A defective return occurs when the Income Tax Department finds errors or inconsistencies in a filed income tax return. It acts as a warning to taxpayers, allowing them to correct mistakes and ensure accurate reporting. Responding to such a notice helps avoid penalties, interest, or issues with refunds, while maintaining compliance with tax regulations.Key HighlightsA defective return is flagged when the Income Tax Department finds errors in your ITR.Common causes include incomplete ITR, TDS mismatch, unreported income, or incorrect details.Taxpayers have 15 days to respond to the notice.What is a Defective Return?A defective return occurs when the Income Tax Department detects errors or inconsistencies in your Income Tax Return (ITR). These errors could include:Missing or incomplete information in the ITR.Conflicting details compared to data available with the department (from employers, banks, mutual funds, TDS/TCS deductors, etc.).Incorrect basic details, such as name, PAN, or address.Mistakes in tax calculation or reporting of income and deductions.Under Section 139(9) of the Income Tax Act, 1961, the department issues a notice for a return that is defective. This notice is sent to your registered email ID and is also available on the Income Tax e-filing portal.

Income from other sources covers all taxable income not classified under salary, house property, business/profession, or capital gains. It ensures no income escapes taxation, including bank interest, dividends, gifts, and winnings. Understanding this category helps taxpayers compute accurate liability, claim deductions, and remain compliant with tax laws.What is Income from Other Sources?Income from Other Sources, as per section 56 of the Income Tax Act, is a residual head of income, which covers all taxable income that does not fall under the other four heads: Salary, House Property, Profits and Gains from Business or Profession, and Capital Gains. It ensures that every form of income earned by a taxpayer is taxed appropriately, even if it does not clearly belong to a specific category.Common Examples of Income from Other SourcesThe following types of income are usually taxed under this head:Bank interestInterest on securities and investmentsFamily pensionLottery winnings , crossword puzzles, card games, races including horse races, and gambling of any formDividendsAny sum an employer receives from his employees towards contribution in EPF, Superannuation fund or ELSI, which is not taxable under the head, Profit and gains from business and profession, and not deposited in the relevant fund.Plant and machinery owned by the taxpayer is let out for rental purposes, if it does not fall under the head of income from business and profession.Rental income from the composite unit of plant, machinery and furniture with the building that is not separable and is not taxable under the head, Profits and Gains from business and profession.Amount received under the Keyman insurance policy (including bonuses) which is not taxable under the head, Profits and Gains from business and profession.Interest received on compensation or enhanced compensation.Any compensation received by the person due to the termination of employment.Savings Bank Account – Interest IncomeInterest that gets accumulated in your savings bank account must be declared in your tax return under income from other sources.Note that the bank does not deduct TDS from bank interest. Deduction on Interest Income Under Section 80TTAFor a residential individual (age of 60 years or less) or HUF, interest earned up to Rs.10,000 in a financial year can be claimed as a deduction. The deduction is allowed on interest income earned from savings account with a bank, co-operative banking society or post office.Senior citizens are not entitled to benefits under section 80TTA.Tax On Fixed Deposits InterestInterest earned from fixed deposits is taxable at applicable slab rates.Senior citizens can claim up to Rs.50,000 tax deduction on the interest earned from savings bank accounts, fixed deposits, recurring deposits with banks, post offices, etc., under Section 80TTB.TDS is deducted on fixed deposits when the interest crosses the applicable threshold limit.Family PensionIf you are collecting a pension on behalf of someone who is deceased, then you must show this income under income from other sources. This will be added to the taxpayer’s income and tax must be paid at the tax rate that is applicable. There is a deduction of Rs.15000 ( Rs. 25000 under new tax regime)  or one-third of the family pension received, whichever is lower. Taxation Of Winnings From Lottery, Game Shows, Puzzles - Casual IncomeIf you receive money from winning the lottery, online/TV game shows, races including horse races, card games and other games, gambling betting, etc., it will be taxable under the head Income from other Sources. The income will be taxable at flat rate of 30%, which after adding cess, will amount to 31.2%.No deductions can be claimed related to these incomes. Dividend IncomeDividends received from investments such as stocks, are taxed under “income from other sources”. Taxpayers can claim interest expense up to 20% of the dividend income. Also, if the total dividend amount exceeds Rs.5,000 (Rs.

Mistakes in filing your Income Tax Return (ITR) are common, but the good news is they can be corrected. Under Section 139(5) of the Income Tax Act, 1961, taxpayers can file a revised return to fix errors such as missed income, deductions, or miscalculations.Key HighlightsLast date: 31st December of the assessment year (For FY 2024-25, due date is 31st December 2025).Multiple revisions: You can revise the return many times with no penalties for revision.Belated returns: Even belated returns can be revised.What is a Revised Return?Revised return is a return filed under Section 139(5) to correct mistakes or omissions made in the original return. Section 139(5) of the Income Tax Act, 1961, allows you to file a revised return if you discover mistakes in your initial filing. If you discover any errors or omissions in your original ITR, you can file revised returns and rectify such errors or omissions. The following are the usual errors which can be rectified using revised returns:Omitted, reduced, or exaggerated income.Omitted deductions or claimed excess deductions or exemptions.Miscalculations, or missed necessary disclosures.Chosen a wrong ITR form.Claimed less refund than eligible.What is the Last Date to File a Revised Return?The last date to file a Revised Return or a Belated Return is 31st December of the relevant assessment year, or before the completion of the assessment by the income tax authorities, whichever is earlier.For instance, the last date to revise your return for FY 2024-2025(AY 2025-2026) would be on or before 31st December 2025, if the original return has not been assessed.Important Points to Note While Filing a Revised ReturnHere are some important points to remember when filing a revised income tax return:Replacement of Original Return: When you file a revised income tax return, it completely replaces the original one. Once the revised return is submitted, it is considered your final income tax return.Revised Return after receiving ITR Refund: If your income tax return has been processed, and you've received a refund, you can still file a revised return within the specified due date.ITR Form Change: If there is a need to change the ITR form, a revised return can be filed.Multiple Revisions Allowed: There is no limit to the number of times you can file a revised tax return. You can make corrections or updates as many times as needed.Revised Return after Assessment Completion: Once the assessing officer completes the assessment under Section 143(3) of the Income Tax Act, a revised return cannot be filed.No Penalties for Revision: The income tax department imposes no penalty or charge for filing a revised income tax return.

Here's a step-by-step guide on how to make tax payment on the Income Tax Portal without logging in:Step 1: Go to the Income Tax Portal and Navigate to the 'e-Pay Taxes' SectionVisit the Income Tax Portal at https://www.incometax.gov.in/On the left side of the home page, there is a 'Quick Links' section, click on the 'e-Pay Tax' option. You can also search for 'e-Pay Tax' in the search bar.Step 2: Enter PAN/TAN and Mobile NumberOn the ‘e-Pay Tax’ page, input your PAN and re-enter to confirm it. Then, provide your mobile number and click ‘Continue’.Enter the 6-digit OTP received on your mobile number and 'Continue'. Step 3: Select the correct Assessment Year and Payment TypeSelect the first box labelled as ‘Income Tax’ and click on ‘Proceed’ From the ‘Assessment Year’ dropdown menu, select 2023-24Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click on 'Continue'.Step 4: Enter Tax Payment DetailsMake sure to input the payment amounts correctly under the appropriate category. You may refer to the pre-filled challan on ClearTax to obtain all the necessary amounts.Step 5: Select the Payment MethodSelect the payment method and the bank to make the tax payment and press 'Continue'.Payment can be made using internet banking, debit card, credit card, RTGS/NEFT, UPI or you can choose to pay at the bank counter.Step 6: Verify Payment InformationAfter you click on 'Continue', there will be an option to preview the challan details.Double-check the payment information you entered to ensure it is accurate, then click on the 'Pay Now' option at the bottom of the page to make the payment.If you need to modify the details, click on 'Edit'. Step 7: Submit the PaymentTick the checkbox to agree to the Terms and Conditions after reading them and click on 'Submit To Bank'.Step 8: Receive Payment ConfirmationYou will receive a confirmation once your tax payment has been successfully submitted.Note: Remember to download the challan as you will need the BSR code and Challan number for completing the return filing process.Step 9: Add details on ClearTaxNow, resume your tax filing on ClearTax. Click on ‘Add Paid Tax Details’.  Enter the Tax amount paid along with other details from the challan like date of payment, BSR Code, Challan Serial No. You can now proceed to ‘e-file’ and ‘e-verify’ your return..

Under section 194-IA, a buyer buying any immovable property like house, apartment, building, land (except agricultural land) must deduct Tax Deducted at Source (TDS) on the payments made to the seller of the property. The amount of TDS deducted is 1% of the sales consideration or the stamp duty value, whichever is higher.What is Section 194IA?Section 194IA provides for TDS on sale of immovable property. The person who is buying the property should deduct TDS and pay the remaining amount to the seller. 1% of the selling price is deducted under this section. Please note that TDS here is not deducted on the capital gains, but on the entire selling price.

There are various types of ITR forms, applicable specifically for different kinds of taxpayers, based on their sources of income, residential status, level of income, legal status of the taxpayer (individual, firm, company), etc., Key HighlightsThe ITR form applicable depends on the type and amount of income of the taxpayer as follows: ITR 1: Salaried individuals with income up to Rs. 50 lakhITR 2: Individuals with capital gainsITR 3: Income from business or professionITR 4: Income From Business and Profession < Rs. 50 lakhITR 5: Firms, LLPs, AOPs, and BOIsITR 6: Companies ITR 7: Charitable trustsWhat is ITR?Income Tax Return (ITR) is a form used by taxpayers to report their income and taxes to the Income Tax Department. Filing must be done before the specified due date each year. There are seven ITR forms (ITR-1 to ITR-7), and the correct form depends on factors like income source, income amount, and taxpayer category (individual, HUF, company, etc.).

The Senior Citizen Savings Scheme was introduced in the year 2004 as a part of post office savings scheme, to provide financial security to senior citizens who are in need of a steady income post retirement. Residents aged more than 60 years, can individually or jointly open SCSS account. It can either be opened in a post office branch or in a few selected banks. This scheme supports a maximum deposit of Rs.30 lakhs, with a tenure of 5 years which can be further extended to 3 yearsKey HighlightsThe current interest rate applicable to SCSS is 8.2% p.a.Deduction under section 80C of the Income Tax Act can be claimed for deposit amount.Non resident Indians (NRIs) are not eligible to open SCSS scheme account.Features of SCSSThe following are the features of Senior Citizen Savings Scheme.Secure InvestmentSCSS is a government-backed scheme. Hence, the invested amount is secure and there is guarantee of returns upon its maturity. Mode of DepositAn individual can deposit the money in cash when the amount is below Rs.1 lakh.

Form 10-IE was a mandatory form used by taxpayers to opt for the new tax regime before FY 2023-24, when the old regime was the default. It applied mainly to individuals and HUFs with business or professional income. From FY 2023-24, the new regime became the default, and Form 10-IE was discontinued, replaced by Form 10-IEA.Key HighlightsForm 10-IE has been discontinued as of FY 2024-25.To switch between the old and new tax regimes, taxpayers must now file Form 10-IEA.Form 10-IEA must be filed before the due date of ITR filing, i.e., 15th September 2025 (for AY 2025-26).What is Form-10IE?Form 10-IE was a statutory form that taxpayers had to file in order to opt for the new tax regime before FY 2023-24, when the old tax regime was the default option. It was applicable to individuals and HUFs having income from business or profession. Salaried individuals filing ITR-1 or ITR-2 were not required to submit Form 10-IE.However, the Union Budget 2023 amended the tax provisions and made the new tax regime the default regime from FY 2023-24 onwards.

Business codes, prescribed by the Income Tax Department, are used in ITR filing to specify the nature of a taxpayer’s business or profession. They ensure correct categorisation of income, simplify assessment, and maintain compliance with tax laws. Selecting the correct code is crucial, as an incorrect code may lead to mismatches, scrutiny, or errors in reporting taxable income.Key HighlightsPurpose: Ensure proper categorisation of income, smooth tax assessment, accurate reporting, and compliance.Importance: Wrong code selection can lead to mismatches, errors, or scrutiny.Coverage: Codes are sector-specific, including agriculture, manufacturing, trading, services, IT, finance, healthcare, and others.What is Business and Professional Code?A Business and Profession Code is a numerical classification prescribed by the Income Tax Department in India, used while filing Income Tax Returns (ITR). It represents the nature of the taxpayer’s business or professional activity. These codes help in categorising income correctly, ensuring accurate reporting, smooth tax assessment, and compliance.

When withdrawing your Provident Fund (PF) balance Form 15H is crucial for avoiding unnecessary TDS (Tax Deducted at Source) deductions. These forms are essential for individuals whose income is below the taxable limit, and submitting them correctly can help you get your PF withdrawal processed without any tax deductions.What is Form 15G for EPF Withdrawal?Form 15G or EPF Form 15G is available for resident individuals (below 60 years of age) and HUFs, to submit a self-declaration form to prevent the deduction of TDS. This form can also be submitted to prevent TDS deduction on withdrawal of EPF balance if the employees estimated income for the relevant financial year is less than the basic exemption limit (Rs. 2,50,000 under the Old Tax Regime and Rs. 4,00,000 for the New Tax Regime).Recently, the EPFO Unified portal launched a facility to submit EPF Form 15G for PF, which allows EPF members to withdraw PF online.Form 15G is commonly used to prevent TDS deduction on interest income from banks, withdrawal of NSE, dividends, insurance commission, maturity of insurance policy, etc.Form 15G has to be submitted quarterly to the person or entity responsible for deducting TDS, either electronically or in physical paper form.Where to Download Form 15G?Form 15G is available for download on the following platforms:EPFO Portal: A direct download link is available on the EPFO website.Income Tax Department Website: Available for free download.Major Banks: Most Indian banks offer the option to download the form on their websites.Direct Download Links For Form 15GDownload Form 15G from EPFO Here’s a sample Form 15G. Is Form 15G Mandatory for PF Withdrawal?Form 15G is not mandatory for PF withdrawal; however, it is required if you wish to avoid TDS deduction.As per Section 192A of the Finance Act, 2015, TDS at 10% is deducted if the PF withdrawal amount exceeds Rs.50,000 and your service is less than 5 years.PF Withdrawal TDS Rules10% TDS – If you submit your PAN but not Form 15G.20% TDS – If you fail to submit both PAN and Form 15G.No TDS – If you submit Form 15G. (subject to eligibility conditions).Note: TDS is not applicable if:Your total income (including PF withdrawal) is below the taxable limit, orWithdrawal is made after 5 years of continuous service.How to Submit Form 15G Online for PF Withdrawal?You can easily submit Form 15G online through the EPFO portal.