. The Form 16 certificate contains details about the salary you have earned during the year and the TDS amount deducted.
It has two parts – Part A with details about the employer and employee name, address, PAN and TAN details and TDS deductions.
Part B includes details of salary paid, other incomes, deductions allowed, tax payable.

Form 26AS

Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department. It shows details of tax deducted on your behalf by deductors, details on tax deposited by taxpayers and tax refund received in the financial year. This form can be accessed from the IT Department’s website.

Chapter VIA deductions

Maximum Limit 1.5 Lakhs

 

 

House Property Income Tax Filing

The Income Tax Act does not differentiate between a commercial and residential property. All types of properties are taxed under the head ‘income from house property’ in the income tax return.

a. Self-Occupied House Property

For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has been extended to 2 houses. Now, a homeowner can claim his 2 properties as self-occupied and remaining house as let out for Income tax purposes.

b.  Let Out House Property

A house property which is rented for the whole or a part of the year is considered a let out house property for income tax purposes

Format of Income from House Property

Gross Annual value**********

Less : Municipal Taxes

(It is deductible when it is born by the owner and actually paid by him during the year. )

(*********)
Net Annual value**********
Less : Deduction U/s 24 

(i)Standard Deduction @ 30% ( Section 24(a) )

(*********)

(ii)Interest on borrowed Capital (Section 24(b) )

(*********)
Income from House Property**********

Interest on House Property Loan

From AY 2018-19 Interest on House Property  has been restricted to Rs 2 lakh

Presumptive Income Tax Filing for Business 

Presumptive taxation for businesses is covered under section 44AD of the income tax act. Any business which has a turnover of less than Rs 2 crore can opt to be taxed presumptively. They must declare profits of 8% for non-digital transactions or 6% for digital transactions, whichever one is applicable. The following businesses are excluded from presumptive taxation:

a. Life insurance agents.

b. Commission of any kind.

c. Running the business of plying, hiring or leasing goods carriages.

The income of any professional under this section is considered to be 50% of the total gross receipts for the year, as they usually assumed that they do not incur many expenses. The professionals under this scheme are not required to maintain books of accounts.

However, if they claim that their income is less than 50% of the total gross receipts and if the total income exceeds the basic exemption limit, they cannot be qualified to be classified under Section 44ADA. In such a case, they will have to maintain books of accounts to as per Section 44AA and these need to be audited as per Section 44AB.

Presumptive Income Tax Filing for  Profession, Freelancers 

The income of any professional under this section is considered to be 50% of the total gross receipts for the year, as they usually assumed that they do not incur many expenses. The professionals under this scheme are not required to maintain books of accounts.

However, if they claim that their income is less than 50% of the total gross receipts and if the total income exceeds the basic exemption limit, they cannot be qualified to be classified under Section 44ADA. In such a case, they will have to maintain books of accounts to as per Section 44AA and these need to be audited as per Section 44AB.

The following are the professionals, who are eligible to opt for Presumptive Taxation Scheme under Section 44ADA:

  • Engineering
  • Legal
  • Architectural profession
  • Accountant
  • Medical
  • Technical consultant
  • Interior business
  • Other notified professionals such as authorized representatives, film artists, certain sports-related persons, company secretaries and information technology
  • Note: This is applicable only to a resident who is an Individual, HUF or Partnership but not a Limited Liability Partnership Firm.

Business Income Tax Filing

For businesses having gross receipts of more than Rs 1 crore in a financial year are liable for tax audit.The due date of filing the tax audit report is 30th September of the assessment year. The tax audit report must be filed electronically via Form 3CD. For taxpayers subject to tax audit, the due date for filing of return of income is also 30 September of the assessment year.

Capital gains on Sale of Immovable Property , Shares, and Other Assets

Tax Type

Condition

Tax applicable

Long-term capital gains tax

Except on sale of equity shares/ units of equity oriented fund

20%

Long-term capital gains tax

On sale of Equity shares/ units of equity oriented fund

10% over and above Rs 1 lakh

Short-term capital gains tax

When securities transaction tax is not applicable

The short-term capital gain is added to your income tax return and the taxpayer is taxed according to his income tax slab.

Short-term capital gains tax

When securities transaction tax is applicable

15%.

Other Income Sources Tax Filing

Interest that gets accumulated in your savings bank account must be declared in your tax return under income from other sources.Interest from both fixed deposit and recurring deposits is taxable.

Deduction on Interest Income under Sec 80TTA

For a residential individual (age of 60 years or less) or HUF, interest earned upto Rs 10,000 in a financial year is exempt from tax. The deduction is allowed on interest income earned from:

  • savings account with a bank;
  • savings account with a co-operative society carrying on the business of banking; or
  • savings account with a post office

Senior citizens are not entitled to benefits under section 80TTA.

Family Pension Income Taxable 

There is a deduction of Rs 15,000 or one-third of the family pension received whichever is lower from the Family Pension Income.

Exempt Income

The PPF and EPF amount you withdraw after maturity is exempt from tax and must be declared as exempt income from income from other sources.

The EPF is only tax exempt after five years of continuous service.

Advance Tax


If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older but do not run a business, are exempt from paying advance tax

FY 2018-19 For both individual and corporate taxpayers

Due DateAdvance Tax Payable
On or before 15th June15% of advance tax less advance tax already paid
On or before 15th September45% of advance tax less advance tax already paid
On or before 15th December75% of advance tax less advance tax already paid
On or before 15th March100% of advance tax less advance tax already paid

For taxpayers who have opted for Presumptive Taxation Scheme – Business Income  

Due DateAdvance Tax Payable
by 15th March100% of advance tax
  

 

Lower Tax Certificate on Sale of Properties by NRI

As per Section 195 of the Income Tax Act, payment to a Non resident, be it sale consideration towards the sale of property, Rent, Interest, Professional fees, commission, royalty, etc., is subject to Tax Deduction at Source (TDS).

Suppose, an NRI sells a flat in Bangalore for Rs.90 lakhs, the buyer of the property has to deduct TDS at 22.88% (FY 2018-19).

In order to reduce the TDS burden, the seller of the property can apply to the department to issue a certificate for deduction of lower rates or no deduction of tax.

Repatriation of Funds

Remittance of income like rent, dividend, pension, interest, sale proceeds on sale of the property, etc. of NRIs/PIO is freely allowed, on the basis of appropriate certification that the amount proposed to be remitted is eligible for remittance.

 

ETDS Filing

TDS Due Dates of FY 2018-19 for Return Filing

QuarterPeriodLast Date of Filing
1st Quarter1st April to 30th June31st July 2018
2nd Quarter1st July to 30th September31st Oct 2018
3rd Quarter1st October to 31st December31st Jan 2019
4th Quarter1st January to 31st March31st May 2019

Note: TDS Deducted under section 194IA on the transaction in the month of March, has to be deposited on or before 30th April of 2018.

TCS Last Dates of  FY 2018-19 for Return Filing

QuarterPeriodLast Date of Filing
1st Quarter1st April to 30th June15th July 2018
2nd Quarter1st July to 30th September15th Oct 2018
3rd Quarter1st October to 31st December15th Jan 2019
4th Quarter1st January to 31st March15th May 2019

Note:

  • Quarterly TDS/TCS Certificate: After uploading quarterly TDS return you can generate TDS/TCS certificate within 15 days of uploading your return.

    TDS & TCS Payment Deposit Due Dates for Govt & Non-government

    • The due date for depositing TCS is the 7th of next month.
    • Due dates for depositing TDS as under:
      • For non-government Deductors- 7th of next month (except for the month of March
        where due date is 30th of April)
      • For Government Deductors-
        i) If paid through challan- 7th of next month
        ii) If paid through book-entry- Same day i.e. day on which TDS deducted.

    Due Date of 15G/15H Form

    The due date for quarterly furnishing of 15G/15H declaration received by the payer from 1/04/2017 onwards and the manner for dealing with from 15G/15H received by payer during the period from 01/10/2015 to 31/03/2016 has been specified in Notification No. 09/2016 dated 9th June 2016 wide F.No.DGIT(S)/CPC(TDS)/DCIT/15GH/2016-17/4539.

    S.No.ScenariosOriginal Due DateExtended Due Date
    1For 15G/H Received from 1/04/2017 to 30/06/201715/07/2018
    2For 15G/H Received from 01/07/2017 to 30/09/201715/10/2018
    3For 15G/H Received from 01/10/2017 to 30/12/201715/01/2019
    4For 15G/H Received from 01/01/2018 to 31/03/201830/04/2019

    TDS on Purchase of Immovable Property

    • Time limit for TDS deposition on the purchase of immovable property is the 30th day of the following month in which the property is purchased. For Example: if the property is purchased in the month of June than TDS can be deposited by 30th July.