Payroll and Compliance - The Monthly Chronicle

ADP India brings to you this special edition of the newsletter - on Income Tax Return Filing

Webinar on Top Tips for Filing Your Income Tax Returns


We don’t want to make any mistake in filing our income tax returns. Any mistake or misrepresentation may lead to income tax notice and scrutiny. Thus, to help you file better, ADP conducted a webinar on 27 June, on the best practices to follow while filing your income tax returns. The webinar recording can be viewed below:


Changes in ITR for this AY 2018-19

There have been a few changes in ITR for this year. They have been summarised as follows:

  • Until last year an individual was supposed to enter only his or her gross income, but from this year onwards, there is new requirement to furnish a break-up of salary i.e. value of Section 10 allowance which are not exempt, perquisites and profit in lieu received if any.
  • Along with salary details, new column are added to provide house property details, as well.
  • Last year, the TDS on rental payment exceeding 50,000 was introduced. Under the income tax return file, there is also an additional field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, provision for quoting of PAN of Tenant for such rent cases has also been made.
  • Non-resident can no longer file ITR 1. The option for ITR 1 has been revoked from them from this year.

Frequently Asked Questions

ADP is a payroll processing company, and part of our work is to help our clients with their payroll processing, filing of tax returns and issuing of Form 16. During the process, especially at this time of the year, there are many queries that we encounter and solve on a daily basis. Here is a list of the most asked questions on the topic of tax return filing:


1. Is there any reason why Part A gross is not matching with Part B gross income in my Form 16?
A few reasons for the variance are:

  • An employee was not under the taxable bracket for all four quarters. That simply means, the total salary amount shown in Part A of Form 16 issued to the employee will be the sum of salary paid to the employee for the taxable period. In contrast, the salary figure in Part B of Form 16 would be the total salary including taxable and non-taxable period. Thus, there would be variance for non-taxable period salary paid.
  • The salary amount shown in Part B includes values of perquisites provided to employees while Part A may not contain the same. Thus, any perk value paid would amount to difference.
  • Some organisations include fully non-taxable reimbursements (such as telephone bill reimbursement) in Part A while leaving out such reimbursements in Part B. This unique treatment undertaken by the company may at times result in the difference.



2. The Income Tax portal is showing this message: ‘The amount of salary disclosed in Income details / Part B is less than 90% of salary reported in TDS.’
The above alert gets triggered only if the Part B salary is less than 90% of Part A salary. The Part B salary figure entered in the return utility is after Section 10 exemptions (such as the House Rent Allowance and other allowance exemption) and hence the figure cannot be equal to the Part A figure unless there is zero Section 10 exemptions and at times the variance would be more than 10% to trigger 90% difference alert. Thus if you see this message and all details entered by you is correct then you can go ahead and file your ITR.


3. What if I have missed adding investments to my claim while submitting proof for Form 16 generation?
You can show your investments while filing your individual return to the income tax department. In general, you might get a notice to provide details for the difference in tax computation. You will need to maintain the original proofs, and submit these as and when they are asked for.


4. What is Form 26AS and is it important to check it before filing the return?
Form 26AS is a consolidated tax statement for all income and taxes deducted for the year. It’s always better to refer to your Form 26AS before filing your returns, so you can validate all incomes and taxes deducted by all deductors. You will thus minimise chances of making mistakes while filing your income tax return.

To check your Form 26AS, follow these steps:

  • Login to your income tax e-filing login:
  • Select ‘My account’ from menu options
  • In the drop-down list, select ‘View Form 26AS’
  • Once you select the option, you will be redirected to another page. Click ‘Confirm.’
  • Click on ‘I agree’ and then ‘Proceed.’
  • Then click on the ‘View Form 26AS’ link on the page.
  • Select assessment year and select View As (html or pdf or text).
You should now be able to view the form. If you need to download the form, click on ‘Export as PDF.’



5. What is the penalty or interest one needs to pay if one fails to file income tax return?
If the return is filed after the due date but on or before the 31st day of December of the assessment year, the penalty under Section 234F would be ₹ 5,000
If return is filed after the 31st day of December of the assessment year, the penalty under Section 234F would be ₹ 10,000 Note: If the total income of the person does not exceed Rs. five lakh, then the penalty payable would be ₹1,000.

Also, under Sections 234A, 234B and 234C of the Income Tax Act, the following interest would be payable:

234A Late filling of return 1% pm of net tax liablity
234B Non payment of advance tax 1% pm of net tax liablity
234c Deferement of advance tax 1% pm of net tax liablity

Finally, please note these two important points for individuals who earn a salary income:
Due Date: 31st July 2018
ITR to file: ITR 1, ITR 2 or ITR 3
Compliance Calendar for the month of July, 2018
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th July 18 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15th July 18 Gujarat Gujarat PT regulations By Challan
20th July 18 Karnataka Karnataka PT regulations By Challan & Online
21st July 18 West Bengal West Bengal PT regulations By Challan
31st July 18 Assam & Orissa State-wise regulations By Challan
31st July 18 Maharashtra Maharashtra PT regulations Online
PF Central
15th July 18 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15th July 18 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th July 18 TDS Payment for May 18 Income Tax Act, 1961 Online
31st July 18 Q1 TDS return for FY 2018-19 Income Tax Act, 1961 Online
31st July 18 Individual Income tax return filing for AY 2018-19 Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5th July 18 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
31st July - 1st Half yearly Chattisgarh ChattisgarhLabour Welfare Fund Offline
15th July - 1st Half yearly Delhi DelhiLabour Welfare Fund Offline
31st July - 1st Half yearly Goa GoaLabour Welfare Fund Offline
31st July - 1st Half yearly Daman & Diu Daman & DiuLabour Welfare Fund Offline
15th July - 1st Half yearly Gujarat GujaratLabour Welfare Fund Offline
31st July - 1st Half yearly Madhya Pradesh Madhya PradeshLabour Welfare Fund Offline
15th July - 1st Half yearly Maharashtra MaharashtraLabour Welfare Fund Offline
15thJuly - 1st Half yearly West Bengal West Bengal Labour Welfare Fund Offline
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Sources: Government Notifications, Circulars, Press releases.


The information provided herein is general and not intended as legal, regulatory, tax or accounting advice and you should obtain your own independent advice regarding the matters dealt with herein. ADP assumes no liability or responsibility for any errors or omissions in the content of this document or publication and for your use of any information provided. The information contained in this document is provided “as is” without warranty of any kind, either express or implied, including without warranties of merchantability or fitness for a particular purpose, and non-infringement. All materials contained in this are protected by copyright laws, and may not be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner without the express prior written permission of ADP. ADP’s names and logos and all related trademarks and other intellectual property are the property of ADP and cannot be used without its express prior written permission.


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