Webinar on Tax Advisory

Your income is not equal to your salary. You could earn income from several other sources other than your salary income. Your total income, according to the Income Tax Department, could be from house property, profit or loss from selling stocks or from interest on a savings account or on fixed deposits. All these numbers get added up to become your gross income.

• Income from Salary: All the money you receive while rendering your job as a result of an employment contract. find all details here: https://cleartax.in/Salary#income-tax-basics


• Income from House Property: Income from house property you own; property can be self-occupied or rented out.


• Income from other sources: Income accrued from Fixed Deposits and Savings Account come under this head.


• Income from Capital Gains: Income earned from sale of a capital asset, say mutual funds or house property.


• Income from business and profession: Income/loss arising as a result of carrying on a business or profession. Freelancers income come under this head.

Your employer deducts tax from your salary and pays it to the I-T Department on your behalf. It's called TDS. TDS is tax deducted at source. Your employer cuts a portion of your salary every month and pays it to the Income Tax Department on your behalf.

Based on your total salary for the whole year and your investments in tax-saving products, your employer determines how much TDS has to be cut from your salary each month.

For a salaried employee, TDS forms a major portion of an employee's income tax payment. Your employer will provide you with a TDS certificate called Form 16 typically around June or July showing you how much tax was deducted each month.

• Form 16 is a TDS certificate. Your employer is required by the I-T Department to deduct TDS on your salary and deposit it with the government.


• The Form 16 certificate contains details about the salary you have earned during the year and the TDS amount deducted.


• It has two parts -- Part A with details about employer and employee name, address, PAN and TAN details and TDS deductions.


• Part B includes details of salary paid, other incomes, deductions allowed, tax payable.


• Note: Read in detail about what is Form 16 and how you can get your Form 16 here

• Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department.


• It shows details of tax deducted on your behalf by deductors, details on tax deposited by taxpayers and tax refund received in the financial year. This form can be accessed from the I-T Department's website.


• Note: Read in detail about what is Form 26AS and how you can get your Form 26AS click here

This is a fixed component in your pay check and forms the basis of other portions of your salary and hence the name. It is usually a large portion of your total salary. HRA is also defined a percentage of this Basic Salary. Your PF is deducted at 12% of your Basic Salary.

• Note: To understand the various components in your Pay Slip read here

House Rent Allowance: Salaried individuals who live in a rented house/apartment can claim House Rent Allowance or HRA to lower taxes. This can be partially or completely exempt from taxes. The allowance is for expenses related to rented accommodation.
Note: If you receive HRA and dont live on rent your HRA shall be fully taxable. To understand about the other components in your Pay Slip read here

Individuals need to file their return by 30th September of next year, i.e for income earned in Financial Year 2015-16, the return has to be filed by 30th September, 2016.

Income from House Property is possible in these Expert'ses ?

• Rental Income on a let out property


• Annual Value of a property which is ?deemed? to be let out for income tax purposes ( when you own more than one house property)


• Annual Value of the property which is self occupied, which is Nil


• Under section 24 of the Income Tax Act you are allowed to make certain deduction from the Net Annual Value of your House Property. Net Annual Value is Gross Annual Value less Municipal Taxes Paid. In case the property is let out, its rent received is your Gross Annual Value, whereas in case of a deemed to be let out property, a reasonable rent of a similar place is your Gross Annual Value. For a self occupied house property the Gross Annual Value is Nil. Read more about House property income and its taxation Here

Yes, return can be revised within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. Filing of revised return is not part of the plan. Plan buyer is required to provide full and accurate details to avoid the need for any rectification in the originally filed return.

Yes, a belated return can be filed before the end of the assessment year or before completion of the assessment year, whichever is earlier. For example, in case of income earned during FY 2019-20, the belated return can be filed up to 31st March 2021. ?

Yes, under the Income-tax Act legal proceedings can be initiated up to 4 to 6 years (depending upon case to Expert'se) prior to the current financial year.
However, in certain Expert'ses the proceedings can be initiated even after 6 years, hence, it is advised to preserve the copy of return for at least 6 years or maintain it as long as possible.

ITR return forms are attachment less forms and hence, you are not required to attach any document (like proof of investment, TDS certificates etc.) along with the ITR (whether filed manually or electronically).
However, these documents should be retained and produced before the tax authorities when demanded in situations like assessment, inquiry etc.

Audit & preparation of financial statements is not part of the plan.

Revised return filing on account of incorrect information provided by the assessee during the original return filing shall not form part of the plan.

Refund is applicable only if no Experthas been assigned on the Expert'se, for detailed policy please visit our terms of use