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FAQs On ITR 7
1. What are the details required to be filled to claim Exemption u/s 10(21), 10(21) r.w.s. 35, 10(23AAA), 10(23B), 10(23D), 10(23DA), 10(23EC), 10(23ED), 10(23EE), 10(23FB), 10(29A), 1 |
Published on:17/08/2024 |
Details required to be filled to claim Exemption: |
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My due date of return for AY 2021-22 is 31st December, 2021. My tax liability as on 31st March, 2021 is Rs.1,25,000/-. I have paid entire tax along with interest up to November 2021 on 13th November, |
Published on:13/01/2022 |
Step 1: As assessee’s tax liability as on 31st March, 2021 is Rs. 1,25,000 i.e. more than Rs.1,00,000/-, due date for the purpose of calculating interest u/s 234A is 31st July, 2021 for non-audit cases. Hence, interest will be calculated from August 2021 till month of filing. |
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How basic exemption limit is adjusted if total income includes special rate income? |
Published on:05/10/2021 |
Basic exemption limit is first adjusted against normal rate income and then special rate income by arranging highest rate income as priority so that tax is calculated in most beneficial manner to the assessee. For example, assessee is below 60 years age, his normal rate income is 1,00,000, Capital gain @ 20% is 1,40,000 and Capital gain @ 15% is 50,000; then basic exemption limit of 2,50,000 will be first adjusted against normal rate income of 1,00,000 in full, then Capital gain @ 20% 1,40,000 in full and then remaining 10,000 will be adjusted against Capital gain u/s 15%. Remaining Capital gain of 40,000 will be taxed @ 15%. |
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Where to enter details of split? |
Published on:03/09/2021 |
There is no specific provision in Taxbase as well as notified ITRs for the same. User needs to enter it in Capital gain>>Shares/Units in the same manner as he enters other transactions. |
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What will be fair market value of share in case there is a stock split after 31-01-2018 and thereafter share is sold? |
Published on:03/09/2021 |
CBDT has not clarified this matter yet. We recommend to split the fair market rate in the same proportion of split. |
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I am filing return of A.Y. 2019-20 on 26-10-2019 when the due date is 31-10-2019 (audit case). However, software is calculating interest u/s 234A. Why? |
Published on:09/09/2020 |
As per F No. 225/157/2019/ITA.II of CBDT dated 27-09-2019, due date of filing returns of audit cases is extended from 30-09-2019 to 31-10-2019. However, interest u/s 234A is to be calculated as if due date is 30-09-2019. Hence, interest u/s 234A is calculated. |
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Can Non-Residents file ITR 3 for Income u/s 44AD/44ADA? |
Published on:09/09/2020 |
As section 44AD/44ADA is not applicable to non-residents, non-residents cant file ITR 3 if they fill data in 44AD/44ADA. |
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Can Non-Resident file ITR 4? |
Published on:09/09/2020 |
No. ITR 4 can only be filed by residents. |
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What is turnover limit for audit u/s 44AB for A.Y. 2020-21? |
Published on:09/09/2020 |
As per amendment in section 44AB, turnover limit of audit for business u/s 44AB(a) is Rs. 5 Crores if it fulfils following conditions:
(i) aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed five per cent of the said amount
(ii) aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed five per cent of the said payment
However, if any of the above conditions are not met, limit of turnover is Rs. 1 Crore only.
Note that turnover limit for professions is Rs. 50 Lakhs and above conditions are not applicable to professionals.
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I have ticked on ITR 4 and I want to enter details of Joint owner with 50% ownership. But Ownership details are not editable. Why? |
Published on:09/09/2020 |
As per ITR 4 utility, there are no fields to enter other owner’s details and our % of ownership. Hence, if you have such details, please file ITR 3 or 5, as applicable. |
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TDS rates as per dropdown 194J(a) and 194J(b) are not correct as per sub-sections of section 194J. Why? |
Published on:09/09/2020 |
As per file format provided by tin.nsdl website, section 194J is divided in two sub-parts (a) and (b). These sub-parts only represent serial numbers and not related to sub section f section 194J. As per file format screenshot below, sections are correctly incorporated in TDSPro.
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I am filing ITR of A.Y. 2020-21 before 30-11-2020. But Software calculated interest u/s 234A. Why? OR How to calculate interest u/s 234A for A.Y. 2020-21? |
Published on:09/09/2020 |
As per Notification no. 35/2020 of Income Tax, due date has been extended from 31st July 2020 to 30th November 2020. However, if tax on total income after reducing TDS/TCS and advance tax exceeds Rs. 1 Lakh rupees, interest u/s 234A will be calculated as if due date is 31st July 2020.
For example, if tax payable is Rs.1,40,000/-, TDS Rs. 20,000/-, Advance Tax is Rs. 10,000/-, then 234A will be calculated as 140000-20000-10000= 110000 exceeds Rs. 1 Lakh. For calculating interest, challans paid on or before 31st July 2020 are deducted from tax. However, whose tax does not exceed Rs. 1 Lakh can pay taxes till 30th November 2020 and no interest u/s 234A will be levied till 30th November 2020.
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Why allowable remuneration is freezed in case of 44AD/44ADA? |
Published on:03/09/2020 |
As per Section 44AD, no deduction further to 8%/6% shall be allowed u/s 30 to 38 shall be allowed if the assesse is opting for presumptive taxation. Proviso allowing deduction of interest and remuneration is omitted from A.Y. 2017-18. Hence, allowable remuneration is not calculated in that case. |
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How to do LIC commission Entry in the software |
Published on:29/07/2020 |
Go to Income Details >> Business Profession >> LIC Commission >> enter details >> pick up the profit >> enter same in the P & L Credit side >> pick up in the Business |
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ITR 1 Changes for A. Y. 2020 - 2021 |
Published on:29/07/2020 |
Do your data entry of all the Income Heads, save it, click on Return of Income, Select ITR 1 and print. |
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ITR 4 Changes for A. Y. 2020 - 2021 |
Published on:29/07/2020 |
Select ITR 4 on Income Details Screen, do your data entry, after all data entry is over save it, then click on ITR 4 and print |
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How to download & see Notices received from Income Tax Department |
Published on:29/07/2020 |
Go to Online Services >> click on e-Proceeding >>Select A.Y. >>it will divert you to Income Tax Website, ID & password will be auto fetch, enter captcha code click on login it will pick up the details and update E-Proceeding |
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Where to enter loss due to vacancy in House property? |
Published on:25/07/2020 |
Gross Annual value is the reasonably expected rent or actual rent received /receivable, whichever is higher. However, if property is vacant for a part of the year, and due to such vacancy, actual rent is less than the reasonable rent, such loss due to vacancy is to be reduced for computing Gross Annual Value. For example, if Gross Annual value of a property is Rs.3,00,000/-, but property was vacant and therefore assesse had loss of rent of Rs.25,000/-. Then, Gross Annual value will be Rs.2,75,000/- (3,00,000-25,000)
However, no specific provision has been made in ITR for disclosure of such loss and hence, we should directly enter gross annual value as reduced by loss due to vacancy.
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Is Aadhar number of tenant mandatory for filing return? |
Published on:25/07/2020 |
No. Aadhar number is not mandatory field. |
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Can ITR 1 be filed if one wants to carry forward House Property loss? |
Published on:25/07/2020 |
No. In case the assessee wants to carry forward loss in the head “Income from House property”, he needs to file ITR 2. |
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Is late fee u/s 234F applicable for revised return? |
Published on:25/07/2020 |
No. Late fee u/s 234F is applicable only if original return is filed after due date. |
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Can we file revised return using different ITR form? |
Published on:25/07/2020 |
Yes. ITR can be revised using different ITR form. For example, assessee having only 44AD income, who has originally filed ITR 3, can revise return using ITR 4. |
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Where to enter remuneration of partners if firm is filing ITR 4? |
Published on:25/07/2020 |
Partner’s remuneration is not be entered if firm is filing ITR 4 as there is no such provision in ITR from. It should be directly entered in Partner’s returns. |
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Can a partnership firm file ITR 4? |
Published on:25/07/2020 |
Yes. Partnership Firms can file ITR 4, if their total income does not exceed Rs. 50 Lakhs and they want opt for presumptive taxation. However, if firm has income or loss from capital gains, ITR 4 can’t be filed. |
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How surcharge is calculated under marginal relief? |
Published on:25/07/2020 |
Marginal relief is applicable when surcharge at applicable rates is more than additional net income earned. For example, In case of Individual for A.Y. 2020-21, if total income at normal rates is Rs.50,50,000/-, Surcharge @ 10% on tax is Rs.1,32,750/-. However, if he would have earned Rs.50 Lakhs, there would have been no surcharge. Additional income in excess of surcharge threshold limit is Rs.50,000/- (50,50,000 – 50,00,000), which net of tax is Rs. 35,000/- (50,000 – 30% of 50,000). Hence, surcharge will be lower of net additional income i.e. Rs.35,000/- or surcharge at applicable rates i.e. Rs.1,32,750/-; therefore final surcharge amount will limit to Rs.35,000/-. (This calculation is shown on computation sheet also.)
Extract of computation sheet for calculation of surcharge:
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