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Frequently Asked Questions?

#10things to remember
while filing your income tax return
1)Has House Rent Allowance (HRA) been claimed? A large chunk of your pay structure is HRA, please ensure you have claimed it by submitting the requisite rent receipts in time. If you have not claimed/partially claimed please do it at the filing time
2)If you have changed jobs during the previous year, you probably have a tax liability at the end of the year. Have you paid it off? It is costing you 1% per month in simple interest
3)Does your Salary structure include Leave Travel Allowance (LTA), if yes how can you claim your travels? Its easy!
4)Do you get Medical reimbursement/Fuel & maintenance/any other allowance as a part of your salary structure, your proof submission deadline is in January. Do you let the February and March allowance lapse, while you are actually incurring those expenses? Claim while filing
5)Are you paying off an education loan? You can claim deduction under 80E for the interest paid on loan for higher education for self and relatives
6)If you are getting interest from savings bank accounts, you must show it in your return. There is an exemption of upto Rs 10,000 on the interest earned (80TTA)
7)It is important to check the TDS entries with your Form 26AS. Has your employer deposited all the tax they have been deducting to the Income Tax Department?
8)Have you claimed the Medical insurance you pay under 80D, there is a deduction of upto Rs 40,000 on you and dependents. Did you get a preventive health check up during the year? You can claim that too uptil Rs 5,000
9)Did you get charitable at any time during the year? An office kiosk or an online payment to a registered NGO? You can claim 100% to 50% of those payments. You will need an 80G tax certificate from the donee organization. Email them, they can give it to you!
10)E-filing is annexure-less, so the government does not accept any bills/receipts/proofs/certificates with it. However, you are expected to maintain a complete dossier of your tax return claims

#10things to remember
while filing your income tax return
1)Get your home loan interest certificate from the bank and see the EMI split between Principal and Interest. The Principal portion can be claimed u/s 80C whereas the interest upto Rs 1,50,000 can be claimed u/s 24
2)If the property is under joint ownership, the co-owner (spouse etc) can claim upto Rs 1,50,000 too for interest payments
3)If you have let out your property, the limit of Rs 1,50,000 on claiming the interest does not apply, you can claim the entire interest paid
4)The interest repayment is allowed on "due" basis, essentially which means even if you have not paid it yet ; you can claim the same in your return
5)If you have a jointly held property, the rent received from it will be taxable in the hands of each co-owner based on the respective shareholding. If your husband and you have a 70:30 holding in a property, the rental income will also be divided accordingly
6)Look at the previous year return and see if you have loss under House property head, it can be carried forward for next 8 years and set-off
7)If you own more than one house property you can choose which one to show as self occupied (exempt) and which one to show as "deemed to be let out". You may choose the one with a higher annual value as deemed to be let out to save taxes
8)Municipal taxes paid by the tenant and repairs carried out by the tenant are deductible from the annual value
9)You get a flat 30% standard deduction from your Rental Income, irrespective of actual expenses incurred by you towards the maintenance of property
10)The notional interest on the security deposit does not form a part of Income from house property

#10things to remember
while filing your income tax return
1)Understanding Long Term Capital Gains (LTCG): LTCG on equity is exempt, while LTCG on debt instruments is taxable @10% without indexation or @20% with indexation
2)Understanding Short Term Capital Gains (STCG): STCG on equity is taxed @15%, STCG on debt is calculated as per the tax slab you fall in viz 10/20/30%
3)Understanding Securities Transaction Tax (STT): It is applicable when the securities are sold through recognized stock exchanges, so to claim exemption on LTCG on equity, they should be STT paid
4)You can claim a deduction of brokerage paid on selling the shares
5)Any profits or losses from day trading are considered speculative profits/losses. There is no special tax rate for speculative profits, it is considered as a business income and taxed as per any other business activity. In case of speculative losses, you can carry these forward for the next 4 years provided you have declared the same while filing your returns and net off only against any speculative profits over the next 4 years
6)Dividend received and LTCG on equity, even though exempt from tax, should be reported in your Return of Income under the head "Exempt Income". This helps explain the origin of such cashflows in your bank account
7)Obtain Form 16A from persons deducting tax on your capital gains eg (Mutual funds etc)
8)Reconcile the Form 16A entries with form 26AS and see how much has actually been deposited with the government on your behalf. Ideally, the Form 16A entries should match with the ones in 26AS
9)File your returns in time and keep a copy of previous year"s ITR in hand to be able to set off the losses
10)All mutual funds and most brokerage houses provide Capital Account statement at the end of each financial year, it is a summary of your Capital Gains. It is this information that goes in your return. Insist on these in excel format. It will be easier to upload and filter, the return will be error-free

#10things to remember
while filing your income tax return
1)List down the assets that you own and use for business viz (Computer hardware and software, Furniture, any specific equipments) You can claim a portion of their cost each year as "depreciation"
2)If you are working from your own house; clearly the amenities are being used for both business and personal purposes, you can claim a justifiable portion of all these expenses as incurred for business (House rent will be a good example; so you can claim xx% of the rent paid as business expense)
3)You can avail the benefit of section 44AD if you are engaged in business, the Income can be shown at a specific % of Gross turnover, in this case you cannot claim any expenses. This is beneficial for small business which do not maintain proper books of accounts
4)If your tax liability is likely to exceed Rs10,000 in any particular year, you need to pay advance tax during the year
5)Payments in cash : expense payments in cash are not allowed above Rs 20,000
6)If you do not maintain proper accounts, you will need to list down all Incomes and expenses using your various bank account statements and credit card statements and calculate the income from business
7)If your status is "Individual" (Sole proprietor), you can claim the necessary section 80 deductions even out of your business income
8)Download your Form 26AS and see if TDS has been deducted on payments received by you. This will reduce your year end tax liability
9)If you are getting interest from savings bank accounts, you must show it in your return. There is an exemption of upto Rs 10,000 on the interest earned (80TTA)
10)You can claim an exemption of bank charges (ie. Service charges etc) levied by the bank, but these charges should not be in the nature of penalty (i.e. charges levied on not maintaining adequate balance)

#10things to remember
while filing your income tax return
1)If you have Income above the basic exemption limit (Rs 2,00,000 for AY14-15) in India and tax has not been deducted on it (eg.Rental Income from house property, gains on securities transactions); you must file your returns in time
2)If your Income in India is below the taxable limit, yet banks are deducting TDS, you should file return of Income to obtain such refunds
3)After the return has been e-filed, you need to sign and send a document to the IT department office. This poses a problem in case of most NRIs as the document may be sent only through speed and registered post. You can ask someone in India to send it from their address. Else, you can obtain a digital signature in which case, a physical document is not necessary
4)Which address to provide in the return? This address is used by the IT department to communicate with you and the department does not send mails abroad. So, your best available address in India rather than your current address abroad should be provided
5)Capital Gains losses can be carried forward if the return is filed in time; so please ensure that you are filing in time and also looking at previous year"s returns to see which losses need to be set off in the current year
6)Collect Form 16A from your bank/brokers , it is the quarterly statement of TDS deducted, this will tell you how much tax has been deducted in your name during the year
7)Reconcile the Form 16A entries with form 26AS and see how much has actually been deposited with the government on your behalf. Ideally, the Form 16A entries should match with the ones in 26AS
8)Please keep your login credentials updated with your primary email id. If you do not have an Income tax login account, create one
9)If you feel, your tax is being deducted at a higher rate than applicable, you can submit a declaration in this regard to the deductor
10)To see the relative comparison between which account type suits you better (NRO or NRE) visit our detailed FAQ section and decide

I have not claimed HRA at the time of Investment proof submission?
When can Leave Travel Allowance (LTA) be claimed?
What are the pre-requisites of claiming LTA?
What costs can be claimed as LTA?
If I have not utilized LTA even once in the block of 4 years, Can I do it now?
What is Form 26AS?
Why do I need to check my form 26-AS while filing returns?
I may be getting interest from 2-3 bank accounts how to consolidate and report?
I may be getting interest from 2-3 bank accounts how to consolidate and report?
I changed jobs during the year. Do I need to some extra precautions while filing returns?
If you own a house property, what kind of deductions are available?
If the owned house is let out for rental purposes?
If the house property is jointly owned, how does the deduction on interest work?
I do not have a Form 16? How do I proceed to file the returns?
What are the Tax implications of Pension Income?
How are Employee Stock Option plans charged to tax?
Who is an NRI as per the Income Tax Act?
How to claim tax refunds of excessive TDS deducted on account balances and securities transactions?
What is advance tax and who has to pay it?
What are the due dates of payment of advance tax?
What are the consequences of non-payment of advance tax?
Which Address to enter in return filing?
Can I enter an address outside of India?
How does tax refund through ECS work?
What is Tax deducted at source?
What is a Digital Signature Certificate (DSC)?
What is form 16A?
What is Form 16?

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