E-Filling of Returns (Shivdas 10 Years)

BASICSOF COMPUTATION OF INCOME TAX AND TAX LABILITY .
17
Solution. Computation of Taxable Income
Particulars Amount Amount
(In) (In).
Income from Business 6,50,000
Income from other sources
Interest from fixed deposits with bank 35,000
Interest from security deposits 15,000
Interest from Public Provident Fund Account", (+30,000)
2
NIL 50,000
Gross Total Income 7,00,000
Less: Deductions under Chapter VI-A
U/S 80C: Deposit in Public Provident Fund Account 50,000
Net Taxable income 6,50,000
Tax Payable 42,500
Education Cess @ 2% 850
Secondary & Higher Education Cess @ 1% 425

Total Tax Liability 43,775
ROUNDED OFF 43,780
Note:
i Mr. Suraj Pal is 32 years old and his basic income tax exemption limit for financial year,
2017-18 is 32,50,000.
Interest on Public Provident Fund account is not taxable.
Income tax rate from $2,50,000 to 5,00,000 is 5%.
Income tax rate from *5,00,001 to 10,00,000 is 20%.
Illustration 2: Mrs. Yogita Anand, aged 63 years, submitted the details of

her income and investment for financial year 2017-18, as under:
Particulars Amount (In 3)
Rental Income from house property 8,50,000
House tax paid 50,000
Interest from fixed deposits with bank 2,50,000
Interest from saving bank account 20,000
Interest from Public Provident Fund Account (PPF) 1,20,000
Deposit in Public Provident Fund Account (PPF) 60,000
Life Insurance Premium Paid
20,000
Medical Insurance Premium paid 10,000
Calculate her income tax liability for financial year 2017-18 (Assessment
Year 2018-19).
Solution. Computation of Taxable Income
(In 3) (In )
Income from House Property
Rent received 8,50,000
Less: House Tax paid 50,000
Net Annual Value
8,00,000
Less: Standard Deduction for Repairs @ 30% 2,40,000 5,60,000
Net Income from House Property
18 SHIVA DELHIUNIVERSITY SERIES
ON 5,60,000
Interest from fixed deposits with bank 2,50,000
20,000
Interest from saving bank account NIL 2,70,000
Interest from Public Provident Fund A/c*,
R 1.20,000 exempt)
Deduction uls 80C
Deposit in Public Provident Fund Account 360,000
Life insurance Premium paid 20,000 80,000
Deduction u/s 80D
10,000
Medical Insurance Premium paid
Deduction uls 80TTA
10,000 1,00,000
Interest from saving bank accounts* 2
Tax Payable" : 56,000

Education Cess @ 2% 1,120
560
Secondary & Higher Education Cess @ 1%
57,680
Total Tax Liability
Note:
* Interest on Public Provident Fund account is not taxable..

Interest from saving account is exempted up to 310,000 under Section 80TTA.
3 Mrs. Yogita Anand is 63 years old. Therefore, her income tax exemption limit for financial
year 2017-18 is 3,00,000.
Income Tax for Senior Citizen for financial year 2017-18 shall be calculated as under.
Particulars Taxable Amount (In ) Rate Tax Amount (In )
Up to 3,00,000 3,00,000 NIL
33,00,001 to 5,00,000 2,00,000 5% 10,000

35,00,001 to 37,30,000 2,30,000 20% 46,000
Total 7,30,000 56,000
Illustration 3. Mr. Sanjeev Kumar had the following income during financial
year 2017-18. He is 50 years old. Calculate the tax liability of Mr. Sanjeev
Kumar.
Particulars Amount (in 3

Salary from M/s XYZ Limited 20,00,000
Interest on FDR from Citi Bank 60,000
Interest from Saving Bank Account 5,000
Interest on Infra Bonds
3,000
Interest on PPF Account
30,000
Dividend received from Mutual Funds
20,000
His employer deducted his contribution to P.F. 70,000
He deposited in Public Provident Fund Account 80,000
He made the repayment of house loan 3,00,000
He paid interest on loan for residential house property 1,10,000
His employer deducted TDS on salary 3,20,000
TDS deducted by bank on interest on FDR 6,000
BASICS OF COMPUTATION OF INCOME TAX AND TAX LIABILITY : 19
Solution.
(In) (In)
Income from Salary
Salary received—XYZ Ltd. 20,00,000
Income from house property
Interest on loan for residential house property )
Interest on FDR-Citi Bank 60,000
Interest on Infra Bonds 3,000
Interest on PPF (exempt) 30,000 0
Dividend received (exempt) 20,000 0 68,000

Less: Deductions (Chapter VI-A)
Deduction uls 80C
Contribution to P.F. 70,000
PPF 80,000
Repayment of house loan 3,00,000
Total 4,50,000
Restricted to 1,50,000
Deduction uls 80TTA
Interest on Saving Bank Account 5,000 1,55,000
Net Taxable Income 18,03,000
Tax on Above 3,53,400
Add: EC + SHEC @ 3% 10,602
Total Tax Payable 3,64,002
Less: Tax Paid
TDS on Salary 3,20,000
TDS on Interest on FDR 6,000 3,26,000
ROUNDED OFF 38,000
CALCULATION OF INCOME TAX
Particulars Income (3) Tax Rate Tax Amt. (8)

Up to $2,50,000 2,50,000 0 0
From 2,50,001 To 5,00,000 2,50,000 5% 12,500

From 5,00,001 To 10,00,000 5,00,000 20% 1,00,000
310,00,001 Onwards 8,03,000 30% 2,40,900
Total 18,03,000 3,53,400
Illustration 4: Mr. Hariom Sharma had the following income during financial
year 2017-18. He is 36 years old. Calculate the tax liability of Mr. Hariom Sharma.
Particulars Amount(in 3)
Profit from M/s R.S. Enterprises 38,162

Interest from M/s Rama Builders 2,50,800

Interest on FDR with State Bank of India 64,395
R0 SHIVA DELHI UNIVERSITY SERIES
Interest on FDR with South Indian Bank 30,080
Interest on FDR with IDBI Bank 81,067
Interest on application money 3,700
Dividend from UTI 10,597
Interest from tax-free bonds 58,271
Interest from PPF Account 68,722
Life Insurance Premium paid 5,608
Amount deposited in PPF Account 1,50,000

TDS DEDUCTION
M/s Rama Builders 25,080
IDBI Bank 8,107
State Bank of India 6,441
South Indian Bank 3,008
Solution:
COMPUTATION OF INCOME
Amount Amount
Particulars Amount
(in 3) (in 7) (in )
Income from Business/Profession

38,162
Profit from M/s R.S. Enterprises
Income from Other Sources
Interest from Rama Builders 2,50,800
Interest on FDR from SBI 64,395
Interest on FDR from SIB 30,080
Interest on FDR from IDBI 81,067
Interest on application money 3,700
Dividend from UTI (Exempt) 10,597 0
Interest from Tax-free bonds 58,271 0
Interest on PPF Account (Exempt) 68,272 0 4,53,825

Less: Deduction uls 80
Deduction uls 80C
LIC PREMIUM 5,608
PPF
1,50,000
TOTAL
1,55,608
Restricted to 1,50,000 1,50,000
Deduction u/s 80D
Mediclaim Insurance Premium
11,388
Deduction uls 80TTA
Interest on S/B Account 10,000 1,71,388
Net Taxable Income 3,20,599
ROUNDED OFF
3,20,600
Tax on above 3,20,600
3,530
Less:Rebate u/s 87-A
2,500
Net Tax Payable 1,030
Add:EC AND SHEC @ 3% 31
BASICS OF COMPUTATION OF INCOME TAX AND TAX LIABILITY 21
Net Tax Payable 1061
Less: Tax Paid
TDS on Interest by M/s Rama Builders 25,080

TDS on FDR-IDBI Bank 8,107
TDS on FDR-State Bank of India 6,441
TDS on FDR-South Indian Bank 3,008 42,636
Net Refund Due 41,575
Illustration 5: Mr.Abhishek Sati had the following income during financial

year 2017-18. He is 28 years old. Calculate the tax liability of Mr. Abhishek Sati.
Particulars Amount (in)
Salary received from M/s A.K. Builders (P) Ltd. 1,92,000
Interest on FDR with IDBI Bank 2,78,731
Interest on Kisan Vikas Patra 10,933
Interest from Income tax refund 461
Interest from PPF Account
67,442
Life Insurance Premium Paid 5,456
Deposited in Public Provident Fund Account 60,000
DEDUCTION OF TDS
IDBI Bank
27,874
State Bank of India
6,377
Solution:
Particulars Amount Amount Amount
(in ) (in 7) (in )
Income from Salary
Salary from M/s A.K. Builders (P) Ltd. 1,92,000
Interest from FDR (SBI) 63,766
Interest from FDR (IDBI) 2,78,731
Interest from Kisan Vikas Patra 10,933
Interest from Income Tax Refund 461
Interest on PPF Account (Exempt) 67,442 0 3,59,918
Less: Deduction uls 80: Deduction uls 80C
LIC Premium 5,456
PPF 60,000
65,456
Deduction uls 80TTA
Interest from Saving Bank Account 6,027 71,483
Net Taxable income
4,80,435
ROUNDED OFF 4,80,440
Tax on above
11,522
Add: EC + SHEC@ 3% 346
Total Tax Payable 11,868
22 * SHNADELA UNIVERSITY SERIES
Total Tax Payable 11,868
Less: Tax Paid
TDS on FDR-IDBI Bank 27,874
6,377 34,251
TDS on FDR-State Bank of India
22,383
Net Refund Due
Tax Rate Tax Amt. (
Particulars Income (Ⓡ)
0
2,50,000 0
Up to 2.50,000
11,522
From 52.50.001 to 5,00.000 2,30,440 5%
11,522
TOTAL 4,80,440
Illustration 6: Mr.Suresh Kumar had the following income during financi

year 2017-18. He is 52 years old. Calculate the tax liability of Mr.Amount
Suresh Kumar.
(in )
Particulars
6,00,000
Salary received from M/s XYZ Company Ltd. 1,00,000
Rent received from House Property 30,000
Municipal Tax paid 30,000
Interest on Loan taken for repairs of above House Property 5,000
Short-term capital gain on shares subject to security transaction tax 12,500
Interest received on taxable bonds
10,000
Interest from post officeMonthly income scheme 4,000
Dividend from mutual funds
5,000
Dividend from shares-Tax free
2,00,000
Long-term Capital gain on sales of shares subject to security trasaction tax 10,000
Life Insurance Premium paid
1,00,000
Amount deposited in Public Provident Fund Account
2,60,000
Repayment of House Loan 36,000
Tution Fees paid of Children
70,000
Contribution in new pensions scheme
Medical insurance premium paid self, wife and children 21,000
Medical insurance premium paid for parents who are both senior citizens
26,000
and are not dependent on Mr. Suresh
Health check up of wife and self 5,000
Health check up of parents 5,000
Interest from PPF A/C 30,000
PF Deducted by Ms XYZ Company Ltd. 30,000
DETAILS OF TDS
Ms XYZ Company Ltd. 21,000
Solution: COMPUTATION OF INCOME

(in ) (in ?) (in 3)
Income from Salary
Salary received (XYZ Company Ltd.) 6,00,000
Rent received 1,00,000
Less: Municipal tax 30,000
Net Annual Value 70,000
BASICS OF COMPUTATION OF INCOME TAX AND TAX UABILITY - 23
b
70,000 6,00,000
Less: Standard deduction for repair etc. @ 30% 21,000
Less: Interest on loan for repairs 30,000 51,000
Net Income from House Property 19,000
Income from Capital Gains
Long-term capital gain on sale of shares
(Exempt u/s 10(38)) 2,00,000 0
Short-term capital gains on sale of shares 5,000 5,000 5,000
Interest from taxable bonds
12,500 12,500
Interest from Post Office (MIS) 10,000 10,000
Dividend from Mutual Funds 4,000 0
Dividend from Shares
5,000 0
Interest on PPF (Exempt) 30,000 0
Interest from Saving Bank Account 12,000 12,000 34,500

Deduction uls 80C

Amount deposited in PPF Account 1,00,000
Repayment of Housing Loan 2,60,000
Tuition fees of Children
36,000
PF Deducted by M/S XYZ Company Ltd. 30,000
TOTAL
4,36,000
Restricted to
1,50,000
Deduction uls 80CCD(18)
Contribution under New Pension scheme 70,000
Restricted to 50,000
Deduction u/s 80D
Medical Insurance Premium paid for

Self, wife and children 21,000
Amount paid for health check up of
wife and self* 5,000
Total 26,000
Medical Insurance Premium paid for parents
who are senior citizens 26,000
Amount paid for health check up of parents* 5,000
Total 31,000
Deduction uls 80TTA
Interest from Saving Bank 10,000 10,000 2,61,000
Total Taxable income 3,97,500
Tax on 13,92,500 7,125
Tax on Short-term Capital Gain@15% on 5,000 750

Add: EC + SHEC@3% 236
Tax Payable 8,111

Less: TDS on Salary-M/s XYZ Co. Ltd. 21,000
Refund Due 12,889
24 SHIVA DELHIUNMERSITY SERIES

Particulars Income (*) Tax Rate Tax Amto
0 0
Up to €2,50 000 2,50,000
7,125
From 250,001 to 5,00.000 1,42,500 5%
7,125
Total 3,92,500
Note: The aggregate payment on account of preventive health check-up of self, wife, children
and parents cannot exceed €5,000.
Illustration 7: Mr. Sagar Singhal had the following income during financial
year 2017-18. He is 46 years old. Calculate the tax liability of Mr. Sagar Singhal.
Particulars Amount (in )
Salary received from M/s Mohan Associates Ltd.
26,11,475
11,57,621
Interest paid on borrowed capital for construction of residential house
(Self occupied by Sagar Singhal) 30,308
Interest from PPF Account
6,437
Interest on Security Deposit 1,00,000
Amount deposited in Public Provident Fund Account 87,000
PF deducted by M/s Mohan Associates Ltd. 1,44,000
Principal amount of residential house loan
Details of TDS
3,87,363
M/s Mohan Associates Ltd.

Amount Amount Amount
Particulars
(in ) (in ) (in )
Income from Salary
26,11,475
Salary received (M/s Mohan Associates Ltd.)
Loss from House Property
Interest on Borrowed Capital (2,00,000)
(311,57,621 but restricted to 52,00,000)
Interest on PPF Account (Exempt) 30,308 0
Interest from Security Deposit 6,437 6,437 6,437

Deduction uls 80C
Deposit in PPF Account 1,00,000
Contribution to PPF Account 87,000
Repayment of Housing Loan 1,44,000
Total 3,31,000
Restricted to: 1,50,000
Rounded off 22,67,910
Add: EC+SHEC@3% 14,786
Tax payable 5,07,659
Less: TDS on salary—M/s Mohan Associates Ltd. 3,87,363
Total Tax Liability 1,20,296
BASICS OF COMPUTATION OF INCOME TAX AND TAX LIABILITY - 25
Particulars
Income (*) Tax Rate Tax Amt. (*)
Up to $2,50,000 0 0
2,50,000
From 2,50,001 to 5,00,000 5% 12,500
2,50,000
From 5,00,001 to 10,00,000 20% 1,00,000
5,00,000
10,00,001 onwards 3,80,373
12,67,910 30%
TOTAL
22,67,910 4,92,873
Illustration 8: Ms. Anu Sharma had the lowing income during financial year
2017-18. She is 26 years old. Calculate the tax liability of Ms. Anu Sharma.
Particulars
Amount (in 3)
Professional charges received 4,45,000
Bank charges paid 391
Salary received from M/s Jay Associates (P) Ltd. 1,92,000

Interest received on FDR—State Bank of India 6,539
Interest from PPF Account 1,05,892
Amount deposited in Public Provident Fund Account 1,50,000
Solution:
Amount
(in ) (in 3) (in )
Income from Salary
Salary received from Jay Associates (P) Ltd. 1,92,000
Income from Profession
Professional charges received 4,45,000
Less: Bank charges 391 4,44,609
Interest from FDR (SBI) 6,539 6,539
Interest from Saving Bank Account 11,978 11,978
Interest on PPF Account (Exempt) 1,05,892 0 18,517
Less:Deductions (Chapter VI-A)
Deduction u/s 80C
Amount deposited in PPF Account 1,50,000 1,50,000

Deduction uls 80TTA
Interest from Saving Bank 10,000 10,000 1,60,000
Tax on above 12,257
Add: EC+SHEC @ 3% 368
Tax Payable 12,625
Rounded off
12,630
Particulars Income (7) Tax Rate Tax Amt. (*)

Up to 32,50,000 2,50,000 0 0
From $2,50,001 to 5,00,000 2,45,130 5% 12,257
Total 4,95,130 12,257
26 SHIVA DELHI UNIVERSITY SERIES
Illustration 9: Mr.Gaurav Gandhi had the following income during financial
year 2017-18. He is 56 years old. Calculate the tax liability of Mr. Gaurav Gandhi
Particulars Amount (in )
5,94,800
Salary received from M/s Rahul & Company 18,059
Interest received on FDR-State Bank of India
Interest received from Post Office 16,800
Interest on FDR-IDBI Bank 35,089
12,358
Interest from Saving Bank Accounts
14,909
Interest on FDR-Karnataka Bank
Interest from PPF Account 64,883
Amount deposited in Public Provident Fund Account 1,50,000
3,405
Medical insurance premium paid
Details of TDS
7,654
M/s Rahul & Company
Karnataka Bank 1,491
IDBI Bank 3,509

(in ) (in ) (in )
Income from Salary
Salary received (M/s Rahul & Company) 5,94,800
Interest on FDR-SBI 18,059 18,059
Interest from Post Office (MIS) 16,800 16,800
Interest on FDR-IDBI Bank 35,089 35,089
Interest from Saving Bank Accounts 12,358 12,358
Interest on FDR-Karnataka Bank 14,909 14,909
Interest on PPF Account (Exempt) 64,883 0 97,215
Deduction uls 80C
Amount deposited in PPF Account 1,50,000 1,50,000
Deduction u/s 80D
Medical Insurance Premium Paid 3,405 3,405
Deduction u/s 80TTA
Interest from Saving Bank Accounts 10,000 10,000 1,63,405
Total Taxable income
5,28,610
Tax on above
18,222
Add: EC+SHEC@3% 547
Tax Payable 18,769
Less:Tax paid
TDS on Salary-M/s Rahul & Company 7,654
TDS on FDR-Karnataka Bank
1,491
TDS on FDR-State Bank of India
1,806
TDS on FDR-IDBI Bank
3,509 14,460
ROUNDED OFF
4,310
BASICS OF COMPUTATION OF INCOME TAX AND TAX LIABILITY - 27
Particulars Income (*) Tax Rate Tax Amt, (*)
0
Up to 2,50,000 2,50,000 0
From $2,50,001 to 5,00,000 2,50,000 5% 12,500
From 5,00,001 to 10,00,000 28,610 20% 5,722
Total 18,222
5,28,610
Illustration 10: Mr. Aman Arora had the following income during financial
year 2017-18. He is 29 years old. Calculate the tax liability of Mr. Aman Arora.
Particulars Amount (in)
Rent received from M/s ABC Enterprises (G-20/89 Nehru Place) 4,00,680
Rent received from M/s ABC Enterprises (G-4/89 Nehru Place) 2,16,300
Rent received from M/S R.K. Brothers (B-1 Ranjeet nagar) 1,57,500
Rent received from M/s R.K. Brothers (B-2 Ranjeet nagar) 1,57,500
Interest on FDR with IDBI Bank 14,58,431
Interest on FDR with South Indian Bank 1,61,198
Interest on FDR with Union Bank of India 1,54,364
Interest from M/s Rama Builders 2,50,800
Interest from PPF Account 1,29,036
Municipal tax paid 43,869
Amount deposited in PPF A/C 1,000
Fixed deposit with IDBI Bank for tax saving purpose 2,50,000
TDS Deduction
IDBI Bank 1,45,844
South Indian Bank 16,120
Union Bank of India 15,436
Rama Builders 25,080
ABC Enterprises 61,704

(in ) (in ;) (in )
Property No. G-20/89, Nehru Place 4,00,680
Property No. G-4/89, Nehru Place 2,16,300
Property No. B-1, Ranjeet Nagar 1,57,500
Property No. B-2, Ranjeet Nagar 1,57,500 9,31,980
Less: Municipal Taxes 43,869
Net Annual Value 8,88,111
Less: Standard deduction for repair etc. 30% 2,66,433
Less: Interest on borrowed capital 2,66,433
Net Income from House Property 6,21,678
28 – SHIVA DELHI UNIVERSITY SERIES
Net Income from House Property 6,21,678
30,833
Interest from FDR (SBI) 19,384 19,384
Interest from FDR (IDBI) 14,58,431 14,58,431
Interest from FDR (SIB) 1,61,198 1,61,198
Interest from FDR (UBI) 1,54,364 1,54,364
Interest from Rama Builders 2,50,800 2,50,800
Interest from PPF Account (Exempt) 1,29,036 0 20,75,010
Deduction uls 80C
Amount deposited in PPF Account 1,000
Fixed deposit with IDBI Bank for tax-saving 2,50,000
Total 2,51,000
Restricted to 1,50,000
Deduction u/s 80D
Deduction uls 80TTA
Interest from Saving Bank 10,000 1,77,416
ROUNDED OFF 25,19,270
Add: EC+SHEC@3% 17,048
Tax Payable 5,85,329
Less: Tax Paid
TDS on FDR-IDBI BANK 1,45,844
TDS on FDR-SBI 1,940
TDS on FDR-SIB 16,120
TDS on FDR-UIB 15,436
TDS-Rama Builders 25,080
TDS-ABC Enterprises 61,704 2,66,124
Total Tax Liability 3,19,205
ROUNDED OFF
3,19,210
Particulars
Income (3) Tax Rate Tax Amt. )
Up to 32,50,000 2,50,000 0 0
From $2,50,001 to 5,00,000 2,50,000 5% 12,500
From 75,00,001 to 10,00,000 5,00,000 20% 1,00,000
10,00,001 onwards 15,19,270 30% 4,55,781
Total
25,19,270 5,68,281
4
DEDUCTIONS FROM
GROSS TOTAL INCOME
DEDUCTIONS ALLOWED FROM GROSS TOTAL INCOME
DURING FINANCIAL YEAR 2017-18
(ASSESSMENT YEAR 2018-19)
4.1 Deductions cannot exceed Gross Total Income

The aggregate amount of deductions under sections 80C to 80U, i.e., under
Chapter VI-A shall not, in any case, exceed the “Gross Total Income” exclusive
of Long-term capital gains and short-term capital gain covered under section
111A, Winnings of lotteries, crossword, puzzles, etc. of the assessee. Therefore,
the Total income after deductions will either be positive or nil. It cannot be
negative due to deductions. If the “Gross total income" is negative or nil, no
deduction can be permitted under this Chapter.
4.2 U/S 80-C (For Individuals and HUF)

1. Individual: Life Insurance Premium paid for self/ wife/husband/child.
In case of HUF, life insurance premium paid for any member of HUF.
2. Premium paid on deferred annuity plan.
3. Contribution to Provident Fund by income tax payers (Only employees'
contribution).
4. Deposit with Public Provident Fund
5. Investment in National Saving Certificates.
6. Interest accrued on NSC is deemed to be reinvested. Therefore, accrued
interest amount is allowed as deduction under Section 80C.
29
30 I SHIVA DELHI UNIVERSITY SERIES
7. Contribution In Unit Linked Insurance Plan Of UTI/LIC Mutual Fund

8. Contribution to a specified pension fund.
9. Tuition fees paid by an individual whether at the time of admission or
thereafter (maximum for two children).
10. Repayment of loan instalment for residential house but any deduction
made u/s 24 out of income from house property cannot be allowed.
11. Subscription of equity shares of any Indian public company in infra
structure business.
12. Fixed Deposit with scheduled banks at least for 55 years.
13. Five year post office time deposit account.
Maximum amount of deduction under above heads will be 21,50,000 only.
Note:
1. Premium paid on Life Insurance Policy exceeding certain percentage of the capital sum
assured not eligible for deduction.
Premium paid on insurance policy other Amount paid eligible for deduction
than contract of deferred annuity
(a) for policy issued on or before 31.3.2012 20% of the capital sum assured
(b) for policy issued on or after 1.4.2012 10% of the capital sum assured
(c) for policy issued on or after 1.4.2013 for the 15% of the capital sum assured
insurance on life of a person, who is -
(i) a person with disability or a person
with severe disability as referred to in
Section 80U, or
(ii) suffering from disease or ailment as
specified under Section 80DDB
4.3 U/S 80-CCC (Allowed for individual tax-payers)

If any amount is contributed to Pension Fund of Life Insurance Corporation of
India (Jeevan Suraksha) or of other insurance companies, shall be allowed as
deduction.
Maximum amount of deduction of 1,50,000 is allowed under section 80CCC.
Note: Any amount received under this plan shall be taxable at the time of receipt whether that is
bonus, pension, interest or surrender of the plan by the individual concerned or his/her nominee.
4.4 U/S 80-CCD(1) (Allowed for individual tax-payers)

Deduction in respect of any amount contributed to Pension Scheme of Central
Government.
Any amount not exceeding 10% of salary of the previous year paid or deposited by the
.
employee in his account under the notified pension scheme.

• Any amount contributed by the employer (i.e., Central Government or any other employer)
to such pension scheme shall be allowed as deduction for an amount not exceeding 10% of
the salary of the employee in the previous year.
Any amount contributed by any other assessee being an individual to such pension scheme
not exceeding 20% of his gross total income in the previous year.
Note: Any amount received under this plan shall be taxable at the time of receipt.
DEDUCTIONS FROM GROSS TOTAL INCOME - 31
4.5 U/S 80-CCD(1B) (Allowed for individual tax-payers)
An amount deposited by an individual assessee under a new pension scheme
subject to a maximum of 350,000. (Sec. 80CCD(1B)]
Note: The aggregate amount of deduction u/s 80C, 80CCC & 80CCD(1) for £1,50,000 is allowed
in financial year 2017-18. However, deduction under section 80CCD(1B) in respect of deposit by
the assessee in the new pension scheme up to maximum of 750,000 shall be available in addition
to this limit.
(A) Illustration:
During financial year 2017-18, Mr. X had the following detail relating to his
income and payment made in tax saving schemes:
Income from business 36,50,000
Deposited in Public Provident Fund Account 51,40,000
National Saving Certificate purchased 320,000
Fixed deposit with bank for 5 years 320,000
(For tax saving purpose)
Tuition Fees for his son 315,000
Amount paid into notified pension scheme 12,000
Calculate his taxable income. He is 40 years old.
Solution:
Income from business 6,50,000

Less: Deductions allowed u/s 80C
National Saving Certificate purchased 20,000
Fixed deposit with bank for 5 years (for tax saving purpose) 20,000
Tuition Fees for his son 15,000
Amount paid into notified pension scheme 12,000
Total deductions 2,17,000
Maximum deductions allowed 1,50,000
Clarification: Though, Mr. X invested into tax saving schemes for 2,17,000
but there is a ceiling limit of $1,50,000. That is why he can only claim for
31,50,000 as deduction under section 80C during financial year 2017-18.
(B) Illustration:
Mr. Y had the following details in respect of his income and investment in
saving schemes during financial year 2017-18 (Assessment Year 2018-19) as
under:
Professional Income received 18,00,000
He invested in Public Provident Fund Account 1,00,000
Principal amount paid in respect of loan taken for
his residential house 180,000
Contributed to New Pension Scheme *60,000
Calculate his net taxable income.
Solution:
Particulars Paid (Ⓡ) Allowed (<) Amount ()
8,00,000
Professional Income received
Less: Deduction under chapter VI-A
(a) Deposited in Public Provident Fund Account 1,00,000
Repayment of housing loan 80,000
Total amount 1,80,000
Restricted under Section 80C 1,50,000
(b) Contributed to New Pension Scheme 60,000
50,000 2,00,000
Restricted under Section 80CCD(18)
6,00,000
Net taxable income
4.6 Deduction u/s 80-D during Financial Year 2017-18

(Assessment Year 2018-19) – Mediclaim (Allowed for individuals
and HUF)
• Medical Insurance Premium or preventive health check up of resident
assessee/spouse/or dependent children 125,000. (*30,000, if any member
of HUF is resident senior citizen or in case of individual he/she or his/her
spouse is a senior citizen. Senior citizen means the person who has attained
or completed his/her 60 years or more during the current financial year.
For example, Mr. A was born on 15.07.57. He completed 60 years of his life
on 15.07.17, i.e., in Financial Year 2017-18, he will be treated as a senior
citizen and he can get deduction for 230,000 for medical insurance from
his taxable income.
• Medical insurance premium or preventive health check-up for parents
525,000 (330,000, if any one of them is senior citizen, i.e., 60 years or more).
• The aggregate payment on account of preventive health check-up of self,
spouse, dependent children, parents cannot exceed 15,000. It can be paid
through bank or in cash.
Amount for health insurance shall be paid by any mode except cash.
( A) Illustration:
Mr. X 45 years old, has the following details in respect of medical expenses
during F.Y. 2017-18 (Assessment Year 2018-19):
Medical insurance premium paid for himself 15,000
Preventive health check-up for himself 37,000
Medical insurance Premium paid for his wife 8,000
How much amount can he claim as deduction from his income?
Solution:
Mr. X can claim deduction in respect of medical insurance premium and
preventive health check-up as under:
Medical insurance premium paid for himself 315,000
Preventive health check-up for himself 7,000
Medical insurance Premium paid for his wife 8,000
Gross payment made by him 30,000
Maximum deduction allowed under Section 80D 25,000
DEDUCTIONS FROM GROSS TOTAL INCOME 33
(B) Illustration:
Mr. Y (30 years old) spent the following amount on medical insurance
premium and preventive health check-up during Financial Year 2017-18:
Medical Insurance Premium paid for himself and his wife 310,000
Preventive health
check-up for himself 36,000
Medical Insurance premium paid for his parents
(His father is 62 years old and his mother is 57 years old) 332,000
Calculate the amount of deduction under Section 80D during Financial Year
2017-18.
Solution.
Mr. Y can claim following amounts as deduction in respect of medical

expenses from his income as under:
Particulars Paid (5) Allowed (3)
Medical Insurance Premium paid for himself and his wife 10,000 10,000
Preventive health check-up for himself 6,000 5,000
Medical Insurance premium paid for his parents
(His father is 62 years old and his mother is 57 years old) 32,000 30,000
Gross payment made by him 48,000
Deduction allowed 45,000
Clarification: Maximum amount of deduction during Financial Year 2017-18

under Section 80D is allowed in respect of medical insurance premium and
preventive health check up paid for himself or wife or dependent children is
325,000. For preventive health check-up maximum amount allowed as
deduction is 5,000. For his parents, he can claim another 30,000 in respect of
medical insurance premium and preventive health check up, if one of his parent
is senior citizen. If both of parents are senior citizen, in that case also 30,000 can
be claimed as deduction from his income.
4.7 Deduction in respect of Medical Treatment and Deposit

made for maintenance of disabled dependents (Section 80DD)
during Financial Year 2017-18 (Assessment Year 2018-19)
These deductions are allowed for resident individual and Hindu Undivided
family as under:
1. Any expenses incurred on one (or more) dependent disabled person
during financial year 2017-18 in respect of his medical treatment or for
training or rehabilitation.
2. Any amount deposited under any scheme of Life Insurance Corporation
of India or any other insurance company or Unit Trust of India, for the
benefit of dependent disabled person.
Disabled Person means the person who has any disability of 40% or
more.
Severe Disabled Person eans the person who has any disability of 80%
or more.
Dependent for this deduction means in case of individual, son, daughter,

spouse, father, mother, brother, sister, spouse's brother and sister,
brother and sister of parents, parents of spouse:
In case of Hindu Undivided Family, dependent disabled person means
any member of HỤF.
Amount of Deductions Allowed in respect of dependent disabled person;
During Financial Year 2017-18, the maximum amount of 375,000 can be
allowed as deduction from the income of the assessee in respect of
expenses incurred or amount deposited as above mentioned. An assessee
can claim $75,000 whether he has spent less or more money.
Amount of Deductions Allowed in respect of dependent severe disabled
person: During Financial Year 2017-18, maximum amount of 1,25,000
can be claimed whether the assesse has spent more or less money.
For example, Mr. X spent 325,000 on medical expenses and he deposited
325,000 Life Insurance Corporation of India under the scheme approved
by the Central Government of India on his disabled son. He can claim
375,000 as deduction from his income, though he has spent lesser
amount.
We take another example, Mr. Y spent 385,000 on medical expenses and
payment made to Life Insurance Corporation of India on his dependent
daughter during Financial Year 2017-18. He can claim only 75,000 as
deduction from his income, though he has spent more money.
Note:
• The deduction under section 80DD can be claimed only if the disabled person is wholly
dependent on the assessee and has not claimed any deduction under section 80U from his
income.
• The assessee should furnish a certificate of disability to the assessing authority. The certificate
a
is issued by medical officer who is authorized by the Central Government.

Conditions in respect of deposits made under any scheme for disabled/severe
dependent person
1. The assessee nominates either disabled dependent or any other person or
himself/herself or any trust, to receive the payment under any scheme
for the benefit of disabled person.
2. In case of death of the assessee before the disabled dependent, the
amount deposited under any scheme, is paid in lump sum or as annuity
for the welfare of the disabled person.
In case, if the disabled dependent dies before the assessee then any
amount received under any scheme by the assessee against which the
deduction was claimed, such amount shall be added in the income of
the assessee during the year he has received the amount.
For example, Mr. A is a disabled dependent person on his father Mr. B.
Mr. A dies during Financial Year 2017-18. His father received 32,00,000
from Life Insurance Corporation of India under an approved scheme
by Central Government of India. Mr. A was covered under this
scheme. In this case, the amount of $2,00,000 shall be added in the
income of Mr. B during Financial Year 2017-18.
DEDUCTIONS FROM GROSS TOTALINCOME 35
med 4.8 Deduction in respect of medical treatment under Section
80DDB during Financial Year 2017-18 (Assessment Year 2018-19)
First of all please understand the difference between deduction allowed under
Section 80DD and 80DDB. Deductions under Section 80DD are allowed in case
of expenses incurred on treatment of dependent disabled person under the
Disability Act but the deductions under Section 80DDB are allowed in respect of
expenses incurred by assessee on himself or on a dependent person and in case
of Hindu Undivided Family, any member of that particular HUF in respect of
some specified diseases.
Deduction Allowed:
1. Maximum amount of deduction under section 80DDB, allowed, is
340,000 thousand or actual amount paid, whichever is less.
2. In case of the senior citizen resident person, the amount of deduction
shall be allowed as actual amount spent or 360,000, whichever is less.
Senior citizen means a person who has completed 60 years of age during
the relevant financial year.
3. In case of very senior citizen who is 80 or more, the amount of deduction
shall be *80,000 or actual amount, whichever is less.
Conditions for Availing the Above Deduction
1. The amount of deduction shall be reduced by the amount received by the
assessee under any insurance cover.
2. The assessee has to furnish the medical certificate to the Income tax
department in respect of the disease from the prescribed authority.
(A) Illustration:
Mr. X is 62 years old and is suffering with a specified disease. He spent
85,000 on the treatment of his disease during the Financial Year 2017-18. He
received from his insurance cover 25,000.
Calculate the amount of deduction under Section 80DDB.
Solution:
Total expenses incurred by Mr. X 85,000

Maximum Limit of allowable deduction 360,000
Less: Amount received from the Insurance company 25,000
Amount can be claimed as deduction 135,000
Note:
• Mr. X is a senior citizen, that is why he can claim the maximum amount of £60,000. Out of
which he received *25000 from insurance company.
Therefore, the balance amount of 35000 can be claimed as deduction under Section 80DDB.
4.9 Deduction in respect of interest on loan taken for higher

education during Financial Year 2017-18 (Assessment Year 2018
19) under Section 80E
Allowable to Individual assessees only.
Interest on loan taken from a financial institution or any approved charitable
36 SHNA DELHI UNIVERSITY SERIES
institution or from any other institution as approved by Income tax department
for higher education loan for himself/spouse and children and for any other
children for whom the assessee is a legal guardian.
Note:
• Any amount of interest paid by the assessee, will be allowed as deduction from taxable
incomefor a maximum of 8 years beginning from the year in which payment of intereston
the loan begins or till the interest is paid in full, whichever is earlier.
Higher Education means any course or study, pursued after passing senior secondary
examination or equivalent.
(A) Illustration:
Mr. Y took a loan of 75,00,000 @ 10% per year on 01.04.17 for the higher
study of his son. He paid 550,000 as interest on loan. His total income for the
Financial Year 2017-18 was 34,00,000. Calculate his taxable Income during the
Financial Year 2017-18.
Solution:
Gross Total Income of Mr. Y 4,00,000
Less: Deductions under section 80E – Interest paid for loan
taken for higher study of his son during
Financial Year 2017-18 350,000
Net Taxable Income of Mr. Y 33,50,000
4.10 Deduction in respect of interest paid on loan taken for

Residential House during Financial Year 2017-18 (Assessment
Year 2018-19) under Section 80EE
Allowable to an individual assessee who has taken a loan from any bank/
housing finance company for the purpose of acquiring a residential house
property.
Amount of deduction: Amount of interest payable on such loan subject to a
maximum limit of 50,000.
Conditions to avail the deduction:
1. Interest is allowed to an individual assessee only.
2. Loan must be relating to residential house only.
3. Deduction under section 80EE is allowed only in respect of the loan
sanctioned during the period of 01:04.16 to 31.03.17.
4. Maximum amount of loan should be 35 lakhs only.
5. The value of residential house should not be more than 50 lakhs.
6. The assessee must not have any other residential house property on the
date of sanction of loan.
The interest claimed under Section 80EE cannot be claimed under any
other provision for the same or other assessment year.
For example, if the interest is claimed under Section 80EE then it cannot be
claimed under Income from housing property.
DEDUCTIONS FROM GROES TOTALINCOME - 37
element 4.11 Deductions in respect to donations made during
Financial Year 2017-18 (Assessment Year 2018-19) Section 80G
For claiming deduction in respect of donations made during the financial year
2017-18, following points must be kept in mind:
1. The deduction for donation made are allowed to all types of taxpayers.
2. The Institutions or Trusts or anyone else, must be having availed
istration certificate under Section 80G at the time of accepting the
donations. In other words, the assessee must pay the donations to those
persons, institutions who are registered under Section 80G of Income Tax
Act to claim the deduction from his/her income.
3. Proper receipt must be obtained for the donation amount from the person
whom the assessee is paying the amount.
4. If the amount of the donation is more than 2,000 then it must not be paid
in cash otherwise it cannot be allowed as deduction from Gross Total
Income.
5. If the aggregate of donations made by the assessee in certain cases
exceeds 10% of Adjusted Gross Total Income, such excess shall not
qualify for deduction.
6. Adjusted Gross total income for this purpose shall be reduced by
following amounts:
(i) Deductions allowable u/s 80C to 80U (except 80G)
(ii) Income on which tax is not payable
(iii) Long term capital gains
(iv) Short term capital gains taxable u/s 111A
7. The tax payer can claim 100% deduction or 50% deduction in case of
donation made to certain notified institutions.
The qualifying amount of deductions of donations are classified in four
categories as under:
Category No. 1. Assessee can claim 100% deduction in respect of the amount
of donation paid to the certain notified institutions even if the amount of
donation is more than 10% of adjusted gross total income.
Example, Assessee paid *50,000 as donation to a notified institution against
which the assessee can claim 100% deduction. Gross total income is 3,00,000.
Assessee can claim 50,000 as deduction under Section 80G though it is
exceeding the qualifying amount, i.e., 10% of 3,00,000.
Following are the names of those institutions against which the assessee can claim
100% deduction irrespective of qualifying amount:
• National Defence Fund
Prime Minister's National Relief Fund, Armenia Earthquake Relief Fund.
• Africa (Public Contribution India) Fund.
• National Foundation for Communal Harmony.
• An approved University or Educational Institution of National Eminence.
• Chief Minister Earthquake Relief Fund, Maharashtra.
38 • SHIVA DELHI UNIVERSITY SERIES
• Any Fund Set up by the Government of Gujarat exclusively for providing
relief to Earthquake Victims.
• A Zila Saksharata Samiti Constituted for Improvement of Primary
Education and Literacy in Villages and Towns.
• The National Blood Transfusion Council or any State Blood Transfusion
Council.
Any State Government Fund for Providing Medical Relief to the poor.
• The Army Central Welfare Fund/Indian Naval Benevolent/ Air Force
Central Welfare Fund.
• The Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996.
• The National Illness Assistance Fund.
• The Chief Minister's Relief Fund/ Lieutenant Governor's Relief Fund of
any State or Union Territory.
• The National Sports Fund.
• The National Cultural Fund.
• The Fund for Technology Development and Application.
• The National Trust for Welfare of Persons with Autism, Cerebral Palsy,
Mental Retardation and Multiple Disabilities.
• Swachh Bharat Kosh.
• The Clean Ganga Fund.
• The National Fund for Control of Drug Abuse.
Category No. 2. Assessee can claim 50% deduction in respect of the amount of
donation paid to the certain notified institutions even if the amount of donation
is more than 10% of adjusted gross total income.
Example, An Assessee paid 780,000 as donation to a notified institution against
which the assessee claimed 50% deduction. Gross total income is 3,00,000. The
Assessee can claim 340,000 as deduction under Section SOG though it is
exceeding the qualifying amount, i.e.,10% of $3,00,000.
50% deductions irrespective of qualifying amount:
Jawaharlal Nehru Memorial Fund.
• Prime Minister's Drought Relief Fund.
Indira Gandhi Memorial Trust.
Rajiv Gandhi Foundation.
Category No. 3. Assessee can claim 100% deduction in respect of the amount
of donation paid to the certain notified institutions subject to a maximum limit
of 10% of adjusted gross total income.
Example, An Assessee paid 350,000 as donation to a notified institution against
which the assessee can claim 100% deduction. Gross total income is 33,00,000. The
Assessee can claim 130,000 as deduction under Section 80G because qualifying
amount is 30,000, i.e., 10% of adjusted Gross Total Income of $3,00,000.
100% deduction subject to the qualifying amount, i.e., 10% of Adjusted Gross Total
Income:
DEDUCTIONS FROM GROSS TOTAL INCOME I 39
• The Government or any Approved Local Authority, Institution or
Association for promoting Family Planning.
• Indian Olympic Association or any other Notified Association/
Institution for Development of Infrastructure of Sponsorship of Sports
and Games in India (Donation by Company).
Category No. 4. Assessee can claim 50% deduction in respect of the amount of
donation paid to the certain notified institutions subject to a maximum limit of
10% of adjusted gross total income.
Example, Assessee paid 350,000 as donation to a notified institution against
which the assessee can claim 50% deduction. Gross total income is 23,00,000.
Assessee can claim 325,000 as deduction under Section 80G because qualifying
amount is 30,000, i.e., 10% of Adjusted Gross Total Income of 33,00,000.
50% deductions subject to the qualifying amount, i.e., 10% of Adjusted Gross Total
Income:
Any Fund or Institution established in India for a Charitable purpose as
referred to u/s 80G(5).
• Government or Local Authority for Charitable purposes (Other than
Family Planning).
• An Authority for Town Planning and Housing etc.
.
Any Corporation established by the Central/State Government for
promoting the Interest of the Members of a Minority Community.
Any Temple, Mosque, Gurdwara, Church or other place of worship
which is of Historic, Archaeological or Artistic importance.
4.12 Deduction in respect of rent paid during F.Y. 2017-18

(Assessment Year 2018-19) - under Section 80GG
-
(Allowed for Individuals only)

This deduction is allowed to all individuals whether employed or otherwise,
for rent paid for residential accommodation subject to the following
conditions:
1. Assessee, spouse, or minor child does not own any residential house at
the place of employment or business or profession.
2. The assessee does not own any residential house at any other place which
is valued under self-occupied property.
Least of the following amounts will be allowed as deduction:
1. Rent paid minus 10% of adjusted total income; or
2. *5,000 per month; or
3. 25% of Adjusted Total Income.
Note:
.
Adjusted Total income here means the income after deducting all the deductions from
Sections 80C to 800 except u/s 80GG and also will be reduced by Short-term capital gains
u/s 111A and Long-term capital gains.
40 ISHNA DELHI UNIVERSITY SERIES
4.13 Donation to political parties during Financial Year

2017-18 (Assessment Year 2018-19) under Section 80GGC
(Allowed to all tax-payers)
Any amount of donation paid to any political party or an electoral trust.
100% deduction is allowed for any amount paid as donation to such political
parties or electoral trust.
Condition: Any donation made in cash cannot be allowed as deduction under
this section.
4.14 Deduction in respect of royalty income of authors

during Financial Year 2017-18 (Assessment Year 2018-19) under
Section 80QQB
(Allowed for individuals being an author or joint author)
• 100% Deduction will be allowed in respect of royalty income, etc.
received subject to the maximum of 3,00,000.
• In case royalty or copyright fees is not received in lump sum during the
relevant financial year then the amount of deduction shall be restricted to
15% of the value of the books sold.
• Book means a work of literacy, artistic or scientific nature.
• The income from newspapers, brochures, commentaries, diaries, guides,
journals, magazines and other publications of similar type is not allowed
for deduction under this section.
- 4.15 Deduction in respect of royalty income on patent during

Financial Year 2017-18 (Assessment Year 2018-19) under Section
80RRB
.
The deduction shall be allowed to any resident individual who is
registered under the Patent Act, 1970.
• The deduction cannot be allowed to the assignees or mortgagees in
respect of all or any rights in the patent.
• 100% Deduction will be allowed in respect of royalty received from
working or use of the patent subject to the maximum of 3,00,000.
4.16 Deduction in respect of interest received from saving

account during Financial Year 2017-18 (Assessment Year 2018-19)
under Section 80TTA
Deduction is allowed to resident individuals or Hindu Undivided Family
only, in respect of interest received from saving bank accounts from any
bank including co-operative banks and post office.
• The maximum amount of deduction under this section is allowed 510,000.
• This deduction is not allowed in respect of interest from fixed deposits
with banks.
DEDUCTIONS FROM GROSS TOTAL INCOME : 41
Example 1: Mr. X earned total interest from saving bank account from banks
and post office amounting to 322,500 during the financial year 2017-18. The
amount of deduction under this section shall be allowed to a maximum for
*10,000 from his income.
Example 2: Mr. Y received interest from saving account for 75,400 and from
fixed deposits 34,000 during financial year 2017-18. In this case, the amount of
deduction allowable under Section 80TTA shall be only 5,400. The interest
received from fixed deposit shall not be allowed as deduction under this section.
4.17 Deduction in respect of disabled person during Financial

Year 2017-18 (Assessment Year 2018-19) under Section 80U
During Financial Year 2017-18 the amount of deduction under this section is
as under:
• Deduction under this section is allowed to resident individual suffering
from any disability for an amount of 375,000 from his/her income.
• In case of an individual suffering with severe disability, a deduction of
1,25,000 will be allowed from his/her income.
• The assessee must furnish the certificate of disability from the authorized
doctor.
Illustration:
Calculate taxable income of Mr. X for financial year 2017-18 (Assessment
Year 2018-19) who is 65 years old, from the following details:
Particulars Amount (In )
Net Income from Business (Proprietorship Firm) 5,00,000

Bank interest received on Fixed deposits 40,000
Interest received from Saving Bank Accounts 15,000
Dividend received from mutual funds 22,000
NSC purchased 15,000
Mediclaim Insurance premium paid 26,000
Accrued interest on NSC 6,000
Solution: Computation of Taxable Income of Mr. X

(In 3) (In 3) (In 3)
Income from Business
Profit from Proprietorship firm 5,00,000
Bank interest fixed deposits 40,000
Interest received from Saving Bank Accounts 15,000
Dividend received from Mutual Funds
(exempt) 22,000
Accrued Interest on NSC
6,000 000
Gross Total Income
5,61,000
DT 5,61,000
U/S 80C
Investment in NSC 15,000
Deposited in Public Provident Fund 1,50,000
6,000
Accrued Interest on NSC (Reinvestment)
Total investment u/s 80C 1,71,000
1,50,000
Deduction W/S 80C restricted to
U/S 80D
26,000
Medical Insurance Premium paid
26,000
Deduction W/S 80D
U/S 8OTTA
10,000
Interest from Saving Bank Accounts 1,86,000
Gross Deductions Allowed under Chapter VI-A 3,75,000
Net Taxable income
Note:
1. Mr X is Senior Citizen. Therefore, allowable mediclaim insurance premium paid by him is
530,000
2. Dividend from Mutual Funds is fully exempted.
3. Interest from saving bank account is allowed as deduction up to 10,000 under Section
SOTTA
5
PERMANENT ACCOUNT
NUMBER (PAN)
5.1 What is PAN?
Permanent Account Number (PAN) is a ten-digit alphanumeric number,
issued in the form of a laminated card, by the Income Tax Department.
A typical PAN is ABCPD1234Z.
आयकर विभाग भारत सरकार

INCOME TAX DEPAKTMENT GOVT. OF INDIA
स्थायी लेखासंख्याकाई
Permanent Account Number
ABCPD1234Z
ARST NAME MIDOLERANE SURINAME
4 FM Name
FIRST HOME COUTUME SURNAME
DDAMMYYYY
EX
CARD HOLDERS
SIGNATURE CARDPHOTO
HOLDER
5.2 Who has to apply for PAN?

Every person who has not been allotted a permanent account number shall,
within such time as specified below apply to the Assessing Officer in Form No.
49A for the allotment of a permanent account number in the following cases:
(a) if his total income or the total income of any other person in respect of
which he is assessable under this Act during any previous year exceeded
the maximum amount which is not chargeable to income-tax; or
(b) if he is carrying on any business or profession whose total sales, turnover or
gross receipts are or is likely to exceed 325,00,000 in any previous year; or
43
(c) Charitable trust and institution if it is required to furnish a Return of
income.
Time limit for submitting application for allotment of PAN

Situation Time limit for making application
In case clause (a) above on or before 31st May of the Assessment
year in which such income is assessable.
In case clause (b) above on or before the end of that accounting
year.
In case of clause (c) above on or before the end of the relevant
accounting year.
Contents of PAN Card
Listed below are the details that are captured in a PAN card issued to an
individual taxpayer.
• Permanent Account Number (Along with built-in status of the assessee
and check alphabet)
• Full name of the PAN cardholder
• Name of father of PAN cardholder
• Date of Birth
.
Photograph
.
Signature
Listed below are the details that a PAN card capturers for entities other than
individuals.
• Permanent Account Number (Along with built-in status of the assessee
and check alphabet)
• Full name
• Date of incorporation
Structuring of Permanent Account Number (PAN)
First 3 Characters. The first 3 characters on a PAN card represent an
phabetic series running from AAA to ZZZ.
4th Character. The 4th character represents the status of the PAN holder, which
can be one of the following:
C Company
Р Individual
-
H HUF (Hindu Undivided Family)

F Firm
A -
Association of Persons (AOP)
T -
AOP (Trust)
B Body of Individuals (BOI)
L Local Authority
J Artificial Juridical Person
G Government
So, an individual will have the 4th character as P.
PERMANENT ACCOUNT NUMBER (PAN) = 45
5th Character. The fifth character of the PAN is the first letter of
-
the surname in the case the status is "P", or,
-
the name of the Entity, Trust, Society, Organization, HUF, etc. in all other
cases.
For example, an individual with the name Vivek Kumar Shukla will have
S as the fifth character.
6th to 9th Characters. The next four numbers are sequential numbers running
from 0001 to 9999.
10th Character. The last digit is an alphabetic check digit which is generated
by applying a formula to the preceding nine letters and numbers
General uses/advantages of PAN
• Since PAN card contains information like Name, Age and photograph, it
can be used throughout the country as a valid identity proof.
• PAN is the best possible way to keep track of your tax payment.
Otherwise, you might be required to pay it multiple times since your tax
payment cannot be verified.
• Since, PAN is unique for every entity and hence, misuse of the same is
almost impossible for purposes of tax evasion, etc.
• PAN card can be used as a document that is required to avail connections
like electricity, telephone, LPG and internet.
• PAN is a unique identification number assigned to taxpayers and hence it
is used to track all financial information like payment of taxes, invest
ments made and debt liability of an entity related, to a single customer
PAN to be quoted in certain cases. On allotment of permanent account
number, every person shall:
(a) quote such number in all his returns to, or correspondence with, any
income-tax authority;
(b) quote such number in all challans for the payment of any sum due under
this Act;
(c) quote such number in all documents pertaining to such transactions as
may be prescribed by the Board in the interest of revenue, and entered
into by him.
Transactions where quoting of PAN made compulsory. Quoting of PAN is

compulsory in the following transactions:
Sl. No. Nature of Transaction Value of Transaction
1. Sale or purchase of a motor vehicle (other All such transactions.

than two wheeler).
2.
Opening an account (other than a time- All such transactions.
deposit referred to at Sl. No. 12 and a
Basic Savings Bank Deposit Account) with
a bank or co-operative bank.
1
3. All such transactions.
Making an application to a bank or co
operative bank or any other company or
institution, for issue of a credit or debit
card.
4. All such transactions.
Opening of a demat account.
5.
Payment to a hotel or restaurant against a Payment in cash of
bill or bills at any one time. an amount exceeding
50,000.
6. Payment in connection with travel to any Payment in cash of
foreign country or payment for purchase an amount exceeding
$50,000.
of any foreign currency at any one time.
7. Payment to a Mutual Fund for purchase Amount exceeding
of its units. 350,000
8. Payment to a company or an institution Amount exceeding

for acquiring debentures or bonds issued 50,000.
by it.
9. Payment to the Reserve Bank of India for Amount exceeding
acquiring bonds issued by it. *50,000.
10. Deposit with a bank or co-operative bank. Deposits in cash
exceeding 50,000
during any one day.
11. Purchase of bank drafts or pay orders or Payment in cash for
banker's cheques from a bank or a co- an amount exceeding
operative bank. 350,000 during any
one day.
12. A time deposit with bank or co-operative Amount exceeding
bank or post office or Nidhi or a non- 350,000 or aggregating
banking financial company. to more than
*5,00,000 during a
financial year.
13. Payment for oneor
more pre-paid Payment in cash or
payment instruments to a bank or co- by way of a bank
operative bank or any other company or draft or pay order or
institution.
banker's cheque of an
amount aggregating
to more than 50,000
in a financial year.
14. Payment as life insurance premium to an Amount aggregating
insurer. to more than 50,000
in a financial year.
PERMANENT ACCOUNT NUMBER (PAN) = 47
15. A contract for sale or purchase of Amount exceeding
securities (other than shares). 31,00,000 per trans
action.
16.
Sale or purchase, by any person, of shares Amount exceeding
of a company not listed in a recognised 51,00,000 per trans
stock exchange. action.
17. Sale or purchase of any immovable pro- Amount exceeding

perty. 510,00,000 or valued
by stamp valuation
authority referred to
in Section 50C at an
amount exceeding
310,00,000.
18. Sale or purchase, by any person, of goods Amount exceeding
or services of any nature other than those 32,00,000 per trans
specified at Sl. No. 1 to 17 above. action.
Notes:
1. Where a person, entering into any transaction referred above, is a minor and who does not
have any income chargeable to income tax, he shall quote the PAN of his father or mother or
guardian as the case may be, in the document pertaining to the said transaction.
2. Any person who does not have PAN and who enters into any transaction given above, he
shall make declaration in Form No. 60 giving therein the particulars of such transaction.
3. The persons receiving any document relating to a transaction where quoting of PAN is
compulsory shall ensure after verification that the permanent account number (PAN) has
been duly and correctly quoted in the document or declaration in Form No. 60 is received by
such person.
4. Every person receiving any sum or income or amount from which tax has been deducted
shall intimate his permanent account number to the person responsible for deducting such
tax.
5. Where any sum or income or amount has been paid after deducting tax, every such person
deducting tax shall quote the PAN of the person to whom sum/income/amount has been
paid by him, in:
(a) the statement of perquisites furnished to the employee.
(b) all certificates of TDS.
(c) all statements of TDS to any income-tax authority.
Q. 1. What documents and information have to be submitted along with
the application for Form 49A?
Ans. (i) Individual applicants will have to affix one recent, colour photo
graph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A.
(ii) Any one document must be supplied as proof of 'Identity' and
'Address'.
Q. 2. Which documents will serve as proof of 'Identity' in case of

Individual applicants, including minors and HUF applicants?
Ans. Copy of school leaving certificate or matriculation certificate or
degree of a recognized educational institution or depository
account or credit card or bank account or water bill or ration card
1
48 SHNA DELA UNIVERSITY SERES
or property tax assessment onder or passport or voter identity card
er driving license or certificate of identity signed by a MP or an
MLA or a Municipal Councillor or a Gazetted Officer;
• In case the PAN applicant is a minor, any of the above documents
of any of the parents or guardian of such minor shall serve as proof
of Identity;
• In case PAN application is made on behalf of a HUF,any of above
documents in respect of Karta of the HUF will serve as proof of
Identity
Q. 3. What is proof of 'Address' for Individual applicants, including
minors and HUF applicants?
Ans. • Copy of electricity bill or telephone bill or depository account of
credit card or bank account or ration card or employer certificate or
passport or voter identity card or property tax assessment order of
driving license or rent receipt or certificate of address signed by a
MP/MLA/Municipal Councillor/a Gazetted Officer;
• In case the PAN applicant is a minor, any of above documents of
any of the parents or guardian of such minor shall serve as proof of
Address;
• In case PAN application is made on behalf of a HUF, any of above
documents in respect of Karta of the HUF will serve as proof of
Address.
Q. 4. What documents will serve as proof of Identity and Address for other
applicants?
Ans. Copy of Certificate of Registration issued by the Registrar of Companies
or Copy of Certificate of Registration issued by the Registrar of Firms or
Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate
of Registration Number issued by Charity Commissioner or Copy of
Agreement or Copy of Certificate of Registration Number issued by
Charity Commissioner or Registrar of Cooperative Society or any other
Competent Authority or any other document originating from any
Central or State Government Department establishing Identity and
Address of such person.
Online PAN Card Application Process. The online application process for a
PAN card is mentioned below:
• Visit the TIN NSDL or UTIISL websites and select the ‘New PAN' option
• Select Form 49A for Indian citizens (including NRE/NRI/OCI
individuals).
• Fill in the details in the online form, mentioning details such as your full
name, address, date of birth,gender, telephone number, income details,
etc.
• On filling the form, submit it and pay the processing fee.

PERMANENT ACCOUNT NUMBEA (PAN) - 49
• Print the page with the 15 digit acknowledgement and sign in the space
provided
• Affix passport sized photograph on the acknowledgement, proof of
identity and proof of address documents and Demand Draft (if you are
paying through DD).
The above are to be sent to the NSDL office by post within 15 days of
submitting the online application.
• The PAN will then be sent to the address of the Application within 15
working days.
Offline PAN Card Application Process
• Download the PAN card application form from the NSDL or UTIISL
websites or collect a copy from UTIISL agents.
• Fill in the form and attach supporting documents (proof of identity,
.
address and photographs).

.
Submit the form and documents to the NSDL office along with the
processing fee.
• The PAN card will be sent to the address mentioned in the form within
15 working days.
PAN Card Application Dos and Don'ts
.
Remember to fill in all the details as per the identity and address proof
documents you are submitting.
• Do get thumb impression attested by a Magistrate/Notary before
submitting the form to avoid disqualification.
• Write the complete address and provide accurate contact details in the
form.
• Do fill in the application form in capital letters.
• Do not make corrections or over-write anywhere on the form.
• Do not use initials in the first name or last name columns.
• Do not apply for a new PAN card if your old PAN card is lost/stolen/
defaced.
6
VARIOUS FORMS OF ITR
6.1 Forms for furnishing Return of income

The Return of income required to be furnished shall be in the following
relevant Form:
S. No. Form Description Form Name
1. Who can use this Form? This Form can be used ITR-1 SAHAJ
by an individual having
.
Income from Salary/Pension.
• Income from One House Property (excluding
Loss brought forward from previous year).
• Income from Other Sources (Excluding
Winning from Lottery and Income from Race
Horses and does not have Loss under this
head).
Who cannot use this Form? This form cannot be
used by an individual whose total income exeeds
350 lakhs or includes –
(a) Income from more than one house properties;
or
(b) Income from Winnings from lottery or

income from race horses; or
(C) Income under the head "Capital gains”, e.g.,
Short-term capital gains or Long-term capital
gains from sale of house, plot, shares, etc.; or
(d) Income from agriculture/exempt income in
excess of 5,000; or
(e) Income from business or profession; or
50
VARIOUS FORMS OF ITA = 51
(1) Loss under the head "Income from other
sources"; or
(8) Person claiming relief of foreign tax paid
under section 90, 90A or 91; or
(11) Any resident -
(i) having any asset (including financial
interest in any entity) located outside
India, or
(ii) signing authority in any account located
outside India, or
(iii) income from any source outside India.
2.
Who can use this Form? This Form can be used 1TR-2
by an individual or (not being an individual to
whom S. No. 1 (above applies)] or HUF where the
total income does not include income derived
from a proprietory business or profession.
3. Who can use this Form? This Form can be used ITR-3
by an individual or HUF other than individual or

HUF referred to in S. No. 1 or 2 or 4 and deriving
income from a proprietory business or profession.
Further, a partner in a firm deriving income by
way of any interest, salary, bonus, commission or
remuneration from a firm shall also use this form.
4. Who can use this Form? This return Form can be ITR-4
used by an individual or HUF or a firm (other than SUGAM
LLP) whose total income includes:
- Business income where such income is
computed in accordance with special
provisions referred to in Sections 44AD and
44AE of the Act for computation of business
income; or
– Income from profession where such income is
computed in accordance with special
provisions referred to in Section 44ADA; or
– Income from Salary/ Pension: or
- Income from One House Property (excluding
cases where loss is brought forward from
previous years); or
– Income from Other Sources (Excluding winning
from Lottery and Income from Race Horses).
Note: The income computed shall be presumed to have
been computed after giving full effect to every loss,
allowance, depreciation or deduction under the Income
tax Act.
52 SHVA DELHI UNIVERSITY SERIES
Further, in a case where the income of another person
like spouse, minor child, etc is to be clubbed with the
income of the assessee, this Return form can be used
only if the income beingclubbed falls into theabove
income categories
Who cannot use this Form? This return Form
cannot be used by an individual or HUF or a
firm (other than LLP) to file return for the
following incomes;
- Income from more than one house property; or
Income from winnings from Lottery or
income from Race horses; or
Income under the head 'Capital Gains', e.g.
Short-term capital gains or Long-term
capital gains from sale of house, plot,
shares, etc. or
- Agricultural income in excess of $5,000; or
Income from Speculative Business and
other special incomes; or
Income from an agency business or income
in the nature of commission for brokerage;
or
- Person claiming relief of foreign tax paid

under section 90, 90A or 91; or
- Any resident having any asset (including
-
financial interest in any entity) located

outside India or signing authority in any
account located outside India; or
- Any resident having income from any
source outside India.
5. Who can use this Form? This Form can be used by ITR-5
any person other than an individual or HUF or a
company or a person covered under S. No. 7
below. (i.e., for firms, local authority, co-operative
bank, other co-operative societies. LLP and any
other AOP/BOI artificial juridical person).
In case of an assessee to whom schedule FA
applies (a resident assessee having assets
(including financial interest in any entity) located
outside India or signing authority in any account
located outside India) he has to furnish the return
electronically under digital signature or file
return electronically and thereafter submit ITR V
within time prescribed.
VARIOUS FORMS OF ITR I 53
6. Who can use this Form? This form can be used by ITR-6
a Company other than a company claiming

exemption under Section 11.
7. Who can use this Form? This Form can be used by ITR-7
a person including a company whether or not

registered under Section 25 of the Companies
Act, 1956 or any other such Later Act, required to
furnish return under Section 139 (4A), Section
139(4B), Section 139(4C), Section 139(4D) or
Section 139(4E) or Section
139(4F).
8. Indian Income Tax Return Verification Form. ITR-V
This form is to be used where the data of the

Return of Income in Form ITR-1, ITR-2, ITR-3,
ITR-4 and ITR-5 transmitted electronically
without digital signature or without Electronic
Verification Code.
Annexure-less Return. The return of income required to be furnished in Form

SAHAJ (ITR-1), Form No. ITR-2, ITR-2A, ITR-3 or Form SUGAM (ITR-4), ITR-5
or ITR-6 or ITR-7 shall not be accompanied by a statement showing the
computation of the tax payable on the basis of the return, or proof of the tax, if
any, claimed to have been deducted or collected at source or the advance tax or
tax on self-assessment, if any, claimed to have been paid or any document or
copy of any account or Form or report of audit required to be attached with the
return of income under any of the provision of the Act.
6.2 Instructions for Filing ITR Forms

Personal Information Schedule:
• PAN: To be quoted correctly. The critical parameters such as name, date
of birth, sex and status would get auto populated based on PAN
database.
• Name: To be matched with the "Name" mentioned in PAN.
• Date of Birth: Mistakes here will result in computation of higher taxes in
case of senior citizens.
.
Address: House/Flat number, City, PIN Code, are mandatory fields. Non
filling will result in communications being sent to the PAN database
address.
• E-mail Address: Needs to be filled correctly, email ihe basis of all
communications from CPС. Mistake will result in non-receipt of all
intimations from CPC. Use of Auditor/Tax practitioner's ID may be
avoided.
• Mobile Number: Full Mobile number without use of +91 needs to be
entered. This is essential for all SMS based communications.
• Sex: Should be matched with PAN.
• Status: Should be correctly filled.
• Residential Status: Thestatus of NOR and NRI should be mentioned
only where applicable as they are not eligible for certain benefits
available to resident assessees.
Common Mistakes in Calculation of Income:
• The accurate and complete filling up of the relevant columns or details in
the Income Tax Return (ITR) form is most crucial for correct calculation
of income.
• In case the computation of Income or refund is different than what had
been entered or what is expected, please verify the accuracy of the data
entered by you in the ITR.
Except for limited number of complicated tax returns, for most taxpayers, the
simple check points are the following:
Schedule Salary / HP/ CG / BP
1 Total Salary from all employers, irrespective of whether Form 16 has
been issued or not, should be entered in Income details in ITR 1/ITR 4 or
Schedule Salary in all other ITRs.
2 Interest income from fixed deposits, savings bank account etc. should be
entered in Income from other sources of ITR 1 or in Schedule OS-Income
from Other Sources in all other ITRs.
3. House Property Income (Other than ITR 1) Schedule HP should be filled
carefully including the address details. Income from House Property
should be entered in Item 'a' viz. Annual lettable value/ rent received/
receivable. Municipal taxes paid should be entered in Item '' viz. tax
paid to local authority in Schedule HP-Income from House Property.
• A flat deduction of 30% of the amount in Item 'g' is the only deduction
permissible for repairs and such expenses will be auto-populated in
Item 'f' of Schedule HP.
• Deduction for Interest on housing loan should be entered in Item 'h'
viz. Interest payable on Borrowed Capital and is restricted to $2,00,000
for 'Self Occupied' house. Therefore, correctly mention whether the
house property is Self-Occupied or Let Out in Schedule HP.
.
Accordingly, the final value of Income from House Property will get
auto populated in Item “j”.
• In case of multiple house properties details of each house property
have to be entered completely as mentioned above.
4. In case of ITR-1, the House Property loss should be entered as a negative
(-) value in the Income details in ITR 1 or ITR 4. In case of other ITRs,
Schedule HP should be filled carefully including the address details. In
case of more than one house property, do not use ITR 1.
5. Income from Short Term Capital Gains should be entered in Item 'A' of
Schedule CG-Capital Gains.
• Most mistakes in STCG (Short Term Capital Gain) are due to
VARIOUS FORMSOF NA 55
incomplete filling of the Schedule CG (Capital Gain). Correct section
codes should be used depending upon the type of capital gain.
Non filing of full value of consideration or filling only expenditure or
cost of acquisition under various sub categories of CG leads to
incorrect computation of income.
• The quarterly breakup of capital gains in the CG schedule should be
mentioned which is necessary for computation of interest under
Section 234C.
Exempt LTCG should not be entered in CG schedule as well as in
Part B-TI, it has to be mentioned in Schedule EI.
6. Income from Business Profit. Income offered under the heads other than
BP included in P&L should be reduced in Schedule BP.
7. Income offered under section 44AD (Deemed Income) if included in
Profit before tax should be reduced in Schedule BP.
8. Specific schedule for ESR, 10A, etc. should also be filled when a claim is
made in schedule BP.
Part B-TTI (Tax on Total Income)

1 Part B-TTI Relief under Sections 89 (is to be entered ONLY if
applicable), 90, 90A, 91 (Will be auto-populated based on inputs in
Schedule FSI & TR).
2. The Bank account number has to be given correctly and to be disclosed
even if no refund is due. This is to ensure that refund arising from
Computation of income by the ITD can be paid to the assessee.
Adjustment of current year and brought forward losses - Schedules CYLA,
BFLA and CFL
1. Most taxpayers leave these Schedules completely blank. These schedules
are used for permissible adjustment of loss of one head of income against
another head of income.
2. Only positive values need to be entered. No negative value is required to
be entered in CYLA (Current Year Loss Adjustment), BFLA (Brought
forward Loss Adjustment), & CFL (Carry Forward Loss).
3. The Amounts in Schedule CYLA/BFLA will populate automatically,
however taxpayer will be allowed to claim carry forward of loss only if
appropriate columns have been entered in Schedule CFL.
4. Carry forward of Current year losses though claimed in return will not be
allowed if the return is not filed within due date.
5. The assessee will be allowed to claim carry forward of loss (if any) only if
appropriate columns have been entered in Schedule CFL.
6. The respective schedules should also contain loss details for CYLA.
7. Date of filing of return for relevant year in CFL should be filled.
Chapter VI A
1. In case of ITR 1 and ITR 4, the deduction amount claimed should be filled
in Income details. For other ITRs deductions where separate schedules
56 – SHNA DELHI UNIVERSITY SERIES
are required, the same should be filled without fail, for example, 80G, 80
IA, 80-IB, etc. Deductionswillnotbe allowed if specific schedules are not
filled.
2. All deductions have specific criteria and limits for claims. In the present
utility a user enterable field for claiming deduction has been mentioned
and correspondingly System Value for deduction claimed is also
mentioned for the benefit of the assessee.
3. The sum of all deductions cannot exceed the total income.
4. Deduction cannot be claimed against income chargeable to special rate
tax.
Schedule TDS and TCS. A major reason for difference in refund amount
during processing is that the details of tax payment or TDS do not match with
the data available with the Department. The critical checkpoints are as under:
1. Tax deduction Account Number (TAN) of the Employer/Deductor is the
unique number for matching TDS claims as reported by the Employer/
Deductor. The TAN is mentioned on the Form 16 given by the Employer
or on the Form 16A given by the Deductor. In case the TAN details do
not match, TDS credit will not be allowed.
2. Where the TAN entered is valid but the Employer/Deductor does not
report the exact TDS details to the Department, especially the taxpayer
Permanent Account Number (PAN), and then TDS cannot be matched.
Therefore it is advised to check Form 26AS for the amount which has
been deposited by persons deducting tax on behalf of the taxpayer. If any
mismatch exists, the taxpayer should bring it to the notice of persons
deducting tax so that they can act accordingly.
3. TDS on salary should be claimed only in schedule TDS Salary (ITR1) or
TDS1 (ITR 2-3).
4. TDS on income other than salary should be claimed only in TDS on
income other than salary (ITR 1) or TDS 2(ITR 2-3).
5. Clairning of TCS claims in TDS schedules and vice versa will lead to
mismatching, which results in excess demand or lower refund. The claim
of TDS amount should be made in “TDS deducted" as well as “TDS
Claimed for the year” column in schedules TDS2 & TCS.
6. TDS claims should match with Form 26AS.
Schedule IT
1. Dates of deposits should be entered in DD/MM/YYYY format and not in
any other format. Exact amount paid as per Challan should be claimed in
return without any rounding off.
2. Individual payments should be separately claimed. Clubbing of multiple
challans or entering consolidated payments will lead to mismatch.
3. In case of Tax payments of Advance tax or Self-Assessment tax, the PAN
used to submit the tax Challan to the bank should be the same as the
PAN used to submit the return. Without a valid PAN the tax payment
VARIOUS FORMS OF ITA 57
received from the bank would be in suspense and cannot be matched
with tax payment claim as entered in the return.
4. While making the tax payment at the Bank, no mistake should be made
in the challan.
5. The Challan Identification Number (CIN) is the combination of BSR code
(any bank branch's unique 7 digit identification number issued by RBI),
date of deposit of challan (DD-MM-YY), and the running serial number
of the Challan, as is mentioned by the Bank while accepting tax payment
on its seal. In case this is not clearly legible, the Bank can be requested to
provide correct details. This must be entered correctly in the return while
claiming credit
Reasons for difference in calculation of Tax or Interest under 234A, 234B or
234C and Interest on Refund:
• Mistakes in computation of Income as mentioned above leading to an
increase in Income.
• Mistake in entering data or Income chargeable to tax at special rates such
as STCG on sale of shares, LTCG where indexation benefit is claimed,
winnings from lottery.
Incorrectly computing special rates of tax.
• Mistakes in entering data or leaving blank, important fields relevant for
computation of tax such as date of birth (relevant for senior citizens) or
gender (relevant for female taxpayers), resident or non-resident, status
(relevant in case of HUF).
• In case of any shortfall of tax payment either due to non-payment or due
to non-matching of the tax payment or TDS, interest may be charged.
• Typically, interest till the date of processing under 234A is charged if the
return is filed beyond due date, interest under 234B is charged for
shortfall in payment of advance tax and interest under 234C is charged
for deferment of advance tax.
• Interest under 234C is also charged in case advance tax on account of
STCG under 111A, LTCG or Winnings from lotteries is not paid,
beginning from the next quarter from the quarter in which the income is
earned.
• Details of quarter wise breakup of STCG, LTCG and Winnings from
Lottery as mentioned in Schedule SI after adjustment of Losses and
adjustment of basic exemption threshold, if applicable, are used for
calculation of advance tax liability and interest under 234C.
Reasons for mistakes in Credit for tax payments or TDS:
• A major reason for difference in refund amount during processing is that
the details of tax payment or TDS do not match with the data available
with the Department. The critical checkpoints are as under:
Corresponding deduction of tax (TDS) on salary by all Employers should
be correctly entered in Schedule TDS1 in ITR1 or Schedule TDS 1 for
ITR 2.
58 SHIVA DELHIUNIVERSITY SERIES
• TDS on salary should be entered in Schedule TDS1 only and TDS on
other Income should be entered in Schedule TDS 2 only.
• Tax deduction Account Number (TAN) of the Employer/Deductor is the
unique identifier for matching 'TDS claims made against TDS reported by
Employer/Deductor. The TAN number is mentioned on the Form 16
given by the Employer or on the Form 16A given by the Deductor. In
case the TAN of the Employer/Deductor is not correctly mentioned, no
matching is possible and TDS credit will not be given.
• If the TAN has been correctly entered but the Employer/Deductor does
not report the same TDS details to the Department, especially the
taxpayer Permanent Account Number (PAN), then also the TDS cannot
be matched. Therefore it is advised to check Form 26AS for the amount
which has already been deposited by persons deducting tax on behalf of
the taxpayer. Thereafter, the taxpayer should bring this fact in the notice
of persons deducting tax so that they can act accordingly.
• In case of Tax payments of Advance tax or Self-Assessment tax, the PAN
used to submit the tax challan to the bank should be the same as the PAN
used to submit the return. Without a valid PAN the tax payment received
from the bank would be in suspense and cannot be matched with tax
payment claim as entered in the return.
• While making the tax payment at the Bank, NO MISTAKE should be
made in the challan while entering the PAN, Name, Major head (20 or
21), Assessment Year, Type of tax payment {advance tax (code 100), Self
Assessment tax (code 300)}, tax applicable (Income tax other than
companies).
.
Any tax payment made under code 400 corresponding to 'Tax on regular
Assessment cannot be used for matching and accordingly credit cannot
be given against advance tax or self-assessment tax claims.
• The Challan Identification Number (CIN) is the combination of BSR code
(any bank branch's unique 7 digit identification number issued by RBI),
date of deposit of challan (DD-MM-YY), and the running serial number
of the challan, as is mentioned by the Bank while accepting tax payment
on its seal. In case this is not clearly legible, the Bank can be requested to
provide correct details. This must be entered correctly in the return while
claiming credit
Miscellaneous mistakes:
• Mistakes in address, etc. do not affect processing but cause miss-delivery
or non-delivery of communication or in case of Bank Account Number
error cause rejection of refund credit to taxpayer account. The following
points may be noted:
• Address should be correctly filled with correct city, state and PINCODE
for faster and accurate delivery of communication from the Department.
• For faster credit of Income Tax refunds, correct bank account number and
IFSC code in the return should be mentioned. In case of any mistake in
VARIOUS FORMS OF ITA - 59
IFSC code or Bank Account number, the refund will not be credited, and
a cancelled cheque showing correct particulars would be required to be
submitted to CPC for correction in bank account number or IFS code.
• Do not Copy/Cut/Paste the data in the utility. It may lead to calculation
errors.
• In case of Refunds below 3100, no refund is issued and if Demand is
below 100, it need not be paid.
How to rectify the mistake and to get the correct refund:
Mistakes in the ITR due to any of the reasons may be corrected by submitting
a rectification form. Some basic information is provided below:
The procedure for rectification and correction of mistakes is available in
HELP on the e-Filing portal.
• In case of any difference in Date of Birth or Gender in the Department
records or in case of any need to correct the data, it may be corrected by
submitting aPAN Change Request Form (quoting the existing PAN) with
correct details and providing relevant documents at any TIN facilitation
centre.
• In case of any mistake in IFSC code or Bank Account number, please

raise a request after logging in to e-Filing application under ‘My Account
→ Refund Re-issue requesť:
• In case the charging of excess tax and interest is only because of non
matching of tax payment or TDS, upon correction of the details by
taxpayer or employer/Deductor, the excess tax, and interest will be
automatically reduced or eliminated.
Key rules - Processing of Returns
.
Once e-Filing is done (without digital signature or EVC), ITR V needs to
be sent within 120days to the CPC. In case ITR V acknowledgement is not
received within 120days, the return will be treated as defective.
• The assessee may call up the CPC call centre to verify status. To view the
ITR V receipt status GO TO “Status” on the home page of e-Filing portal.
• Assessee needs to fill his email address, mobile number correctly to
ensure appropriate communication from the Income Tax Department.
The use of the Tax practitioner/CA's email address may not be
appropriate.
• The assessee should make sure that the correct (latest) address, bank
account number, IFSC code is filled.
7-
E-FILING OF
INCOME TAX RETURN
Due date of furnishing return of income:
The return of income must be filed in a prescribed form on or before the due
date mentioned below:
(a) where the assessee other than the assessee referred in

clause (b) below is
(i) a company;
(ii) or a person (other than a company) whose
accounts are required to be audited under this
Act or under any other law for the time being in 30th September
force; or of the assess
(iii) a working partner of a firm whose accounts are ment

required to be audited under this Act or under
any other law for the time being in force.
(b) in case of an assessee who is required to furnish a 30th November
report of chartered accountant under Section 92E of the
relating to an international transaction or
assessment year
specified domestic transaction.
(c) in case of any other assessee. 30th July of the
assessment year
Notes:
(1) Due date of furnishing return of income in case of a non-working partner shall be 31st July
of the assessment year whether the accounts of the firm are required to be audited or not.
(ii) A working partner for the above purpose shall mean an individual who is actively
engaged in conducting the affairs of the business or profession of the firm of which he is
a partner and is drawing remuneration from the firm.
60
E-FILING OF INCOME TAX RETUAN . 61
(i) In case of firm whose accounts are not required to be audited under this act or any other
law, the last date for furnishing the return by the firm as well as partners (whether
working or non-working) shall be 31" July of the assessment year
7.1 Fee for delayed filing of return.
() A fee of 35,000 shall be payable, if return is furnished after the due date
but on or before the 31st day of December of the assessment year;
(1) A fee of 310,000 shall be payable in any other case.
However, in a case where the total income does not exceed 75,00,000, the fee
amount shall be 1,000.
7.2 Introduction to income tax portal

How to register on www.incometaxindia e-filing.gov.in
On the homepage of the government portal, the first option to the right is a
button for new users to register.
с.
Directorate of incomeis Government of India https //incometaxindiaefling.govin
RXA Skip to main content About Us Feedback Contadus Help
e-Filing Anywhere Anytime
ter Income Tax Department, Government of India
I Am
e-File Your Tax Return File New To e-Filing?
Raglar
TAX PAYER
Its Fast Easy and Secure... Learn HowToefla
TAX PROFESSIONAL
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BULK FAN VERFICATION USER ViewForm 2 AS Uploed Return Check Status Need Assistance?
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to Help section in the toprightcorner to know more.
Once you have clicked on that button, you will be taken to a registration form
that will ask you to select your user type.
W BA Skip to main content About Us Feedback Contact Us Help
Income Tax Department, Goverment of India
Lai R
I
Home I Am Services Downloads News & Updates
QuickLink Registration Form
Apply Online - PANTAN Instructions

Select User Type
E-Pay Tax • Fields marked with asteris
View Form 28A9 (Tax Credit) IndividualHUF () are mandatory
Individual HUF • Select a User pe
Other than individual HUF . Please keep your PAN card
Need Assistance? handy to nu in ne
Company Body of Individuals (BOB) Local Authority Firm
For income tax related queries Registration detais
ASK: 1800 180 1961 Trust Association of Persons (AOP) Artificial Juridical Person
For Roufication and Refund Bulk PAN Verification Users
CPC :1800 425 2229 External Agency
For eFiling of Returns Tax Professional

Filing: 1800 4250 0025 Chartered Accountants
Income Tax Department Employee
Helpdesk
con
After selecting your user type, the next page is where you need to enter your
basic details.
e-Filling to Abu AceryOptions Contact
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Provide PAN, Password details, Personal details as per PAN, Contact details
and Digital signature (if available and applicable).
Submit request: On successfully completing it, Activation link is sent to user
through e-mail and a mobile PIN to mobile number. Click on the activation link
and provide Mobile PIN to activate e-Filing account.
How to login to your account on www.incometaxindiaefiling.gov.in
To access the India Income tax login page, you have to go to the homepage of
the government portal, where you will see a box on the right side that has a
Login Here button for the registered users.
e-Filing anywhere Antis FOR A Skip to main content About Us Feedback Contact Us Help
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(EVC) can be generated through ATM. SB!is the first bank to launc
Once you have clicked on that button, you will be taken to the login page
where you have to enter in your User ID (PAN), Password, Date of Birth/
Incorporation and Captcha code.
RNA About Us Feedback Accesaturty Options Contact Us Nivaran Help
Tapa Goratida Login Regster
Home Am Scruces Downloads News & Updates

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Login
Trouble Logging in?
User ID
• User ID for Tax Payee is PAN
Password Make sure there are no spaces in User ID or
Password
• Passwords are case sensitive, make sure Caps

Captcha Code Lock is not on
image
Enter the code as in above Image

Forgot Pasid?
NewUsen? Register Now 1 Rewend Activation Link

e-Filing Login Through Netbanking
Remember, The user ID is your PAN number.

E-FILING OF INCOME TAX RETUAN - 63
7.3 FORM 26AS
What is Form 26AS?
Form 26 AS contains:
• Details of tax deducted on your income by deductors

• Details of tax collected by collectors
• Advance tax paid by the taxpayer
Self-assessment tax payments
• Details of refund received by you during the financial year
• Details of the High value Transactions in respect of Shares, Mutual Funds
etc.
Form 26AS contains the following parts:

• Part A: Details of Tax Deducted at Source
Part A1: Details of Tax Deducted at Source for Form 15G/Form 15H
• Part A2: Details of Tax Deducted at Source on sale of Immovable
Property u/s 194(IA) (For seller of Property)
• Part B: Details of Tax Collected at Source
• Part C: Details of Tax Paid (Other than TDS or TCS)
• Part D: Details of Paid Refund
• Part E: Details of AIR Transaction
• Part F: Details of Tax Deducted on sale of immovable property u/s 1941A
(For Buyer of property)
• Part G: TDS Defaults* (processing of defaults)
Form 26AS can be downloaded
• On the TRACES website
• Or via Net Banking Facility of authorised banks
How to download & view Form 26AS through the TRACES website
Step 1. Go to https://incometaxindiaefiling.gov.in and login using your
income tax department login and password. If you do not have an account,
you'll need to register first.
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Step 2. Enter your PAN number, password and date of birth/date of

incorporation in DD/MM/YYYY format and the captcha code. Now click on
LOGIN
64 - SHIVA DELHI UNIVERSITY SERIES
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e-Filing water Arama WAN Bli meneri Atout Us
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Step 3. The following screen will appear. Click on 'View Form 26AS (Tax
Credit) under My Account tab.
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Step 4. Click on 'Confirm' so that you are redirected to the TRACES website.
DaMoon Kari Domo Professort REGULEE
Movies To
Vlow forrn 2015 (Tax Codil)

Quick Flo FTR
Upload Hotum
View for 2018 (Tax Cred)
You will be redirected to the TDS-CPC website to view Form 20AS (Tax Credit Statement)
Mocation home
Tax Calculator
Download IR
Pay To
Step 5. You are now on the TRACES (TDS-CPC) website. Select the box on the
screen and click on ‘Proceed'.
E-FILING OF INCOME TAX RETURN = 65
TDS TRACES
OTOS Regentation Alle and correctionEllington
Wawa (2015)
Bolton MA
Annud Tax Statement Ilona 2015) now generated from TRACES.

ALUNOR TAX CAYIR
Please noht on petting Form 16/1A from you to downloaded only from me. form 16/16A dictat
igree to the age and acceptance of form 16 / 16A generated from TRACES proceed
AIRTransaction
Form 2018 con be viewed by registering wen TRACES or through a boring count on papers held withbodo that have
registered with TRACES toprovidethefacility
aick View Tax Cred(Form 264S) to view yourforma20AS.
Step 6. Click on the link at the bottom of the page Click View Tax Credit
(Form 26AS) to view your Form 26AS'.
TDS TRACES
CentralinedProooningCell
TDS Reconciliation Analysis and Correction Enabling System CAT
ViewTax Credk (Form 26AS) Registeron TRACES Help
Annual Tax Statement (Form 26AS) is now generated from TRACES.

Form 26AS contains detalls oft
Tax deducted by deductors on behalf of Tax Damer
. Tax collected by collectors on behalf of tax payer
Advance / Sell Assement la cupouted by Pax payer
*Refund paid by ID to Tax Power
• AIR Transactions
form 265 m be viewed by registering with TRACES or theouch net borling sccount tox puyers held with banies that have
registered with TRACES to provide this facility.
Click View Tax Credit form 2615) to view your form 20AS.
Step 7. Choose the Assessment Year and the format in which you want to see
the Form 26AS. If you want to see it online, leave the format as HTML. If you
would like to download a PDF for future reference, choose PDF. After you have
made your choice, click on 'View/Download'.
TDS TRACES
Centralne Poceming di TOS Reconciliation Analyula and Correction Enabling System
View L. Coedit (1 or 20AS) Reglater on TRACES

Help
Form 26AS
Annual TextDatament under Bedion 203M of the Income Tax Act, 1961
Assement Vear Seed Views NTM O ViewDownload
Seo Section 200M and cond provintion to Section204C($) of the IncomeTax Act, 1961 andRule 31ADof Income Tax Alen1962
Pword forForm 2018 POF/teattle Date of oth / Date of incorporation priated on Duncard. Enter det inddrawny fera to sponte(og for
1004-2012. 10.02012)
Step 8. To open the document you have to enter a password. Form 26AS password
is your DOB in DDMMYYY format. Your Income Tax Form 26AS will be shown.
66 - SHNA DELHI UNIVERSITY SERIES
View Form 26AS via Net Banking of your Bank Account
The facility is available to a PAN holder having net banking account with any
of authorized banks. You can View TaxCreditStatement (Form 26AS) only if
your PAN number is mapped to that particular account. This facility is available
for free.
7.4 Preparation of Electronic Return

Methods of E-Filing
(a) Preparing the Income Tax return off-line using return preparation
software available free of cost at the Income Tax Department e-Filing
website or any other tax filing software and Uploading the Income Tax
Return data. A taxpayer can e-File Income Tax Return from ITR 1 to
ITR 7.
(b) Submit ITR 1TR 4 Online. An Individual taxpayer can prepare and
submit Income Tax Return ITR 1/ITR 4 Online.
Manner of Filing Returns
The return of income shall be furnished by a person mentioned in column (ii)
of the Table below to whom the conditions specified in column (iii) apply, in the
manner specified in column (iv) thereof:
S.No. Condition Manner of furnishing
No. Person Return ofincome
1. Individual or (a) Accounts are required Electronically under
Hindu undivided to be audited under digital Signature
family section
44 AB of the Act
(b) Where total income (A) Electronically under

assessable under the Act digital signature; or
during the previous year (B) Transmitting the data
of a person in the return electronically
(I) being an individual of under electronic veri
the age of 80 years or fication code; or
more at any time during (C) Transmitting the
the previous year; or data in the return
(II) whose income does electronically and there
not exceed Five lakh after submitting the
rupees and no refund is verification of the return
claimed in the Return of in Form ITR-V; or
income, (D) Paper Form.
and who furnishes the
Return in Form NO. ITR 1
(SAHAJ) or Form No. ITR
4 (SUGAM).
E-FILING OF INCOME TAX RETUAN - 67
(c) In any other case. (A) Electronically under

digital signature; or
(B) Transmitting the
data in the return
electronically under
electronic verification
code; or
(C) Transmitting the
data in the return
electronically and there
after submitting the veri
fication of the return in
Form ITR-V.
2. Company In all cases Electronically under
digital signature.
3.
A person required In case of a political party Electronically under
to furnish the
digital signature.
Return in Form In any other case (A) Electronically under
ITR-7
digital signature; or
(B) Transmitting the
data in the return
electronically under
electronic verification
code; or
data in the return
electronically and
thereafter submitting the
verification of the return
in Form ITR-V.
4.
Firm of limited(a) Accounts
Electronically
are required under
liability partner- digital
to be audited u/s 44 AB signature;
ship or any per- of the Act;
son (other than a (b) any other case (A) Electronically under
person mentioned digital signature; or
in Sl. 1 to 3 above) (B) Transmitting the
who is required data in the return
to file Return in electronically under
Form ITR-5 electronic verification
code; or
68 * SHIVA DELHI UNIVERSITY SERIES

data in the return
electronically and
thereafter submitting the
verification of the return
in Form ITR-V.
Explanation: Electronic verification code means a code generated for the

purpose of electronic verification of the person furnishing the Return of income,
7.5 e-Filing of Income Tax Returns (Offline)
Steps to download Utility and generate XML (Excel Utility):
(a) www.incometaxindiaefiling.gov.in e-Filing Home Page
(b) Click on the "ITR" under “Downloads"
(c) Click on "Download" link and save the ZIP file (Excel or JAVA utility)
(d) Extract the downloaded ZIP File
(e) Open the utility, Click on “Import Personal/Tax details from XML" →
Browse and attach the downloaded Prefill XML file to populate the
personal information and TDS details.
( Enter all the Mandatory Fields → Validate all the sheets → Calculate Tax
+ Generate XML.
(8) Login using e-Filing user credentials

(h) Navigate to "e-File" Tab → Click on"Upload Return"
(i) Select “ITR Form Name" and "Assessment Year" from the dropdown
provided.
(1) Browse and attach XML file.
(k) Select “Do you want to digitally sign?" → Submit.
(1) On successful submission taxpayer will get an option to e-verify the
Return.
Steps to download Utility and generate XML (JAVA Utility):

(b) Click on the "ITR" under “Downloads”
(c) Click on “Download" link and save the ZIP file (Excel or JAVA utility)
(e) Open the utility, Click on “Prefill" → Enter “UserId", Password, “DOB/
DOI" and select "Prefill Address" (From PAN Details, From previous
ITR Form Filed, None) → click Prefill
1) Enter all the Mandatory Fields → Calculate Tax → save XML.
(8) Click on "Submit" → Enter "Password" and select "Do you want to
digitally sign?" → Submit
69
E-FILING OF INCOME TAX RETURN
Start
III
GO TO Downloads and download
the lity of relevalt Form
Full tiles, Valdate Generate XML

and Save
LOGIN and GO TO Hle

Upload Return Send to CPC
Bengaluru
Browse and select the XML file
Generate STR V
trowse and attach Signature file
(OSC - Jf Applicable / Ayarlable)
NO
Return
End
Submit fled using
osc/ evo
YES
da Generate and Print

Acknowledgment form. No
further action required.
- 7.6 Prepare and Submit ITR 1/1TR 4 Online

The taxpayer has the option of submitting ITR 1/ITR 4 by way of Uploading
XML OR by Online submission
Steps to e-File Online ITR (ITR 1 and ITR 4):
(b) Login using e-Filing user credentials
(c) Navigate to “e-File" Tab → Click on “Prepare and Submit Online ITR"
(d) Select “ITR Form Name" from the drop down (ITR 1 or ITR 4)
(e) Select "Assessment Year" → Select the Radio button "Prefill Address
with" to auto populate the address → Select the Radio button if DSC is
applicable → Click on "Submit"
(1) Enter the mandatory details in the online form → Click on "Submit"
Start
Login and GO TO 'e-Fde Prepare

and Submit ITR Online
Select ITR type as ITR 1/ITR 4 and

select the Assessment Year
Send ITR-V to CPC
Bronse and attach Signature file

Bengaluru
(DSC - If Applicable / Available)
Generate ITR-V
Update all the mandatory fields in
the selected ITR form NO
Return
End
SUBMIT filed using
OSC/
EVC
YES
Generate and Print

Acknowtedgment form. No
further acoon quired
Notes:
(a) To e-File using DSC, it should be registered in the e-Filing application.
(6) If the Income Tax Retum is digitally signed or electronically verified, on generation of "Acknowledge
ment" the Retum Filing process is complete. The return will be further processed and the
Assesser will be notified accordingly. Please check your emails on these notifications,
() If the retum is not e-Filed with a DSC (digitally signed) or EVC (electronically verified), an
ITR-V Form will be generated. This is an Acknowledgement cum Verification form. A duly
verified ITR-V form should be signed and submitted to CPC, Post Bag No. 1, Electronic
City Post Office, Bengaluru-560100 by Ordinary Post or Speed Post only, within 120 days
from the date of e-Filing.
(ch On receipt of the signed ITR-V at CPC, the Income Tax Department will send an e-mail
acknowledging the receipt of ITR-V to the e-mail ID mentioned in the tax return. You will
also receive an SMS on your mobile number acknowledging the receipt of tax return.
7.7 Register digital signature certificate (DSC)

Steps to register DSC in e-Filing,
(b) Login with e-Filing user id and credentials
(C) Navigate to “Profile Setting" Tab → Click on “Register Digital Signature
Certificate".
(d) Download "ITD e-Filing DSC Management Utility" from the link
provided in e-Filing website. Extract the downloaded DSC Utility →
Open the Executable Jar File (DSC Utility).
(C) “Register/Reset Password using DSC" - tab
(1) Enter e-Filing User ID, Enter PAN of the DSC, Select the type of DSC.
DSC using .pfx file.
Select the Type of DSC .pfx file.
• Browse and attach the Keystore file (.pfx File).
• Enter the password for your private key.
• Click on “Generate Signature file".
(ii) DSC using USB token.
• Select the Type of DSC (.pfx file or USB token) USB Token
• Select USB Token Certificate → Click on “Generate Signature File".
6) Browse and attach the signature file using the browse option → “Submit".
7.8 Modes of E-Verification

Below are the options provided to electronically verify the returns:
(a) Option 1. e-Verification using e-Filing OTP (only available if Total Income
is less than or equal to 15,00,000 and Refund or Tax payable upto 3100).
(b) Option 2. e-Verification using Net Banking login.
(c) Option 3. e-Verification using Aadhaar OTP validation.
(d) Option 4. e-Verification using Bank ATM (SBI, AXIS bank, Canara bank,
ICICI bank and IDBI).
(e) Option 5. e-Verification using Bank Account Number (Punjab National
Bank, United Bank of India and ICICI bank).
W Option 6. e-Verification using Demat Account.
Note: No Further actions required by the taxpayer post e-Verifying the Return
8
Tax DEDUCTION AT SOURCE
8.1 What is Tax Deduction at Source (TDS)?
According to Income Tax Act there are some specified payments against which
>
tax is to be deducted at the time of credit of such income to the account of the
payee or at the time of payment whichever is earlier, which is called Tax
Deducted at Source. Tax is being deducted by the person who pays the money at
prescribed rates and deposited with the authorities within stipulated period.
Deductor: The person who deducts the tax.
Deductee: The person whose tax is deducted.
Payer: The person who makes the payment.
Payee: The person to whom payment is made.
Deductor and payer is the same person.
Deductee and payee is the same person.
The purpose of deduction of tax at source is to bring more persons in to the net
of Income tax. The rules for income tax deduction at source have been framed in
such a manner so that tax evasion can be controlled.
However, if the income of any person is not taxable and the tax has been
deducted at source, he can claim for refund against the tax deducted at source
from income tax department after filing the income tax return.
8.2 Who is Liable to deduct Tax at source?
Following persons are liable to deduct the tax at source:
All Individuals (Including sole-proprietorship concerns) and HUF, who are not
covered under tax audit, shall deduct TDS against all the specified payments
except -
Section 194A. Interest other than “Interest on Securities"
• Section 194C. Payment to Contractors
• Section 194H. Commission (other than insurance commission) or
Brokerage.
71
• Section 1941. Rent
• Section 1943. Fees for Professional or Technical Services or Royalty or
Non-compete
Individual /HUF
fees or Director sitting fees.
who are covered under tax audit, will deduct tax at source on
all specified payments,
Partnership firms and Companies and persons other than individuals and
HUF, will deduct tax at source on all specified payments.
Tax audit: A person is liable to get its account audited u/s 44AB of Income Tax
Act, if the gross receipts or gross turnover exceeds 32 crore during financial year
2017-18 in case of a business and in case of profession the gross receipts exceed
*50 lacs in the financial year 2017-18.
TDS RATE CHART FOR 2017-18
Section Nature of Income Threshold Limit Rate of TDS
192
Salary.
Slab rate applicable
to the estimated
income of the
employee.
192A Payment of accumu- 750,000 10%
lated balance due of (30 % if no Valid
Employees' Provi PAN)
dent Fund Scheme,
1952, to Employees
which is taxable in
their hands.
193
Interest on securities. 35,000 paid/payable 10%
to an individual/HUF (20% if no Valid
in case of debentures PAN)
of a listed company.
194A Interest other than 10,000 where payer 10% (20% if no Valid
"Interest on securities”. I is banking company, | PAN)
-
cooperative society
bank or post office or
35,000 in any other
case.
194B/ Income by way of 10,000.

30% (30% if no Valid
194BB winnings from lotteries, PAN)
crossword puzzles,
card games and other
games of any sort
and Income by way
of winnings from
horseraces.
TAX DEDUCTION AT SOUACE 3 73
1940 Payment to 230,000 in case of a 2% For payments to
contractors / sub- single contract. contractor/sub
contractors. 1,00,000 in case of contractor who is
aggregate of contracts not an individual/
during a financial HUF (20% if no
year. valid PAN)
1% For payments to
contractor/ sub
contractor who is an
individual/HUF
(20% if no valid
PAN)
194D Insurance Commission 15,000 5% (20% if no valid
PAN)
194DA Payment under life 1,00,000 1% (20% if no valid
insurance policy PAN)
(including Bonus).
194E Payment to Non- Nil 20% (20% if no valid
Resident Sportsmen PAN)
or
Sports
Association.
194EE Payment in respect 2,500 10% (20% if no valid

deposit under PAN)
National Savings
scheme (NSS).
194G Commission on sale 15,000 5% (20% if no valid
of lottery tickets. PAN)
194H Payment of 15,000 5% (20% if no valid
commission (other PAN)
than insurance
commission) or
brokerage.
1941 Rent 1,80,000 10% - If rent is for
land, building or
furniture (20% if no
valid PAN)
2% – If the rent is for
Machinery, Plant or
Equipment (20% if
no valid PAN)
1941A Payment on transfer Sale consideration is 1% (20% if no valid
of certain immovable less than 50,00,000. PAN)
property other than
agricultural land.
1941B Rent payable by an | 750,000 per month or 5% (Whole amountof

rent for the last month
individual or HUF part of a month.
not covered u/s 1941. if no valid PAN)
1941C Payment of Consi- Nil 10% (20% if no valid
deration (not being in PAN)
kind) under Joint
Development Agree
ment or other similar
agreement.
194) Any sum paid by 730,000 during 10%
a
in of
way of: financial year for each 2% case
(a) Fee for profe- type of payment payments received

ssional services, referred to in (a) to (e) or credited to a
(b) Fee for technical Nil for payment payee, being a
services, referred to in (). person engaged only

in the business of
(c) Royalty,
(d) For not carrying operation of Call
Center.
out any activity in
relation to any (20% if no valid
business, PAN)
(e) For not sharing any
know-how, patent,
copy right etc. or
Remuneration/
fee/commission
to a director.
Notes:
1. Threshold Limit means the amount upto which no tax is required to be deducted at source (i.e.,
Nº TDS).
2. No Education Cess and Secondary & Higher Education Cess is to be charged on TDS.
3. All payees/deductees are required to furnish their PAN to the payer/deductor. Otherwise, the
deductor shall deduct TDS at the applicable rate or at the rate of 20%, whichever is higher.
8.3 Section 197 - Certificate for No/Lower Deduction of TDS

Where the total income of the recipient of income is not liable to tax or is
taxable at lower rates, then such recipient of income can make an application to
Assessing Officer to issue a certificate for no deduction/lower deduction of TDS
from his income.
In such a case, the payer shall deduct income tax as per the rates specified in
the certificate till such time the certificate is cancelled by the Assessing Officer.
Certificate for the lower deduction under Section 197 shall not be issued if the
application does not contain the PAN of the applicant.
8.4 Section 197A - Self Declaration for Non-deduction of TDS
No TDS shall be deducted if the recipient of:
• Interest from securities,
TAX DEDUCTION AT SOURCE - 75
• Interest other than interest on securities.
• Amount of accumulated balance due to an employee from Recognised
Provident Fund.
• Amount received in respect of Life Insurance Policy
•• Amount
Rent
received in respect of National Savings Scheme
• Insurance Commission gives a declaration in Form No. 15G (15H for
senior citizen) to the Assessing Officer that the tax on his current year
income shall be NIL.
Any declaration under section 197A by the payee shall be valid only it contains
the PAN of the payee.
Note:
1. This declaration cannot be given by a company or firm,

2. This declaration cannot be given by a person other than a senior citizen if the aggregate of the
incomes referred above exceeds the taxable limit even though the tax on his total income is
NIL.
8.5 Tax Deduction and Collection Account Number (TAN)

Every person who deducts the tax at source must apply for allotment of TAN
in form number 49B in duplicate within one month from the end of the month in
which tax was deducted. TAN should be quoted on every challan, certificate,
return, statement and other related documents. A penalty can be imposed in case
of failure to apply for TAN. However, the persons required to deduct TDS on
payment of consideration for transfer of an immovable property u/s 1941A shall
not be required to obtain TAN.
8.6 Time limits for Payment of TDS

(i) Tax deducted by an office of the Government:
(a) on the same day where the tax is paid without production of an
income-tax challan; and
(b) on or before seven days from the end of the month in which the
deduction is made, where tax is paid by an income-tax challan.
(ii) In any other case,
(a) on or before 30th day of April where the income or amount is
credited or paid in the month of March; and
1 (b) in any other case, on or before seven days from the end of the
month in which the deduction is made.
Note: Challan No. 281 is used for payment of TDS.
8.7 Mode of Payment

Where office of the Government makes the payment without production of
challan.
Where tax has been paid to the credit of the Central Government without the
production of a challan i.e., through book entry, the Pay and Accounts Officer or
a
the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other
person by whatever name called to whom the deductor reports the tax so
deducted and who is responsible for crediting such sum to the credit of the
Central Government, shall submit a statement in Form No. 24G to the agency
authorised by the Principal Director of Income tax (Systems) in respect of tax
deducted by the deductors and reported to him.
Statement in Forin No. 24G shall be furnished -
(a) or before the 30th day of Aprilwhere the statement relates to the month
of March; and
(b) in any other case, on or before 15 days from the end of relevant month.
Where tax is to be deposited accompanied by an income-tax challan No.
ITNS 281.
The person deducting tax shall pay the amount of tax so deducted to the credit of
the Central Government by remitting it within the time specified into any branch of:
(a) The Reserve Bank of India, or
(b) The State Bank of India, or
(c) Any authorised Bank.
Where tax is to be deposited electronically? The amount deducted shall be
electronically remitted into the Reserve Bank of India or the State Bank of India
or any authorised hank accompanied by an electronic income-tax challan.
Who is required to make electronic payment of tax? The following persons
shall pay tax electronically:
(a) A company; and
(b) A person (other than a company) who is required to get its accounts
audited under Section 44AB.
Time and mode of payment of tax deducted under Section 194-IA. Tax
deducted under Section 194-IA shall be paid to the credit of the Central
Government within a period of thirty days from the end of the month in which
the deduction is made and shall be accompanied by a challan-cum-statement in
Form No. 26QB.
Where tax deducted is to be deposited - accompanied by a challan-cum
statement in Form No. 26QB, the amount of tax so deducted shall be deposited to
the credit of the Central Government by remitting it electronically within the
above specified time into the Reserve Bank of India or the State Bank of India or
any authorised bank.
Steps to fill form 26QB:
(i) Log on to TIN NSDL website ( www.tinnsdl.com ).
(ii) Under 'TDS on sale of property', click on "Online form for furnishing
1
TDS on property (Form 26QB)".

(iii) Select the applicable challan as “TDS on Sale of Property".
(iv) Fill the complete form as applicable. User should be ready with the following
information while filling the form 26QB:
(a) PAN of the seller & buyer
(b) Communication details of seller & buyer
(c) Property details
(d) Amount paid/credited & tax deposit details
TAX DEDUCTION AT SOURCE - 77
() Submit the duly filled form to proceed. A confirmation screen appears.
After confirming, a screen appears showing two buttons as "Print Form
26QB" and "Submit to the bank". A unique acknowledgementnumber is
also displayed on the screen. It is advisable to save this acknowledgment
number for future use.
(21) Click on "Print Form 26QB" to print the form. Then click on "Submit to
the bank” to make the required payment online through internet
banking. Then proceed to the payment page through internet banking
facility of various banks.
(vii) On successful payment a challan counterfoil will be displayed containing
CIN, payment details and bank name through which e-payment has been
made. This counterfoil is proof of payment being made. Proceed to
TRACES portal (www.tdsepe.gov.in) after 5 days to download Form 16B.
Steps to download Form 16B are explained later.
8.8 Consequences of failure to deduct or pay TDS (Section 201)
1. Failure to deduct or failure to pay TDS- Section 201(1):
1. If any person who is liable to deduct TDS does not deduct the whole or
any part of the tax or after deducting fails to pay the whole or any part of
the tax, then he shall be deemed to be an assessee in default in respect of
the tax not so deducted or not so paid. Consequently he shall be liable to
pay interest under Section 220 (simple interest @ 1% per month or for
part of month) and penalty under Section 221 (it can be upto the amount
of tax failed to be deducted ) for being an assessee in default.
2. Section 201(1) shall apply if assessee does not deduct whole or part of
TDS. Also this section applies where assessee after deducting TDS fails to
pay the whole or part of TDS. This section shall not apply if there is a
delay in deduction or delay in payment of TDS.
3. Any person who fails to deduct the whole or any part of TDS on the sum
paid to resident or on the sum credited to the account of the resident
shall not be deemed to be an assessee in default in respect of such TDS if
such resident
(a) Has furnished his return of income under section 139;
(b) Has taken in account such sum for computing income in return of
income;
(c) Has paid the tax due on the income declared by him in such return
of income; and
(d) Furnishes a certificate to this effect from a chartered accountant in
the prescribed form.
II. Late deduction of TDS or Late Payment of TDS Section 201 (1A)
If any person does not deduct the whole or part of the tax within the time
prescribed or after deducting fails to pay the tax within the time prescribed, he
shall be liable to pay simple interest -
(a) At the rate of 1% for every month or part of month on the amount of such
tax from the date on which such tax was deductible to the date on which
such tax was deducted; and
(b) At the rate of 1.5% for every month or part of month on the amount of
such tax from the date on which such tax was deducted to the date on
which such tax is actually paid and such interest shall be paid before
furnishing the quarterly return of TDS.
In case any person who fails to deduct the whole or any part of TDS on
the sum paid to resident or on the sum credited to the account of the
resident but is not deemed to be an assessee in default under section
201(1), the interest under point (a) above shall be payable from the date
on which TDS was deductible to the date of furnishing of return of
income by such resident.
Interest under Section 201(1A) shall not be levied where Section 201(1) applies.
- 8.9 Types of forms for filing TDS Returns
Person deducting tax to file statement: Forms of filing quarterly statement
a) Statement of deduction of tax under
(Form No. 240
Section 192 & 192(1A).
(b) Statement of deduction of tax u/s 193 to 196D
other than under Section 194-IA
(i) In respect of the deductee who is a non- Form No. 270
resident not being a company or a foreign

company or resident but not ordinarily
resident.
(ii) In respect of all other deductees. Form No. 26Q
(C) Challan cum statement of tax deducted and Form No. 26QB
deposited per section 194-LA to be filed within 30
days from the end of the month in which
deduction is made.
Due date of filing quarterly statement other than in Form 26QB

S. Date of ending of quarter Dye date (both for Government
No. of financial year • deductor or any other deductor)
1 30th June 31st July of the financial year.
2 30th September 31st October of the financial year.
3 31st December 31st January of the financial year.
4 31st March 31st May of the financial year
immediately following the financial
year in which the deduction is made.
- 8.10 Penalty in respect of quarterly return of TDS

I. Section 234E – Fee for default in furnishing quarterly return of TDS.
-
(i) Where a person fails to deliver quarterly return of TDS within the time
prescribed, then he shall be liable to pay a fees of 3200 for every day
during which the failure continues. This is in addition to the penalty
under Section 271H.
TAX DEDUCTION AT SOURCE 79
(ii) However, such fees shall not exceed the amount of TDS deductable in the
quarterly return.
(ii) Such fees shall be paid before furnishing the quarterly return of TDS.
II. Section 27IH – Penalty for Incorrect information or Failure to furnish
statement, etc.
(1) This section levies a penalty for delay in filing quarterly return of TDS or
furnishing incorrect information in the said return.
(ii) The penalty shall be a minimum amount of 310,000 and it can extend
upto 1,00,000.
(iii) No penalty under Section 271H will be levied in case of delay in filing
the quarterly return of TDS if following conditions are satisfied:
(a) The tax deducted at source is paid to the credit of the Government.
(b) Late filing fees and interest (if any) is paid to the credit of the Govt.
(C) The quarterly return of TDS is filed before the expiry of a period of
one year from the due date specified in this behalf.
8.11 Forms and time limit of issue of TDS certificate
The person responsible for deducting the TDS is required to issue a certificate in
the prescribed forms to the employee/payee on account of tax deducted at source.
Prescribed forms:
(a) For TDS on salary. Form No. 16, Form No. 12BA (statement of the value
of perquisites and profit in lieu of salary).
(b) For TDS on other income. Form No. 16A.
(c) For TDS on purchase of immovable property as per section 194-IA.
Form No. 16B.
What should certificates specify? The certificates in Form 16 or 16A shall specify -
(a) Valid permanent account number (PAN) of the deductee;
(6) Valid tax deduction and collection account number (TAN) of the deductor;
(c) • book identification number or numbers where deposit of tax deducted
is without production of challan in case of an office of the Govt.;
• challan identification number or numbers in case of payment through bank.
(d) • receipt number of the relevant quarterly statement of tax deducted at
source furnished;
receipt numbers of all the relevant quarterly statements in case the
statement referred to in clause (i) is for tax deducted at source from
income chargeable under the head “Salaries”.
Note: Challan identification number means the number comprising the Basic Statistical Returns
(BSR) code of the bank branch where the tax has been deposited, the date on which the tax
has been deposited and challan serial number given by the bank.
Time limit for issue of certificate
S. Form Periodicity Due Date
No.
1. 16 Annual By 31st day of May of the financial year

immediately following the financial year in which
the income was paid and tax deducted.
2. 16A Quarterly Within 15 days from the due date for furnishing
the statement of tax deducted at source. In other
words, certificate in Form No. 16A should be
issued within the time limit specified as under:
Due Date
Quarter ending
30th June 15th August
15th November
30th September
31st December 15th February
31st March 15th June
3. 16B Monthly Within 15 days from the due date for furnishing
the challan-cum-statement in Form No. 26QB
- 8.12 Penalty for non-issue of TDS certificates

Delay in issue of TDS certificates shall result in penalty of 100 for each day of
default not exceeding the amount of tax deductible.
8.13 Steps to download form 16/16A File
(1) Register and login with your User Id and Password on TRACES portal
(www.tdscpc.gov.in) as deductor using your TAN.
(ii) In the main menu, click on Downloads → Form 16/16A.
(ii) You can either download file for all PANs or for selected PANs. For all
PANs, you need to select FY and Quarter. For Selected PANs, you have
to select PANs from the given list.
(iv) Validation Screen will appear. Enter validation details. This will also
generate an authentication code.
(v) Details of authorized signatory will be picked up from profile and displayed.
(vi) Click on Submit
(vii) File will be available in Downloads → Requested Downloads after some
time (approx 12 hrs).
Downloading Form 16/16A text File:
(i) Click on Downloads → Requested Downloads
(ii) Enter Request Number (Search option 1) or Request Date (Search Option
2) to search for the download request submitted for Form 16/16A.
(iii) Click on”View All”to view all download requests. All requests will be
displayed. Click on the desired row.
(iv) Download File either through HTTP Download or through Download
Manager. HTTP Download is for smaller files while Download Manager
is useful for large files and has the capability of resuming download in
case of interruption.
Entering Validation details:
(i) Enter Token Number for the Form type displayed on the screen. For this
you must have acknowledgement copy ready.
TAX DEDUCTION AT SOURCE : 81
(ii) Non-Government Deductors must enter Challan Identification Details.
The details must pertain to the selected FY, Quarter and Form.
(iii) Amount must be entered in 2 decimal places.
(iv) Government deductors must enter BIN details.
(v) Enter any three PAN and Amounts from the CIN/ BIN details. If the
number of PANs in the given CIN/BIN is less than three, then enter all
such details i.e., one or two.
(vi) Click on Proceed. An authentication code will be generated.
(vii) If for some reason , you need to submit request for download again , you
/ /
will not be asked to enter validation details again. In such case, you can
simply enter "authentication code” and proceed.
Downloading PDF Generator.
(i) Download PDF Generator after login.
(ii) The downloaded file is a zip file. Unzip it and Run. This will install the utility.
(iii) Run the Utility.
Printing Generating Form16/16A PDF Files
(i) After you have downloaded PDF Generator and Form 16A text file, run
PDF Generator.
(ii) Select Form 16/16A text file in zip format. Do not unzip it.
(iii) Enter TAN of Deductor as password.
(iv) Select Folder where Form 16/16A PDFs will be saved.
(v) Select Digital Signature file, if the deductor wants to digitally sign Form
16/16A. Deductor can also opt to manually sign the PDF files after printing.
(vi) Click on Proceed.
(vii) Separate PDF will be generated for each PAN in the selected folder.
Steps to Download Form 16B
(i) Register and login with your User Id and Password on TRACES portal
(www.tdscpc.gov.in) as taxpayer using your PAN.
ii) Select “Form 16B (For Buyer)" under “Downloads” menu.
(
(iii) Enter the details pertaining to the property transaction for which Form
16B is to be requested. Enter the Assessment Year, Acknowledgment
Number, PAN of Seller and click on “Proceed".
(iv) A confirmation screen will appear. Click on “Submit Request" to proceed.
(v) A success message on submission of download request will appear.
Please note the request number to search for the download request.
(vi) Click on “Requested Downloads” under “Downloads” menu to
download the requested files.

(vii) Search for the request with request number. Click on”ViewAll”to view
all download requests. All requests will be displayed. Click on the
desired row and click on “HTTP download" button.
(viii) Enter Date of Birth of Buyer of Immovable property in ddmmyyyy
format as password.
9
PREPARATION
OF E-TDS RETURN
9.1 Points to be remebered while filing e-TDS return

The deductor at the time of preparing statements of tax deducted shall
(a) Quote his tax deduction and collection account number (TAN) in the
statement;
(b) Quote his permanent account number (PAN) in the statement except in
the case where the deductor is an office of the Government;
(c) Quote the permanent account number of all deductees;
(d) Furnish particulars of the tax paid to the Central Government including
book identification number or challan identification number, as the case
may be;
(e) Furnish particulars of amount paid or credited on which tax was not
deducted in view of the issue of certificate of no deduction of tax under
section 197 by the Assessing Officer of the Payee;
(1) Furnish particulars of amount paid or credited on which tax was not
deducted in view of the compliance of provisions of section 194C(6) (i.e.,
payment to transporter of goods carriage) by the payee;
(8) Furnish particulars of amount paid or credited on which tax was not
deducted in view of the furnishing of declaration under section 197A by
the payee (i.e., in case of Form No. 15G or 15H).
9.2 Steps for Preparing E-TDS Return

jst Step. Choose the format or data structure for preparing e-TDS return.
Income tax department and NSDL have made different formats according to
nature of payments. So, one should choose any one from the following formats.
82
PREPARATION OF ETDS RETURN = 83
.
File Format for Form 240
• File Format for Form 26Q
• File Format for Form 270
2nd Step. E-TDS return for successful acceptance
(1) E-TDS clean text ASCII format. You can use any software like ms excel,
compu tax or Tally.ERP or NSDL's software Return Preparation Utility (e
TDS RPU-Light) for making eTDS return but E-TDS file formats must be
in clean text ASCII format with 'txt' as file name extension.
(ii) Correct Tax deduction Account Number (TAN) of the Deductor is clearly
mentioned in Form No.27A as also in the e-TDS return, as required by
Sub-section (2) of Section 203A of the Income tax Act.
(iii) The particulars relating to deposit of tax deducted at source in the bank are
correctly and properly filled in the table at item No. 6 of Form Number 24
or item No. 4 of Form No. 26 or item No.4 of Form No. 27, as the case may be.
(iv) The data structure of the e-TDS return is as per the structure prescribed by
the e-Filing Administrator.
(v) The Control Chart in Form 27A is duly filled in all columns and verified
and as enclosed in paper form with the e-TDS return on computer media.
(vi) The Control totals of the amount paid and the tax deducted at source as
mentioned at item No.4 of Form No. 27A tally with the corresponding
totals in the e-TDS return in Form No. 24 or Form No. 26 or Form No. 27,
as the case may be.
ARFU version 3.47
Form NO. 240

Soesection 192and rule31AI Print Help
Form Challan) Annexure 1]

Quarterly statement of deduction oftaxundersub section (3) ofsection 200 ofthe home TaxAct, 1961h respect of Sarry BACK OU
for Quarter Ended. Select (Year Forn No.
1. Particularsof Return
ToDeduction andCollection Account Ha (TAN) FinancalYear Select
Las.Tax Deductionand CollectionAccountNo. AssessmentYear
Parmanent AccountNunster Type ofDeductor Select

Lael Deductor Type
Thna Revised keturn(Y/NO)
Update DeductorDetails Recept No,orOrainal Rotum
ReceptIld,of PreviousReturn
only if anychange in Deductor Detūs)
2. Particulars of Deductor (Employer)

None. Ministry / Dept.Name
Select
wேhiDattathsaany) Ministry/Dept.Name (Others)
Suite Nome ODO Code

Select
PAOCode DOO RegistrationNumber
PAO Regaraan Number TAN RegstrationNumber
Plat No.
HereofPromises / Building
Area /Location
Town/City District
Road / Street/
Stato hd
Pn code E-ma
Telephone No. HasAddressChanged Select

Since LastReturn
3. Particulars of the Person Responsible forDeduction of Tax

Area I Location
Designaron Town cy/Distrid
Save Open Create File

Click on save after filling the form of e-TDS
84 SHIVADELHI UNIVERSITY SERIES
(vii) Bank Branch code or BSR code is a 7 digit code allotted to banks by RBI,
This is different from the branch code which is used for bank drafts etc.
This number is given in the OLTAS challan or can be obtained from the
bank branch or from www.tinnsdl.com. It is mandatory to quote BSR code
both in challan details and deductee details. Hence, this field cannot be
left blank. Government deductors transfer tax by book entry, in which
case the BSR code can be left blank.
Challen Date on Maar leed of
N No ITAL Nercharpe Internet Pere Penalty Total amount Mode of T1) MAR curled Challen (ee
Auraton Recept Serial which
depilter an depok Note
Cros Note Chers
Numberof NA/DEO) amount
per chalen/ through Form No Serials of deposited
Hook Challow (0) through
146 (Nee Porn 216
Adjustment Houk INee Notes) challas
(902303 304 Adjustment Note :)
Dateor
+MOSJAJO (D) (Sve Note transfer
7) (Nee Note 6, 7) voucher
(See Note 8)
‫שוכן‬ 11 (32 DU
non 1302) 13001 03051 13001 1307] 308 13091
110
х
TDS File Validation Utility
3rd Step. Validate or verify your

prepared e-TDS return Select the File
After the file has been set as per Input File

the file format, it should be verified Error
Response Alle
using the File Validation
Upload File
Utility (FVU) provided by NSDL.
Validate Cancel
Version 2.092
4th Step. Rectify the errors and verify the file

In case file has any errors the FVU will give a report of the errors. Rectify the
errors and verify the file again through the FVU.
IDS Lite Validation Utility X
Select the File
put File CADocuments and Settings\Prof. Vinod

Error /
ResponseFib
Uploadik
Validate Cancel
IDS File Validation Utility х
x Invalid Input or ErrorResponse or he
OK
PREPARATION OF E-TDS RETUAN - 85
5th Step. Filling of e-TDS Return
A. Go to TIN–FC (center) near to you
E-TDS returns can be filed at any of the TIN-FC opened by the e-TDS
Intermediary for this purpose. Addresses of these TIN-FCs are available at the
website on http://www.incometaxindia.gov.in/ or at http://www.tinnsdl.com/
B. Filing of e-TDS Return Online
E-TDS return can be filed online, the procedure of which is explained below.
- 9.3 Filing of E-TDS return online
Pre-Requisites for Uploading TDS Statement:
To upload TDS, user should hold valid TAN and should be registered in
e-Filing.
• Statement should be prepared using the Return Preparation Utility
(RPU) and validated using the File Validation Utility (FVU). The utilities
can be downloaded from tin-nsdl website (https://www.tin-nsdl.com/).
• Valid DSC should be registered in e-Filing. (In order to upload using
DSC)
• Pre validate Principal Contact's “Bank Account/Demat Account
details” or link Principal Contact's PAN with Aadhaar. (In order to
upload using EVC)
bis TDS, the steps are as below:
Procedure to Upload TDS Statement. To Upload
Step 1: In e-Filing Homepage, Click on “Login Here"
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processing. Thank you. - 291212045 SX
customer Care
Tai DeductCollector
CBDT axtends due late for dopasli of TDS TCS by deductors for Tax
Step 2: Enter User ID (TAN), Password, and Captcha. Click Login.

Login
User ID TANS12345A
Password 000.00
Captcha Code
Image
Enter the number as in above

Image
Login Forgot Password?
New Users? Register Now | Resend Activation Link

NET
Banking e-Filing Login Through NetBanking
Step 3: Post login, go to TDS ?Upload TDS,
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Step 4: In the form provided, select the appropriate statement details from the
drop down boxes for --
• FVU Version • Financial Year
.
Form Name
• Quarter .
Upload Type
Note: Only Regular Statements can be uploaded in e-Filing portal
Noter
1. TDS statemente uplondod In TIN.FCINSDI. are not to beuploaded
again In e-Filing portal
2. Only Rogular Staternents can be filed In-Filing portal
Statement Details
TAN
TANS123450
FVU Version FVU 5.1
Financial Year 2016-17
Form Namo FORM NO.240. Quarto
Quarter Q1
Upload Type Regular
Step 5: Click Validate to Validate Statement details.

Upload TDS Statement using DSC
Upload TDS Return
TAN TANS123450
FVU Vorsion FVU 5.1
FinancialYoar 201617
Form Namo 260
Quarter 01
Upload Type
Upload 1DS.zip) Fllo * Browse No file selected.
Click here to download the DSC Unity
Steps to Digitally Sign the Form:
• Download the VD o-Filing DSC Management Utility".

. Generate the signature file. Follow the instructions in the Utility
• Altach the generated signature file.
Note: The generated signature file is valid only for one transaction
Attach the Signature file Browse No Alle selected.

PREPARATION OF ETOS RETUAN I 87
Step 6: "Upload TDS ZIP file”. Upload the TDS/TCS statement (Prepared
using the utility downloaded from tin-NSDL Website)
Step 7: “Attach the Signature file". Upload the signature file generated using
DSC Management Utility for the uploaded TDS ZIP file. For further details on
generating Signature file click here. Navigate to Step by Step Guide for
Uploading Zip File (Bulk Upload)
Step 8: Click on "Upload" button.
Once the TDS is uploaded, success message will be displayed on the screen. A
confirmation mail is sent to the registered email id.
Upload TDS Successful
Step 1: Enter Statement Details Step 2 Upload File Step 3: Upload Successful
Your TDS return have been uploaded successfully and the Transaction ID is.
10000090063. In case of any queries, please contact 1800 4250 0025.
An e-mail confirming the successful upload of your e-filing has been sent to
demo@gmail.com
Kindlylogin after 24 hours to check the status of your Filing using the token number
3111111415
Upload TDS Statement using EVC

If the DSC
is not generated, then the following screen appears.
Upload TDS
Step 1: Enter Statement Details Step 2: Upload File Step 3. Upload Successful
Upload TDS Retum
TAN
PERT123462
FVU Version FVUS.L
Financial Year 201617

Form Name
240
Quarter
Upload Type
Upload TDS[.zip) Fle* Ho file selected.
User has to click on "Click here to E-Verify" button in order to e-Verify

e TDS.
The taxpayers are provided with three options to e-Verify as shown in the
below screen.
88 I SHNA DELHI UNIVERSITY SERIES
Eventyros retorn
Select one of the options given below by clicking on that option
Options - I already have an EVC to e-Verfly the forme
Oplona - I do not have an EVC and I would like to generate EVC toe-Verlly my Form
Option3 -I would Mketo generate Aadhaar OTP toe-Verlly the Form
Dwote Vou will not be able to submake your form without a vald Evc or Digital Signature.
If the user selects “Option 1- I already have an EVC to e-Verify the Form”, the
following screen appears.
EVC (Electronic Verification Code)
Enter the EVC and click on "Submit".

If the user selects “Option 2- I do not have an EVC and I would like to
generate EVC to e-Verify my Form”, the following screen appears.
x
Select the approprate option from the buttons given below
EVC - Through Net Bankding
EVC - Through Bank Account Number
EVC - Through Demat Account Number
EVC can be generated by selecting the appropriate option from the screen as
shown above.
EVC - Through Net Banking
.
Follow the steps carefully as mentioned below, in order to generate EVC

through Net Banking:
Step YourPrincipal Contact has lo Login to e-Filing portal through Net Banking.
1
Step 2 Go to c Fun menu -> GenerateEVC
Step Login to e-Filingportal through Net Banking

Step 4 Selectthe TANfromthe drop down forwhichEVC shouldbe generated
Step 5 EVCwillbe sent to theprincipalcontact's contact details registeredwith Filling
Step 6 Login to e-filing using Entity's TAN

Step 7 Go toTDS- UploadTDS and select theoption 1 already haveanEVC under click here to E-venly
Ink
Step 8 Enter the EVC andclick on Submit

VR
Please click on e-Filing Login Through NetBanking availablein the Login page of e-Filing portal to view
the list of banks where Net Banking login option is enabled
PREPARATION OFE-TDS RETUAN - 89
EVC - Through Bank Account Number
Pre Requisite: In order to generate EVC through Bank Account Number, the
Bank Account Details of the Principal Contact has to be pre-validated.
Your principalcontactALXX000C6P has prevalidated the bank account details.

Pre-validated bank account number is X000000000X2462
Do you want to generate EVC? If yes, please click on YES, The EVC w be sent to the contact
details of your principal contact whichis verified from Bank as shown below
Verthed Mobile Number: 98XXXXXX89
Verified Email ID : Xxx@yyy.com
Click on "YES" to generate EVC, the generated EVC will be sent to the
Principal Contacts Verified mobile number and email id.
If the Principal Contact has not pre validated the Bank Account Number, the
following screen appears:
Your Principal Contact has not prevalidated the Bank Account details.
Please inform your Principal Contact to complete the Pre-validation process by logging in to e-Filling
portal using his credentials.
Once your Prindpal Contact has pre-validated the Bank Account you can Generate EVC
using this option
Note: The generated EVC will be sent to the contact details of the prindpal contact vertfied from
Bank.
EVC Through Demat Account Number

Pre-Requisite: In order to generate EVC through Demat Account, the Demat
Account Details of the Principal Contact has to be pre-validated.
Your principal contact DPXXXXXX6E has prevalidated the demat account details.
Pre-validated demat account number is XXXXXXXXX0049.
Do you want to generate EVC? If yes, please click on YES. The EVC will be sent to the contact
details of your principal contact which is venfied from NSDL as shown below
Click on "YES" to generate EVC, the generated EVC will be sent to the
principal contacts Verified mobile number and email id.
"
If the pre-validation is not done then the following screen appears.
Your prindpal Contact has not prevaldated the Demat Account detalls.
please
portal inform
using hisyour Pninapalcontact to complete thePre-validation process by logging in to e-Aling
credentials.
Once
using your Principal Contact has pre-validated the Demat Account you can Generate EVC
this option
Note:
NSDL.
The generated EVC will be sent to the contact details of the prindpal contact verified from
If the user selects "Option 3- I would like to generate Aadhaar OTP to e

verify the Form”, the following is the pre-requisite.
Pre-requisite: The principal contact has to complete the Aadhaar-PAN linking
process.
The generated Aadhaar OTP is sent to the Principal Contact's Mobile Number.
Aadhaar OTP has been generated successfully and sent to your Principal Contact's mobile number
which is registered with Aadhaar.
Kindly use this OTP to e-Vertly your form.
Aadhaar OTP
Enter Aadhaar OTP and click on the "Submit" button.

If the Principal Contact's Aadhaar is not linked with the PAN, the following
“Message” appears.
Message
Your Principal Contact's PAN and Aadhaar are not linked.
Please inform your Principal Contact to complete the Aadhaar-PAN Unking process by logging in to
e-Filing portal using his credentials.
Once Aadhaar - PAN LInking is complete, you can e-Verify the uploaded Form.
View Filed TDS Statement

To View the filed TDS statement, the steps are as below:
Step 1: Login to e-Filing, Go to TDS ??View Filed TDS.
PREPARATION OF ETDS RETURN * 91
Dashboard My Accountsher Prohle settings Worklist TDS
Navigation thall Upload TDS
• Change Paseword Dashboard View More
• Update Contact Detaile

Change Secret DumnerAntwer
IMPORTANTE
Pleona make sure you have the correction to and Mose Merter og Your profile, Tono
details or important and will be used for communications
To update the detok, please go to the many profile Settings/My Prother
Step 2: In the form provided, select the details from the drop down boxes for
Financial Year, Form Name and Quarter respectively for which the TDS was
uploaded.
Mew Filed TOS Returns
1
TAN
TANS12345A
Financial Yoar
Select
Form Name
Select
Quarter
Select
Step 3: Click on “View Details”.

Step 4: The status of the TDS uploaded is displayed.
Once uploaded the status of the statement would be "Uploaded”. The
uploaded file will be processed and validated. Upon validation the status will be
either be “Accepted” or “Rejected" and would be reflected within 24 hours from
the time of upload.
Transaction Fom Financial Upload Token

S.No TAN Quarter FiledOn Status
No Name Year
Type Number
1 10000190002 26Q 201617 Q1 11/07/2016 R 3111111694 Accepted

2 10000190001 XXXXXXX 26Q 201617 Q1 11/07/2016 R3111111693 Rejected
Step 5: In case if “Rejected”, the rejection reason will be displayed.

If the status is “Rejected", click on the Token Number to view the error details.
Transaction Form Financial Upload Token

S.No TAN Quarter Filed On Status
No Name Yoar Type Number
1 10000190002 Xoxoxoxoxoxx 260 201617 01 11/07/2016 R 3111111694 Accepted
2 10000190001 XOOOOOXXX 26Q 201617 Q1 11/07/2016 R

3111111693 Rajected
Reason for rejection would be displayed as below:
Detalle of Acknowledgement Number - 3111111272
TAN Status
Financial Year Form Name Quarter
TANS12345A 201516 Q1 Rejected
24Q
Error Details
Une
Number Error Code Error Description
1 FV-AH
1000004
Invalid File. Please upload a valid zip file. ZIP file should contain only
the .fru Ale.
Step 6: In case if " Accepted”, click on the Token Number to view the Statement
Details and download the Provisional Receipt as shown in the below screen.
DetallsofAcknowledgement Number - 9111111694

TAN Status
Finandal Year Form Name Quarter
XXXXXXXXXX 201617 26Q Qi Accepted
Statement Details
S.No
Batch Number RRR Number
Transaction Type
1. 1 R 770000000111580
Click here to download Provisional Receipt
Provisional Receipt is password protected. To open the PDF, please enter yourTAN In
lower case. For example, if your TAN ISABCD12345A thenthepassword will be
abcd12345a,
A.
COD
10
CONCEPTUAL FRAMEWORK
OF GST
Introduction of basic concept of GST.

Q. 1. Discuss the rationale of GST.
Ans. Rationale of GST:
(i) GST is a value added tax levied on manufacture, sale and consumption
of goods and services. GST offers comprehensive and continuous chain
of tax credits from the producer's point/service provider's point upto the
retailer's level/consumer's level thereby taxing only the value added at
each stage of supply chain.
(ii) The supplier at each stage is permitted to avail credit of GST paid on the
purchase of goods and/or services and can set off this credit against the
GST payable on the supply of goods and services to be made by him.
Thus, only the final consumer bears the GST charged by the last supplier
in the supply chain, with set-off benefits at all the previous stages.
(iii) Since, only the value added at each stage is taxed under GST, there is no
tax on tax or cascading of taxes under GST system. GST does not
differentiate between goods and services and thus, the two are taxed at a
single rate.
Cascading tax effect is also termed as “tax on tax”. This effect occurs when a
good is taxed on every stage of production. Such a good is taxed till it is finally
sold to the consumer. This means each succeeding transfer of a good is taxed
inclusive of the taxes charged on the preceding transfer. As a result, the final
consumer bears the burden of the multiple taxes imposed on every stage of
production. Such a situation leads to inflationary prices.
Out Tax Liability of CGST, SGST, UTGST, IGST
Q. 2. Explain briefly the structure of GST.
Ans. Structure of GST:
1. Dual GST. India has adopted a dual GST which is imposed concurrently by
the Centre and States, i.e., Centre and States simultaneously tax goods and
services. Centre has power to tax intra-state sales & States are empowered to
93
94 I SHNDAS DELHI UNIVERSITY SERIES
tax services. GST extends to whole of India including the State of Jammu and
Kashmir.
2. CGST/SGST/UTGST/IGST. GST is a destination based tax applicable on all
transactions involving supply of goods and services for a consideration subject to
exceptions thereof. GST in India comprises of:
(1) Central Goods and Service Tax (CGST) – levied and collected by Central
Government
(ii) State Goods and Service Tax (SGST) – levied and collected by the State
Governments or Union Territories with State Legislatures, and
(iii) Union Territory Goods and Service Tax (UTGST) – levied and collected
by Union Territories without State Legislatures, on intra-state supplies of
taxable goods and/or services.
(iv) Integrated Goods and Service Tax (IGST) – levied on Inter-state supplies
of taxable goods and/or services. IGST is approximately the sum total of
CGST and SGST/UTGST and is levied by Centre on all inter-state
supplies.
3. Legislative Framework. There is single legislation - CGST Act, 2017 for
levying CGST. Similarly, Union Territories without state legislatures (Andaman
and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu
and Chandigarh) are governed by UTGST Act, 2017 for levying UTGST. States
and Union territories with their own legislatures [Delhi and Puducherry) have
their own GST legislation for levying SGST.
Though there are multiple SGST legislations, the basic features of law, such as
chargeability, definition of taxable event and taxable person, classification and
valuation of goods and services, procedure for collection and levy of tax and the
like are uniform in all the SGST legislations, as far as feasible. This is necessary to
preserve the essence of dual GST.
4. Classification of Goods and Services. HSN (Harmonised System of
Nomenclature) code is used for classifying the goods under the GST. A new
Scheme of Classification of Services has been devised wherein the services of
various descriptions have been classified under various sections, headings and
groups. Each group consists of various Service Codes (Tariff). Chapters referred
are the Chapters of the First Schedule to the Customs Tariff Act, 1975.
5. Composition Scheme. In GST regime, tax (i.e., CGST and SGST/UTGST for
intra-state supplies and IGST for inter-state supplies) is payable by every taxable
person and in this regard provisions have been prescribed in the law.
However, for providing relief to small businesses making intra-state supplies,
a simpler method of paying taxes and accounting thereof is also prescribed,
known as Composition Levy.
State Compensation Mechanism
Q. 3. Write a short note on State compensation mechanism under GST.
Ans. The Goods and Services Tax (Compensation to States) Bill, 2017 was
introduced in Lok Sabha on March 27, 2017. The Bill provides for compensation
to states for any loss in revenue due to the implementation of GST.
Compensation will be provided to a state for a period of five years from
the date on which the state brings its State GST Act into force.
CONCEPTUAL FRAMEWORK OF GST 95
• For the purpose of calculating the compensation amount in any financial
year, year 2015-16 is taken as the base year, from which revenue will be
projected. The growth rate of revenue for a state during the five-year
period is assumed to be 14% per annum.
• The base year tax revenue shall consist of the state's tax revenues from:
(i) State Value Added Tax (VAT), (ii) Central Sales Tax,
(iii) Entry Tax, Octroi, Local Body Tax, (iv) Taxes on Luxuries,
(v) Taxes on Advertisements, etc.
However, any revenue among these taxes arising related to supply of -
(1) alcohol for human consumption, and
(ii) certain petroleum products
will not be accounted as part of the base year revenue.
• The compensation payable to a state has to be provisionally calculated
and released at the end of every two months. Further, an annual
calculation of the total revenue will be undertaken, which will be audited
by the Comptroller and Auditor General of India.
• GST Compensation Cess may be levied on the supply of certain goods
and services, as recommended by the GST Council. The receipts from the
cess will be deposited to GST Compensation Fund. The receipts will be
used for compensating states for any loss due to the implementation of
GST.
The cess will be capped at:
(i) 135% for Pan masala,
(ii) 400 per tonne for Coal,
(iii) *4,170 + 290% per 1,000 sticks of Tobacco, and
(iv) 15% for all other goods and services including motor cars and
aerated water.
Any unutilised money in the Compensation Fund at the end of the
.
compensation period will be distributed in the following manner:

(i) 50% of the fund to be shared between the states in proportion to
revenues of the states, and
(ii) the remaining 50% will be part of the centre's divisible pool of taxes.
GST Network
Q. 4. What is GST Network?
Ans. GSTN stands for Goods and Services Tax Network. It is a not-for-profit
company registered under Section 8 of the Companies Act, established
primarily to assist the rollout and implementation of GST and to act as the nodal
agency to provide assistance in terms of IT infrastructure and services to the
Central Government, State Governments, the tax payers and the general public.
In essence, it acts as a common interface between the government, tax payers,
accounting authorities and the Banking Network. It thereby integrates multiple
tax department websites, bringing all the tax administrations (centre, state and
union territories) to the same level of IT maturity, with uniform formats and
interfaces for taxpayers and other external stakeholders.
The Goods and Service Tax Network (or GSTN) is a non-profit, non
government organization. It will manage the entire IT system of the GST portal,
96 SHIV DAS DELHIUNIVERSITY SERIES
which is the mother database for everything under GST. This portal is used by
the government to track every financial transaction, and will provides tax-payers
with all services -- from registration to filing taxes and maintaining all tax details.
Structure of GSTN:
Private players own 51% share in the GSTN and the rest is owned by the
Government. The authorized capital of the GSTN is 10 crore (US $1.6 million), of
which 49% of the shares are divided equally between the Central and State
governments, and the remaining is with private banks.
The GSTN has also been approved for a non-recurring grant of 1315
crores. The contract for developing this vast technological backend was
awarded to Infosys in September 2015.
The GSTN is chaired by Mr. Navin Kumar, an Indian Administrative Service
servant (1975 batch), who served in many senior positions with the Government
of Bihar, and the Central Government.
Functions of GST Network (GSTN):
(i) Facilitates registration
(ir) Computation of IGST and settlement
(iii) Files tax returns and submit to central and state authorities
(iv) Integrates banking network with tax payment details
(v) Analyses tax payer's profile
(vi) Manages computation engine of input tax credit
(vii) Submits MIS reports to governments
Input Tax Credit Utilization
Q. 5. State the eligibility and conditions for taking input tax credit
Ans. Eligibility and conditions for taking input tax credit (Section 16):
(i) All Registered Persons shall take credit of input tax admissible as per the
terms and conditions specified in Section 49 on all goods and supplies
or both used, intended to be used in the course or furtherance of his
business and the said amount shall be credited to his ECL (Electronic
Credit Ledger).
Furnish such detail in Form GSTR-2]
(ii) A Registered person can claim credit only if he
possesess Invoice or Debit note;
• received the goods or services;
• tax charged on such supply has been paid to Government either in
cash or through credit utilization; and
person has filed the Return u/s 39.
)
(iii Where the goods are received in instalments or lots, ITC shall be
available at the time of receiving of final instalment or lot.
(iv) Recipient shall make the payment to the supplier of goods or services
(except tax payable under reverse charge) along with tax payable within 180
days from the date of invoice otherwise the ITC taken shall be added to his
output tax liability with interest [Furnish such detail in Form GSTR-2].
Same ITC can be claimed after the payment to supplier along with tax
payable thereon.
CONCEPTUAL FRAMEWORK OF GOT 97
Rule 2 provides that such ITC shall be added to output tax liability for
the month after the passing of 180 days. Registered person need to pay
interest as per Section 50 of the Act from the date of taking ITC to the
date of adding to output tax liability.
() Where the registered person has claimed depreciation as per Income Tax
Act on tax component of cost of capital goods and plant and machinery,
(vi)
ITC shall be denied on the said tax component.
ITC shall not be allowed after the due date of furnishing the return u/s 39
for the month of September following the end of financial year to which
invoice/debit note relates or furnishing of the Annual Return whichever
is earlier.
Q. 6. What is the Order of utilization of ITC available in the Electronic
Credit Ledger?
Ans. As per Section 49(5), the following shall be the order in which the Input
tax credit available in the Electronic credit-ledger shall be utilized for tax
payment:
Input tax Credit on Input tax Credit on Input tax Credit on
account of IGST account of CGST account of SGST/UTGST
First for payment of First for payment of First for payment of
IGST. CGST SGST/UTGST.
Then for payment of Then for payment of Then for payment of
CGST. IGST. IGST.
And then if balance is *In case there is further *In case there is further
there for payment of balance it will be balance it will be
SGST or UTGST. carried forward to the carried forward to the
next period and shall next period and shall
not be utilized for pay- not be utilized for
ment of SGST/UTGST. payment of CGST.
CGST and SGST are mutually exclusive which means that these cannot be adjusted against
each other.
- Small Supply and Composition Scheme

Q. 7. What is meaning of "supply" as per Section 7 of Central Goods and
Services Act 2017?
Ans. The concept of “Supply" is the keystone of the GST architecture. It is the
taxable event in Goods and Services Act, 2017 upon the occurrence of which
tax is leviable.
Definition of Supply under Section 7(1) of CGST Act, 2017:
1. As per Section 7(1) of CGST Act, 2017 “Supply includes:
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, licence, rental, lease or disposal made or
agreed to be made for a consideration by a person in the course or
furtherance of business;
(b) import of services for a consideration whether or not in the course
or furtherance of business;
98 • SHI DAS DELHI UNIVERSITY SERIES
(c) the activities specified in Schedule I (Refer below) made or agreed
to be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of services
as referred to in Schedule II (Refer below).
2. Notwithstanding anything contained in Sub-section (1):
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central
Government, a State Government or any local authority in which
they are engaged as public authorities, as may be notified by the
Government on the recommendations of the Council, shall be
treated neither as a supply of goods nor a supply of services.
Government
3. Subject to the provisions of Sub-sections (1) and (2), the
may, on the recommendations of the Council, specify, by notification,
the transactions that are to be treated as -
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
Schedule-I
Activities to be treated as supply even if made without consideration:
1. Permanent transfer or disposal of business assets where input tax credit
has been availed on such assets.
2. Supply of goods or services or both between related persons or between
distinct persons as specified in Section 25, when made in the course or
furtherance of business:
Provided that gifts not exceeding Fifty thousand rupees in value in a
financial year by an employer to an employee shall not be treated as
supply of goods or services or both.
3. Supply of goods:
(a) by a principal to his agent where the agent undertakes to supply
such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive
such goods on behalf of the principal.
4. Import of services by a taxable person from a related person or from any
of his other establishments outside India, in the course or furtherance of
business.
Schedule-II
Activities to be treated as supply of goods or supply of services:
1. Transfer
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods
without the transfer of title thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates
that property in goods shall pass at a future date upon payment of
full consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of
services;
CONCEPTUAL FRAMEWORK OF GST - 99
(b) any lease or letting out of the building including a commercial,
industrial or residential complex for business or commerce, either
wholly or partly, is a supply of services.
3. Treatment or Process Any treatment or process which is applied to
another person's goods is a supply of services.
4. Transfer of Business Assets
(a) where goods forming part of the assets of a business are transferred
a
or disposed of by or under the directions of the person carrying on

the business so as no longer to form part of those assets, whether or
not for a consideration, such transfer or disposal is a supply of
goods by the person;
(b) where, by or under the direction of a person carrying on a business,
goods held or used for the purposes of the business are put to any
private use or are used, or made available to any person for use, for
any purpose other than a purpose of the business, whether or not for
a consideration, the usage or making available of such goods is a
supply of services;
(C) where any person ceases to be a taxable person, then any goods
forming part of the assets of any business carried on by him shall be
deemed to be supplied by him in the course or furtherance of his
business immediately before he ceases to be a taxable person, unless:
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is
deemed to be a taxable person.
5. Supply of services
The following shall be treated as supply of services, namely:
(a) renting of immovable property;
(b) construction of a complex, building, civil structure or a part thereof,
including a complex or building intended for sale to a buyer, wholly
or partly, except where the entire consideration has been received
after issuance of completion certificate, where required, by the
competent authority or after its first occupation, whichever is earlier.
6. Composite supply
The following composite supplies shall be treated as a supply of
services, namely:
(a) works contract as defined in clause (119) of Section 2; and
(b) supply, by way of or as part of any service or in any other manner
whatsoever, of goods, being food or any other article for human
consumption or any drink (other than alcoholic liquor for human
consumption), where such supply or service is for cash, deferred
payment or other valuable consideration.
7. Supply of Goods
The following shall be treated as supply of goods, namely – Supply of
-
goods by any unincorporated association body of persons to a member

thereof for cash, deferred payment or other valuable consideration.
Q. 8. Write a brief note on "Composition Scheme" under Central Goods and
Service Tax Act, 2017.
p)
100 SHIV DAS DELHI UNIVERSITY SERIES
Ans. Composition Scheme under GST is a relief mechanism, especially for
small tax payers, wherein they can not only have comparatively less tedious
compliance practices to deal with, but also pay GST at a lower, fixed
composition tax rate on their turnover.
Section 10 of the CGST Act, 2017 provides for composition levy to such
persons. Such person means whose turnover is below a certain limit.
Composition Scheme is a simple and easy scheme under GST because of taxable
persons who opt for composition scheme are not required to maintain detailed
records and filing of detailed returns.
Who can opt for Composition Scheme. As per Section 10(1) of CGST Act,
2017, A registered person whose aggregate turnover in the previous financial
year did not exceed 1.5 crore and 75 lakh in case of special states
(Uttarakhand, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and
Arunachal Pradesh).
Aggregate Turnover. As per Section 2(6) of CGST Act 2017, "Aggregate 1
Turnover” means the aggregate value of all taxable supplies (excluding the value
of inward supplies on which tax is payable on reverse charge basis), exempt supplies,
/
export of goods or services or both and interstate supplies of persons having the
same PAN to be computed on all India basis but excludes (CGST, SGST, UTT,
IGST, CESS).
Persons Ineligible for the GST Composition Scheme:
(a) A taxable person is engaged in making any supply of goods which are
not leviable to tax under this act. (exempt supplies)
(b) A taxable person is engaged in making any interstate outward supplies of has
goods.
(c) A taxable person is not engaged in making any supply of goods through
an electronic commerce operator who is required to collect tax at source
under Section 52 of the Act.
(d) A taxable person is not a manufacturer of such goods as may be notified
by the Government on the recommendation of the GST council
(Manufacturer of ice cream, pan masala, or tobacco).
e) Where more than one registered person is having the same Permanent
(
Account Number (PAN) issued under the Income tax Act, 1961, the
registered person shall not be eligible to opt for the composition scheme
unless all such registered persons are eligible under composition scheme
and opt to pay tax under the scheme.
Casual Taxable Person or a Non-resident Taxable Person.
(8) A taxable person is engaged in the supply of services. (other than restaurant
and outdoor catering services). However, As per 32nd GST Council Meeting
held on 10th Jan 2019, Service Providers can opt into the Composition Tax
Scheme, and the Government has set the threshold turnover for service
providers at 350 Lakh to be eligible for this scheme. Also, as per the CGST
(Amendment) Act, 2018, a composition dealer can also supply services to
an extent of 10% of turnover, or $5 Lakh, whichever is higher. This
amendment is applicable from the 1st of February, 2019.
Rules to be applicable to Composition dealers:
Following rules shall be applicable to taxpayers under this scheme:
(a) No Input Tax Credit can be claimed.
CONCEPTUAL FRAMEWORK OF GST * 101
(h) As per the Composition scheme rules, tax need to be paid at normal GST
rates for
(c) The
transactions under Reverse Charge Mechanism.
words
'Composition taxable person' must be displayed
prominently on every notice or signboard at the place of business.
(d) As per the Composition scheme bill format, the words 'Composition
taxable person' must be displayed prominently on every bill of supply
which is issued.
(e) Composition dealer shall issue a Bill of Supply and not a Tax Invoice.
© Composition dealers are not required to maintain detailed records.
Composition Rate of Tax:
S.No. Category of Registered Person Rate of CGST Rate of SGST Total
1.
Manufacturers other than 0.5% 0.5% 1%
manufacturers of such goods
as may be notified by the
Government.
2. Restaurant services and 2.5% 5%
2.5%
Outdoorcatering services
(not serving alcohol)
3.
Any other supplier eligible 0.5% 0.5% 1%
for Composition levy
(section 10)
GST Returns to be filed by Composition Dealers:
(a) GSTR-4 (Quarterly) (6) GSTR-9A (Annual Return)
CBIC has amended the Rule 62 under the CGST Rules, 2017. This amendment
has been effected vide Notification No. 20/2019 Central Tax dated 23 April,
2019. The compliance under composition scheme shall be simplified as now they
would need to file one annual return but payment of taxes would remain
quarterly (along with a simple declaration).
- Electronic Ledgers
These ledgers are maintained electronically on the GST Portal.
Types of
Electronic Ledgers
Cash Ledger Credit Ledger Liability Ledger

This Ledger will ITC as self-assessed
The Total tax liability
reflect all deposits in monthly returns of a taxpayer (after
made in Cash, and will be reflected here. netting) for the
TDS or (and) TCS The credit in this particular month will
made on account of ledger can be used to be shown automa
the Taxpayer. This make payment of tically displayed on a
ledger can be used for TAX ONLY and no
GST payer's dash
making any payment other amounts such board.
on account of GST. as interest, panelty or
late fee.
102 SHN DAS DELHI UNIVERSITY SERIES
Q. 9. Explain different types of returns under GST.
Ans. Different type of returns
Return
What to file? ByWhom? By When?
Form
GSTR-1
Details of outward supplies Registered Taxable 10th of the next
month.
of taxable goods and/or Supplier.
services effected.
GSTR-2 Details of inward supplies of Registered Taxable 15th of the next
month.
taxable goods and/or Person.
services effected claiming
input tax credit
GSTR-3 Monthly return on the basis Registered Taxable 20th of the next
of finalization of details of Person. month.
outward supplies and inward
supplies along with the
payment of amount of tax.
GSTR4 Quarterly return for Composition sup- 18th of the
plier. month succ
composition taxable person.
eeding qua
rter.
GSTR-5 Return for Non-Resident Non-resident Tax- 20th of the next

able person. month.
foreign taxable person.
GSTR-6 Return for Input Service Input
Distributor.
Service 13th of the next
Distributor. month.
GSTR-7 Return for authorities Tax Deductor. 10th of the next

month.
deducting tax at source.
GSTR-8 Details of supplies effected E-commerce oper- 10th of the next
through e-commerce operator ator/tax collector. month.
and the amount of tax
collected.
GSTR-9 Annual Return Registered Taxable 31st Dec. of

Person. next financial
year.
Taxable person Within 3
GSTR-10 Final Return
whose registration months of the
has been surrend-date of
ered or cancelled. cancellation or
date of
cancellation
order, which
ever is later.
CONCEPTUAL FRAMEWORK OF GST 103
GSTR-11 | Details of inward supplies to | Person having UIN 28th of the
|
be furnished by a person and claiming month follo
having UIN. refund. wing the
Interest/penalty for late/non-filing of Return.

When a GST Registered person misses filing GST Returns within the due dates
as prescribed under GST Law, then some amount of late fee is charged. The late
fee is also applicable for the delay in filing NIL returns.
For example, there are no figures to declare for sales or purchases for the
month of December 2018 in the GSTR-3B. Still, this return must be filed.
Penalty for non-filing of GST Returns
In case,a taxpayer does not file his/her return within the due dates, he/she
shall have to pay a late fee of 3200/- i.e., 7100/- for CGST and 3100/- for SGST
per day (up to a maximum of 35,000/-) from the due date to the date when the
returns are actually filed.
In case of GSTR-3B
The amount of late fee payable by a taxpayer whose tax liability for that
month is ‘NIL' is 120/- per day (10/- per day each under CGST and SGST
Acts). However, if the taxliability for that month is not ‘NIL', the amount of late
fee is 350/- per day (25/- per day each under CGST and SGST Acts)
SI
E-FILING-2017 (MAY)
Name of the Course : B.Com. (Hons.) CBCS
Name of the Paper : E-filing of Returns
Duration : 1 hour Maximum Marks: 25
Attempt All questions.
Q. 1. What is meant by e-filing of Income Tax Returns? When is it5 2
compulsory to file return online?
Ans. Meaning of e-filing of Income tax returns. See 1.1(Meaning of ),
e-filing
Chapter 1. [Page 1
When is it compulsory to file return online.See 7.4 (Manner of Filing Returns),
[Page 66
Condition (b), Chapter 7.
Or
What are the benefits and limitations of e-filing of Income Tax Returns? 5
Ans. Benefits of e-filing of Income Tax Returns. See 1.3(Benefits of e-filing),
Chapter 1. [Page 1
Limitations of e-filing of Income Tax Returns. See 1.4(Limitations of e-filing),
Chapter 1. [Page 2
Q. 2. What are the due dates of submission of Income Tax Returns u/s 139(1)
5
for different assesses?
Ans. Due dates of submission of Income Tax Returns. See Due date of
furnishing return of income, Chapter 7. [Page 60
Or
Which assessee should use ITR Form-4 and ITR Form 45 for e-filing of the
Income Tax Returns? 5
Ans. ITR Form 4 and ITR Form 4S. ITR Form 4 and ITR Form 4S have been
replaced with ITR Form 3 and ITR Form 4 respectively from Financial Year 2016-17.
Forms for furnishing return of income. See 6.1 [Various forms for furnishing
returns of income (Point 3 & 4)], Chapter 6. [Pages 51-52
Q. 3. Briefly explain the scheme of Tax deduction at source. 5
Ans. Scheme of Tax deduction at source. See 8.1 [What is Tax Deduction at
Source (TDS)], Chapter 8. [Page 71
Or
What is the amount above which making a payment as fees for professional
or technical services, tax is required to be deducted at source u/s 1945, and at
what rate? 5
Ans. Tax deducted of source u/s 194). See 8.2 (TDS Rate Chart for 2017-18–
Section 194J), Chapter 8. [Page 74
Q. 4. What are the due dates of submission of quarterly returns of TDS from
June 1, 2016 onwards? 5
Ans. Due dates of submission of quarterly returns of TDS. See 8.9 (Due date of
filing quarterly statement other than in Form 26QB), Chapter 8. [Page 78
Or
What is the amount above which making a payment to a contractor or sub
contractor, tax is required to be deducted at source u/s 194C and at what rates? 5
Ans. Tax deducted at source u/s 194C. See 8.2 (TDS Rate Chart for 2017-18–
Section 194C), Chapter 8. [Page 73
104
E-FILING-2018 (MAY)
Name of the Course : B.Com. (Hons.) CBCS : SEC
Semester : IV
Q. 1. Define e-filing of Income Tax Return. When is it compulsory? 5
Ans. Meaning of e-filing of Income tax return. Filing of Income Tax Return is a
legal obligation of every person whose total income for the previous year has
exceeded the maximum amount that is not chargeable to Income Tax under the
provisions of the Income Tax Act, 1961. Income Tax Department has introduced a
convenient way to file these Returns online using the Internet. The process of
electronically filing Income Tax Returns through the internet is known as e-filing.
When is it Compulsory to file return online. See 7.4 (Manner of Filing Returns),
Condition (b), Chapter 7. [Page 66
Or
Define e-verification. What are the different ways of e-verification of Income

Tax Return?
Ans. E-verification. A taxpayer who files his return using the Income tax
department's e-filing process can generate the Electronic Verification Code (EVC)
before filing the return or while filing. The EVC is a 10 digit code with a 72 hour
validity. It is mailed to the registered Email-id of the taxpayer. This process of
electronic verification of the person furnishing the return of income is called
e-verification.
Ways of e-verification of Income Tax Return:
(a) Option 1. e-Verification using e-Filing OTP (only available if Total Income
is less than or equal to 5,00,000 and Refund or Tax payable up to 100).
(b) Option 2. e-Verification using Net Banking login.
(c) Option 3. e-Verification using Aadhaar OTP validation.
(d) Option 4. e-Verification using Bank ATM (SBI, AXIS Bank, Canara Bank,
ICICI Bank and IDBI).
(e) Option 5. e-Verification using Bank Account Number (Punjab National
Bank, United Bank of India and ICICI Bank).
V Option 6. e-Verification using Demat Account
Q. 2. When ITR-4S (SUGAM) can be filed? 5
Ans. ITR-4S (SUGAM) has been substituted now with ITR-4 SUGAM.
This return Form can be used by an individual or HUF or a firm (other than
LLP) whose total income includes:
Business income where such income is computed in accordance with
special provisions referred to in Sections 44AD and 44AE of the Act for
computation of business income; or
Income from profession where such income is computed in accordance
with special provisions referred to in Section 44ADA; or
Income from Salary/ Pension: or
115
116 SHNA DELHI UNIVERSITY SERIES
-- Income from One House Property (excluding cases where long in
brought forward from previous years); or
- Incomefrom Other Sources (Excluding winning from Lottery and Income
Note:
from Race Horses),
The income computed shall be presumed togiving
have been computed after full effect to
every loss,allowance, depreciation or deduction under the Income Tax Act,
Further, in case where the income of another person like spouse, minor child, etc. is to be
clubbed with the income of the Assessee, this Return Forin can be used only if the income being
clubbed falls into the above income categories.
Or
Mention the due dates of filing of income tax return. 5
Ans. Due dates of filing of income tax return. See Due dates of furnishing
return of income, Chapter 7. (Page 60
Q. 3. What is the due date of filing of service tax return and penalty of late
filing of service tax return? 5
Ans. Due date of filing of returns. The return has to be submitted by the 25% of
the month following the particular half-year. In case of an Input Service
Distributor Service tax returns are due to be filed by 31" October and 30' April
respectively. Even a NIL return has to be filed if the assessee has not rendered
any taxable service during a particular half year.
Note: "Input Service Distributor” means an office of the provider of output service which receives
invoices towards purchase of input services and issues invoice, bill or challan for the purpose of
distributing the credit of Service tax paid on the said services to such provider.
Amount to be paid for delay in furnishing half yearly return
Period of delay from due date Late Fee to be paid
Upto 15 days 500
16 to 30 days 1,000
After 30 days 1,000 plus 100 per day in excess of
30 days. However, total amount of
fee shall not exceed 320,000.
Note: Where the gross amount of Service tax payable is nil, the Central Excise Officer, may, on
being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.
Or
Mention the process of e-filing of service tax return. 5
Ans. Process of E-filing of Service Tax Return.

There are two methods of filing the return electronically -
(i) Online filing data in service tax return.
(a) Login into ACES (Automation of Central Excise and Service Tax) by
entering the user-id and password. Home page of the assessee will
appear.
(b) After log in Go to ‘RET' Main Menu
- click on the 'Fill' option of 'Fill ST-3' sub-menu. i.e. RET Menu
- Fill ST-3.
- Fill
E-FILING–2018 (MAY = 117
(c) The Premises code and address of the registered premises of the assessee
will appear on the page. Premises code will appear as hyperlink.
(d) Click on the hyperlink to prepare the ST-3 Return.
(e) After filing the Service Tax Return correctly, click on the 'SAVE' button
appearing on last page and confirmation page of ST-3 will appear.
(1) If you wish to amend, click on the 'Modify' button or 'Save' to store the
Return in the database.
(8) Return saved in ACES can be amended before submission by the
assessee by clicking on the "Amend ST-3" button under "Fill ST-3” sub
menu.
(17) To submit the ST-3 return to the department, press "SUBMIT" button.
(1) Confirmation will appear for successful submission of ST-3 Return
displaying the unique number for such return. After submission, return
can be revised once in 90 days by clicking “Revising ST-3".
(ii) Offline filing of Data & Upload.
(a) Click on the 'Download button provided on the left side of ACES
Homepage and download Excel utility by clicking on the hyperlink
"Download ST-3 Return Excel utility” i.e. RET
- E-filing
Download Excel utility
(b) Use the Excel utility to prepare ST-3 return and click on “Validate &
Submit" button on the last page to generate XML file.
(c) The XML file will be saved in the same folder where the download utility
is saved by the user.
(d) To upload the ST-3 Return, login into ACES by entering the user-id and
password. Click on “Upload File" option of “E-filing" sub-menu under
"RET".
Main Menu i.e. RET Main Menu
e-filing
Upload File
Click on "Save" button to save the return in the database of the
assessee or Else click on "SUBMIT" button to file the return.
(e) Confirmation will appear for successful uploading of return without any
unique number.
After uploading, click on “View Status” option of “E-filing" sub-menu
under "RET" Menu to view status of the return.
(8) A return will be considered as filed only when its status is shown as
'FILED'.
Further, Assessee can also `VIEW SAVE' and ‘PRINT' ST-3 return at any
time by clicking on the button 'View ST-3' under ‘RET' menu after
successful login into ACES.
Q. 4. Write short notes on:
(a) Form 26AS
(b) TDS on Rent (Sec. 1941) 5+5
Ans. (a) Form 26AS. See 7.3 (Form 26AS), Chapter 7. [Page 63
(b) TDS on Rent (Sec 1941). See 8.2 (TDS Rate Chart for 2017-18-Section 1941,
-
Chapter 8. [Page 73
118 SHNA DELA UNIVERSITY SERIES
Or
(a) Mention different type of TDS return forms and due date of TDS returns,
) State the provisions relating to TDS on paymentof Life Insurance Policy
(Sec. 194DA). 5+5
Ans. (a) Types of formsfor filing TDS Returns:

(a) Statement of deduction of tax under Form No. 24Q
Section 192 & 192(1A).
(6) Statement of deduction of tax u/s 193 to 196D
other than under Section 194-IA -
(1) In respect of the deductee who is a non Form No. 27Q

company or resident butnotordinarily
resident
(c) Challan cum statement of tax deducted and Form No. 26QB
deposited per section 194-1A to be filed within 30
deduction is made.
S.
Date of ending of quarter
De
No. of financial year
Due date (both for Government
deductor or any other deductor)
3 31st December
31st January of the financial year.
31st March
31st May of the financial year
(b) Provision of Section-194DA deals with the provision relating to TDS on
payment under Life Insurance Policy. As per this section, Insurance companies
will deduct TDS while making the payments on such claims if the amount
received is more than 31 lakh.
Rate of TDS
1% TDS - if PAN is valid and available.
2% TDS - if PAN is not valid and available.
NO TDS - if the Life Insurance Policy qualifies u/s 10[10(D)].
In case the sum is received against the death of a person, the entire amount will
be exempted.
Further, TDS is required to be deducted if the said sum is not exempted under
Section 10[(10 D)).
E-FILING-2019 (MAY)
Name of the Course : B.Com. (Hons.) CBCS : SEC
Semester : IV

Q. 1. Define e-filing of Income Tax Return. When is it compulsory? 5
Ans. See Q. 1, 2018(May). [Page 115

Or
Define e-verification. What are different ways of e-verification of Income Tax
Return? 5
Ans. See Q. 1(Or), 2018(May). [Page 115
Q. 2. When can ITR-3 be filed? 5
Ans. See 6.1 [Forms of Furnishing Return of Income (Point 3)]. Chapter 6. [Page 51
Or
Mr. X is carrying on retail business. During F.Y. 2016-17, his Gross Turnover is
1,60,00,000 (out of which he received 190,00,000 by cash and balance by Account
Payee cheque). Suggest which ITR Form he should file, with reasons. 5
Ans. As his Gross Turnover is 1,60,00,000 is not exceeding 52 crore, so he can

opt for Section 44AD and in such case, his income will be presumed to be 8% of the
gross receipts received in cash and 6% of the gross receipts received by Account
Payee cheque. In such a case, he should file his ITR using Form ITR-4.
Further, if he claims his income to be lower than 8%/6% and get his accounts
audited, then he should file his ITR using Form ITR-3.
Also See 6.1 [Forms for Furnishing Return of Income (Point 3 and 4)], Chapter 6.
[Page 51
Q. 3. What is the due date of filing of income tax return and consequences of
late filing of return? 5
Ans. Due date of furnishing return of income: The return of income must be filed
in a prescribed form on or before the due date mentioned below:
(a) where the assessee other than the assessee referred in
clause (b) below is
(i) a company;
(ii) or a person (other than a company) whose accounts
are required to be audited under this Act or under 30th September
any other law for the time being in force; or of the assess
(iii) a working partner of a firm whose accounts are ment year
required to be audited under this Act or under any
other law for the time being in force.
(b) in case of an assessee who is required to furnish a 30th November
report of chartered accountant under Section 92E of the
relating to an international transaction or specified assessment year
domestic transaction.
(c) in case of any other assessee. 30th July of the
assessment year
119
120 I SHIV DASDELHI UNIVERSITY SERIES
Notes:
(1) Due date of furnishing return of income in case of a non-working partner shall be 31July
of the assessment year whether the accounts of the firm are required to be audited or not.
(1) A working partner for the above purpose shall mean an individual who is actively
engaged in conducting the affairs of the business or profession of the firm of which he is
a partner and is drawing remuneration from the firm.
(iii) in case of firm whose accounts are not required to be audited under this act or any other
law, the last date for furnishing the return by the firm as well as partners (whether
working or non-working) shall be 31st July of the assessment year.
Fee for delayed filing of return:
(i) A fee of 15,000 shall be payable, if return is furnished after the due date
but on or before the 31st day of December of the assessment year;
(ii) A fee of $10,000 shall be payable in any other case.
However, in a case where the total income does not exceed 35,00,000, the fee
amount shall be 1,000.
Or
Mention the process of e-filing of Income Tax Return. 5
Ans. e-Filing of Income Tax Returns (Offline)

Steps to download Utility and generate XML (Excel Utility):
(b) Click on the “ITR" under "Downloads"
(@) Open the utility, Click on “Import Personal/Tax details from XML” →
Browse and attach the downloaded Prefill XML file to populate the
personal information and TDS details.
M Enter all the Mandatory Fields → Validate all the sheets → Calculate Tax
→ Generate XML.
(8) Login using e-Filing user credentials
(h) Navigate to "e-File" Tab → Click on"Upload Return"
(i) Select “ITR Form Name” and “Assessment Year” from the dropdown
provided.
(1) Browse and attach XML file.
(k) Select “Do you want to digitally sign?" → Submit.
(1) On successful submission taxpayer will get an option to e-verify the
Return.
Steps to download Utility and generate XML (JAVA Utility):

(b) Click on the “ITR" under "Downloads"
(e) Open the utility, Click on “Prefill" → Enter “UserId", Password, “DOB/
DOI" and select "Prefill Address” (From PAN Details, From previous
ITR Form Filed, None) → click Prefill
(1) Enter all the Mandatory Fields → Calculate Tax → save XML.
(g) Click on "Submit" → Enter "Password" and select “Do you want to
digitally sign?" → Submit
E-FILING-2019 IMAY) - 121
Start
DINI
GO TOOlds 638
the tihty oleelevant ITR Form
Stility, Valdate, nesateXL

Ad Save
LOGIN and GOTO Vile,

Upload Return Send to CPC
Bengaluru
Brows and select the file
Generate ITR V
Browse and anach Signature file
(NSC - If Applicable. Available
NO
Hetum
Submit Hled using End
DSC/VC
YES
Generate andPrint
Recenowledgment for
further action is required
Prepare and Submit ITR 1/ITR 4 Online

The taxpayer has the option of submitting ITR 1/ITR 4 by way of Uploading
XML OR by Online submission
Steps to e-File Online ITR (ITR 1 and ITR 4):
(b) Login using e-Filing user credentials
(c) Navigate to “e-File" Tab → Click on “Prepare and Submit Online ITR"
(d) Select "ITR Form Name" from the drop down (ITR 1 or ITR 4)
(e) Select “Assessment Year” → Select the Radio button "Prefill Address
with” to auto populate the address → Select the Radio button if DSC is
applicable → Click on "Submit"
() Enter the mandatory details in the online form → Click on "Submit"
Start
Login and GO TO e-File' Prepare

and Submit ITR Onhne
Select ITR type as ITR 1/1TR 4 and

select the Assessment Year.
Send ITR-V to CPC
Bengaluru
Browse and attach Signature file
(DSC - If Apphcable i Avadable)
Generate ITR-V
Update all the mandatory fields in
the selected ITR form NO
Return
End
SUBMIT filed using
OSC/
EVC
YES
Generate and Print

Acknowledgment form. No
further action is required.
Notes:
(a) To e-File using DSC, it should be registered in the e-Filing application.

(b) If the Income Tax Return is digitally signed or electronically verified, on generation of “Acknowledge
ment” the Return Filing process is complete. The return will be further processed and the
Assessee will be notified accordingly. Please check your emails on these notifications.
(c) If the return is not e-Filed witha DSC (digitally signed) or EVC (electronically verified), an
ITR-V Form will be generated. This is an Acknowledgement cum Verification form. A duly
122 · SHNDAS DELHI UNIVERSITY SERIES
verified ITR-V form No. 1, Electronic
should be signed and submitted to CPC, Post Bag
Crity
from Post
the
(d) On receipt
of the signed ITR-V at CPC, the Income Tax Department will send an e-mail
acknowledging the receipt of ITR-V to the e-mail ID mentioned in the tax return. You will
also receive an SMS on your mobile number acknowledging the receipt of tax return.
Q. 4. Write short notes on: 5+5
(a) Form 26AS (b) TDS u/s 1945.
Ans. (a) See 7.3 (Form 26AS), Chapter 7. [Page 63
(b) See 8.2 (TDS Rate Chart for 2017-18, Sec 194J), Chapter 8; [Page 74
Or, (a) Mention different types of TDS returns formsand due date of TDS
returns. 5
(b) State the provisions relating to TDS on Rent (Sec 1941). 5
Ans. (a) Types of forms for filing TDS Returns:

(a) Statement of deduction of tax under Form No. 24Q
Section 192 & 192(1A).
(6) Statement of deduction of tax u/s 193 to 196D
(i) In respect of the deductee who is a non- Form No. 27Q
resident.
c)
(Form
Challan cum statement of tax deducted and No. 26QB
deposited per section 194-IA to be filed within 30
deduction is made.

S. Date of ending of quarter Due date (both for Government
No. of financial year deductor or any other deductor)
3 31st December 31st January of the financial year.
4 31st March 31st May of the financial year immediately
following the financial year in which the
deduction is made.
(b) Section 1941 : TDS on Rent; Nature of Income : Rent;

Threshold Limit: 1,80,000
Rate of TDS:
10% – If rent is for land, building or furniture (20% if no valid PAN)
2% – If the rent is for Machinery, Plant or Equipment (20% if no valid PAN).
E-FILING-2020 (MAY)
Name of the Course : B.Com. (Hons.)
Name of the Paper : E-Filing of Returns
Semester : IV
Attempt any two questions. All questions carry equal marks

Q. 1. What is the difference between e-filing and regular filing of returns?
What is the process of e-filing of Income Tax Return? 12.5
Ans. E-filing, as opposed to the manual/regular filing, helps you to file your
returns online through the Income Tax department's website. It ensures an easier
and hassle-free experience. Regular/Manual filing, on the other hand, is a
traditional process of filing the tax return in person, in which a tax payer must
submit his/her documents to the Centralized Processing Centre (CPC) office,
Bangalore.
Difference between E-filing and Regular/Physical filing of returns
S. No. Point of E-filing Manual Filing
Regular
Distinction
1. Accessibility Data can be retrieved It is difficult to access
easily at any time as it is records since these are
uploaded at a centralised stored at different
location. locations in different
files in paper form.
2. Simple in Basic data is pre-filled or It can become difficult if
Preparation gets auto populated multiple forms
using old or previous involved which might
records which in turn lead to mistakes.
ero-fre are
simplifies and expedites
the filing process.
3. Quick Refund Refund of tax can be Processing of refund in
Processing processed quickly due to regular/manual filing
faster or automatic takes much longer time.
processing of the returns.
4. Security Risk There is a possibility of There is relatively no
security threat in case of security risk in it.
e-filing system as data
can be hacked and
information can be
stolen.
5. Possibility of Automatic computation There is a possibility of

errors and data validation errors in computation
ensures and calculation in case
computation. of regular filing
123
124 · SHIN DAS DELHI UNIVERSITY SERIES
6.
Revision of Error It can be easily reviewed,| It is time consuming and
or mistake rectified or revised tedious task. Physical/
through online mode. regular file returns can
be revised by filing
another physical form
with concerned
assessing officer.
7. Redressal of Grievance Redressal tab It is time consuming and
Grievances on the IT department's hasslesome to get query
website enables a user to clarified from the
ask any query or concern department.
and the helpdesk or
concerned department is
bound to provide it.
8. Tracking of Refund can be trackedIt cannot be tracked
Refund online easily. Status of easily in case of manual/
return received, regular filing unless a
processed or refund communication is
initiated. received from the
department.
9. Cost involved More cost involved for No such cost involved.
software and IT utilities.
10. Time Savvy More time savvy. Less time savvy.
For Process of e-filing. See 1.6 (E-filing Process), Chapter 1. [Page 3
Q. 2. What is the difference between PAN and TAN? What is the relevance
of Form 16 and Form 26 AS in filing the tax returns? 6
Ans. Difference between PAN and TAN
S. No. Point of PAN TAN
Distinction
1. Meaning PAN stands for Permanent TAN stands for Tax
Account Number, is a ten-digit Deduation Account
code, allotted to the assessee on Number. It is a ten-digit
the registration with the IT alphanumeric code,
Department and it is assigned to the person or
mandatory for those assessees entity who are accountable
who are involved in the to deduct or collect tax at
financial transactions source.
exceeding a
particular
threshold limit.
Form 49A in case of Indians Form 49 B
2. Application
Form and form 49AA in case of
foreigners.
3. Purpose PAN acts as a Universal Streamline deduction and
Identification Code for collection of tax at source.
financial transactions.
4. Issued under Issued under Section 139A of Issued under Section 203A
which law Income Tax Act, 1961. of Income Tax Act, 1961.
E-FILING-2020 (MAY) - 125
Relevance of Form 16 and Form 26AS is as follows:
Form 16: Form 16 is the total of the amount (including basic salary and other
allowances) paid to the employee and the taxes deducted in a financial year. The
form serves as a proof that tax was deposited by the employer to the Income Tax
(17) department. It can be noted that if an employer has not deducted any TDS,
then Form 16 might not be issued.
Form 16 Part A: The Part A Form 16 contains a summary of tax deducted
from the income and deposited to the Income Tax Department as per quarterly
TDS return filed by the employer.
Form 16 Part B: The Part B of Form 16 has the detail of salary paid during a
financial year. The Form mentions the break-up of the salary, deduction claimed,
total taxable income and tax deducted on such income.
Form 26AS: Form 26AS is an annual statement maintained under Rule ^31AB'
of the Income Tax Act disclosing the details of tax credit in a taxpayer's account
as per database of Income tax department. This credit will cover TDS, TCS and
tax paid by taxpayer in the form of advance tax, self-assessment tax etc.
Therefore, it can be concluded that Form 16 isaaTDS certificate (on salary) and
Form 26AS contains details about the tax that has been deducted/deposited with
tax department on behalf of taxpayer by any deductor.
Q. 3. What is the concept of Tax Deducted at Source? What are the different
types of forms for filing TDS Returns? What are the duties of the person
deducting tax at source? 12.5
Ans. Tax Deduction at Source: According to Income Tax Act, there are some
specified payments against which tax is to be deducted at the time of credit of
such income to the account of the payee or at the time of payment whichever is
earlier, which is called Tax Deducted at Source. Tax is being deducted by the
person who pays the money at prescribed rates and deposited with the
authorities within stipulated period.
Deductor: The person who deducts the tax.
Deductee: The person whose tax is deducted.
Payer: The person who makes the payment.
Payee: The person to whom payment is made.
Deductor and payer are the same person.
Deductee and payee are the same person.
The purpose of deduction of tax at source is to bring more persons in to the net
of Income tax. The rules for income tax deduction at source have been framed in
such a manner so that tax evasion can be controlled.
However, if the income of any person is not taxable and the tax has been
deducted at source, he can claim the refund against the tax deducted at source
from income tax department after filing the income tax return.
126 · SHIVDAS DELHI UNIVERSITY SERIES
Different types of forms for filing TDS Returns:
Forms for filing quarterly statements Form No. 24Q
(a) Statement of deduction of tax under
Section 192 & 192(1A).
(b) Statement of deduction of tax u/s 193 to 196D
S

Form No. 27Q
(i) In respect of the deductee who is a non
resident.
Form No. 26Q
(ii) In respect of all other deductees.
(c) Challan cum statement of tax deducted and Form No. 26QB
deposited as per section 194-1A to be filed within 30

days from the end of the month in which deduction
is made

S. No. Date of ending of quarter Due date (both for Government
of financial year deductor or any other deductor)
1
30th June 31st July of the financial year.
M
|
31st January of the financial year.

‫در‬
3 31st December
4 31st March 31st May of the financial year
Duties of person deducting tax at source:
(1) He shall obtain Tax Deduction Account Number and quote the same in
all the documents pertaining to TDS.
(ii) He shall deduct the tax at source at the applicable rate.
(iii) He shall pay the tax deducted by him at source to the credit of the
Government by prescribed due date.
(iv) He shall file the periodic TDS statements, i.e., TDS return by prescribed
due date.
(v) He shall issue the TDS certificate to the payee in respect of tax deducted
by him by prescribed due date.

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BASICSOF COMPUTATION OF INCOME TAX AND TAX LABILITY .

Secondary & Higher Education Cess @ 1% 425

Illustration 2: Mrs. Yogita Anand, aged 63 years, submitted the details of

Tax Payable" : 56,000

* Interest on Public Provident Fund account is not taxable..

33,00,001 to 5,00,000 2,00,000 5% 10,000

Particulars Amount (in 3

Dividend received (exempt) 20,000 0 68,000

Particulars Income (3) Tax Rate Tax Amt. (8)

From 2,50,001 To 5,00,000 2,50,000 5% 12,500

Profit from M/s R.S. Enterprises 38,162

Interest from Saving Bank Account 23,783

Life Insurance Premium paid 5,608

Amount deposited in PPF Account 1,50,000

South Indian Bank 3,008

Income from Business/Profession

Interest on PPF Account (Exempt) 68,272 0 4,53,825

TDS on Interest by M/s Rama Builders 25,080

Illustration 5: Mr.Abhishek Sati had the following income during financial

Illustration 6: Mr.Suresh Kumar had the following income during financi

Solution: COMPUTATION OF INCOME

Interest from Saving Bank Account 12,000 12,000 34,500

Life Insurance Premium paid 10,000

Medical Insurance Premium paid for

Net Tax Payable 7,875

Tax Payable 8,111

CALCULATION OF INCOME TAX

Solution: COMPUTATION OF INCOME

Interest on PPF Account (Exempt) 30,308 0

Interest from Security Deposit 6,437 6,437 6,437

Salary received from M/s Jay Associates (P) Ltd. 1,92,000

Amount deposited in PPF Account 1,50,000 1,50,000

Particulars Income (7) Tax Rate Tax Amt. (*)

Solution: COMPUTATION OF INCOME

Solution: COMPUTATION OF INCOME

Particulars Amount Amount Amount

4.1 Deductions cannot exceed Gross Total Income

4.2 U/S 80-C (For Individuals and HUF)

7. Contribution In Unit Linked Insurance Plan Of UTI/LIC Mutual Fund

4.3 U/S 80-CCC (Allowed for individual tax-payers)

4.4 U/S 80-CCD(1) (Allowed for individual tax-payers)

employee in his account under the notified pension scheme.

Income from business 6,50,000

4.6 Deduction u/s 80-D during Financial Year 2017-18

Mr. Y can claim following amounts as deduction in respect of medical

Clarification: Maximum amount of deduction during Financial Year 2017-18

4.7 Deduction in respect of Medical Treatment and Deposit

Dependent for this deduction means in case of individual, son, daughter,

is issued by medical officer who is authorized by the Central Government.

Total expenses incurred by Mr. X 85,000

4.9 Deduction in respect of interest on loan taken for higher

4.10 Deduction in respect of interest paid on loan taken for

4.12 Deduction in respect of rent paid during F.Y. 2017-18

(Allowed for Individuals only)

4.13 Donation to political parties during Financial Year

4.14 Deduction in respect of royalty income of authors

- 4.15 Deduction in respect of royalty income on patent during

4.16 Deduction in respect of interest received from saving