Income tax filing is one of the most dreaded tasks for most people. However, the process is now straightforward with an online income tax return. You can file your income tax return in a matter of a few minutes, as long as you have all your necessary documents in place. All you need is a computer or laptop and a steady internet connection. But if you still have any doubts, here are some common questions answered to clarify and ease the process of filing your return. 

7 Most Common FAQs Regarding Income Tax* Return Filing

Here are the top FAQs:

1. What is Income Tax*?
   

   
   ​​Income tax* is a tax* levied by the Government of India on the income earned by an individual in a financial year.
   
   

2. What is the Period of Computation for Income Tax*? 
   

   
   Income tax* is paid annually. It is levied for each financial year starting from April 1 to March 31. It is paid in the next financial year from when the income is earned, also known as the assessment year.
   
   

3. What are the Requirements for Filing an Income Tax Return?
   
   

   • PAN: You need to enter your permanent account number (PAN) linked to your bank account. You can find this on your PAN card, Form 16, Form 26AS, or Form 12BB. 
     
     

   • Aadhar Card: As per Section 139AA of the Income Tax* Act, 1961, submitting your Aadhaar card details on your tax* returns are mandatory. The Aadhar card is issued by the Unique Identification Authority of India (UIDAI). If your Aadhaar card has not yet been issued, you can provide the enrolment ID. If you have misplaced your Aadhar card, you can download it online from the UIDAI website.
     
     

   • Form 16: Form 16 can be obtained from the employer and contains details of your salary and the amount of tax* deducted from the source (TDS). It also includes any allowances like HRA exemption.
       

   • Form 16A, Form 16B, and Form 16C: Form 16A contains information on income received and TDS deducted thereon from other sources than your salary, such as a fixed or recurring deposit. Form 16B contains information on income received from the sale of a real estate property. If you are renting out a property, you would also need Form 16C.
     
     

   • Bank account details: You need to enter details of your bank account, such as the account number, the name of the bank, and the IFSC code of the bank branch. If you have multiple accounts, you would need to enter the information of each bank. However, you have to select one as the primary account. This is the account where you would be receiving your tax* refund. You can contact your bank for these details or find them on your net banking account, bank passbook, cheque, etc.
      

   • Form 26AS: Form 26AS contains details like the TDS deducted by the bank, your employer, and other organisations, as well as advance tax* self-assessment tax* paid during the year. You can download this form from the Income Tax* India e-filing website.
     
     

   Besides this, you would also require the loan statement if you are claiming a tax* deduction on loan, proof of tax*-saving schemes like equity-linked savings schemes (ELSS), FDs, etc. If you buy life insurance, you can submit your policy document to claim a tax* deduction. Additionally, you would need to enter capital gains details from the sale of stocks, mutual funds, etc., proof of foreign income if you have earned income from a foreign country, and dividend income from shares and mutual funds.
   
   
   

4. In which month income tax* is deducted?
   
   

   Employers deduct tax* from the salary at source every month. The total tax* is divided into 12 months and deducted from every month’s salary. However, in the case of a salary hike or drop, earned bonus, etc., it is adjusted later in the month when the money is credited to you.
   
   
   

5. What are the two tax* regimes?
   
   

   The old tax* regime allows you to use tax* deductions like life insurance, ELSS, National Pension Scheme (NPS), and other similar investments and savings. This regime's tax* rates are relatively higher, but you can lower your taxability with deductions. On the other hand, the new tax* regime does not offer any tax*deductions in income tax filing returns. However, the tax* rates are relatively low.
   
   

Here are the tax* slabs for both regimes:



Income tax* brackets	Old tax* regime	New tax* regime
Up to ₹2,50,000	Nil	Nil
₹2,50,001 - ₹5,00,000	5%	5%
₹5,00,001 - ₹7,50,000	₹12500 + 20% of income over ₹5,00,000	₹12500 + 10% of income over ₹5,00,000
₹7,50,001 - ₹10,00,000	₹62500 + 20% of income over ₹7,50,000	₹37500 + 15% of income over ₹7,50,000
₹10,00,001 - ₹12,50,000	₹112500 + 30% of income over ₹10,00,000	₹75000 + 20% of income over ₹10,00,000
₹12,50,001 - ₹15,00,000	₹187500 + 30% of income over ₹12,50,000	₹125000 + 25% of income over ₹12,50,000
Above ₹15,00,000	₹262500 + 30% of income over ₹15,00,000	₹187500 + 30% of income over ₹15,00,000





6. How many types of online income tax return forms are there?
   
   

   There are seven types of income tax filing forms: 
   
   

   ITR-1 (Sahaj): For resident individuals with an aggregate income below ₹50 Lakh.
   
   

   ITR-2: For resident individuals with an aggregate income above ₹50 Lakh and non-resident individuals.
   
   

   ITR-3: For income from business or a profession, partnership in a firm, or a presumptive income less than ₹50 Lakh.
   
   

   ITR-4 (Sugam): For presumptive income of more than ₹50 Lakh.
   
   

   ITR-5: For the association of persons (AOP) or a body of individuals (BOI) and limited liability partnership (LLPs).
   
   

   ITR-6: For companies that do not claim any tax* exemptions under Section 11 of the Income Tax Act, 1961.
   
   

   ITR-7: For individuals and companies specified under Sections 139 (4A), (4B), (4C), and (4D) of the Income Tax* Act, 1961.
   
   
   
   

7. What is Section 80C?
   
   

   Section 80C of the Income Tax* Act, 1961 allows you to claim tax* deductions of up to ₹1.5 Lakh in a financial year on investments and savings like deductions from NPS, ELSS funds, unit-linked insurance plans, Sukanya Samriddhi Yojana, etc. You can buy Tata AIA life insurance and claim deductions on your life insurance premiums. However, run a life insurance comparison and pick a suitable plan according to your needs.
   
   
   

Conclusion



These are the 7 common FAQs regarding ITR filing. If you also have a question regarding ITR filing, you will get the answer above. ITR filing is important, and you must resolve all your queries at the earliest so that you do not face any issues. Moreover, it is essential that you keep yourself updated regarding the income tax* slabs, deductions, and exemptions.



L&C/Advt/2022/Jul/1566