Have you ever received notice from Income Tax Department?

Taxation
1

I have received it. I would have been penalized if I hadn’t replied to them.
I will explain the notice that I have received at the end of this post. Please stay tuned to this post.

Are we paying income tax?

  • Yes, we are paying.

  • Every company deducts some part of the income and pays to govt. on behalf of us. It’s termed as “Tax Deducted at Source”.

  • Here, our employer is the “Deductor” and we are the “Deductee”.

Is our job completed?

  • No, we need to file income tax returns for our income.

Why should we file Income Tax Return?

  • If your company had deducted much tax than the required amount, you could reclaim that amount by filling Income Tax Returns (ITR).

  • If you earn income from many sources like FD interest, house property, stocks, land, and etc. then you must pay required tax by yourself for those gains.

  • If you have any losses from house property, you could set off those losses with your salary income. (Conditions applied)

  • and etc.

How to file Income Tax Return (ITR)?

  • It’s not rocket science. You can file Income Tax Returns easily using official site ​https://www.incometaxindiaefiling.gov.in​

  • You can use third-party sites.

  • I don’t want to mention the names of third-party sites.

  • I personally don’t prefer this option because we are trusting and uploading our personal data, financial information and etc. in other sites.

  • They usually don’t charge for simpler use cases but they charge heavily if you earn income from many sources.

  • You can get assistance from auditor for filling. 7. We need to pay some nominal fee for the same.

Can we file Income Tax Return by ourselves?

*For the remaining 10% of use cases, we can get free help from Income Tax Customer care.

What are the benefits if you file Income Tax Returns using the official site?

You could gain more knowledge regarding Income Tax Sections.

You might have a question why should I learn Income Tax sections?

If you want to save tax then you should have some basic knowledge about various sections of Income Tax.
To know more about Income Tax Saving Schemes I have taken videos which are on YouTube:

​(தமிழ்) Income Tax | Savings Schemes & Sections
(తెలుగు) Income Tax | Savings Schemes & Sections
(English) Income Tax | Savings Schemes & Sections

Coming back to the original question, why have I received notice from Income Tax department?

  • When I saw that notice, I was shocked because I am not a billionaire. I didn’t cheat Income tax department. Then, why did I receive that notice?

  • They asked me to revise the ITR form in 30 days.

  • I searched various sites and YouTube videos but none of them gave me the correct answer.

  • Most of the YouTube videos related to Income Tax are in Hindi language.

  • Then, I decided to call Income Tax Department. Income Tax Department (Aaykar Sampark Kendra) helped me to know the issue in my ITR return.

  • They said that I have missed FD (Fixed Deposit) Interest income while filing Income tax returns.
    Income Tax Department had noticed using Form 26AS.

Form 26AS in detail:

(தமிழ்) Form 26AS in detail
(తెలుగు) Form 26AS in detail
(English) Form 26AS in detail

Then, I have revised the ITR form.
So, I have decided that I should help people to file Income Tax Returns in a simpler manner.
I have made videos regarding Income Tax Return (ITR) filing in three languages English, Tamil, and Telugu.

(தமிழ்) Income Tax Return Filling for A.Y. 2018-19
(తెలుగు) Income Tax Return Filling for A.Y. 2018-19
(English) Income Tax Return Filling for A.Y. 2018-19

We would receive Form 16 from our company by the first week of July.

(தமிழ்) Form 16 Explained in layman terms
(తెలుగు) Form 16 Explained in layman terms
(English) Form 16 Explained in layman terms

We need to use Form 16 and payslips for filing Income Tax Returns for this A.Y.

NOTE: Please file your Income Tax Returns (ITR) before July 31, 2018.

Caution: I am not a Chartered Accountant so please do research before filing IT returns. If you have any doubts, you can contact Income Tax “Aaykar Sampark Kendra” 1800 180 1961

Thanks for spending your valuable time.

9 Likes
2

What about fno traders?

1 Like
3

Great Post!
Agree if we do it ourselves we will be more financially aware, but if you are a trader then you might require audit and need CA assistance for that.

1 Like
4

The more complex trading gets the more complex taxation becomes Futures trading,Stock investing,other business etc

5

Why do you even got it ? How do you call your business of trading on forex or cryptocurrencies, there maybe some issues with misrepresentation of your service. But you can also withdraw money to some system and then to some accounts and then back to yours with “safe” goal of payment. See what I mean ?:wink:

6

@Quicko

a.y. 21~22
income was nil . share market online turnover was less than 1 crore . loss declared and filed Rs. 4lakhs .

now , in a.y. 22~23 also income is nil . share market online turnover is less than 1 crore . loss is Rs. 5 lakhs .
so , i declare and file the loss returns .

my query is : do i have to again show the carry forward loss of the a.y. 21~22 ; while filing returns for the a.y.22~23 ?
i mean ; all the previous years loss filed carry forwarded ; need to to be reshown while filing returns of current a.y. ?

1 Like
7

I am not quicko but there is definitely lots to learn from you.

Losses means experience. Can you share your journey , maybe create a new page? People would really love to hear from a real trader.

8

Person “x” is having cash income of Rs.2 lakhs every year . No other income .
For 10 years every year same thing .

Since , the income was less than 2.50 lakhs p.a. on all these 10 years .
None of the years : tax returns was filed .

So . At present . The total cash of these 10 years is accumulated to Rs . 20 lakhs in cash .

Can that person “x” : deposit these Rs.20 lakhs cash in the bank account in the current year and not pay any tax ?

Pls kindly enlighten the matter …

@Quicko
@Jason_Castelino

1 Like
9

If he had just 2 lakh annual income, he must have spent something for personal expenses. How come he was able to save all of that

1 Like
10

Hi @HSL

Thinking practically, how is it possible all the income earned is saved without any expenses as rightly said by Ankit.

However, if it is the actual situation, you can deposit the amount in your bank account in the current year. In case you receive any scrutiny from the Income Tax Department, you must be able to provide all the relevant documents and evidence.

Hope it helps.