ITR filing

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: https://portal.incometaxindiaefiling.gov.in/
• 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:

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