FAQs

Who should file the IT return ?

Every Indian citizen whose gross total income falls above the threshold limit as per the prevailing income tax provisions, must file the return. Although people with non taxable gross total income can file the return, in order to get TDS refunds, loan application etc.

2

Who should pay advance tax ?

Every taxpayer, salaried or business or professional, with income tax liability of Rs 10,000 or more has to pay advance tax. Only senior citizens of 60 years or above and who have no business income are exempt from paying advance tax.

3

What is tax on regular assessment ?

When the income tax department has reasons to believe that a taxpayer has understated the income which results in additional tax payable on behalf of the taxpayer, the department computes the actual tax amount and serves demand notice on the taxpayer. This demand of tax is called tax on regular assessment.

4

What is exempt income ?

The income tax Act, 1961 has made various provisions for the taxpayers and made certain incomes exempt from the ta purview. eg. PPF interest, Dividends, leave encashment on retirement fully or partially exempt, etc.

5

Is agricultural income taxable ?

Agricultural income is non taxable but for the purpose of computing the tax on non agricultural income, the taxpayer has to mention the agricultural income, if any, in the return.

6

What is tax on gifts ?

Gifts up to Rs 50,000 in a financial year is exempt from tax but if the amount exceeds above this limit then the entire amount becomes taxable.

7

What is the new tax regime?

New tax regime will be available to taxpayers while filing return for financial year 2020-21 wherein standard deduction under income from salary, various allowances and various deductions under Chapter VI-A (section 80C, 80D and so on) will not be available. The slab rates have been revised for new tax regime. The taxpayer will have to choose under which regime, i.e. old or new, he/she would like to file the return.

8

What is Goods and service tax ?

Goods and service tax is tax on goods and services sold and consumed domestically. The government has introduced the GST bill in 2017 to include variety of taxes, like excise, service tax etc. in the ambit of GST so that one nation one tax model can be achieved. By virtue of this the ease of filing returns have also benefited the GST registered taxpayers.  

9

Am I liable to file GST return even if there is no sale ?

Every registered taxpayer is required to file GST return, be it annually or quarterly, even if the sale/ turnover is zero. In such a case, Nil return has to be filed for the relevant period. If returns are not filed by the registered taxpayer then interest and late fee will be applicable to the taxpayer.

10

Has the income tax site changed ?

Income tax department has launched new e-filing portal in June 2021. The new website is www.incometax.gov.in and all the taxpayers should login to this site to file return, check Form 26AS, e-proceeding, compliance portal etc.

11

Is it necessary to link PAN with Aadhar ?

in the Union budget of 2017, the Government has made it mandatory for every individual having PAN to link it with their Aadhar.

12

Is it necessary to pre-validate bank account for IT refund?

In order to get refund, if any, on income tax return filed by individual or company, it is necessary to pre-validate bank account in which the refund is sought by logging on the new income tax portal www.incometax.gov.in or else the refund will not be issued.