FAQ's
Salary
1) On which Income, do I need to pay tax?
A: Not only your salaried Income is taxable, but other income you earn such as rent income, interest income is also taxable. Your total taxable income as per Income Tax Department, include any income from house property, Profit or loss earned from sell of shares or securities, Income interest on FD, etc. Your income will be divided among following heads:
a) Income from Salary: Income earned as a result of employment contract for the services you have rendered during the job will be classified as income from salary.
b) Income from House property: Income earned from house property you own which is either rented or self-occupied.
c) Income from Business or profession: Income earned from any business or profession carried out by you. Freelancers are also covered under this head
d) Income from capital gains: Income earned from sale of capital assets such as shares, securities, mutual funds or house property.
e) Income from other sources: Any other income such as interest on FD or saving account interest are classified under this head.
2) What is the due date for filing return of income for individuals?
A: Individuals need to file their return by 31
st July of next year, i.e for income earned in Financial Year 2018-19, the return has to be filed by 31st July, 2019.
3) What is Basic Salary?
A: 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.
4) What is TDS shown in my payslip?
A: 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.
5) What is Form 16?
A: Form 16 is a TDS certificate. Your employer is required to deduct TDS on your salary and deposit it with the government by the Income - Tax Department
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.
6) What is form 26AS?
A: 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.
7) What is HRA?
A: HRA – 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 do not live on rent your HRA shall be fully taxable.
8) Can I file a revised return to correct a mistake in original return filed?
A: 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.
9) Can a return be filed after the due date?
A: 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.
10) Am I required to keep a copy of the return filed as proof and for how long?
A: Yes, under the Income-tax Act legal proceedings can be initiated up to 4 to 6 years (depending upon case to case) prior to the current financial year. However, in certain cases, 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.
11) Do I need to attach details of TDS deducted, proof of investments etc?
A: 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.
12) What is income from house property and how is it taxed?
A: Income from House Property is possible in these cases –
- 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.
13) Are Audit and Financial statements preparation covered in the plan?
A: Audit & preparation of financial statements is not part of the plan.
14) Is revised return covered under the plan?
A: Revised return filing on account of incorrect information provided by the assessee during the original return filing shall not form part of the plan.
15) What is the cancellation / refund policy?
A: Refund is applicable only if no Expert has been assigned for this work, for detailed policy please visit our terms of use.
16) How does Navkar digital tax handle my data?
A: Users’ trust & privacy is our top priority. We use online servers and industry-standard security to ensure your data is safe with us.
House property
1) On which Income, do I need to pay tax?
A: Not only your salaried Income is taxable, but other income you earn such as rent income, interest income is also taxable. Your total taxable income as per Income Tax Department, include any income from house property, Profit or loss earned from sell of shares or securities, Income interest on FD, etc. Your income will be divided among following heads:
a) Income from Salary: Income earned as a result of employment contract for the services you have rendered during the job will be classified as income from salary.
b) Income from House property: Income earned from house property you own which is either rented or self-occupied.
c) Income from Business or profession: Income earned from any business or profession carried out by you. Freelancers are also covered under this head
d) Income from capital gains: Income earned from sale of capital assets such as shares, securities, mutual funds or house property.
e) Income from other sources: Any other income such as interest on FD or saving account interest are classified under this head.
2) What is the due date for filing return of income for individuals?
A: Individuals need to file their return by 31st July of next year, i.e for income earned in Financial Year 2018-19, the return has to be filed by 31st July, 2019.
3) What is form 26AS?
A: 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.
4) Can I file a revised return to correct a mistake in original return filed?
A: 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.
5) Can a return be filed after the due date?
A: 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.
6) Am I required to keep a copy of the return filed as proof and for how long?
A: Yes, under the Income-tax Act legal proceedings can be initiated up to 4 to 6 years (depending upon case to case) prior to the current financial year. However, in certain cases, 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.
7) Do I need to attach details of TDS deducted, proof of investments etc?
A: 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.
8) What is income from house property and how is it taxed?
A: Income from House Property is possible in these cases –
- 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.
9) Are Audit and Financial statements preparation covered in the plan?
A: Audit & preparation of financial statements is not part of the plan.
10) Is revised return covered under the plan?
A: Revised return filing on account of incorrect information provided by the assessee during the original return filing shall not form part of the plan.
11) What is the cancellation / refund policy?
A: Refund is applicable only if no Expert has been assigned for this work, for detailed policy please visit our terms of use.
12) How does Navkar digital tax handle my data?
A: Users’ trust & privacy is our top priority. We use online servers and industry-standard security to ensure your data is safe with us.
Income from other source
1) On which Income, do I need to pay tax?
A: Not only your salaried Income is taxable, but other income you earn such as rent income, interest income is also taxable. Your total taxable income as per Income Tax Department, include any income from house property, Profit or loss earned from sell of shares or securities, Income interest on FD, etc. Your income will be divided among following heads:
a) Income from Salary: Income earned as a result of employment contract for the services you have rendered during the job will be classified as income from salary.
b) Income from House property: Income earned from house property you own which is either rented or self-occupied.
c) Income from Business or profession: Income earned from any business or profession carried out by you. Freelancers are also covered under this head
d) Income from capital gains: Income earned from sale of capital assets such as shares, securities, mutual funds or house property.
e) Income from other sources: Any other income such as interest on FD or saving account interest are classified under this head.
2) What is the due date for filing return of income for individuals?
A: Individuals need to file their return by 31st July of next year, i.e for income earned in Financial Year 2018-19, the return has to be filed by 31st July, 2019.
3) What is form 26AS?
A: 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.
4) Can I file a revised return to correct a mistake in original return filed?
A: 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.
5) Can a return be filed after the due date?
A: 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.
6) Am I required to keep a copy of the return filed as proof and for how long?
A: Yes, under the Income-tax Act legal proceedings can be initiated up to 4 to 6 years (depending upon case to case) prior to the current financial year. However, in certain cases, 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.
7) Do I need to attach details of TDS deducted, proof of investments etc?
A: 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.
8) Are Audit and Financial statements preparation covered in the plan?
A: Audit & preparation of financial statements is not part of the plan.
9) Is revised return covered under the plan?
A: Revised return filing on account of incorrect information provided by the assessee during the original return filing shall not form part of the plan.<
10) What is the cancellation / refund policy?
A: Refund is applicable only if no Expert has been assigned for this work, for detailed policy please visit our terms of use.
11) How does Navkar digital tax handle my data?
A: Users’ trust & privacy is our top priority. We use online servers and industry-standard security to ensure your data is safe with us.
Capital Gain
1) What is a capital gain?
A: Any profit or gain that arises from the sale of a 'capital asset' is a capital gain. This gain or profit is charged to tax in the year in which the transfer of the capital asset takes place.
The Income Tax Act has specifically exempted assets received as gifts by way of an inheritance or will. No capital gain is applicable when an asset is inherited because there is no 'sale', only a transfer. However, if this asset is sold by the person who inherits it, capital gains tax will be applicable.
2) What is a capital asset?
A: Here are some examples of capital assets: land, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, jewellery. This includes rights in or in relation to an Indian company, including rights of management or control or any other right. Following are not considered capital assets:
• Any stocks or consumables or raw material held for the purpose of Business or Profession
• Personal goods such as clothes, furniture held for personal use.
• Agricultural land in India in a rural area.
3) What are long-term and short-term capital assets?
A: A capital asset held for not more than 36 months is a short-term capital asset. An asset that is held for more than 36 months is a long-term capital asset.
For example, a house property held for more than 3 years is termed as a long-term capital asset.
whereas equity funds are considered short-term when held for 12 months or less. Debt Funds are long-term assets when held for more than 36 months.
It is important to find out the specific holding period applicable to your asset because it impacts how the capital gains will be calculated.
Some assets are considered short-term capital assets when these are held for 12 months or less. This rule is applicable if the date of transfer is after 10th July 2014, irrespective of what the date of purchase is. The assets are:
Equity or preference shares in a company listed on a recognized stock exchange in India
Securities (like debentures, bonds, Govt securities etc) listed on a recognized stock exchange in India
Units of UTI, whether quoted or not
Units of equity oriented mutual fund, whether quoted or not
Zero coupon bonds, whether quoted or not.
When the above listed assets are held for a period of more than 12 months, they are considered long-term capital asset
4) Is Tax rate different for Long term and short capital gain?
A: Tax on long-term capital gain: Long-term capital gain is taxable at 20% + surcharge and education cess.
Tax on short-term capital gain when securities transaction tax is not applicable: If securities transaction tax is not applicable, short-term capital gain is added to your income tax return and the taxpayer is taxed according to his income tax slab.
Note: Tax on short-term capital gain if securities transaction tax is applicable: If securities transaction tax is applicable, short-term capital gain is taxable at the rate of 15% +surcharge and education cess.
5) Can I file a revised return to correct a mistake in original return filed?
A: 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.
6) Can a return be filed after the due date?
A: 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.
7) Am I required to keep a copy of the return filed as proof and for how long?
A: Yes, under the Income-tax Act legal proceedings can be initiated up to 4 to 6 years (depending upon case to case) prior to the current financial year. However, in certain cases, 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.
8) Do I need to attach details of TDS deducted, proof of investments etc?
A: 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.
9) What is income from house property and how is it taxed?
A: Income from House Property is possible in these cases –
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.
10) Are Audit and Financial statements preparation covered in the plan?
A: Audit & preparation of financial statements is not part of the plan.
11) Is revised return covered under the plan?
A: Revised return filing on account of incorrect information provided by the assessee during the original return filing shall not form part of the plan.
12) What is the cancellation / refund policy?
A: Refund is applicable only if no Expert has been assigned for this work, for detailed policy please visit our terms of use.
13) How does Navkar digital tax handle my data?
A: Users’ trust & privacy is our top priority. We use online servers and industry-standard security to ensure your data is safe with us.
