Bachelor of Commerce

(B.COM)

BCO 11

Computerised Accounting &

E Filing of Tax Returns

Block 03: E – Filing of Tax Return

UNIT 1 Preparation and Submission of IT Return
UNIT 2 E – Verification Process
UNIT 3 Use of Tax Calculator & E Payment of Tax

1
 BACHELOR OF COMMERCE

BCO 11

Computerised Accounting &

E Filing of Tax Returns

Course Writer
Dr. Pradip Kumar Pradhan
Assistant Professor, Rajendra Univeristy

Course Editor
Dr. Narendra Kishore Mishra
Deputy Director, Global Institute of Management

MATERIAL PRODUCTION

Prof (Dr.) Manas Ranjan Pujari

Registrar
Odisha State Open University

(cc) OSOU, 2020. Computerised Accounting and E Filing of

Tax Returns is made available under a Creative Commons
Attribution Share Alike 4.0 http: creative commons.org/
licences/by-sa/4.0

2
UNIT 1 PREPARATION AND SUBMISSION OF IT RETURN

Structure

1.0 Objectives
1.1 Introduction
1.2 Meaning of Income Tax Return(ITR)
1.3 Important terms of ITR
1.4 Understanding Form 26 AS
1.5 Understanding Form 16
1.6 Filling of Income Tax Return(ITR)
1.6.1 Offline Income Tax Return(ITR) filling
1.6.2 Online Income Tax Return(ITR) filling
1.7 Downloading and view of ITR
1.8 Filling of revised return
1.9 Let Us Sum Up
1.10 Key Words
1.11 Check Your Progress
1.12 Further Reading

1.0 LEARNING OBJECTIVES

Following are the main objectives of learning this unit:

 To explain the meaning of Income Tax Return
 To understand 26AS and its significance
 To file Income-tax returns in both online and offline mode
 To download and view of ITR form

1.1 INTRODUCTION

Understanding the Income-tax system is very essential for prospective earning individuals. It
reduces the dependency of an individual for tax calculation and filing of the income tax return.
The government of India has made a necessary transformation in the income tax rule to make
it easier for filing income tax returns. E-filling (Electronic filing) process brings a revolutionary
change in the income tax system. It was first introduced in the assessment year 2006-07
(Financial Year 2005-06). Subsequently, the 2nd generation e-filling (e-filling 2.0) was
introduced recently on 7th June 2021, which was a taxpayer-friendly e-filing portal. At present,
e-filling become compulsory for all companies and firms entailing statutory audit u/s 44AB to
file their income tax returns, and also all types of the assessee can file income tax returns
through the e-filling portal.

3
1.2 MEANING OF INCOME TAX RETURN (ITR)

Every individual in the country supposed to earn some money for their livelihood is
called income. Income can be generated by an individual from salary and wages, producing
and selling goods and services, or from any other source. The government has imposed a tax
on the income of individuals or businesses to generate revenue for the Country is called Income
Tax. All individuals also should pay taxes to make their country economically strong. Income
-Tax Act, 1961 of India was enacted in the year 1961 and came into force on the 1st April 1962.
It provides various rules and regulations regarding payment of income tax as well as filing of
income tax.
Income Tax Return (ITR) is a form, required to be filled up and submitted by an
individual or a company to the Income Tax Departments of India in each assessment year. It
contains detailed information about a person’s total income and the taxes to be paid on it. These
forms are designed by the Income Tax Departments of India, which are in different types such
as ITR-1, ITR-2, etc. Every individual has a total income of more than Rs. 2.5lakh during
a particular financial year (i.e. starting from 1 April of the current year to 31st March next
st

year), are supposed to file ITR form in a proper format, within the prescribed time. There are
5 types of heads of income for which income tax returns need be filled, such as i. Income from
salary, ii. Profits and gains from business and profession, iii. Income from house property, iv.
Income from capital gains and v. Income from other sources (i.e. dividend income, interest
income, royalty, winning from lottery, etc.). Further, the Income Tax Department has
prescribed several types of forms, depending upon the types of the taxpayer and the nature and
amount of income earned. The following table shows the different ITR forms and their
applicability.

1.1 Different types of ITR return forms and their applicability approved by
the Income Tax Department of India.
Sl. No. Form No. Applicability
1 ITR-1 Applicable to individuals, who is a resident of India (other than not
(SAHAJ) ordinarily resident) and have total income up to Rs.50 lakhs from
the following incomes:
1. Income from Salaries.
2. Income from one house property.
3. Income from other sources (Interest, lottery, etc.).
4. Agricultural income up to Rs. 5,000/-
2 ITR-2 Applicable to individuals and HUFs not having income from
profits and gains of business or profession.
3 ITR-3 Applicable to individuals and HUFs having income from profits
and gains of business or profession.
4 ITR-4 Applicable to individuals, HUFs, and Firms (other than LLP) being
(Sugam) a resident having total income up to Rs.50 lakh and having income
from business and profession which is computed under sections
44AD, 44ADA, or 44AE.

4
 5 ITR-5 Applicable to persons other than- (i) individual, (ii) HUF, (iii)
company, and (iv) person filing Form ITR-7.
6 ITR-6 Applicable to companies other than companies claiming
exemption under section 11.
7 ITR-7 Applicable to persons including companies required to furnish
return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D)
only

Source: Department of Income Tax of India

website;https://www.incometaxindia.gov.in/Pages/downloads/income-tax-return.aspx

1.3 IMPORTANT TERMS OF ITR FILLING

Before filling out an income tax return (ITR) both in offline and online mode, one is
required to be familiar with some terms of the income tax return. They are as follows:
a) Financial year (FY): It is the year starting from 1st April of the current year to the 31st
March next year. For example 1st April 2021 to 31st March 2022.
b) Assessee: Assessee is a person who is liable to pay tax on his/her income under the
Income Tax Act-1961. An assessee may be Normal Assessee, Representative Assessee,
Deemed Assessee, and Assessee in default.
c) Assessment year (AY): It is the financial year in which the income of the previous is
taxable. For example: If the current year is 2021-22 (From 1st April 2021 to 31st March
2022), the income of the previous year 2020-21(From 1st April 2020 to 31st March
2021) is taxable in the current year 2021-22 is called an assessment year.
d) Previous year: Previous year is the financial year just before the assessment year, in
which the assessee’s earned income is to be taxable in the assessment year. For
example: If the assessment year is 2021-22, the previous year is 2020-21.
e) Tax regime: Indian budget 2020 introduces a new tax regime under section “115BAC”
giving an option to the assessee to pay income tax at lower rates without any deductions.
The new tax regime is applicable for income earned from the financial year (FY) 2020-
21, which relates to the assessment year (AY) 2021-22. The old tax regime is just before
the FY 2020-21. An assessee has an option to choose either an old tax regime or a new
tax regime.
f) Income tax slab: Income Tax slab is the tax rate applicable to different income group
assessee (taxpayer). The financial year 2020-21 has two slabs of new tax regime and
old tax regime.
Tax slab of Old Tax regime (FY-2020- Tax slab of New Tax regime (FY-
21) 2020-21)

UptoRs. 2,50,000 NIL UptoRs. 2,50,000 NIL

Rs 2,50,001 to Rs 5,00,000 5% Rs 2,50,001 to Rs 5,00,000 5%

5
 Rs 5,00,001 to Rs 10,00,000 20% Rs 5,00,001 to Rs 7,50,000 10%

Rs 7,50,001 to Rs 10,00,000 15%

Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%

Rs 12,50,001 - Rs 15,00,000 25%

Above Rs 15,00,000 30%

g) Heads of income: The five heads of Income according to the Income Tax Act of India
are Income from salary, Income from house property, Income from Profits and Gains
of Business or Profession, Income from Capital Gains, and Income from Other Sources.
The income of a person is assessed under these five heads of income.
h) Exempted Income: As per section 10 of Income Tax Act-1961, ‘exempted income’ is
an income on which no income tax is levied. It is also known as tax-free income, such
as agricultural income, Leave travel concession, etc.
i) Total income: It is the aggregate income earned by a person from different heads of
income.
j) Taxable Income: It is the amount of income, on which income tax is levied as per the
prevailing tax slab. It is calculated after allowed deductions from gross total income.
k) Resident Indians: Resident Indians under the Income Tax Act is a person who resides
in India in the relevant financial for more than 182 days or more OR resides in India
for 365 days or more during the immediately 4 preceding years and 60 days or more in
the relevant financial year.
l) Non-resident Indians: Who does not qualify for a resident Indian the relevant previous
year is known as non-resident Indian.
m) Deductions: Deductions are allowed to taxpayers from their taxable income. It is
allowed to encourage savings and investments and to reduce tax liabilities of the
taxpayer. These deductions are allowed under chapter VI A, where section 80C is the
most important deduction.
n) Advance Tax: The amount of income tax paid during the financial year in different
installments is called advance tax. It is payable on the estimated taxable income of the
assessee in four installments as 15% tax will be paid before 15th June, 45% of tax before
15th September, 75% of the tax before 15th December, and 100% of the tax before 15th
March.
o) Self-assessment Tax: Self-assessment tax is the balance amount of tax to be paid by
an assessee on his taxable income, after TDS and advance tax. It will be paid on or
before the filing of the return.
p) The due date for filing of return: The last date for filing of ITR of an individual
taxpayer is generally 31st July of the relevant assessment year. The last date may be
extended by the income tax department under special circumstances. The penalty is
imposed on the taxpayer u/s 234F if they file a return after the due date.

6
 q) TDS: Tax Deducted at Source (TDS) is the amount deducted by the deductor at the
source of income at a certain percentage out of the amount paid to the person (deductee),
which is deposited into the accounts of the Central Government.
r) Form 16: Form-16 is a certificate issued by the employer to the employee, containing
the details of tax deducted at source (TDS) and the details of the income earned by the
assessee during the relevant financial year. It helps in filling the income tax return. It is
also proof of income of an assessee.
s) Form 16A: It is also a TDS certificate issued for income other than salary i.e. Income
from other sources (e.g. interest of fixed deposit with a bank, etc).
t) Form 26AS: Form 26AS is a statement that shows the details of any amount deducted
as TDS from various sources of the income of a taxpayer. It also includes the details of
advance tax, self-assessment tax, and high-value transactions by the taxpayer.
u) Form ITR-V: ITR-V stands for Income Tax Return Verification form. It is generated
by the income tax department after e-filling of income tax to verify the legitimacy of
their e-filing of tax. It is used when the taxpayer does not have a digital signature or is
unable to verify digitally. It should be signed and sent to the income tax department
within 120 days from the date of filing of a tax return.

1.4 UNDERSTANDING THE FORM 26 AS

Form 26AS is a tax credit statement of a taxpayer in the given financial year. It contains
the total amount credited and TDS deducted from a different source of income of an assessee.
It is an important document for filling out an income tax return, which can be downloaded
online in the e-filling portal. It consists of 8 parts of different categories of income as follows.
1.4.1Parts of Form 26AS
 Part A: It contains details of Tax Deducted at Source (TCS).
 Part A1: It contains the details of Tax Deducted at Source for 15G / 15H.
 Part A2: It includes the Details of Tax Deducted at Source on the Sale of Immovable
Property (u/s 194IA), TDS on rent of the property (u/s 194IB), and the TDS on payment
to resident contractors and professionals (u/s 194M).
 Part B: It contains the details of Tax Collected at Source (TCS).
 Part C: It shows the details of Tax Paid (other than TDS or TCS).
 Part D: Details of Paid Refund of a taxpayer are mapped in this part.
 Part E: It contains the details of the Statement of Financial Transactions (SFT). The
main purpose of which is to curb black money.
 Part F: It ensures the details of TDS on Sale of Immovable Property (u/s 194IA), rent
of the property (u/s 194IB), and payment to resident contractors and professionals (u/s
194M).
 Part G: It includes the TDS defaults of the assessee.
 Part F: It contains the details of turnover as per GSTR-3B (a monthly self-declaration
to be filed by a registered GST dealer along with GSTR 1 and GSTR 2 return forms)

7
1.4.2 How to Download Form As26:

Form 26AS is an Annual Information Statement of an assessee, which contains the

details of tax deducted and collected at source, advance tax, self-assessment tax, specified
financial transactions, demands, refunds, pending and completed proceedings. It is necessary
to check Form 26AS before the filing of the return. To download the form AS26, a person
needs to register in the Income Tax Portal of the Government of India with a PAN number and
other personal information.
Followings are the steps to download Form 26AS from the income tax portal.
 Open the URL: ‘https://www.incometax.gov.in/iec/foportal/’.
 > Register or Login: First-time user needs to register and existing users can log in with
ID (user’s PAN No.) and password (set by user).
 >e-file: Click on the ‘file Tab.
 > Income tax returns: Select income tax returns from the options.
 > View Form 26AS: Click on View form 26AS.
 > Confirm the Disclaimer: Confirm the Disclaimer dialog box.
 > Proceed: In the ATTENTION TAXPAYER!!! In the dialog box, tick on the agree
button and click on proceed.
 > View Tax Credit (Form 26AS): Click on the ‘View Tax Credit (Form 26AS)’
appears in blue color text.
 > Select Assessment year: Select the assessment year from the dropdown list.
 > View as HTML: Select the view type HTML or Text.
 > View/Download: Click on the ‘View/Download’ tab to view the Form 26AS.
 > Export as PDF: If you require a PDF copy, click on Export as PDF.

After downloading the form, all the information mapped in the form needed to be
verified. File the income tax return for the assessment year as per the data available in Form
26AS.

1.5 UNDERSTANDING FORM 16

Form-16 in income tax is a certificate issued by the employer to the employee, which
contains the summary of salary paid and tax deducted/collected thereof. All employers must
issue ‘Form-16’to their employees for filing of an Income Tax Return. Every salaried employee
whose taxable income is more than the minimum income tax slab or TDS has been made on
his income is eligible to get Form-16. It is very useful for the taxpayer to file an income tax
return and also produce it as income proof for various purposes (ie. visa processing, bank loan
processing, etc.). The last date for the issue of Form-16 is normally 15th June of the assessment
year, it may be extended by the income-tax authority. If an individual has been working with
two or more employers in a financial year, he/she is eligible for separate Form-16 from every
employer.
Employers are required to log in TDS Reconciliation Analysis and Correction Enabling
System (TRACES) to download Form-16 for their employees. It consists of two parts (i) Part-
8
A and (ii) Part-B. Part-A contains the name and address of employer and employee, certificate
number, PAN and TAN of the deductor, PAN of the employee, assessment year, period with
the employer, quarterly summary, and monthly summary of the amount paid and tax deducted.
Part-B of Form-16 contains the details of gross salary, exemptions u/s 10, deductions u/s 16,
income from other sources, deductions under chapter VI-A, other deductions, taxable income,
and net tax payable. After receiving the Form-16, an assessee can file an income tax return
(ITR) online or offline mode on or before the normal due date.

Format of Form-16

FORM NO.16
[See rule 31 (1) (a)]
Part A
Certificate under section 203 of the Income Tax Act, 1961 for tax deducted at source from
income chargeable under the head “ Salaries “

Select Tax Regime

Select Your Age

Name and address of the employer Name and Designation of the employee

PAN of the Deductor TAN of the Deductor PAN of the Employee

CIT (TDS) Assessment Year Period with employer

From To
TDS Circle address
Summary of amount Paid/credited and tax Deducted at source thereon in respect of the
Employee
Amount of
Receipt Numbers of Original Amount
Tax
Quarter( Quarterly Statements of TDS Amount Paid of Tax
Deposited /
s) Under Sub-Section (3) of credited Deducted
Remitted
Section 200 (Rs)
(Rs)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total

I.DETAILS TAX DEDUCTED AND DEPOSITED INTO CENTRAL GOVERNMENT

ACCOUNT THROUGH BOOK ADJUSTMENT
(The deductor to provide payment wise details of tax deducted and deposited with respect to the
deductee)

9
 Tax
Book Identification Number (CIN)
Deposited
Sl.No. In Respect
of the
deductee Receipt Numbers DDO Serial Date Of Status of
(Rs) of No in Transfer Matching
Form No.24G Form Form No.24G with
No.24G (dd/mm/yyyy Form.No24G
)
1
2
Total
(Rs)
II.DETAILS TAX DEDUCTED AND DEPOSITED INTO CENTRAL GOVERNMENT
ACCOUNT THROUGH BOOK CHALLAN
(The deductor to provide payment wise details of tax deducted and deposited with respect to the
deductee)
Tax Deposited In
Respect of the Book Identification Number (CIN)
Sl.No. deductor (Rs)
Status
Chalan
of
serial
BRS Code of the Date on Which Matchi
number
Bank Branch Tax Deposited ng
(dd/mm/yyyy)
1
2
Total
(Rs)
Verification
I,…………….………..., son/daughter of …………………………….working in the capacity of
………….(designation) do hereby certify that a sum of Rs…………… [Rs……………
……..……………………(in words)] has been deducted and deposited to the credit of the Central
Government. I further certify that the information given above is true, complete, and correct and
is based on the books of account, documents, TDS statements, TDS deposited, and other available
records.

Place…………………………... (Signature of person responsible for deduction of tax)

Date…………………………....
Designation:……………….. Full Name: ..............................
Part B (Annexure-I)
DETAILS OF SALARY PAID AND ANY OTHER INCOME AND TAX DEDUCTED
Whether opting for taxation u/s 115BAC Yes/No
1. Gross Salary Rs. Rs.
(a) Salary as per provisions contained in section 17 (1)

10
(b) Value of perquisites under section 17 (2) (as per Form No. 12
BA, wherever applicable)
(c) Profits in lieu of Salary under section 17 (3), (as per Form No.
12 BA, wherever applicable)
(d) Total
(e) Reported total amount of salary received from other employers
2. Less: Allowance to the extent exempt under section 10
(a) Travel concession or assistance under section 10(5)
(b) Death-cum-retirement gratuity under section 10(10)
(c) Commuted value of pension under section 10(10A)
(d) Cash equivalent of leave salary encashment under section
10(10AA)
(e) House rent allowance under section 10(13A)
(f) Amount of any other exemption under section 10
(g) Total amount of any other exemption under section 10
(h) Total amount of exemption claimed under section
10[2(a)+2(b)+2(c)+2(d)+2(e)+2(f)+2(g)]
3. The total amount of salary received from the current
employer[1(d)-2(h)]
4. Less: Deductions under section 16
(a) Standard deduction under section 16(ia)
(b) Entertainment allowance under section 16(ii)
(c) Tax on employment under section 16(iii)
5. Total amount of deductions under section 16[4(a)+4(b)+4(c)]
6. Income chargeable under the head "Salaries" [(3+1(e)-5]
7. Add: Any other income reported by the employee under as per
section 192 (2B)
(a) Income (or admissible loss) from house property reported by
employee offered for TDS
(b) Income under the head Other Sources offered for TDS
8. The total amount of other income reported by the
employee[7(a)+7(b)]
9. Gross total income (6+8)
Gross Deductibl
10. Deductions under Chapter VI-A Amount e Amount
(a) Deduction in respect of life insurance premia, contributions to
provident fund, etc. under section 80C
Deduction in respect of contribution to certain pension funds
(b) under section 80CCC
Deduction in respect of contribution by the taxpayer to a pension
(c) scheme under section 80CCD (1)
(d) Total deduction under section 80C, 80CCC and 80CCD(1)
Deductions in respect of amount paid/deposited to be notified
(e) pension scheme under section 80CCD (1B)
(f) Deduction in respect of contribution by Employer to pension

11
 scheme under section 80CCCD (2)
Deduction in respect of health insurance premia under
(g) section 80D
Deduction in respect of interest on loan taken for higher
(h) education under section 80E
Gross Qualifying Deductibl
Amount Amount e Amount
Total Deduction in respect of donations to certain
(i) funds, charitable institutions, etc. under section 80G
Deduction in respect of interest on deposits in savings
(j) account under section 80TTA
(k) Amount deductible under any other provision(s) of Chapter VI‐A
Section ………..
Section ………..
Section ………..
Total of amount deductible under any other
(l) provision(s) of Chapter VI‐A
11. Aggregate of deductible amount under Chapter VI-A
[10(a)+10(b) +10(c)+ 10(d)+ 10(e)+ 10(f)+ 10(g)+
10(h)+ 10(i) +10(j)+10(l)]
12. Total taxable income (9-11)
13. Tax on total income
14. Rebate under section 87A, if applicable
15. Surcharge, wherever applicable
16. Health and education cess @ 4%
17. Tax payable (13+15+16-14)
18. Less: Relief under section 89 (attach details)
19. Net tax payable (17-18)
Verification
I,………………………….., son/daughter of ……………………………………….working in the
capacity of .………………………......... (designation) do hereby certify that the information given
above is true, complete, and correct and is based on the books of account, documents, TDS
statements, and other available records.

Place:…………………………….. (Signature of person responsible for deduction of tax)

Date:……………………………… Full Name: ……………………………

# Source: https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007849.pdf

This form is given to illustrate the purpose and for the assessee below 60 years of age.
Form Part B (Annexure-ii) is also available for pensioners above 60 years of age. Contents of

12
the form-16 may be changed depending upon the changes in the income tax rules of the
current period.

1.6 FILING OF INCOME TAX RETURN (ITR)

Filling of Income Tax Return (ITR) is very important for any assessee. It can be filed
by an individual himself having some knowledge in income tax. ITR is to be filed in the
assessment year, before the due date on the income of the assessee earned during the previous
year. This section helps you to file an income tax return without the help of others. We should
select the correct ITR form depending upon the source of income of an assessee and are also
required to understand various components of the ITR form before filing the ITR. An ITR form
can be filled in either online (e-filling) or offline. The income tax department has introduced a
new e-filling portal 2.0 as of 7th June 2021 with additional features and a user-friendly
approach. The new portal http://www.incometax.gov.in is developed and run by the software
company Infosys Ltd.

We should be careful about filling an error-free income tax return. Some required
knowledge should be gained for an error-free filling, which may save us from future fines and
penalties of the income tax authority. We should be extra careful about the selection of an ITR
form, know the due date of filing the return, collect the required document for filling, check
the mismatch between Form-26 AS and Form-16, etc.

Selection of an Appropriate Form

An assessee can file a return depending upon his nature of income and the amount of
income earned. For this purpose, proper forms should be selected out of the available forms.
Different sources of income such as income from salary, income from house property, income
from business and profession and income from other sources and type of assessee (i.e. an
Individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Company, Firm,
Trust, etc.) are important for choosing an ITR form. There are seven ITR forms available at
present prescribed by the income tax authority of India. Different ITR forms and their
applicability are given as follows.
 ITR-1 (Sahaj): This form applies to the resident individuals having Income from
Salaries/pension, income from one house property, income from other sources, and
agricultural income up to Rs.5,000. The total income for this purpose should not exceed
Rs. 50 lakhs.
 ITR-2: This form is appropriate for the Individuals and HUFs who couldn’t use ITR-1
(whose income exceeds Rs. 50 lakh and income earned from two or more house
properties) and do not have any income from “profits and gains from business or
profession”.
 ITR-3: This form is suitable for the individuals and HUFs having income under the
head of “profits and gains from business or profession” and who couldn’t use ITR-4.

13
  ITR-4 (Sugam): This form applies to the resident individuals, HUFs, and Firms (other
than LLP) having presumptive income u/s 44AD, 44ADA, or 44AE from business and
profession and having total income up to Rs.50 lakh.
 ITR-5: This form is appropriate for a firm, Association of Persons (AOP), Body of
individual (BOI), Limited Liability Partnerships (LLPs), Artificial Juridical
Person(AJP) referred to in section 2(31)(vii), the estate of insolvent, the estate of
deceased, business trust and investment fund, cooperative society, and local authorities
except for individual, HUF, company and who are filing Form ITR-7.
 ITR-6: This form is used by Companies other than companies claiming exemption
under section 11(income of a religious trust or institution).
 ITR-7: This form is applied to the persons including companies who are required
to furnish returns under sections 139(4A) (having income from charitable /religious
trust) or 139(4B) (having income from a political party) or 139(4C) (having income
from scientific research institutions) or 139(4D)(having income from university or
colleges or institutions or khadi and village industries).

The due date for filing of return

Due date is very important for both the persons who are assessable to tax under Income
Tax Act. Due date is the date beyond which you are normally not allowed to use the services
or you may be allowed with some fines or penalties. There are two types of due dates: normal
due date and extended or revised due date. The date is fixed by the Income Tax Authority under
normal conditions is known as the normal due date. If the due date is extended further (beyond
the normal due date) due to some exigencies (i.e. Covid-19 pandemic) is called
extended/revised due date. Normal due dates are pre-fixed but extended due dates are changed
under the present situation. Some important normal due dates are given below.
 15th June (Previous year): Due date for the first installment of advance tax.
 15th June (Assessment year): TDS/TCS Certificate from the employer/deductor in
respect of salary paid and income tax deducted thereon during the previous year.
 31st July (Assessment year): Filling of income tax return of previous year income
under sub-section (1) of section 139 of the Act, for all assessee other than corporate-
assessee and non-corporate assessee (whose books of account are required to be
audited), a partner of a firm (whose accounts are required to be audited) or the spouse
of such partner if the provisions of section 5A apply and an assessee who is required
to furnish a report under section 92E.
 15th September (Previous year): Due date for the second installment of advance
tax.
 31st October (Assessment year): It is the due date for filing of return by an assessee
of the income earned during the previous year if the assessee (not having any
international or specified domestic transaction) is a corporate assessee or a non-
corporate assessee (whose books of account are required to be audited) or a partner of
a firm whose accounts are required to be audited or the spouse of such partner if the
provisions of section 5A applies.

14
  30th November (Assessment year): It is the due date for filing of return of income in
case of an assessee required to submit a report under section 92E pertaining to
international or specified domestic transaction.
 15th December (Previous year): Due date for the third installment of advance tax.
 15th March (Previous year): Due date for the fourth installment of advance tax.
The due date is very important in both direct and indirect taxation systems. If any
assessee fails to maintain the due date accurately, may attract fines and fees at a higher rate.
An assessee should be extra careful towards filling of tax return, payment of advance tax, etc.
within due date positively.

Documents Required for Filling of Return

Filling of income tax requires documentary evidence to verify the data provided by the
assessee. The required data provided to generate Form-16 should be accurate and error-free.
To match the data with actual data some documents such as salary statements, bank statements,
etc. are essential. Documents also differ from person to person and the nature of income.

 PAN card: PAN refers to Permanent Account Number. It is a card required by an

earned individual or institution to register with the income tax department of India and
it also acts as identity proof. If you do not have a PAN card, you may apply in online
mode for a new PAN card under the URL:
https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html. You can
also make changes or corrections in PAN data and reprint of PAN card (for an existing
PAN card holder) under the same URL. A fine of Rs. 10,000 can be levied for the
possession (u/s 272B) of more than one PAN card.
 TAN: TAN refers to the Tax Deduction/Collection Account Number. It is a 10-digit
alphanumeric number, issued by the Income-tax Department of India. It is required by
a person, who is responsible to collect/deducting tax at the source.
 Aadhar Card: Aadhaar card is necessary (u/s 139AA) for filing the income tax return.
It should be linked with a mobile number for getting OTP for the e-verification of ITR.
 Link of Aadhaar card with PAN: Linking of Aadhar number with PAN is mandatory
as per law to file an income tax return. It can prevent tax evasion as well as checks in
multiple PAN cards. Aadhar cards can be linked with PAN in both online and offline
modes. In online mode open the link https://incometaxindiaefiling.gov.in/, register, or
login. Click on the “link Aadhaar” service to update your Aadhar number
(https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar), enter
PAN number, Aadhaar Number, Name as per Aadhaar, mobile number and select I
agree to validate my Aadhaar details, then click on the tab “link aadhaar”. To check
your aadhaar linking status open the URL:
https://www.pan.utiitsl.com/panaadhaarlink/forms/pan.html/panaadhaar, put your
PAN number, date of birth, and enter Captcha, it will show you’re your aadhaar
linking status.

15
 Salary statement: Salary statement is essential for a salaried person to calculate total
income for the financial year on basis of which income tax is imposed. The salary
statement should be certified by the employer.
 Form 26AS: It is a detailed statement of TDS & TCS generated from the website of
the Income Tax of India. “Ibid.”
 Form 16: It is a certificate issued by the employer to the employee containing the
summary of salary paid and tax deducted/collected thereof. “Ibid”.
 Form 10E: Form 10E is used to claim relief u/s 89(1) out of the salary received in
arrears or advance, gratuity received, commutation of pension received, compensation
on termination received, etc. This form provides the particulars of spread over income
to reduce the tax burden of a taxpayer.
 Annual Information Statement (AIS): It is a compressive statement of information
of a taxpayer same as Form-26AS. A feedback option is available in the AIS system.
Under each section of AIS, both reported values and modified values are displayed. It
can be downloaded from the e-filling website by login into the portal > select services
> Annual Information Statement (AIS).
 Tax Information Summary (TIS): It shows the summary of the category-wise
aggregate information of a taxpayer. The information available under TIS may be used
for prefilling of returns. Under this Tab, a taxpayer can view and download the
taxpayer’s information summary in PDF or JSON format, which can be used for filling
of the income tax return. AIS data can also be downloaded through the 'Utility' tab
under the 'Resources' section.
 Interest income statement on bank deposits: Any interest received from the Fixed
Deposit (FD), Recurring Deposit (RD), and Saving deposit account during the
previous year is taxable under the provisions of the Income Tax Act. Income from the
interest on the saving deposit account is taxable after a deduction of Rs. 10.000 (Sec.
80TTA). Hence, a statement of interest earned is a prerequisite for filing an error-free
income tax return. Statement of interest earned can be generated in online mode from
online banking platform and in offline mode from the bank branch.
 Saving certificates u/s 80C: Contribution to Provident Fund (PPF), National Saving
Certificate (NSC), Sukanya Samriddhi Yojana, Your children’s school tuition fees,
Life insurance premium payment, Equity Linked Savings Scheme, etc. are necessary
investment schemes under section 80C. All the document related to this investment is
required to claim deduction under section 80C (maximum up to Rs. 1, 50,000).
 Principal repayment and interest payment on home loan: If an assessee
constructing/purchasing a residential house by tacking a loan from a bank, he/she is
eligible for tax exemption u/s 24(b) on the interest amount paid up to Rs. 2 lakhs. The
principal amount paid on this loan is deductible u/s 80C.
 Capital gain statement: Both short-term and long-term capital gain statements are
required to be generated for the previous year to know the total gain or loss from the
investment. This can be generated through CAMS, Mutual fund company websites,
Demat account broker’s website, or any other online platform.
 Books of accounts: The income statement shows the profit and loss position, whereas
the balance sheet shows the asset and liabilities position of a business. Both are

16
 essential as income proof for the assessee to have income from business and
profession.
 Bank account statement: Bank Statement, which contains the details of a business
transaction, is an essential document to file ITR. Particulars of the incomes and
expenses can be derived from the Bank Statement to check/prepare financial
statements such as Profit and Loss Account and Balance Sheets.
 Cash register: A cash register or cash book is also an important document required
to substantiate the financial transactions of an organization. It shows all the cash and
bank receipts and payments during the previous year, based open which ITR filing
may be done.

Documents are very much essential for correct filling of return. Although no
documents are submitted at the time of return filing, still every taxpayer must maintain a record
of supporting documents for smooth filling of return.

Precautions to be taken for ITR filling

“Prevention is better than cure”. It is better to file a correct return rather than,
rectification of return after wrong filling. An erroneous return may appeal to fines and fees
later on. Hence, it is necessary to be cautious enough to file an error-free return. Every aspect
of the ITR form should be carefully calculated and filled up as per the provision of the Income
Tax Act. Here are some tips to file ITR more accurately.
 Remember Due dates: Due dates are very important. If you skip different due dates,
you may be penalized or liable to pay interest for delayed settlement. For Example
Maximum fine of Rs. 10,000 may be imposed for late filing of ITR.
 Payment of Advance Tax and self-assessment Tax: It should be carefully checked
that the correct amount of Advance Tax and self-assessment tax has been paid in due
time to avoid interest penalties.
 Download and verify Form 26 AS: A taxpayer needs to download Form 26 AS and
verify it with the return form. If any discrepancy is found, that should be corrected
immediately before the filing of the return.
 Collect and arrange all supporting documents: Collect and organize all supporting
documents related to ITR filling such as salary statement, bank statement, and proof of
savings, etc. It should be kept systematically for the present as well as future reference
and no documents are required to be attached along with IT return.
 Pay all dues: Before the filing of the return, an assessee should confirm about all
his/her dues paid within due dates to avoid interest penalties, such as advance tax, self-
assessment tax, and any demand from the IT department.
 Calculate accurately: Before filling out the return an assessee should calculate and
recalculate exactly the amount of total income, TDS, advance tax paid, deductions if
any, interest if any, tax liability and refund, etc.
 Collect FORM-16: Form 16 part A and part B should be collected in time from the
employer and verify the amount with your calculation.
 Choose the correct form: Confirm you're correct ITR form as per your source of
income.

17
  Check all details: Ensure that all of your data is entered in the ITR form correctly such
as PAN number, personal details, mobile number, email ID, etc.
 Proceed to file the return: After checking all the details you can register and/log in to
the correct URL (i.e. https://www.incometax.gov.in/iec/foportal) for filing of return.
You may choose online filling or offline filling depending upon your expertise.
 Verification of ITR: After filling and submission of return it needs to verify the return,
electronically such as with a digital signature certificate (DSC), aadhaar OTP,
Electronic Verification Code (EVC). If it is not possible to verify electronically, then
the downloaded ITR-V form should be signed and sent to the CPC, Bangalore within
120 days to complete the verification process.
Essential precautions should be taken for the successful filing of returns. In case any
deviation is found during filling of the return, necessary correction may be initiated
immediately to make it error-free. If an error is found after the submission of the return, a
revised return may be submitted again.

Mismatch between Form-26AS and Form-16

Sometimes it is found that there is a mismatch between the Form-16 and Form-26AS
of a taxpayer, which creates a problem in filling of IT return within due date. So, it is
necessary to verify both documents and match them properly to file an error-free return.
There are many causes of mismatch between Form-16 and Form-26AS. Some of them are as
follows:
 Failure to deposit TDS/TCS in time by the deductor /employer.
 Wrong PAN mentioned in the TDS return.
 The wrong amount was entered in the TDS return.
 Wrong entry of assessment year in TDS file.
 Wrong entry of deductor’s TAN/PAN.
 Error in the Challan Identification Number (CIN)
 Omission in filing TDS returns in time.
Any type of negligence or carelessness on part of the deductor /employer may cause
disagreement between Form-26AS and Form-16. We should be careful enough to find out the
discrepancy before the filing of the return. As early as possible the errors in the TDS statement
should be reported to the deductor/employer for quick rectification. If timely rectification is
not possible, it is difficult to file ITR return in online mode. The new ITR filling website
synchronizes the prefilled information to process the ITR. Any mismatch may result to delay
in ITR processing, delayed refund of excess TDS, payment of interest penalties and fines, etc.

1.6.1 Offline Filling of ITR

E-filling of the income tax return can be done in two ways offline and online mode. In
offline mode income tax returns can fill by downloading offline utility services from the
income tax site. Actually, the offline ITR submitted at present is not the manual (hardcopy)
form submitted before the e-filling era. Before starting the e-filling era, duly filled hard copy
ITR forms are needed to be submitted in the office of the Income Tax Department or sent by
post to the concerned income tax office address. But the offline form in the e-filling system is

18
available for download on the website of the income tax authority of India. After downloading
the form assessee has to fill up the form and again upload it on the same site to complete ITR
filling. All persons are eligible for using offline utility services for filling of ITR-1 to ITR-7.
Offline utility services are available in different formats such as Excel, Java, XML (Extensible
Markup Language) Schema, and JSON (JavaScript Object Notation) based utility. The assessee
has to choose a utility depending upon the assessment year and familiarity with the software.

From the assessment year 2021-22, JSON format is used for offline utility service and
XML format is no more used. In this format, users have two options for transferring their pre-
filled data into offline utility services. Either they can download directly from the offline utility
by login into their account or import pre-filled data from the e-filling portal in JSON format to
the computer. To download this JSON format offline utility you have to select the assessment
year, and then download the zip file, extract the file and open the utility to complete filling,
again upload the file and validate. System requirements for this utility are for windows
operating system, Windows 7 or later ia32 or x36 architecture, Intel Pentium processor or later
with 2GB or more RAM and at least 700MB free space. These requirements are also
changeable from time to time. Here are some steps for offline submission of the ITR form.

Steps for offline filling

Offline ITR filling can be prepared in two systems, A. Offline utility can be downloaded
from income tax website or B. Download pre-filled data by login from the e-filling portal in
JSON format. Step-by-step procedures for filling under both methods are discussed below.

A. Steps for Downloaded offline utility.

 Step 1: Open URL https://www.incometax.gov.in/iec/foportal.
 Step 2: Click on the Downloads Tab.
 Step 3: Select assessment year.
 Step 4: Select Utility Form (Common offline utility ITR 1 to ITR 4 or Common
offline utility ITR 5 to ITR 7).
 Step 5: Download JSON utility or MAC utility.
 Step 6: Extract the zip file.
 Step 7: Fill-up date in the form.
 Step 8: Upload the form by login into the e-filling site of the income tax return.
 Step 9: Validate the form and submit it.
B. Steps for downloading prefilled data and offline filling.
 Step 1: Open URL https://www.incometax.gov.in/iec/foportal.
 Step 2: Login into the portal by PAN as a user ID and password (if registered
earlier).
 Step 3: Click on the e-file Tab and select income tax returns, then download
Prefilled Data.
 Step 4: Select assessment year.
 Step 5: Select download.
 Step 6: Extract the downloaded zip file and open the from the extracted folder.

19
  Step 7: Check the data, modify the data, and input additional data.
 Step 8: Login into the e-filling site of income tax return and log in using PAN
no and password.
 Step 9: Click on the 'e-File' menu and select 'Income Tax Return.
 Step 10: Select assessment year and form number.
 Step 11: Select the mode of filling as offline.
 Step 12: Select filing type. (Original Return or Revised return or modified
return).
 Step 13: Attach and upload the completed ITR form in .json format.
 Step 14: Proceed to verify the return. Verification can be done from any one of
the following options: Aadhaar OTP or Digital Signature Certificate (DSC),
EVC using Pre-validated Bank Account Details, and EVC using Pre-validated
Demat Account Details, etc.
 Step 15: If it is not possible to verify electronically, then the ITR-V form may
be downloaded and sent to CPC, Bengaluru within 120 days.
Both the offline utilities of e-filling are good and easy-to-use platforms. An assessee
can use any one of them for filling his/her income tax return. Still, it needs computer systems
for filling of the IT return. It is also required some computer knowledge for effective IT filling.
This method of filing income tax is not as easy enough as the manual system of filing returns.
It may be termed as a hybrid system of filing income tax returns.

1.6.1 E-filling of ITR in online mode

The online mode of e-filling brings a massive transformation in the direct taxation
system. It makes the ITR filing process very simple with prefilled data, auto validation,
accessibility through a mobile application, multi-option payment, quick processing, single
dashboard interaction, free ITR preparation software, etc. The government has introduced the
new portal for e-filling of income tax return (ITR) 2.0 from the assessment year 2021-22 to
make it more systematic. This system is beneficial for many stakeholders such as taxpayers,
Income Tax Department, Government, etc. Starting from the assessment year 2006-07 to till
date e-filling process has been developed significantly. E-filling portal 2.0 brings a tremendous
change in the features of the e-filling process.

Features of e-filling

E-filling is a system of filing income tax returns through a computer with internet
connectivity. It is a user-friendly system, where the return can be filled easily without any
paperwork. It also saves the environment by reducing the use of paper. The main features of e-
filling 2.0 are stated below.

 E-filling 2.0 of income tax return (ITR) is an integrated system of income tax
processing. It is a taxpayer-friendly portal where a taxpayer can file his/her ITR
without the help of others. Quick refund of excess payment towards income tax
can be possible due to the new portal of e-filling.

20
  Under this new system, pre-filled data is available for filing of ITR, and all
interactions, modifications, pending actions, mismatches, errors, follow-up
action, etc. can be accessible on a single dashboard.
 Besides the above, a taxpayer has been able to proactively update his/her profile
to provide certain details of income such as; income from salary, house
property, income from business/profession, interest, dividend, which will be
used in pre-filling their ITR.
 This portal has free Income Tax Return (ITR) preparation software with
interactive questions and answers, which facilitate taxpayers for filling of
different ITR Forms.
 For quick response and assistance to the taxpayer’s queries, a call center facility
has been enabled. This portal is also equipped with detailed FAQs, tutorial
videos, user manuals, and chatbot/live agent (TaxGenie), etc.
 In the new income tax portal, the taxpayer account is secured with an e-vault
for a higher security option.
 The new system is also aimed at the launching of the Mobile Application portal
for ITR filling through smartphones.

The new e-filling portal 2.0 is indeed a very smart platform for the filling of ITR in a
hassle-free way. It makes a revolutionary change in the Indian Taxation System. The new
system of e-filling surpasses all the hurdles in the manual ITR system. A taxpayer can able to
file a return in the new portal by self, as it is equipped with all types of assistance essential for
a taxpayer. Video tutorial, live agents, instructions, make it more systematic. Income Tax
Department has been adding additional features in the portal to make it more users friendly.

Advantages of e-filling (Online Mode)

Online filing has some extra benefits over offline filing. It has made the filling process
more simple and user-friendly. The new filling process helps the users to file error-free ITR
within a very short time at their convenience. Followings are some of the advantages or benefits
of online filling.

 Convenient filling: Online filling of ITR can be done at your convenience at

any point in time (24x7). There is no necessity to visit the income tax office
during office hours.
 Simple and easy understanding: Filling through online mode is more simple
and easy due to the availability of prefilled data, video tutorials, simple
instructions, FAQs, call centers, online agents (Tax Genie). The launching of
the smart mobile platform of ITR filling also makes it easier.
 Quick filling: A taxpayer can file ITR return within 5 minutes through the
online mode of e-filling. Validation and verification can also be done within a
very short time.
 Fast Processing: ITR filling through an e-filling portal process the data very
quickly through a computerized system. An assessee can check the return

21
 processing status by login into his/her account. It shows the date of return filed,
return verified, return processing, and completion of return processing.
 Easy Verification: Verification of ITR in the e-filling system is made easy by
multiple option verification. Different options available on the e-filling portal
are verification by aadhaar OTP with registered mobile number, verification
using Digital Signature Certificate (DSC) and verification using Electronic
Verification Code (EVC) generated through net banking, bank account, or
Demat account.
 The timely refund of excess amount: Due to the first processing of return in
the e-filling system, refund of excess amount also process very fast.
 Auto identification of error: ITR filling through e-filling portal in online
mode identifies any wrong amount entered wrongly. Data entered in the e-
filling process should be correctly entered in the required place, otherwise, an
error message will come if any mismatch is found.
 More confidential: The E-filling portal is secured with two-factor
authentication with an e-vault facility. Assessee, who chooses e-vault facility,
required both password and OTP to login account.
 Easy accessibility of past returns as and when required: E-filling website
accommodates all ITR filling data for a long time. Hence, any assessee
interested to access old ITR can download it by login into his/her account.
 Easy submission: In the e-filling platform it is very easy to submit ITR. Just
after validation and E-verification ITR can be submitted without any hindrance.
 Not required to submit ITR-V hard copy: E-filling system verifies the ITR
in different modes. So, it is not required to submit a hard copy of ITR-V through
the post.
 Easy payment of tax amount: The new e-filling portal is equipped with an e-
payment facility with multiple gateways, which facilitates quick payment of
advance tax, self-assessment tax, pending dues, etc.
 Easy compliance of pending actions: E-filling website notifies the various
pending dues related to the filing of ITR and sends an e-mail to the concerned
parties, which can be resolved by login into the concerned person’s personal
account.

The E-filling portal has many advantages over offline (manual) filling. We should be
extra careful while filing returns under the e-filling system and should follow all instructions
carefully. It is also helpful in availing some value-added services like viewing and downloading
Form 26AS, email facility, SMS facility, etc. It also required less cost for filling ITR, less
storage space required for keeping ITR forms.

Disadvantages of E-filing

Though the e-filling system has so many advantages, it has also some demerits too. The
important disadvantages of e-filling are as follows.

22
  Adequate knowledge of computer required: Computer knowledge is required to file
ITR. Without knowledge of computers as well as the basic idea of income tax it is
difficult to file a return successfully.
 Data lost: Failure of a computer server may lead to data loss. A server fails because of
operating system crashes, hardware malfunction, unexpected application behavior, etc.
In every instance, there is a chance of data being lost. Hence, it is advised to keep a
backup of essential documents related to return filling.
 Data hacking: Unauthorized access to a computer system or an account over the
digital network is called hacking. It may be ethical or unethical but generally associated
with an illegal activity where the data may be stolen by cybercriminals. E-filling
system is also working over network hence there is a chance of cyber threat.
To file ITR in online mode, a computer system and high-speed internet connection are
required. If any wrong information is provided in ITR may attract fines and penalties. Extra
care should be taken while filing ITR in e-filling mode.

Procedure for e-filling (online mode)

A well-defined process will be followed for e-filling of return in online mode. A
taxpayer can file ITR-1 to ITR-7 through online mode. All the relevant prefilled data
available in the login portal should be verified and modified if required then submit before
the due date. The detailed step-by-step process of e-filling of ITR-1 is discussed below.

Step 1: Open the e-Filing portal using URL: https://www.incometax.gov.in/iec/foportal/

Step 2: If you don’t have an account, register yourself using PAN and other details. Here you
can get started with PAN number, fill in all details, verify your details, and secure your
accounts with a password.

23
Step 3: Login your account using PAN / aadhaar number as ID and given password.

24
Step 4: After login to the account user can view PAN, mobile no., email ID on the left side,
and on the right side shows the activities such as File now, Tax deposit, recently filed returns,
pending actions, recent forms filled and grievances. Users can select “File now” to proceed
further.

25
Step 5: Next step is to select the assessment year of ITR filling and select the mode of filing
as online (recommended) then continue.

26
Step 6: In this step, you have two options choose “Start New Filling” if you start initially or
if attempted previously start with “resume filling” in the saved draft option.

Step 7: After start filling select status applicable to assessee such as individual or HUF or
Others.

27
Step 8: In this step, assessee needs to choose an ITR Form i.e. ITR-1/ ITR-2/ITR-3/ITR-4
etc. as per his or her source of income.

28
Step 9: Proceed with the selected ITR form. Here I choose ITR-1 to process. Start with
“Let’s
Get started”

29
Step 10: Next step is to select the option for which you are filing your return i.e. taxable income
is more than exemption limit or aggregate amount of deposit exceeding more than Rs. 1 crore,
and /or incurred expenditure more than Rs. 2 lakhs to travel a foreign country and/or spent Rs.
1 lakh or more for payment of electricity bill or other reasons.

30
Step 12: Validate your prefilled return or change/ modify the data available in the prefilled
return. Under this step total processes are classified into 5 heads such as personal information,
gross total income, total deductions, tax paid, and total tax liability.

31
Step 13: Check and verify prefilled data under “Personal information” and confirm it.
 Check the name, PAN, aadhaar, DOB, contact no. e-mail and address.
 Select the nature of employment such as central government, state government, public
sector, Pensioner’s private sector, etc.
 Select the filling section u/s 139(1): return filed before the due date, u/s 139(4): return
filed after the due date, u/s 139(5): revised return after filing original return, etc. and
filling return in response to notice u/s 139(9), or 142(1) or u/s 148.
 Next, you have to choose the new tax regime u/s 115 BAC by clicking on yes or no.
 Then check the bank details for validation of the bank account.
 Save the information and save the data for confirmation of personal information.

Step 14: Open the next tab “gross total income”

 Check gross salary u/s 17(1), 17(2), and 17(3).
 Deduct exempted allowances u/s 10.
 Calculate net salary after allowances u/s 10.
 Less Deductions u/s 16 (standard deduction u/s 16 (i), entertainment allowance u/s
16(ii), professional tax 16(iii), etc. (These deductions cannot be claimed if a new tax
regime opts)
 Add income from house property.
 Add income from other sources (interest from a savings bank account, interest from
fixed deposit, Interest from Income Tax Refund, Family pension, dividend, etc.).
 Verify Gross total income (GTI) from prefilled data and confirm.

32
Step 15: Next step is to open the total deduction tab, check and confirm the prefilled data or
modify it to save.
 Allowable deductions are under section 80C, 80CCC, 80CCD(1), 80CCD(1B),
80CCD(2), 80D, 80DD, 80DDB, 80E, 80 EE, 80EEA,80EEB, 80G, 80GG, 80GGA,
80GGC, 80 TTA, 80TTB, 80U etc. (These deductions cannot be claimed if new tax
regime is opted)
 Check all the above deductions and verify with prefilled data then confirm it.

Step 16: In this step, details of the tax paid on behalf of the assessee are recorded. The tax
collected from a different source such as TDS from salary income, TDS from other than salary
income, TDS as per form-C furnished by the payer, details of TCS, advance tax, and self-
assessment tax is available under this section. You have to check the prefilled data with actual
data and modify if required then confirm.

Step 17: The last section of ITR-1 is to verify total tax liability. In this section gross total
income, total deductions, total taxable income, tax payable on total income, rebate u/s 87A, tax
payable after rebate, health and education cess, total tax, relief u/s 89A, interest components,
and total tax liability is required to verify and confirm.

33
34
Step 18: Next step is to validate your pre-filled return. After checking the return summary
proceed to return verification of return.

35
Step 19: Now click on the self-verification button and proceed to preview.

36
Step 20: Now you can check your validation process is successful or not. If not find out the
list of errors in the filling process and rectify them. After validation, you may proceed with
verification.

37
Step 21: Next step is to verify the return. Many options are available for verification of
return. E-verification through the aadhaar OTP is the recommended verification and very
easy to verify.

Step 21: Next step is how do you want to e-verify your return. You may verify with adhaar
registered mobile OTP, verification using a digital signature certificate (DSC), etc. You can

38
also generate EVC for verification through net banking, bank account, or Demat account.
Click on a suitable method of verification and continue.

Step 22: After continue you will receive an OTP in your aadhaar linked mobile. You have to
enter the OTP and submit the return. With this step the e-filling of ITR is complete.

The above steps should be strictly followed for filling ITR successfully. You should be
careful about filling of ITR error-free. Various sections of the income tax act need to be
followed while filing ITR. An exact ITR form should be chosen for filling of return depending
upon the source and nature of income. If the original return under section 139(1) is found
erroneous, a revised form may be submitted u/s 139(5) with the rectification of the error.

1.7 DOWNLOADING AND VIEW ITR

After completion of return filling an assessee can able to view and download the ITR form at
any point in time if required. It is very easy to download the submitted or processed ITR form
by login into the assessee’s account. ITR form serves as proof of income for different purposes
i.e. applying for a bank loan. We need past years' ITR for spread over of income under section
89(1) in form 10E. Assessee can also keep a printout copy of the processed ITR form for future

39
reference. Hence, downloading of ITR form is essential for every assessee. Here are some steps
to be followed to view and download ITR forms.
 Open URL: https://www.incometax.gov.in/iec/foportal
 Login to your account with your PAN number and password.
 Click on e-file Tab > select Income tax returns > View filed returns.
 Select the assessment year to download the ITR form.
 Click on the download form on the selected assessment year,
 You can also download acknowledgment receipt and JSON file (for the assessment
year 2021-22) an XML file (for assessment year up to 2020-21)

A taxpayer can also able to check the timeline of ITR processing under the same
process. Year-wise details of income tax payment and total income, tax refund, etc. can be
calculated under this system. This process is very easy to download the ITR form without the
help of a chartered accountant.

1.8 FILLING OF REVISED RETURN

If we make some mistakes or omissions while filling the original IT return, it is required
to file a revised return. A revised return can be filed under section 139(5) of the Income Tax
Act, 1961. It allows a taxpayer to rectify the error or omission made by him/her while filling
the original return. Revised returns can only be filed after the filing of the original return u/s
139(1). Revised returns can be submitted at any time before the end of the relevant assessment
year or before the completion of the assessment whichever is earlier. A taxpayer who has filled
belated returns (after the expiry of the due date) was not allowed to file a revised return. To file
a revised return, details of the original return file are also required such as acknowledgment
number and date of original return filling. Revised returns can be filled as per the following
steps.

Steps to file a revised return:

 Step 1: Open URL https://www.incometax.gov.in/iec/foportal

 Step 2: Login into your account using PAN and password and OTP if required.
 Step 3: Click on the e-file tab, select “Income Tax Returns” then ‘file income
tax return’
 Step 4: Select assessment year, the mode of the filling (online or offline)
 Step 5: File a fresh Income Tax Return > Start new filling.
 Step 6: Select the status applicable HUF/Individual/ Others
 Step 7: Select the ITR form no. and proceed with my ITR.
 Step 8: Let’s get started, then select the reason for the filing of return and
continue.
 Step 9: Click on verify your personal information and select the nature of
employment.

40
  Step 10: On filling section choose file revised return u/s 139(5) (revised after
filing of original return).
 Step 11: Enter the acknowledgment receipt number of the original return and
the date of filing of the original return.
 Step 12: Continue same as original return filling afterward.

Filling of a revised return is necessary for any erroneous original return filling. So,
extra care should be taken while filing a revised return. It is not necessary to file a revised
return if the original return is filled accurately.

1.9 LET US SUM UP

Filling of Income Tax Return (ITR) is one of the most important tasks of every taxpayer in
the country. It is also essential to file an income tax return within the due date. Income Tax
Return (ITR) is a form, required to be filled up and submitted by an individual or a company
to the Income Tax Departments of India in each assessment year. It contains detailed
information about a person’s total income and the taxes to be paid on it. There are seven types
of ITR forms as ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 used by different taxpayers
depending upon their source of income.
A duly filled ITR form should be submitted before the due date i.e. 31st July of the relevant
assessment year. An ITR form should be submitted either in online or offline mode through e-
filling. E-filling portal 2.0 has made easy for the submission of ITR form in online mode with
prefilled data, call agent, tutorial videos, user manuals, and chatbot /live agent (TaxGenie), etc.
Before filling of income tax, a taxpayer is required to log in to the e-filling portal and fill
up the data inappropriate place. An ITR form consists of different parts such as personal
information, gross total income, total deductions, tax paid, and total tax liability. All these parts
are further classified into many sub-heads. A taxpayer should be ready with the Form-16,
Form-26AS, and other documents before starting e-filling. These documents help you to verify
the prefilled data available in the income tax login portal. After confirmation of all information,
the taxpayer should validate, verify and submit the form.
The E-filling system also made it easy to verify return forms through electronic mode (e-
verification) with help of aadhaar OTP, DSC, EVC through bank account and Demat account,
etc. If it is not possible to e-verify the return form, ITR-V should be downloaded and printed.
The printed ITR-V (Income Tax Return Verification) is required to be signed by the taxpayer
and sent to the CPC (Centralized Processing Center), Income Tax department Bangalore
through ordinary/speed post, which must be reached before 120 days from the filling of the
return.

1.10 KEY WORDS

 Assessment year (AY): It is the financial year in which the income of the previous is
taxable.
 Previous year: Previous year is the financial year just before the assessment year,

41
  Income tax slab: Income Tax slab is the tax rate applicable on taxable income to
different income group assessee (taxpayer).
 Heads of income: There are 5 heads of income i.e. Income from salary, Income from
house property, Income from Profits and Gains of Business or Profession, Income from
Capital Gains, and Income from Other Sources.
 Total income: It is the aggregate income earned by a person from different heads of
income.
 Taxable Income: It is the amount of income, on which income tax is levied as per the
prevailing tax slab.
 Resident Indians: Resident Indians under the Income Tax Act is a person who resides
in India in the relevant financial year.
 Advance Tax: The amount of income tax paid during the financial year in different
installments is called advance tax.
 Self-assessment Tax: Self-assessment tax is the balance amount of tax to be paid by
an assessee on his taxable income, after TDS and advance tax.
 The due date for filing of return: The last date for filing of ITR of the individual
taxpayer is generally 31st July of the relevant assessment year.
 TDS: Tax Deducted at Source (TDS) is the amount deducted by the deductor at the
source of income at a certain percentage out of the amount paid to the person (deductee),
which is deposited into the accounts of the Central Government.
 Form 16: Form-16 is a certificate issued by the employer to the employee, containing
the details of tax deducted at source (TDS).
 Form 26AS: Form 26AS is a statement that shows the details of any amount deducted
as TDS from various sources of the income of a taxpayer.
 Form ITR-V: ITR-V stands for Income Tax Return Verification form.
 E-filling: E-filling is an electronic mode of filling the ITR form. It may be online or
offline form.

1.11 CHECK YOUR PROGRESS

Very short questions:

Q. 1. Which ITR form is applicable to salaried people?
Q. 2. How many heads of incomes are there to calculate gross total income under Income
Tax Act?
Q. 3. What is the user ID for login into the e-filling portal of income tax?
Q. 4. Advance tax will be paid in _______installments.
Q. 5. TDS refers to _____________.

Short Questions.
Q. 6. What is form 16?
Q. 7. Why 26AS form is important for filling ITR?
Q. 8. What is e-filling?

42
 Q. 9. How many parts do Form 26AS consist of?
Q. 10. What do you mean by deductions under section 80C?

Long Questions
Q. 11. Discuss important documents required for filing of ITR.
Q. 12. State the process of e-filling of ITR.
Q. 13. What is the significance of e-filling of ITR?

Answer: Q.1. ITR-1. Q.2. Five, Q.3. PAN number, Q.4. Four, Q.5. Tax Deducted at Sources

1.12 FURTHER READING

 Software: Singhania, V.K., E-Filing of Income Tax Returns and Computations of Tax,
Taxmann
 Book of Computerized Accounting and E Filling of Tax Returns-Mohanty R, Dash
ALN- Cost Accounting-Jena B, Bal S and Das A- Himalaya Publishing House

****************

43
UNIT 2: E-VERIFICATION PROCESS

Structure
2.0 Objectives
2.1 Introduction
2.2 Verification of Income Tax Return (ITR)
2.3 Importance of ITR verification
2.4 Methods of ITR verification
1.4.1 Offline verification of ITR
1.4.2 E-verification of ITR
2.5 Confirmation of ITR verification
2.6 Let Us Sum Up
2.7 Key Words
2.8 Check Your Progress
2.9 Further Reading

2.0 LEARNING OBJECTIVES

After learning this unit, you should be able to:

• Understand the meaning of Income Tax Return (ITR) verification
• Importance and significance of ITR verification
• Types of verification.
• Different modes of ITR verification

2.1 INTRODUCTION

It is the responsibility of every earned people to pay income tax on his/her taxable income for
the economic development of the country. Hence, every earned individual whose income is
taxable under the income tax act needs to file a return in the relevant assessment year
accurately. After filling out the return, it is essential to validate and verify the return form to
authenticate the legitimacy of the filed return. The Income Tax processed only verified the ITR
form. Without verification of the ITR form, an assessee couldn’t able to get a refund of any
excess amount paid in form of advance tax, TDS, TCS, etc. The government of India has
subsequently made ITR verification easier and user-friendly through the introduction of the e-
verification process. It verifies the ITR form within a second. At present both online and offline
verification processes are available to the taxpayer. A taxpayer can choose any one method
from the alternatives available. As quickly as the verification process over the income tax
department starts processing the return.

44
2.2 VERIFICATION OF INCOME TAX RETURN (ITR)

Verification of Income Tax Return (ITR) form is indispensable for the completion of
ITR filling. It is the last stage of filing ITR. Without verification, it is assumed that the ITR
form is not filed for the relevant assessment year. Verification of ITR ensures the legitimacy
of tax payer’s return filling. Verification of income tax return refers to the system by which a
taxpayer confirms the validity of the return filed by him. It is the last stage of ITR filing. You
can avail a maximum of 120 days from the date of filing ITR to verify it, otherwise, it became
invalid. Further, if you failed to verify your return within 120 days of the filling of the return,
you have to submit a request for the condonation of delay by specifying the appropriate reason
for the delay in verification and the return will be verified only after the approval of
condonation request by the Income Tax Department.

There are six methods to verify income tax returns, out of which only one method for
an offline or physical method of verification (i.e. ITR-V) and others are e-verification methods.
Offline/physical verification can be done with ITR-V (Income Tax Return Verification),
generated and printed from the e-filling portal, and sent to CPC (Central Processing Centre of
IT dept.) Bengaluru, by ordinary or speed post. E-verification methods are done in a different
way such as aadhaar OTP through registered mobile number, through Digital Signature
Certificate (DSC), Electronic Verification Code (EVC), net banking, Demat account, etc.
These methods can be used for verification of ITR-1(Sahaj), ITR-2, and ITR-4 (Sugam) where
the filing of returns need not be required to be audited. But if your income tax return needs to
be audited, then should verify it with Digital Signature Certificate (DSC). Further, each method
of verification was discussed in detail subsequently.

2.3 IMPORTANCE OF ITR VERIFICATION

To complete the income tax return filing process, it is essential to verify your return. If
no verification has been initiated within a stipulated period of 120 days from the date of filing
of the return, it is treated as invalid by the income tax department. Hence, verification of ITR
is a very important part of the filing of the income tax return. Verification of ITR within a
specified period has the following advantages:
 Avoidance of Penalties: If a taxpayer is unable to verify his/her return in
time, then Income Tax Department reserves the right to impose a penalty of
up to Rs. 5,000/-.
 Quick refund of excess tax paid: As soon as you verify your return after
filing, you are eligible to get back your refund. Delay in verification leads to
delay in refund.
 Set off and Carry Forward of Losses: If you verify your return within the
specified time, the income tax department allows you to carry forward losses
to the subsequent years, which can be adjusted against the income of
subsequent years.

45
  Easy Approval of Loan: Filing and verification of the ITR will help
taxpayers, to apply for different loans such as personal loans, house building
advances, etc. ITR form is a required document for the approval of the loan
as well as proof of income.

Besides these benefits of verification of ITR other benefits are also there. It immensely
helps the taxpayer in solving the financial problems of day-to-day life.

2.4 METHODS OF ITR VERIFICATION

Methods of ITR verification are classified into two broad categories i.e. offline and online. A
taxpayer can choose any one method of verification out of the online (electronic) or offline
(physical) method. The physical or offline method of verification is an old method of
verification, suitable for the traditional taxpayers. Under this method, the ITR-V Form is
generated and printed by the taxpayer, put signature in the specified place, and sent to the CPC,
Bengaluru. After receiving the ITR-V form income tax department send a confirmation
message to the registered mobile number and email id. Under e-verification (online) mode
assessee has to verify electronically with the help of aadhaar OTP, net banking, Demat account,
DSC, etc. Different methods of ITR verification are discussed in detail as follows.

2.4.1 Offline verification of ITR

Offline verification of ITR is otherwise known as physical or manual verification.
Under this system, a one-page ITR-V or acknowledge form is downloaded after confirmation
of verification of ITR through login into the e-filing portal. Here is the process of downloading
and sending the ITR-V/Acknowledgement receipt:
 Step 1: Choose ‘verify via ITR-V’ in the “Complete your verification” page of e-filling
or choose ‘e-verify later’.
 Step 2: If ‘e-verify later’ has been chosen, then log in again, click on the ‘e-File’ tab,
select ‘income tax return’ then select ‘E-Verify Return’, then select the ‘return to be
verified’, then select the method for e-verification, then choose ‘Verify via ITR-V’.
 Step 3: To download ITR-V you have to log in to e-filling portal, select e-File > Income
tax returns > View filed returns > select download receipt (ITR-V) from the concerned
assessment year.
 Step 4: Take a printout of the ITR-V/acknowledgment page and put your signature in
the space provided.
 Step 5: Sealed the ITR-V form only in an envelope, write the address of CPC,
Bangalore, (Income Tax Department - CPC, Post Box No - 1, Electronic City Post
Office, Bangalore - 560100, Karnataka, India).
 Step 6: Send the envelope through speed post or ordinary post before 120 days from
the filing of the return form.
 Step 7: You will receive a confirmation message of receiving ITR-V by the income tax
department on your registered mobile number and email-ID.
 Step 8: After receiving the ITR-V Income Tax Department will process the return form.

46
 Only a single page ITR-V for required to be submitted for verification. No other
documents are to be submitted along with the ITR-V form. It is a very time taking process and
the extra cost is also required to take a printout and the speed post charges etc.

2.4.2 E-verification of ITR

E-verification or online verification is another method of ITR verification. It is the
easiest and quickest way to verify ITR. There are five options available under e-verification of
ITR form such as (1) “I would like to verify using OTP on the mobile number registered with
aadhaar”, (2) “I would like to verify using Digital Signature Certificate (DSC), (3) Generated
electronic verification code (EVC) through net banking, (4) Generated electronic verification
code (EVC) through bank account, (5) Generated electronic verification code (EVC) through
Demat account. All these options are available for unaudited ITR forms and DSC is required
for audited income tax return files. Various e-verification options are discussed in detail as
follows.
(1) Aadhaar OTP through registered mobile no: To e-verify your ITR form using aadhaar
based OTP (One Time Password), a taxpayer must link his/her mobile number with aadhaar
and also PAN with Aadhaar. Lack of any one of the two linking options a taxpayer couldn’t
verify through aadhaar OTP. To verify through aadhaar OTP go to the e-filling portal, login
into your account > select e-file tab > select income tax returns > e-verify return > select “I
would like to verify using OTP on the mobile number registered with aadhaar” and click
on 'Continue'. A pop-up window will appear on your screen > select the tick box saying 'I
agree to validate my Aadhaar > click on 'Generate Aadhaar OTP'. You will receive a 6 digit
OTP in your registered mobile valid for 10 minutes and put this OTP in the box provide for
and click on submit to complete the verification process.
(2) E-verify using Digital Signature Certificate (DSC): Under this system, it is necessary
to have a valid and active DSC, “emsigner utility” (eMBridge) must be installed and
running in your PC, you have plugged in DSC USB token in PC, which is received from a
Certifying Authority Provider as pre-requisite for e-verify using DSC. These certificates
are generally required by an audited taxpayer. Verification can be done by using DSC in
the e-verification process. On the e-verification page select the second radio button showing
“I would like to verify using Digital Signature Certificate (DSC)” then continue and submit.
(3) Generated electronic verification code (EVC) through net banking: This method of
e-filing is available in option three of e-verification of ITR. Under this option, a Pre-
validated bank account, which is EVC-enabled is required. To verify the return under this
system, open the 'E-Verify page in the e-filling portal, select EVC 'Through Net Banking'
and click on 'Continue' > select the bank and 'Continue'. A pop-up window will appear on
your computer screen containing a disclaimer. Read and click on 'Continue'. Afterward,
you will be required to login into the net banking of your bank account. Then, select the 'E-
Verify option, which is usually available under the 'Tax' tab of the e-banking login page.
You will be redirected to the e-filing website, then select the ITR form no and click on e-
verify. Now your return will be verified successfully.
(4) Generated electronic verification code (EVC) through a bank account or ATM:
Under this option of verifying ITR, EVC can be generated through the taxpayer’s bank
account. You must have a pre-validated bank account to generate EVC. In the “e-Verify”

47
 page, select the fourth radio button 'Through Bank Account', and click on 'Continue'. Then
EVC will be generated and sent to the registered mobile number and email ID registered
with your pre-validated and EVC enabled bank account. You have to enter the EVC
received on your mobile phone and e-mail and click on e-verify to complete e-verification.
(5) Generated electronic verification code (EVC) through Demat account: The process
of verifying ITR through a Demat account is similar to the verification through a bank
account as before. Under this method, the taxpayer must have a pre-validated Demat
account. In the e-Verify page, select EVC 'Through Demat Account' and click 'Continue'.
Then the EVC will be generated and sent to the taxpayer’s registered mobile number and
email ID. Enter the EVC code received on your mobile number and email ID registered
with your Demat Account and click on e-Verify to complete the e-verification process.

E-verification of ITR has made the e-filling process more convenient and user-friendly. There
is no charge to verify ITR under the e-verification system. An assessee should have some
knowledge of the computer to verify returns electronically. It can also be done with the help of
ATM cards of the specified bank such as Axis Bank, Central Bank of India, Canara Bank, IDBI
Bank, ICICI Bank, Kotak Mahindra Bank, and State Bank of India. Bank ATM is used to
generate EVC and then the verification will be complete. These methods of verification can be
processed by self-filling of income tax or filling of income tax by the representative assessee
or Authorized Signatory. When it is processed by the authorized signatory, the verification
code will be shared with the authorized signatory or to the representative assessee for the
confirmation of ITR submission.

2.5 CONFIRMATION OF ITR VERIFICATION

After completion of the e-verification process in any one of the pre-discussed methods,
a confirmation message will be received in the registered mobile no. and e-mail ID of the
assessee from the income tax department. These methods of verification can be processed by
self-filling of income tax or filling of income tax by the representative assessee or Authorized
Signatory. In case of filling by an authorized signatory, the confirm message will be delivered
to both the authorized signatory and the assessee’s mobile no and email ID.
Confirmation of ITR verification can also be verified by login into the e-filling portal.
If the ITR form is e-verified and submitted, it will show that the return has been filled
successfully and if ITR-V is sent physically it will valid only after being received by CPC,
Bangalore. Hence, there will be no need to panic about verification of ITR if not done, it can
be verified at any point of time within 120 days from the submission of ITR in both online
and offline mode. A filed return will be processed only after its verification, as it provides the
legitimacy of the return.

48
2.6 LET US SUM UP

Verification of income tax returns is one of the most important tasks of a taxpayer. Without
verification of ITR, the return filed by the assessee is treated as invalid. There are two broad
methods of ITR verification i.e. offline or physical verification and online or e-verification.
Again e-verification is further classified into 5 types such as aadhaar OTP through registered
mobile number, through Digital Signature Certificate (DSC), Electronic Verification Code
(EVC) through net banking, EVC through bank account, and EVC through Demat account, etc.
E-verification of ITR is more convenient than offline verification (ITR-V). It will verify the
ITR form within a second. After verification of ITR, it will be processed by the income tax
department. There are some pre-requisites for e-verification of the ITR in online mode. A
taxpayer is required to link aadhaar number with his/her mobile no and PAN with aadhaar.
Other requirements are obtaining a Digital Signature Certificate (DSC), activation of online
banking, ATM card, Demat account, etc., and a pre-validated bank account. Verification of
ITR should be completed as soon as possible after filling out a return to get more advantages.

2.7 KEYWORDS

 ITR-V: ITR-V is an acknowledged form generated, printed, and signed by the taxpayer
to send CPC Bangalore for verification of ITR.
 DSC: Digital Signature Certificate is a digital signature required for e-verification of
ITR for the audited taxpayer.
 EVC: Electronic Verification Code is a 10 digit code alphanumeric code sent to the
registered mobile no for e-verification of ITR.
 Aadhaar OTP: OTP refers to the One Time Password. It is a six-digit number sent to
the aadhaar linked mobile number for e-verification of ITR. It is valid for 10 minutes.

2.8 CHECK YOUR PROGRESS

Q 1 What do you mean by ITR verification?

Q 2 What is EVC?
Q 3 Explain DSC.
Q 4 What is the validity of ITR-V?
Q 5 What are the consequences of not verifying the ITR form?

2.9 FURTHER READING

 Software: Singhania, V.K., E-Filing of Income Tax Returns and Computations of Tax,
Taxmann
 Book of Computerized Accounting and E Filling of Tax Returns-Mohanty R, Dash
ALN- Cost Accounting-Jena B, Bal S and Das A- Himalaya Publishing House

49
UNIT 3: USE OF E-TAX CALCULATOR AND E-PAYMENT OF TAX

Structure
3.0 Learning Objectives
3.1 Introduction
3.2 Meaning of e-tax Calculator
3.3 Need and Importance of tax calculator
3.4 Types of e-tax calculator
3.5 E-payment of tax
3.6 Let Us Sum Up
3.7 Key Words
3.8 Check Your Progress
3.9 Further Reading

3.0 LEARNING OBJECTIVES

After learning this unit, you should be able to:

 Understand the meaning of the Income Tax calculator.
 Requirements of income tax calculator.
 Types of income tax calculator.
 Use of e-calculator to calculate and file a correct return.
 Payment of E-tax.

3.1 INTRODUCTION

The income tax department of India has levied the income tax on the prospective
earnings of any person. Every earned person is supposed to have some idea about the Income
Tax Act. A person can file an Income Tax Return (ITR) by him/herself in the e-filling portal.
The portal has been equipped with many tools and applications for the smooth filing of ITR.
Various support services are also available for tax payer’s education to file an error-free return.
It is essential to prepare and submit the Income Tax Return (ITR) by an assessee every
year as per the prevailing Income Tax rules. The Income Tax rule has supposed to change in
the Union Budget of every year. Due to the periodical changes in the Income Tax Act, it is
difficult on the part of an assessee to remember all these rules. Hence, they may take the help
of an income tax calculator, which is synchronizing with the changes made by the Union
Budget every year. For this reason, various income tax calculators are prepared by the income
tax department, to simplify the income tax calculation.

50
3.2 MEANING OF E-TAX CALCULATOR

The income tax calculator is an easy-to-use online tool for estimation of the tax amount on the
income of a taxpayer for the given assessment year. The amount of tax is estimated based on
input data such as income earned, source of income, savings and other deductions, etc. A person
assessable to tax may use a tax calculator to estimate his/her tax liability of a relevant previous
year by using available information. He/she may estimate advance tax, TDS, self-assessment
tax, etc. from the available e-tax calculator on the official website of the Central Board of Direct
Taxes (CBDT). Different tax calculating tools are available on the tax-tools web page of the
income tax department of India (URL: https://www.incometaxindia.gov.in/pages/tps/tax-
tools.aspx). Some of the important tax calculating tools available under this page are income
and tax calculator, advance tax calculator, TDS calculator, rent-free accommodation calculator,
a transport allowance calculator, house rent allowance calculator, deductions calculator, etc.
Again, tax calculating tools may be used in customized (offline) mode depending upon
the requirements of the taxpayer in MS excel utility or readymade tools may be used from the
income tax department website. Depending upon our requirement we can choose the relevant
tax tools for the estimation of our tax liability. It is worth saying that e-tax calculators are
available free of cost but customized tax calculators are not free. Hence, taxpayers are likely to
use e-tax calculating tools from the website of income tax of India. The list of some important
e-tax calculators available freely is as follows.
 Tax Calculator
 Income and tax calculator
 Advance tax calculator
 TDS calculator
 House Rent Allowance (HRA) calculator
 Presumptive income under section 44AE
 Presumptive income under section 44AD
 Relief under section 89
 Deduction under section 80C
 Deduction under section 80D

All these e-tax calculators are discussed in detail subsequently. We should understand
the basics of income tax before using of e-tax calculator. Any wrong input leads to erroneous
estimation of tax. So, extreme care should be taken while inputting data in the e-tax calculator.

3.3 NEED AND IMPORTANCE OF TAX CALCULATOR

As we know that e-tax calculators are very essential for the estimation of the tax amount of a
taxpayer in advance. It is also prevented from payment of interests and fines to the income tax
authority due to the errors in calculation. The use of an e-tax calculator helps us to know in
advance, what the income tax would be likely to pay on a specific earning level. We can also
use an e-tax calculator for tax planning purposes to reduce the tax burden. Another importance
of e-tax calculators is as follows.

51
  It helps in the calculation of the tax burden.
 It helps us to understand different components of income tax liability.
 It helps to know the amount of advance tax to be deposited in different installments.
 It helps us to estimate the number of TDS to be deducted by the employer each month.
 It helps estimate the deductions and exemptions under different sections of the income
tax act.
 It helps in the calculation of self-assessment tax.
 It prevents us from unnecessary fees and fines from the income tax authority.

An E-tax calculator is very important for every taxpayer. Without which exact estimation of
tax is not possible. Hence, the use of a tax calculator is indispensable for every taxpayer. For
effective use of e-tax calculator the input data such as assessment year, types of the assessee,
age, residential status, sources of income, etc. are to be entered in the respective column
correctly.

3.4 TYPES OF E-TAX CALCULATOR

As discussed earlier, many types of tax calculators are available on the income tax tool web
page of the income tax of India website. A proper e-tax tool should be chosen to accomplish
the specific requirements of the taxpayer. Under this section, the details of different e-tax tools
and their uses are discussed in detail.
3.4.1 Tax Calculator: A tax calculator is an e-tax tool, used for the calculation of the tax
liability of a taxpayer. It is available at https://www.incometaxindia.gov.in/pages/tools/tax-
calculator.aspx. To calculate the estimated tax liability of a taxpayer some data should be
entered in the e-tax calculator. The data required to enter into the e-tax calculator for estimation
tax liabilities are:
 Select the required assessment year from the drop-down list for which tax amount is
required to be estimated.
 Then select the taxpayer’s category from the drop-down list as Individual or HUF or
AOPs/BOI or Domestic Company or Foreign Company or Firms or LPP or Cooperative
Society.
 Select Male, Female, or Senior Citizen.
 Then select ‘Residential Status’ from Resident/ Non-resident/ Not Ordinary Resident
 Put the ‘Net taxable income’ in the space provided.
 Total tax liability will be available in the last box.

Figure 3.1: Tax calculating tool

52
Source: https://www.incometaxindia.gov.in/pages/tools/tax-calculator.aspx
The above figure shows the steps to be followed to use a tax calculator. An E-tax
calculator is a very easy-to-use tool for the calculation of tax liability of a taxpayer for this
purpose input data should be accurate to calculate exact tax liability.

3.4.2 Income and tax calculator

Income and tax calculator is an e-tax tool available on the Income Tax of India website
“https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx”. This tool
estimates a taxpayer’s total income as well as tax amount thereon along with interest under
section 234 A/B/C. If a taxpayer is unable to calculate his/her total income from different
sources of income, taxable income after all deductions, total tax burden, and the interest for
delay in payments of advance tax, etc. income tax calculator is the best tool for him to estimate
exactly. To use the ‘income and tax calculator’ effectively, it is required to understand some
concepts of income tax and input the actual amount of income from different sources in the
exact space provided.
Required input data for the ‘Income and Tax Calculator’ are assessment year, tax
payer’s category, sex, and age, residential status, salary income, income from house property,
capital gains (both short term and long term), Income from other sources, profits and gains
from business and profession, agricultural income and deductions. Every column in the form
should be filled correctly to get an exact calculation of tax. Further, care should be taken for
the input of data under show details under income from house property, capital gains, and
income from other sources. Deductions are also an important part of the calculator if you
choose ‘No’ under section 115BAC (new tax regime). After input of the entire available data
click on “calculate” at the end of the form to calculate tax liability. The system will calculate
net taxable income, income tax, surcharge, education cess, secondary and higher education
cess, total tax liability, relief, and interest if any. Different types of interest charged by the
income-tax authority under sections 234 A, B & C are also calculated by this calculator,

53
considering the date of filing the return. Interest under section 234 A is calculated for the delay
in filing of ITR, section 234 B is applicable for calculation of interest for delay in payment of
advance tax, and section 234C is applicable for calculation of interest for deferred payment of
advance tax. Interest for all these purposes u/s 234ABC is calculated @1% p.m. or 12% p.a. at
simple interest. The process of the “Income and tax” calculator showed in figure 3.2 for better
understanding.

Figure 3.2: Income and tax calculating tool

54
Source: https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
After inputting all the required data in the income and tax calculator click on the “Calculate”
button to check the tax liability and another required result. To recalculate click on the “Reset”
button, then input data again. This is one of the simplest methods to estimate your tax liability
as per the provision of the Income Tax Act for the relevant assessment year.

3.4.3 Advance tax calculator

Any person having an estimated tax liability of Rs. 10,000/- or more required to pay
advance tax during the relevant financial year in different installments. An advance tax
calculator is an e-tax tool, which helps a taxpayer to estimate the installment of advance tax
based on the estimated total tax liability of the year. Advanced tax calculator for the relevant
financial year is available in the URL: https://incometaxindia.gov.in/Pages/tools/advance-
tax-calculator.aspx.
An assessee is required to enter necessary data to calculate advance tax liability.
Required data may vary from person to person such as a salaried person, HUF, AOP, Domestic

55
company, etc. Taxpayers category, opting section 115BAC, net taxable incomes are necessary
data for the calculation of advance tax installments. A format of advance tax calculator is given
in figure 3.3.

Figure 3.3: Advance tax calculator

Source: https://incometaxindia.gov.in/Pages/tools/advance-tax-calculator.aspx
Advance tax calculation is essential to escape from the interest charged under sections
234 B and 234 C. Hence, the advance tax calculator should be used in time for maximizing the
tax benefit.
3.4.4 TDS calculator
Deduction of exact TDS/TCS amount is very important for every employer or deductor.
Non-deposit of TDS in due time and the exact amount may attract penalties from Income Tax
Authority. TDS calculator is an e-tax tool that helps the deductor estimate the amount of TDS
for every employee. Estimation of the TDS amount through the e-tax tool is very simple. It is
available in the income tax portal under URL:
https://www.incometaxindia.gov.in/pages/tools/tds-calculator.aspx. Some data should be
entered in the e-TDS calculator to find out the exact amount of TDS/TCS. The data required
for this calculation are as follows:
 Financial year: Choose the relevant financial year for which TDS/TCS
amounts to be estimated from the drop-down list.
 Residential Status: Choose the resident status of the taxpayer from resident or
Non-resident.
 Recipient type: Select the recipient type from the drop-down list. i.e.
Company/Firm/AOP/BOI/Govt./ Individual etc. Then put a tick mark on PAN
is not available if required.
 Section/Description: This tab allows you to select the payment category from
section 192A to 194Q from the drop-down list.

56
  Amount of Payment: The amount of payment made by the deductor should be
recorded here.

Figure 3. 4 e-TDS Calculator

Source: https://www.incometaxindia.gov.in/pages/tools/tds-calculator.aspx
After input of required data, click on calculate button, which calculates TDS, surcharge,
education cess, secondary and higher education cess, and finally the “Total TDS to be
deducted”. Figure 3.3 shows the format of the TDS calculator.
3.4.5 House Rent Allowance (HRA) calculator
House Rent Allowance (HRA) is received by an employee from his or her employer
along with salary. It is generally added to the total income for the calculation of tax. However,
if an employee has been residing in a rented house, the amount received by him is exempted
up to a certain extent under section 10 (13A). HRA calculator helps us to calculate the taxable
and exempted portion of HRA received. Exemption of HRA is based on a certain set of
conditions, which is auto-populated in the e-calculator.
HRA is exempted from the tax form least of the following:
 An amount equal to 50 % of salary for the house situated in four metro cities
i.e. Bombay, Calcutta, Delhi and Madras and 40 % of salary for other places.
 Actual HRA received by the employee.
 The excess of rent paid over 10 % of salary (Basic pay + DA).

The taxable portion of HRA is a part of the income from salaries. It should be shown
under the income from salary while filing an income tax return. To use the HRA calculator we
have to open the URL: https://incometaxindia.gov.in/Pages/tools/house-rent-allowance-
calculator.aspx, then input data such as basic salary and Dearness allowance (DA), commission
received if any, HRA received and rent paid. Then tick the box if residing in a metro city and

57
click on calculate. It will separate exempted and taxable HRA quickly. A format of the House
Rent Allowance calculator is given below in figure 3.5.
Figure 3. 5: House Rent Allowance calculator

https://incometaxindia.gov.in/Pages/tools/house-rent-allowance-calculator.aspx
3.4.6 Presumptive income under section 44AE
Presumptive income under section 44AE applies to the small businessman, who is
engaged in the transporting business and annual turnover up to 2 crores. Income-tax allows
relief to small transporter to compute their income from the business of plying, hiring, or
leasing of goods carriages on a presumptive basis. They are not required to maintain regular
books of accounts.
Calculation of presumptive income under section 44AE through e-tax calculator
required to input some data such as assessment year, description of business, number of months
asset owned and actual profit. After input of the above data e-calculator automatically calculate
the total presumptive income under section 44AE. A format of presumptive income calculator
is given below, which can be assessed under the URL:
https://incometaxindia.gov.in/Pages/tools/presumptive-income-under-section-44AE.aspx.
After calculation of presumptive income tax is calculated by using tax calculator.
Figure 3.6 Presumptive income under section 44AE calculator

58
Source: https://incometaxindia.gov.in/Pages/tools/presumptive-income-under-section-
44AE.aspx

3.4.7 Presumptive income under section 44AD

Income Tax Act allows relief to the small business assessees, whose total turnover is
below 2 crore rupees under section 44AD. The business income of these assessees is computed
on a presumptive basis. An assessee who is opting for a presumptive income scheme is not
required to maintain its regular books of accounts. These business accounts are also not
required to be audited. If an assessee is a resident taxpayer and is an individual or HUF or
General Partnership can avail the benefit under section 44AD. Besides these, it is also
applicable to the business other than any agency business, income like commission or
brokerage, business under section 44AE, and profession u/s 44AA(1). Under this presumptive
taxation system income is calculated @ 8% on total turnover or gross receipt and @ 6% in case
of receipts by using account payee, cheque, draft, and electronic clearance system. It also
allows actual profit mode of income calculation.
Data required for using an e-calculator for the calculation of presumptive income under
44AD is assessment year, residential status, use of actual profit or cash receipt mode,
description, and gross turnover of the business. The e-calculator will calculate total
presumptive income under section 44AD. The following figure shows the format of the
presumptive income calculator u/s 44AD.

Figure 3.7 Presumptive income under section 44AD calculator

https://incometaxindia.gov.in/Pages/tools/presumptive-income-under-section-44AD.aspx

59
3.4.8 Relief under section 89
Relief under section 89 can be claimed by an employee in respect of:
 Arrear or advance salary received
 Gratuity
 The compensation received on termination of employment
 Commuted pension received

The amount received in the above form of income is ordinarily taxable in the year it was
received but if the taxpayer is interested to decrease his/her tax liability (relief u/s 89) may
spread over income throughout the amount due. Relief can be availed if the earlier tax rate was
lower than the current year’s tax rate. Relief u/s 89 can be computed as per the following
method:
Step 1: Calculate the total tax liability on the total income received, including the additional
salary of the previous years.
Step 2: Calculate the total tax liability on the total income received, excluding the additional
salary of the previous year’s in which such salary is received.
Step 3: Difference between the tax amounts computed under step (1) and step (2) above.
Step 4: Calculate total tax liability on the total income, including the additional salary of the
respective previous year(s) to which such salary relates to.
Step 5: Calculate total tax liability on the total income, excluding the additional salary of the
respective previous year(s) to which such salary relates to.
Step 6: Find the difference between the tax amount computed at steps 4 and 5 above.
Relief under section 89 is the excess of tax computed under step 3 over tax computed under
Step 7. No relief is available if tax computed at Step 3 is less than tax computed at Step 6.
It can be easily calculated without calculating error in the e-tax tool of “Relief under section
89”. E-tax calculator of Relief under section 89 can be used with some input data such as
assessment year, previous year, taxpayer status, residential status, date of birth, gender, and the
details of salary in arrears or gratuity or compensation received on termination or commuted
pension received. E-tax tool of relief u/s 89 is available at the URL:
https://incometaxindia.gov.in/Pages/tools/relief-under-section-89.aspx. A format of this is
shown below.
Figure 3. 8: Relief under section 89 calculator

60
Source: https://incometaxindia.gov.in/Pages/tools/relief-under-section-89.aspx

3.4.9 Deduction under section 80C

Deduction under section 80C is allowed to the individual taxpayer for the on-tax saving
investment. Maximum deduction allowed under section 80C, 80CCC & 80CCD(1) is Rs.
1,50,000/-. A taxpayer, who choose the new tax regime under section 115BAC could not get
deductions under section 80C. Section 80C provides deduction to an individual or HUF for
investment in various items such as Life Insurance Premiums, Public Provident Fund (PPF),
National Saving Certificate (NSC), Tax saving Mutual Funds, Sukanya Samriddhi Account,
Fixed deposits of 5 years or more, etc. and for payment of education fees of a child, repayment
of principal of HBA, etc. This facility is available to the individual taxpayer who does not opt
for section 115BAC.
E-tax tool “deduction under section 80C” is applicable to estimate the total amount of
deductions available from various instruments under section 80C. To use this calculator it is
required to know all the items available under section 80C and the amount of investment in
each category. Supporting documents of investment and expenditures under sec 80C should be
kept for future reference. Deduction under section 80C calculator is available under the URL:
https://incometaxindia.gov.in/Pages/tools/deduction-under-section-80c.aspx. After input of all
data in the respective field, it calculates the eligible amount of deduction of the individual
taxpayer. Deduction under section 80C calculating tool is shown in figure 3.9.

61
Figure 3.9: Deduction under section 80C calculating tool

Source: https://incometaxindia.gov.in/Pages/tools/deduction-under-section-80c.aspx

3.4.10 Deduction under section 80D

Deduction in respect to health and medical insurance premium is allowed under section 80D.
It can be availed by an individual or a HUF. An individual can claim the deduction if the policy
is taken in his/her own name or in the name of his/her spouse, parents and dependent children.
A HUF can claim the deduction on the policy of any member of that HUF. Deduction under
this section can claim in respect of the payments for Medical insurance premium up to a certain
limit.

In addition to this a sum paid by an assessee in cash on account of preventive health check-up
on the health of a person who is super senior citizen or senior citizen from the assessment year
2019-20, if medical insurance on the health of such person is not done. Deduction under section
80D e-calculator is used to estimate the exact amount of deduction under section 80D. It can
be assessed from the link: https://incometaxindia.gov.in/Pages/tools/deduction-under-section-
80d.aspx. All the required data should be inserted in the respective field to calculate the exact
amount of deduction. Pictorial presentation of the deduction under section 80D calculator is
available in figure 3.10.
Figure 3.10: Deduction under section 80D calculating tool

62
Source: https://incometaxindia.gov.in/Pages/tools/deduction-under-section-80d.aspx

3.5 E-PAYMENT OF TAX

Payment of tax by the assessee is essential if his/her taxable income is more than the
exemption limit. Taxes on income have been collected by the government from different
channels such as TDS, TCS, advance tax, self-assessment tax, etc. A taxpayer can pay tax in
two modes: online mode or offline mode. In offline mode, the taxpayer is required to visit the
selected bank branches and fill up the required form then deposit his/her tax amount in cash or
by cheque. Again, a salaried individual can also pay income tax by using the e-tax payment
facility of the NSDL e-payment gateway. payment of direct taxes online by taxpayers. To avail
of the e-payment facility, a taxpayer is required to have a net-banking or debit card or credit
card facility of the selected Bank.
E-payment is also known as online payment of tax through a computer system with an
internet facility. To pay the online tax you have to visit the link https://onlineservices.tin.egov-
nsdl.com/etaxnew/tdsnontds.jsp and click on the required challan number for payment of
different categories of tax. After selecting the challan, input data, and confirming the data
entered in the challan, it will be re-directed to the bank's e-payment gateway i.e. Net-
Banking/Debit Card web page. Then enter internet banking ID and password or debit card
details, enter the amount to pay the tax, and then the confirmation page will be displayed and
available for printing. The use of different forms is mentioned in table no 3.1.

Table 3.1 Challan numbers for e-payment of tax and their applicability
SL. Challan No/ITNS Applicability
No.
1 CHALLAN NO./ITNS 280 1. Payment of Advance tax,
2. Self-Assessment tax,
3. Tax on Regular Assessment,
4. Surtax,

63
 5. Tax on Distributed Profits of Domestic
Company.
6. Tax on Distributed income to unit holders.
2 CHALLAN NO./ITNS 281 Payment of TDS/TCS by Company or Non-
Company Deductee.
3 CHALLAN NO./ITNS 282 1. Payment of Securities transaction tax,
2. Estate duty, Wealth-tax,
3. Gift-tax,
4. Interest-tax,
5. Expenditure/other tax,
6. Hotel Receipt tax.
7. Commodities transaction tax
4 CHALLAN NO./ITNS 283 Payment of Banking Cash Transaction Tax
(BCTT) and Fringe Benefits Tax (FBT).

Source: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
From the above table, it is confirmed that different challan no/ ITNS (Income Tax New Series)
should be used by different categories of taxpayers. Except for challans available within the
table other challans are also available for black money, equalization levy, etc. The selection of
appropriate challan is very important to e-pay tax. The procedure for e-payment of tax is shown
below. Assuming the payment of advance tax or self-assessment tax, Challan No/ ITNS 280
has been chosen to describe the steps for e-payment of tax.
Steps for e-payment of tax.
 Step 1: Open the link https://onlineservices.tin.egov-
nsdl.com/etaxnew/tdsnontds.jsp.
 Step 2: Click on the selected Challans for the purpose provided. i.e. Challan no 280
for advance tax of self-assessment tax.
 Step 3: Choose the applicability of the tax such as Corporation Tax or Income Tax
other than Company.
 Step 4: Click on the radio button of the respective tax payment option. i.e. Advance
tax, Surtax, self-assessment tax, etc.
 Step 5: Select the mode of payment. i.e. net banking or debit card then select bank
name.
 Step 6: Enter PAN No. and assessment year.
 Step 7: Fill up address, mobile no, and e-mail ID.
 Step 8: Enter Captcha Code and click on proceed.
 Step 9: Verify and confirm the data on the next page and tick on the I agree box and
click on submit to the bank.
 Step 10: The page will be redirected to the OLTAS (income tax) page of the bank.
 Step 11: Choose the option to proceed with payment. i.e. internet banking or Debit
Card.
 Step 12: Enter login ID and password in internet banking or Card details in debit card
gateway.

64
  Step 13: Enter the exact amount of tax to be paid in the respective fields.
 Step 14: Click on submit and confirm again.
 Step 15: At last enter your mobile OTP to complete the transaction.
 Step 16: Then the page will redirect to the confirmation page to print the challan.

After successful completion all the steps in e-payment, you can able to pay the respective
tax without any problem. The total process of e-payment should be completed within 30
minutes, otherwise the transaction may fail. Again, uninterrupted internet service is also
required for the completion of the transaction successfully. A picture of the first page of Challan
no 280 is given below for better understanding.
Figure 3.11: Challan no / ITNS 280 online form.

65
Source: https://onlineservices.tin.egov-nsdl.com/etaxnew/PopServlet?rKey=207205502
Besides these online or e-payment facilities, offline facilities are also available for the
payment of income tax. But e-payment of tax is more advantageous than an offline payment.
It saves time, less paperwork, less chance of error, and is more convenience over offline
payment.

66
3.6 LET US SUM UP

Submission of Income Tax Return (ITR) is essential for every taxpayer as per prevailing
Income Tax rules. The Income Tax rule has supposed to change in the Union Budget of every
year. Due to the periodical changes in the Income Tax Act, it is difficult on the part of an
assessee to remember all these rules. Hence, they need the help of an income tax calculator,
which is synchronizing with the changes made by the Union Budget every year. For this reason,
various income tax calculators are prepared by the income tax department, to simplify the
income tax calculation.
The income tax calculator is an easy-to-use online tool for estimation of the tax amount
on the income of a taxpayer for the given assessment year. The amount of tax is estimated
based on input data such as income earned, source of income, savings and other deductions,
etc. A person assessable to tax may use a tax calculator to estimate his/her tax liability of a
relevant previous year by using available information. He/she may estimate advance tax, TDS,
self-assessment tax, etc. from the available e-tax calculator on the official website of the
Central Board of Direct Taxes (CBDT).
Income tax calculators and other supporting calculators are available on the website of
Income Tax of India. Some third-party customized e-calculators are also available. But the e-
calculators available in the Income Tax department site are free of cost and error-free. Hence,
it is recommended to use the Income Tax of India e-tax calculator.
Learning and understanding the e-payment of outstanding income tax dues is also very
important. E-payment is also known as online payment of tax through a computer system with
an internet facility. To pay the online tax you have to visit the link
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and click “proceed” on the
required challan number for payment of different categories of tax. After selecting the challan,
inputting data, and confirming the data entered in the challan, it will be re-directed to the bank's
e-payment gateway for payment. The E-tax payment system made revolutionary changes in the
income tax mechanism. In nutshell, both e-tax calculators as well as e-payment of tax have
made radical changes in the tax collection history of India.

3.7 KEY WORDS

 Tax Calculator: A tax calculator is an e-tax calculating tool that is used for
estimation of the tax liability of a taxpayer for the relevant assessment year.
 Income and tax calculator: The income and tax calculator is an e-tax tool that
estimates a taxpayer’s total income as well as tax amount thereon along with interest
under section 234 A/B/C.
 OLTAS: Online Tax Accounting System is a system for collection, accounting, and
reporting of Direct Taxes from all kinds of taxpayers, online through a network of
bank branches.
 Challan No./ITNS 280: It is an important challan to deposit the estimated or
calculated tax amount of advance tax, self-assessment tax, Surtax, etc. of an
individual taxpayer.

67
  ITNS: It refers to the Income Tax New Series forms.
 TDS calculator: It is an e-tax calculator which helps to estimate the amount of tax to
be deducted by the employer out of the employee’s salary.

3.8 CHECK YOUR PROGRESS

Q. 1. What do you mean by an e-income tax calculator?

Q. 2. What are the steps to be followed for e-payment of tax?

Q. 3. State some e-tax calculating tools available on the website of the Income Tax of India.

Q. 4. What are the requirements for e-payment of tax?

Q. 5. Answer the following question in one word.

a) Payment of self-assessment tax should be done in Challan No. _______.
b) Gift tax can be paid in ___________Challan.
c) Advance tax can be paid in _______installments.
d) Fringe Benefits Tax (FBT) can be paid using challan no___________.
e) OLTAS stands for______________________.

(Answer: 5(a) 280, 5(b) 282, 5(c) Four, 5(d) 283, 5(e) Online Tax Accounting System)

3.9 FURTHER READING

 Software: Singhania, V.K., E-Filing of Income Tax Returns and Computations of Tax,
Taxmann
 Book of Computerized Accounting and E Filling of Tax Returns-Mohanty R, Dash
ALN- Cost Accounting-Jena B, Bal S and Das A- Himalaya Publishing House

*******

68