Tax & Utilities
Complete guide to Income Tax Return (ITR) filing, TDS, GST registration, property tax, professional tax, advance tax, tax refunds, Form 16, 26AS, AIS, utility bill payments (electricity, water, gas), and all tax-related services.
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Common Use Cases
Document Types & Fees
Income Tax Return (ITR)
Official SiteAnnual statement of income and tax paid to Income Tax Department. 7 types: ITR-1 (Sahaj - salary, one house), ITR-2 (capital gains, multiple properties), ITR-3 (business), ITR-4 (Sugam - presumptive), ITR-5/6/7 (firms, companies, trusts). E-filing mandatory if income >₹5 lakh. Deadline: July 31 (individuals), Sep 30/Oct 31 (audit). Late fee ₹1,000-10,000.
Form 16 (TDS Certificate)
Official SiteCertificate issued by employer showing salary paid and TDS deducted (Tax Deducted at Source). Part A: Employer & employee details, TDS deducted. Part B: Salary breakup, exemptions, deductions. Issued by May 31/June 15. Mandatory for filing ITR if salaried. Download from employer or TRACES portal. Use for claiming tax credit.
Form 26AS (Tax Credit Statement)
Official SiteAnnual consolidated statement showing all tax paid: TDS by employers/banks/clients, TCS (Tax Collected at Source), advance tax, self-assessment tax. Updated monthly. Download from e-filing portal (login with PAN). Use for ITR filing - verify all TDS entries match. Replaces paper Form 16 for many. Now part of AIS (Annual Information Statement).
Annual Information Statement (AIS)
Official SiteRevolutionary 360° view of taxpayer finances. Shows: Salary (Form 16), interest income (banks, FD), dividend, capital gains, purchase/sale of property, mutual funds, shares, foreign remittances, GST turnover, TDS/TCS, tax payments. Downloaded from e-filing portal. Pre-filled in ITR. Verify and accept/reject each entry. Prevents tax evasion.
PAN-Aadhaar Linking
Official SiteMandatory linking of PAN with Aadhaar by law. Deadline extended multiple times (current: no specific deadline but PAN becomes inoperative if not linked). Link FREE online on e-filing portal or via SMS. OTP verification. If not linked: PAN inoperative, cannot file ITR, TDS deducted at higher rate (20% vs 10%), banking restricted. Takes 5 minutes.
GST Registration
Official SiteGoods and Services Tax registration for businesses. Mandatory if turnover >₹40 lakh (goods) or >₹20 lakh (services). 15-digit GSTIN issued. File monthly/quarterly returns (GSTR-1, GSTR-3B). Annual return (GSTR-9). Composition scheme available for turnover <₹1.5 crore (quarterly filing, 1% tax). Online portal: gst.gov.in. Penalties for late filing: ₹50/day (CGST) + ₹50/day (SGST) = ₹100/day.
TDS Return (24Q, 26Q)
Official SiteQuarterly statement filed by deductor (employer, company) showing TDS deducted from payments. 24Q: Salary TDS. 26Q: Non-salary (interest, professional fees, rent, commission). Filed on TRACES portal. Deductee (you) gets TDS certificate (Form 16/16A). Late filing: ₹200/day penalty. Check TDS credit in Form 26AS/AIS.
Property Tax
Official SiteAnnual tax on property to municipal corporation/panchayat. Based on property size, location, usage (residential/commercial). Varies by city: ₹500-50,000+. Payment online on city corporation website OR offline at municipal office. Discount for advance payment (5-20% in many cities). Unpaid tax: Interest/penalty + property attachment. Get property ID from municipality.
Professional Tax
Official SiteState tax on profession/employment. Deducted by employer from salary (₹200-₹2,500/year varies by state, salary slab). Some states don't have (UP, Haryana, Delhi, Rajasthan exempt). Maharashtra: ₹2,500/year. Karnataka: ₹2,400/year. Tamil Nadu: ₹2,400/year. Self-employed register with state commercial tax department. Deadline: varies by state. Deduction allowed under Section 16.
Tax Refund
Official SiteExcess tax paid (TDS/advance tax > actual liability) refunded by IT Department. Claimed in ITR filing. Refund processed after ITR verification. Direct credit to bank (pre-validated bank account in e-filing profile). Time: 15 days to 6 months (average 30-45 days). Track on e-filing portal. Delayed refund: 0.5% monthly interest paid. Common for salaried (if tax regime not optimized).
Advance Tax
Official SiteTax paid in advance during year (not at year-end). Mandatory if tax liability >₹10,000. Four installments: June 15 (15%), Sep 15 (45%), Dec 15 (75%), Mar 15 (100% of estimated tax). For salary: TDS covers this. For business/freelancers: calculate estimated income, pay advance tax. Non-payment: Interest under 234B, 234C (1-1.5% monthly). Use Challan 280 online.
Income Tax Notice (Section 143(1), 148)
Official SiteNotice from IT Department for: discrepancies in ITR (143(1) - intimation), reassessment (148 - scrutiny), information mismatch, high-value transactions. Response mandatory within 15-30 days. Online response via e-filing portal. Provide explanation, documents, revised computation. Ignore = penalty + prosecution. Seek CA help for complex notices. Most 143(1) = minor corrections, auto-processed.
Step-by-Step Application Guide
PAN-Aadhaar Linking (Mandatory First Step)
Visit incometax.gov.in → "Link Aadhaar" → Enter PAN + Aadhaar + Name (as per Aadhaar) → Validate → OTP to Aadhaar mobile → Verify → Linked! OR SMS: Send "UIDPAN<12-digit Aadhaar><10-digit PAN>" to 567678. FREE if done before deadline, ₹1,000 late fee after deadline. If not linked: PAN inoperative, cannot file ITR.
Register/Login on E-Filing Portal
Visit eportal.incometax.gov.in → New user? Register with PAN + DOB (as per PAN) + mobile → OTP verification → Create password → Login. OLD USERS: Use existing ID/password. First time login after portal update (post-2021)? Re-register with PAN. Complete profile: Personal details, contact info, bank account validation (for refund - mandatory!).
Download Form 26AS and AIS (Vital!)
Login to e-filing portal → Services → Form 26AS (Tax Credit) → View/Download (shows TDS by employer, bank, others). ALSO download AIS (Annual Information Statement) → My Profile → Download AIS → Shows salary, interest, dividends, capital gains, property transactions, TDS. VERIFY each entry - match with Form 16, bank statements. Report incorrect entries (feedback option in AIS).
Gather All Documents
Collect: Form 16 (from employer by June 15), bank interest certificates, investment proofs (PPF, ELSS, LIC, home loan, medical insurance), rent receipts (if HRA), capital gains (if sold shares/property), Form 26AS/AIS. Calculate: Gross salary, exemptions (HRA, LTA), deductions (80C, 80D, home loan interest), other income (FD interest, rental). Choose tax regime: Old (with deductions) vs New (lower rates, no deductions).
Select Correct ITR Form
ITR-1 (SAHAJ): Salary + 1 house property + other income <₹50L total. 80% people use this. ITR-2: Multiple properties, capital gains (LTCG/STCG), foreign income/assets, director. ITR-3: Business/profession (regular books). ITR-4 (SUGAM): Presumptive business (turnover <₹2 crore, 6-8% deemed profit). Check eligibility on e-filing portal (auto-suggests based on income sources).
Fill ITR Online (Pre-filled Option)
Go to e-File → Income Tax Returns → File Income Tax Return. Select AY 2025-26 (for FY 2024-25 income). Choose ITR form → Mode: Online (recommended) or Offline (Java utility). Online: Data PRE-FILLED from AIS! Verify salary (Form 16), TDS, bank interest. Add missing: Exemptions (HRA, LTA, 80C investments), deductions (80D insurance, home loan), other income. Preview before submit.
Verify Tax Computation and Submit ITR
Review: Total income, deductions, taxable income, tax liability, TDS, refund/tax payable. TAX PAYABLE? Pay immediately via Challan 280 (before filing, within Mar 31 for advance tax or before filing for self-assessment tax). REFUND? Will come to bank after verification. Click Submit → Generate XML/JSON → E-Verify immediately (OTP/Aadhaar OTP/EVC/DSC) OR send signed ITR-V to CPC Bangalore within 30 days (not recommended, very slow).
E-Verify ITR (Mandatory)
After submission, ITR not filed till verified! E-verify IMMEDIATELY using: 1) Aadhaar OTP (instant, easiest). 2) EVC via net banking (instant). 3) EVC via bank account (instant). 4) DSC (for companies). Choose Aadhaar OTP → OTP to Aadhaar mobile → Verify → Done! Acknowledgement (ITR-V) generated with 15-digit number. Download and save. ITR now successfully filed!
Important Notes
Common Mistakes to Avoid
Frequently Asked Questions
Who must file Income Tax Return (ITR)? Is it mandatory for me?
MANDATORY IF: 1) Income >₹2.5 lakh (₹3L senior citizen, ₹5L super senior). 2) TDS deducted (to claim refund). 3) Own/have signing authority in foreign account/assets. 4) Spent >₹2 lakh on foreign travel, >₹1 lakh on electricity bill. 5) Deposited >₹1 crore in bank. 6) Income <₹2.5L but want to carry forward losses. VOLUNTARY BUT RECOMMENDED: For loan, visa, financial credibility proof, even if income low. Students with FD interest >₹40K (TDS deducted) should file to get refund.
What is deadline for filing ITR? What if I miss it?
DEADLINES (generally): July 31: Individuals, HUF (non-audit). September 30: Tax audit cases. October 31: Companies. Dates may extend if weekend/holiday - check notification. MISS DEADLINE? Belated ITR: Can file till December 31 of assessment year (5 months extra). PENALTY: ₹5,000 if filed between Aug 1 - Dec 31 (₹1,000 if income <₹5 lakh). LOSSES: Cannot carry forward losses if filed after July 31 (big loss for business/capital loss). INTEREST: 1% monthly on unpaid tax from April 1. FILE ON TIME - set reminder for July 31!
How to file ITR online? Complete step-by-step process for beginners.
STEP 1: Link PAN-Aadhaar on incometax.gov.in (mandatory). STEP 2: Register/Login on e-filing portal with PAN. STEP 3: Download Form 26AS and AIS (shows TDS, income sources). STEP 4: Collect Form 16 (employer), investment proofs, bank statements. STEP 5: Go to e-File → File ITR → Select AY 2025-26 → Choose ITR form (ITR-1 for salary). STEP 6: Fill online (data pre-filled from AIS!) → Verify salary, TDS, add deductions (80C, 80D). STEP 7: Preview → Submit. STEP 8: E-verify IMMEDIATELY using Aadhaar OTP → Done! Acknowledgement (ITR-V) with 15-digit number generated. REFUND? Comes to validated bank account in 15-45 days. COST: ₹0 (free self-filing!). TIME: 30-60 minutes first time, 15 minutes next years.
What is Form 16? How to get it? Can I file ITR without Form 16?
FORM 16 = TDS certificate from employer showing salary paid and tax deducted. TWO PARTS: Part A: Employer details, employee PAN, TDS amount, challan details. Part B: Detailed salary breakup, exemptions (HRA, LTA), deductions (80C, 80D), taxable salary. WHO GETS: All salaried employees if TDS deducted. WHEN: By June 15 (employers must issue). HOW TO GET: Download from employer portal (Greytip, Keka, Darwinbox) OR ask HR/Accounts OR download from TRACES portal (traces.gov.in - login with PAN, view Form 16). FILE WITHOUT FORM 16? YES! Use Form 26AS/AIS (downloads from e-filing portal, shows TDS from all sources). Form 26AS = digital replacement. However, Form 16 has salary breakup details useful for deductions.
What is Form 26AS? How is it different from Form 16?
FORM 26AS = Consolidated annual tax credit statement showing ALL TDS from all sources: employers, banks, clients, etc. SCOPE: Part A: TDS on salary (Form 16 data), Part B: TDS on non-salary (bank interest, professional fees, rent, commission - Form 16A), Part C: Tax paid (advance tax, self-assessment), Part D: TCS (Tax Collected at Source on purchases), Part E: Refunds received, Part F: AIR (Annual Information Return - high-value transactions). Part G: TDS defaults. FORM 16 vs 26AS: Form 16 = Only salary TDS from ONE employer. Form 26AS = TDS from ALL sources (multiple employers if changed job, banks, clients). 26AS more comprehensive! DOWNLOAD: Login e-filing portal → Services → View Form 26AS → Download PDF. USE: Verify all TDS entries before filing ITR. Mismatch? Report to deductor.
What is AIS (Annual Information Statement)? Should I check it before filing ITR?
AIS = Revolutionary 360-degree financial view replacing/enhancing Form 26AS. SHOWS: 1) Salary (TDS by employer). 2) Interest income (savings bank, FD from all banks). 3) Dividend (shares, mutual funds). 4) Securities transactions (purchase/sale of shares, MF). 5) Mutual fund transactions. 6) Property purchase/sale (SFT - Statement of Financial Transaction). 7) Foreign remittances. 8) Credit card spending (if >₹10L). 9) GST turnover (if business). 10) TDS/TCS from all. 11) Tax payments. 12) Offline transactions reported. WHY CHECK? Data PRE-FILLED in ITR! If wrong data, you file wrong return = notice! FEEDBACK: Can accept/reject each entry, provide explanation. Dashboard shows pending feedback. Download → incometax.gov.in → Services → AIS. MANDATORY CHECK before filing - takes 10 minutes, saves hassles!
Old tax regime vs New tax regime - which should I choose?
TWO OPTIONS (choose during ITR filing, cannot change later): OLD REGIME: Higher tax rates BUT allows deductions: 80C (₹1.5L), 80D (₹25K-50K), HRA, standard deduction (₹50K), home loan interest (₹2L), more. Slabs: 0-2.5L nil, 2.5-5L 5%, 5-10L 20%, >10L 30%. NEW REGIME (FROM FY 2023-24): Lower tax rates, NO deductions (except standard deduction ₹50K). Slabs: 0-3L nil, 3-6L 5%, 6-9L 10%, 9-12L 15%, 12-15L 20%, >15L 30%. WHICH TO CHOOSE? Old: If you have many deductions (80C investments, home loan, HRA, insurance). Calculate total deductions - if >₹2.5-3L, old better. New: If minimal deductions, don't invest in tax-saving schemes, want simplicity. Use online calculator: cleartax.in, incometax.gov.in tax calculator. EXAMPLE: Income ₹10L, 80C ₹1.5L, 80D ₹25K, HRA ₹1L: Old regime saves ₹40K-60K! Income ₹10L, no deductions: New regime better.
How to claim income tax refund? How long does it take?
WHEN REFUND? If TDS (tax deducted) > actual tax liability. Common for: Salaried (wrong tax regime, deductions not considered by employer), Changed jobs (double tax deduction), FD interest TDS but low income. PROCESS: 1) File ITR as normal (refund auto-calculated in computation). 2) ITR shows refund amount (₹X refundable). 3) Ensure bank account VALIDATED on e-filing profile (mandatory!). 4) Submit and e-verify ITR. 5) IT Department processes ITR → Intimation u/s 143(1) sent → Refund approved → Direct credit to bank. TIMELINE: 15-45 days typically if: ITR e-verified immediately, bank validated, no discrepancies. Can take 3-6 months if issues/scrutiny. TRACK: Login e-filing portal → View Returns → Income Tax Returns → Refund Status OR use "Refund/Demand Status" widget on dashboard. SHOWS: Refund determined, refund paid to bank, date, amount. DELAYED? Interest 0.5% monthly on delayed refunds (paid automatically). If >6 months, contact CPC Bangalore on 1800-103-0025.
What is advance tax? Who should pay and when?
ADVANCE TAX = Paying tax in advance during the year (not lump sum at year-end). MANDATORY IF: Estimated tax liability >₹10,000 for FY. WHO PAYS? Self-employed, business owners, freelancers, professionals (doctor, CA, lawyer), rental income, capital gains. SALARIED: Usually exempt as employer deducts TDS monthly (TDS = advance tax). But if other income (rental, FD interest >₹50K, capital gains), may need to pay advance. INSTALLMENTS: 1) June 15: 15% of estimated annual tax. 2) September 15: 45% (cumulative, so 30% extra). 3) December 15: 75% (cumulative, so 30% extra). 4) March 15: 100% (cumulative, so 25% extra). CALCULATION: Estimate total income for year → Calculate tax → Subtract TDS (if any) → Remaining = advance tax → Pay in 4 installments. PAYMENT: Online Challan 280 on incometax.gov.in → Major Head 0021, type code 100 (advance tax). NON-PAYMENT: Interest under 234B (1% monthly if not paid), 234C (1% monthly for each installment delay). Use tax calculator: incometax.gov.in.
Can I revise ITR after filing? What is revised return?
YES, can revise if mistakes found after filing (wrong income, forgot deduction, TDS mismatch, calculation error). REVISED RETURN = Corrected ITR replacing original. DEADLINE: December 31 of Assessment Year (5 months post July 31 original deadline). Example: Filed ITR for FY 2024-25 (AY 2025-26) in July 2025 → Can revise till Dec 31, 2025. HOW TO FILE: Login e-filing portal → e-File → Income Tax Return → Select AY 2025-26 → ITR form → Select "Revised Return u/s 139(5)" (not original) → Enter original ITR acknowledgement number → Upload/correct data → Submit → E-verify. WHAT CAN CHANGE: Add missing income, correct TDS, claim missed deductions, change bank account. WHAT CANNOT: Cannot revise after Dec 31. Cannot revise if original ITR invalid/defective. REFUND CHANGES? If revised return increases refund: Processed. Decreases refund: May need to return excess refund received. COMMON USE: Forgot to claim 80C, HRA, or TDS not updated in Form 26AS later. FILE REVISED immediately when error found!
Received Income Tax notice (Section 143(1) or 148). What to do?
TYPES OF NOTICES: 143(1) Intimation: Automated notice after ITR processing mentioning tax refund/demand adjustment due to discrepancies (mismatch in income, TDS, deductions). Usually minor. Demand may be raised. 148 Scrutiny: Reassessment notice for escaped income, high-value transactions not explained, income suppression. Serious! Response mandatory. WHAT TO DO: 1) DON'T PANIC - common to receive notices, most resolvable. 2) READ CAREFULLY: What is asked? Documents? Explanation? 3) LOGIN e-filing portal → Pending Actions → See notice details. 4) RESPOND ONLINE: e-Filing → e-Proceedings → Response → Select notice → Upload documents/write explanation. 5) DOCUMENTS: Form 26AS, bank statements, investment proofs, salary slips, Form 16, purchase/sale documents. 6) If COMPLEX: Consult CA immediately. 7) RESPOND WITHIN DEADLINE: Usually 15-30 days. Extension request possible online. 8) If DEMAND RAISED: Pay if genuine or file appeal (CIT(A) - Commissioner of Income Tax Appeals). 9) Track response acknowledgement. 10) Most 143(1) = calculation corrections, auto-adjusted. DON'T IGNORE - Ignoring = penalty + prosecution + worst-case attachment!
What is GST? Who should register? How to get GSTIN?
GST (Goods and Services Tax) = Unified indirect tax on supply of goods and services. Replaced 17+ taxes (VAT, service tax, excise). 3 components: CGST (Centre), SGST (State), IGST (Interstate). REGISTRATION MANDATORY IF: 1) Goods business turnover >₹40 lakh/year (₹20 lakh in special states). 2) Services business turnover >₹20 lakh/year (₹10 lakh special states). 3) E-commerce seller (even Re 1 turnover). 4) Interstate supply (any amount). 5) Specific businesses: Restaurant, GTA. EXEMPTIONS: Agricultural produce, pure services <₹20L turnover. HOW TO REGISTER: Visit gst.gov.in → Services → Registration → New Registration → Part A (basic details, mobile, email OTP verification) → TRN issued → Part B (business details, PAN, Aadhaar, address proof, bank, photos, promoters' KYC) → Submit → ARN (Application Reference Number) → Verification by officer (3-7 days) → GSTIN issued (15-digit: State code + PAN + check digit). DOCUMENTS: PAN, Aadhaar, business address proof, bank statement/cancelled cheque, electricity bill, rent agreement (if rented), photos, proprietor/partners' ID/address proof. TIME: 7-15 days. COST: Free! After registration: File returns monthly/quarterly (GSTR-1, GSTR-3B), pay GST, claim input credit.
How to check and pay property tax online for my house?
PROPERTY TAX = Annual tax to municipal corporation/panchayat for civic services (water, sewage, roads, garbage). Based on: Property location, size (built-up area), type (residential/commercial), occupancy. VARIES BY CITY: ₹500-₹50,000+ annually. CHECK DUES: Visit your city municipal corporation website. Format: [cityname]mc.gov.in or [cityname]corporation.gov.in. Examples: mcgm.gov.in (Mumbai), ghmc.gov.in (Hyderabad), bbmp.gov.in (Bangalore), ndmc.gov.in (Delhi), cmc.gov.in (Chennai). Find "Property Tax" section → Enter property ID/assessment number OR search by owner name, address → See current year tax + arrears. PAYMENT: Online on same website: Debit/credit card, net banking, UPI, wallets. Offline: Visit municipal office with property ID, pay cash/card, get receipt. DISCOUNT: Many cities give 5-20% rebate if paid before deadline (usually April-June). GET PROPERTY ID: From previous year receipt OR visit municipal office with property documents OR search online property database. DON'T PAY = Interest/penalty + property attachment/auction (rare but possible). RECEIPT: Download online after payment, keep for records.
I am salaried with ₹6 lakh income. Do I need to file ITR? My employer deducts TDS.
YES, MUST FILE! Even if employer deducted TDS, ITR filing mandatory if income >₹2.5 lakh. REASONS: 1) TDS deduction ≠ ITR filing. TDS = advance tax collection. ITR = final reconciliation + claiming refund/paying balance. 2) Employer TDS may be excess (wrong tax regime, didn't consider all deductions) → You get REFUND by filing ITR! 3) TDS may be less (multiple income sources, other income) → You pay balance tax via ITR. 4) ITR = financial credibility proof for loans, visas. 5) Legal requirement - non-filing = ₹5,000-10,000 penalty for you (not employer). PROCESS: File ITR-1 (Sahaj) → Show salary ₹6L → Claim deductions (80C, 80D, standard deduction ₹50K) → TDS from Form 16/26AS auto-credited → Likely REFUND (if deductions not fully considered by employer) → E-verify → Refund in 30-45 days. TIME: 20-30 minutes online. COST: FREE! DON'T SKIP - Many salaried people skip thinking employer handled it, but legally you must file!
How much tax I will pay? What are income tax slabs for 2024-25?
TAX SLABS FY 2024-25 (AY 2025-26): CHOOSE OLD OR NEW REGIME. NEW REGIME (Default from FY 2023-24): ₹0-3 lakh: Nil. ₹3-6 lakh: 5% (₹15K max). ₹6-9 lakh: 10% (₹30K on bracket). ₹9-12 lakh: 15% (₹45K). ₹12-15 lakh: 20% (₹60K). Above ₹15 lakh: 30%. No deductions except ₹50K standard deduction. OLD REGIME (Opt-in): ₹0-2.5 lakh: Nil (₹3L senior, ₹5L super senior). ₹2.5-5 lakh: 5% (₹12.5K). ₹5-10 lakh: 20% (₹1L). Above ₹10 lakh: 30%. PLUS deductions: 80C (₹1.5L), 80D (₹25K-50K), HRA, Standard deduction (₹50K), Home loan interest (₹2L). SURCHARGE: 10% if income >₹50L, 15% if >₹1 crore, 25% if >₹2 crore, 37% if >₹5 crore. CESS: 4% on tax + surcharge (health & education cess). EXAMPLE: ₹10L income NEW regime: Tax ₹75K + cess = ₹78K. OLD regime with ₹2L deductions: Taxable ₹8L, tax ₹50K + cess = ₹52K. Old better by ₹26K! Use calculator: incometax.gov.in/Pages/tools/income-tax-calculator.aspx
What deductions can I claim to save tax? List of all sections.
MAJOR TAX-SAVING DEDUCTIONS (Old Regime): SECTION 80C (Max ₹1.5 lakh): PPF, ELSS mutual funds, NSC, Life insurance premium (LIC), EPF (employee contribution), Home loan principal, SSY (Sukanya Samriddhi), Tuition fees (2 children), FD (5-year tax-saving), NPS Tier 1. 80CCD(1B) (₹50K extra): NPS additional contribution (Total NPS ₹2L including 80C). 80D (₹25K-₹50K): Medical insurance premium (₹25K self/family, extra ₹25K parents, ₹50K if senior citizen). 80D (₹5K): Preventive health check-up. 24(b) (Max ₹2 lakh): Home loan interest (self-occupied property). 80E (No limit): Education loan interest (8 years or till repayment). 80G (50%-100%): Donations to approved charities, PM CARES. 80TTA (₹10K): Savings bank interest (₹50K for senior citizens under 80TTB). 80EEB (₹1.5L): Interest on electric vehicle loan. 80EEA (₹1.5L): Interest on home loan (first-time buyer, property value <₹45L). HRA: House Rent Allowance (least of: actual HRA, rent paid - 10% of salary, 50% of salary if metro/40% non-metro). LTA: Leave Travel Allowance (2 journeys in 4 years). Standard Deduction: ₹50,000 (from salary income). TOTAL SAVING POTENTIAL: ₹3-5 lakh deductions = ₹1-1.5 lakh tax saved (at 30% bracket)!
I have savings account in multiple banks. How to report interest income in ITR?
MUST REPORT all bank interest income in ITR even if TDS not deducted! SOURCES: Savings bank interest, Fixed Deposit (FD) interest, Recurring Deposit (RD) interest. TDS: Banks deduct 10% TDS if interest >₹40,000/year (₹50,000 for senior citizens) per bank. If PAN not provided: 20% TDS. REPORTING IN ITR: ITR Form → Income from Other Sources → Interest Income → Add: Savings interest (exempt up to ₹10K under 80TTA or ₹50K under 80TTB for seniors), FD/RD interest (fully taxable). BANKS: List all banks separately or total. PRE-FILLED: AIS (Annual Information Statement) shows interest from all banks! Verify and accept. COMPUTE TAX: Interest added to total income → Taxed at slab rate (5%-30%). Even if <₹40K (no TDS), you must show in ITR if total income >₹2.5L. COMMON MISTAKE: Not reporting interest thinking no TDS = no tax. Wrong! AIS shows all bank interest (even ₹100). Department can see mismatch. PENALTY for non-disclosure: 50% of tax + prosecution. SENIOR CITIZENS: ₹50K interest exempt under 80TTB (higher than 80TTA ₹10K).
What is the difference between TDS, TCS, and Advance Tax?
Three ways government collects tax in advance (not at year-end): TDS (Tax Deducted at Source): Payer deducts tax before paying you. Examples: Employer deducts from salary (10-30%), Bank deducts from FD interest (10%), Client deducts from professional fees (10%), Tenant deducts from rent (if rent >₹50K/month, 10%). Certificate: Form 16 (salary), Form 16A (non-salary). Check in Form 26AS. TCS (Tax Collected at Source): Seller collects tax from buyer on specific goods. Examples: Car purchase >₹10L (1% TCS), foreign remittance >₹7L (5%), cash purchase >₹1 crore (1%). Buyer claims TCS credit in ITR. ADVANCE TAX: You pay directly to government. For self-employed, business, freelancers, rental income, capital gains (no TDS mechanism). 4 installments: June 15, Sep 15, Dec 15, Mar 15. Challan 280. DIFFERENCE: TDS/TCS = Collected by others. Advance tax = You pay yourself. ALL THREE = Advance payment (adjusted in final ITR). PURPOSE: Continuous revenue flow for government + prevent tax evasion at year-end. ALL REFLECT IN FORM 26AS/AIS (tax credit statement) → Claimed in ITR filing → Adjusted against total tax liability → Excess = Refund, Less = Pay balance.
Required Documents
- PAN Card (mandatory for all tax matters, 10-character alphanumeric)
- Aadhaar Card (mandatory, must be linked to PAN)
- Form 16 (from employer if salaried, Part A + Part B)
- Form 16A (from bank/deductor for non-salary TDS like FD interest)
- Form 26AS / Annual Information Statement (download from e-filing portal)
- Bank account statements (for interest income, transactions)
- Investment proofs (80C: PPF, ELSS, LIC, NSC, tuition fees up to ₹1.5L)
- Home loan interest certificate (Section 24 - up to ₹2L)
- HRA rent receipts (if claiming HRA exemption >₹1L/month rent)
- Medical insurance premium receipts (80D - ₹25,000-50,000)
- Capital gains statements (from broker if sold shares, MF, property)
- Form 16C (TDS on property sale if applicable)
- Business income records (P&L, Balance Sheet if ITR-3/4)
- GST returns filed (if business)
- Property documents (for property income, sale details)
- Previous year ITR acknowledgement (if filing revised/belated)
- Foreign asset details (FA schedule if foreign bank account/property)
- Tax payment challans (advance tax, self-assessment tax paid)
- Aadhaar-validated bank account details (for refund)
- Digital Signature Certificate (DSC for ITR-5/6/7 if required)