Different Types of Income Tax Returns Forms

Form 16

Form 16 is a type of income tax form which is used to file IT returns by the employees. It contains all the information of the employee which is required to file income tax return. Form 16 is provided by the employer and it is considered as a proof of filing of income tax by the employees. For every employee who falls under the income tax bracket, it is mandatory to file income tax via Form 16. The income tax department verifies the details provided by the employee in Form 16 and it is ultimately used to file income tax returns.

Benefits of Form 16:

1. Acts as the proof of payment of taxes by an employee

2. Used by many financial institutions as a verification tool for an individual's credentials while applying for a loan

The components of Form 16 are:

1. Employee’s personal details like name, residential address, PAN, etc

2. Details of the employer like name, PAN, Taxation and collection Account Number (TAN)

3. Details of the salary received by the employee, i.e., aspects of gross and net salary

4. Education cess and other surcharge details

5. Details of the tax deductions

6. Receipt of taxes paid

7. Details of the tax payment like challan number, cheque number, demand draft number

Form 16 is divided into two parts, Part A and Part B. Part A contains the PAN details of the employees and the TAN details of the employers. It is more fundamental than Part B of the form. Other details that are required to be filled by the employee in Part A of the form are TDS deducted by the employer, current financial assessment year, name and residential address of the employer and the employee.

Part B of the form contains details regarding the tax deductions made by the employee in the financial assessment year. The details provided by the employee in form B must include-taxable salary, TDS provided by the employer, breakdown of the deductions made under section 80C and any form of tax rebate applicable to the person's salary.

How to verify Form 16

1. Visit the website of TDS centralized processing cell (https://www.tdscpc.gov.in/app/login.xhtml)

2. Click on 'taxpayer'

3. Click on 'verify TDS details'

4. Enter the following details- Deductor's TAN, Employee's PAN, TDS certificate number, TDS amount deducted as per the certificate

5. From the drop-down menu, choose the ‘financial year’ and the ‘source of income’

6. Click on ‘validate’

Form 16 vs 16A

CRITERIA	FORM 16	FORM 16A
EXPLANATION	Section 203 of Income Tax Acts provides this certificate for tax deducted at source from income chargeable under the head of ‘salaries’.	It is a certificate under Section 203 Income Tax for tax deduction at source for income other than salary.
ELIGIBILITY	Anyone who earns a steady and regular income in the form of salary.	Anyone who is either self-employed or a professional with document qualification degree.
APPLICABLE TOWARDS	Interest on securities, dividends, interest other than interest on securities, etc.	Issued against rent, commission, professional charges, building, plant, machine hired, commission agents, etc.
COMPRISES OF	Proof of income, details of tax paid by employer on behalf of employee, PAN and TAN of employer, PAN of employee, acknowledgement of amount of tax paid, education cess and surcharges.	Name, TAN, PAN of employer; Name and PAN of all employees. Amount paid and nature of payment, receipt number of TDS payment.
ONLINE VERIFICATION PROCESS	Can be verified online	Can be verified online

Form 26AS

It is an official form that contains tax-related information of the taxpayer. Form 26AS also contains the details of tax deducted at source, tax collected at source, advance tax and high-end transactions. Form 26AS is linked with PAN details and the details in form 26AS are listed below

1. Tax deducted by the deductors on behalf of the taxpayers

2. Details of the tax collected

3. Details of tax deposited by the taxpayers like advance tax, self-assessment tax, regular assessment tax

4. Details of annual information report transactions

Form 26AS consists of three parts - A, B and C. Part A contains details of tax deducted at source. It contains the details of all the taxes that are deducted at the source, whether it is salary, pension income or interest income. It contains details of the deductor along with the details of the tax amount which is deducted.

Part B contains the details of the seller and  tax collected at source (TCS) on the selling price of a commodity.

Part C contains the details of direct taxes paid by the taxpayer, advance tax and self-assessment tax

How to view form 26AS

One can view form 26AS by two methods:
TRACES or TDS reconciliation analysis and correction enabling system facility: The taxpayer needs to register with the TRACES in order to use the facility. An employee needs to follow these steps in order to view form 26AS:

1. Visit the e-filing income tax website, i.e, https://www.incometaxindiaefiling.gov.in/home and locate the form 26AS on the website.

2. Login to the account using PAN details, password, date of birth or date of incorporation.

3. Give confirmation to be redirected to TDS-CPC website.

4. Click on the link at the bottom of the page.

5. Choose the assessment year.

6. Choose the format in which you want to view the form.

7. Download the form

An employee can also use the netbanking facility to view 26 AS. Any person with a  PAN card and who has an account with any of the authorized banks can use this service for free of cost. Viewing the form is more convenient with netbanking

How to view form 26AS without registering

You can view form 26AS without even registering with net banking facility. You can view form 26AS from TRACES website. Registering your credentials with the TRACES website is not mandatory to view the form, you can also view the form if your account number is linked with any of the authorized banks. The list of banks who have the facility of viewing form 26 AS are:

1. Allahabad Bank

2. Kotak Mahindra Bank Limited

3. Andhra Bank

4. Oriental Bank of Commerce

5. Jammu and Kashmir Bank Limited

6. Karnataka Bank Limited

7. Vijaya Bank

8. Indian Overseas Bank

9. United Bank of India

10. Indian Bank

11. Union Bank of India

12. IDBI Bank Limited

13. UCO Bank

14. ICICI Bank Limited

15. The Saraswat Co-operative Bank Limited

16. HDFC Bank

17. The Karur Vysya Bank Limited

18. Dena Bank

19. Corporation Bank Syndicate Bank

20. The Federal Bank

21. City Union Bank Limited

22. State Bank of Travancore

23. Citibank India

24. State Bank of Patiala

25. Central Bank of India

26. State Bank of Mysore

27. Canara Bank

28. State Bank of India

29. Bank of Maharashtra

30. Bank of Hyderabad

31. Bank of India

32. State Bank of Bikaner & Jaipur

33. Bank of Baroda

34. Punjab National Bank

35. Axis Bank

Forms 15G and 15H

When the interest income of an individual is more than 10,000 annually, the banks need to deduct TDS from that particular account. When a salaried individual’s income is below the taxable limit, to avoid tax deductions from their income, they need to submit form 15G or 15H to the bank, requesting them not to deduct TDS from the amount of interest that is earned by the person.

Form 15H

Form 15H ensures exemption of TDS deduction from a person’s bank account. It is only applicable for an individual who is 60 years or older. It is a declaration under section 197A of Income tax act, 1971.

Eligibility criteria for submission of form 15H

1. The individual must have attained 60 years of age at the time of submission.

2. The individual should not have paid any taxes in the previous year.

3. The form needs to be submitted to all the branches where the individual is drawing interest from.

4. It is preferable that the individual submits the form before drawing the first interest income since that could avoid any TDS cuts from the beginning.

5. If the individual has accounts with different banks, then even if the interest income earned from one of the banks exceeds 10000 annually, he/she needs to submit form 15H.

6. If the individual is earning more than 5000 as an interest income from sources other than deposit like interest on loans, advances, debentures, bonds etc

Form 15G

While form 15H is supposed to be submitted by senior citizens (>60 years of age), 15G is applicable for all the other individuals who earn an income from sources like deposits, loans, advances, etc.

Eligibility criteria for submitting form 15G

1. The individual must be less than 60 years of age

2. Form must be submitted before the receipt of first interest income on the deposit

3. The total exemption must be less than the minimum  income during that year’

4. Individual must be a resident Indian

News updates

The due date for filing income tax returns for FY 2020-2021 is now extended to 31st December 2020. Along with the current ITR forms for AY 2020-2021The due date, there is a new schedule DI for claiming deductions for investments from the period of 1st April 2020 till 31st July 2020.

The government is giving relaxation if you are eligible based on the conditions given below for the filing of ITR-1 and ITR-4 for the Assessment Year 2020-2021.

The rolled-back provisions as released by the CBDT are:

1. Taxpayers co-owning a house property are now allowed to file ITR-1 and ITR-4 for reporting their income from the house property for the AY 2020-2021. This is only if they meet the other conditions.

2. ITR-1 for the AY 2020-2021 is for individuals who have deposits of more than Rs. 1 crore in their bank or have incurred bills of Rs. 1-2 lakh on expenses like electricity bills and foreign travel. 

The CBDT, or the Central Board of Direct Taxes, has notified that the forms or ITR, from ITR-1 to ITR-4 shall need to be used for the assessment year 2020-2021. These forms were notified earlier this year on 3rd January 2020.These forms shall greatly help taxpayers to give all the needed information and file tax returns for FY 2019-2020.

Here we shall discuss the changes done to ITR forms for FY 2019-2020 or AY (2020-2021).

IRTR-1

1. You can’t use the IRT-1 form to file income tax returns if there is a carry forward of loss under the head of Income from House Property.

2. If your house is rented out, you will need to give the tenant’s name and PAN/Aadhar.

3. Taxpayers have to say whether they have a valid Indian passport. If yes, the taxpayer needs to give the passport number.

4. The section Nature of Employment is not moved from Part-A to B1 of ITR-A.

5. There is now a separate column under Income from other Sources for deduction under 57(iv). This is in case the interest received on compensation or on enhanced compensation under section 56(2)(viii).

ITR-4

1. Taxpayers who have a carry forward of loss from Income from their house property cannot use this form to file their returns for the Financial Year 2019-2020.

2. If your house is rented out, you will need to give the tenant’s name and PAN/Aadhar in this form.

3. Taxpayers have to say whether they have a valid Indian passport. If yes, the taxpayer needs to give the passport number.

4. To file your ITR under this form, additional details like the ones below are needed. These are:

5. Has the taxpayer deposited an aggregate of amount or amount more than Rs. 1 crore in one or more than one current account the year before? If so, this amount needs to be reported.

Has the taxpayer spent a sum of money or its aggregate of more than Rs. 2 lakh for travelling to other countries, either alone or with others? If so, this needs to be reported.
Has the taxpayer an expense of more than Rs. 1 lakh for the use of electricity during last year? If so, this needs to be reported.

 

1. If the filing through this form is done by your representative, the person’s aadhar needs to be provided from here onwards.

2. Those using this form shall also need to disclose whether they are a partner in a firm. If so, they have to disclose information like the firm’s name and PAN, details of the firm’s other partners, its address, one’s share percentage in the firm, aadhar, PAN, interest rate on capital, and finally the remuneration payable or paid.

3. The Nature of Employment section is moved to B1 of Part B.

4. The Financial particulars of Business of the form is now replaced by Particulars of cash and bank transactions relating to presumptive business. Here you need to enter information like opening balance in bank and cash, payments and withdrawals, receipts of last year, etc.

5. There is now a separate column under ‘Income from Other Sources’ for deduction under Section 57(iv). If interest is received on the compensation or on enhanced compensation, the filing is under 52(2)(viii).

Applicable to all forms

1. It is now mandatory to file ITR returns online for all registered taxpayers, but not for those who are beyond the age of 80 and who have no income from profession or business.

2. As effective from 1st April 2017, if ITR is not filed by the due date, there shall be a fee payable of Rs. 10000. This is under 234F.
    

 

What is an ITR?

Income Tax Return, also known as ITR for short, is a form by which taxpayers submit their information of income and taxes applicable. This is submitted to the Income Tax department. The central income tax department has decreed that there are seven forms to be filled. These are ITR 1 through to ITR 7. If you are a taxpayer, you should file these forms before the due date. Which forms are applicable depends on your income, income earned, and your category (individual, a company or HUF).

Why should you file ITR?

It is imperative that everyone should file their income tax returns, provided the conditions given below are applicable to you.

-If your gross income exceeds:

Particulars	Amount
For those below 60	Rs. 2.5 lakh
For those above 60 but below 80	Rs. 3 lakh
For those above 80	Rs. 5 lakh

 

-If you have multiple income sources
-If you wish to have an income tax refund
-If you have earned or benefitted from investing in foreign assets during the same financial year
-If you wish to apply for loans or for visa
-If the taxpayer is a firm or a company, regardless of profit or loss