How to file ITR 3?

Income Tax Return Form 3 (ITR-3) is for individuals and HUFs who have income under the head “profits or gains from business or profession” and who are not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam). Electronic filing of the return has been made compulsory for taxpayers. However, in order to file the ITR, you need to be registered on the e-filing portal. The due date to file this return:

  • Non-audit cases is is 31st July of the next financial year
  • Audit cases is 30th September of the next financial year.

Who should file ITR-3?

The persons having income from following sources are eligible to file ITR 3 :

  • Carrying on a business or profession (both tax audit and non-audit cases)
  • Taxpayers registered under presumptive taxation scheme and having a turnover of more than 2 crore during the financial year
  • Individuals and HUFs who are partners in a firm but do not carry out business under proprietorship. Such income may include income from salary, bonus, commission, interest or remuneration from the partnership firm.
  • The return shall also include income from House property, Salary/Pension, capital gains and Income from other sources
ITR for Proprietors with Business Income
CA Assisted Income Tax Return filing for Individuals & HUFs with business income from Proprietary Firm.
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ITR for Proprietors with Business Income
CA Assisted Income Tax Return filing for Individuals & HUFs with business income from Proprietary Firm.
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How to file ITR 3?

A taxpayer has to compulsorily file ITR-3 online from the e-filing portal of the income tax department. The ITR-3 can be filed Online/Electronically:

  • Prepare ITR 3 offline using Tax Return Preparation Utility and submit it from your Login on Income Tax Website OR
  • Further, you can also prepare and submit it online using E-Return Intermediary (ERI) like Quicko.
  • You can furnish the return electronically under digital signature or by submitting the verification of the return in Form ITR-V/or E-verifying using other modes.
  • Once e-verified using digital signature you will receive the acknowledgement receipt on their registered email id.

Structure of ITR-3

Part/ Schedule Heading Fields
PART A- GENERAL Personal Information Name, Address, Date of Birth, PAN, contact details.
Filing Status Employer Category, Tax status, Residential status, Return filed under the section.
PART B-TI Computation of total income Total Income from all income sources, Losses of the current year set off, Gross Total Income, Deductions under Chapter VI-A.
PART B-TTI Computation of tax liability on total income The Bank Account details, Verification, and TRP details (if any) are to be provided. 
Schedule IT Details of Advance Tax and Self Assessment Tax Payments BSR code, Date of Deposit, Challan number, Tax Paid
Schedule TDS TDS-1: Details of Tax Deducted at Source from SALARY TAN of Employer, Employer Name, Tax Deducted, etc.
TDS-2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) & Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB) TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule TCS Details of tax collected at source TAN of the collector, Name of Collector, Tax Collected, etc.
Manufacturing Account Manufacturing Account for the financial year Fill in the opening inventory, purchases, direct wages, direct expenses, factory overheads and closing stock.
Trading Account Trading Account for Financial Year Fill up the details of Trading Account for the financial year
such as Sales/Gross receipts of business/profession, duties, taxes and cess, etc. Further, in respect of supplies, closing stock and opening stock of finished goods, purchases, direct expenses, duties/taxes etc.
P&L Profit and Loss Account for the financial year
In case you were required to maintain regular books of accounts for the proprietary business or profession, please fill up details at item No. 13 to 60. In case you are not required to maintain regular books of accounts, please fill up details at item No. 61-65 falling into respective income sections
Balance-sheet Balance Sheet as on 31st day of March Balance Sheet of the business or profession as on 31st March of the FY in respect of the proprietary business or profession
carried out. I t shall include: Creditors, Debtors, Bank balance, Fixed Assets, etc.
Schedule OI Other Information Part A-OI, contains details of allowances & disallowances under Income tax act. Fill up the information of items which are applicable.
Schedule QD Quantitative details In Part A-QD, the quantitative details of trading and manufacturing account are required to be furnished in respect of principal items.
Schedule S Details of Income from Salary Name and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc.
Schedule HP Details of Income from House Property Details of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.
Schedule BP Computation of income from business or profession Income chargeable under the head ‘Profits and gains of business or profession’ is computed starting from the net profit before taxes arrived at in the profit and loss account
Schedule DPM Depreciation on Plant and Machinery(Other than assets on which full capital expenditure is allowable as deduction under any other section)  It provides for computation of depreciation admissible under the
Income-tax Act for the year in respect of plant and machinery
Schedule DOA Depreciation on other assets Computation of depreciation admissible under the
Income-tax Act for the year in respect of other category of assets – land, building, furniture and fittings, intangible assets and ships.
Schedule DEP Summary of depreciation on assets It contains a summary of depreciation admissible under the
Income-tax Act for the year in respect of all category of assets
Schedule CG Income from Capital Gains Details about the Short term and Long term Capital gains, Sales consideration, Cost of Acquisition, Deductions under Section 54, 54B, 54EC, 54F, 54GB.
Schedule OS Income from Other Sources A dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games.
Schedule CYLA Details of income after set­off of current year losses Details of current year losses and its Inter Headset off
Schedule BFLA Details of income after Set off of Brought Forward Losses of earlier years Details of brought forward losses set off against current year’s income, total brought forward losses set off.
Schedule CFL Details of Losses to be carried forward to the future years Total of earlier year losses, current year losses, Total of carried forward to future years.
Schedule VI-A Deductions under Chapter VI-A Deductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA.
80G Details of Donations Name of Donee, Address, City or District, State Code, PAN of Donee, Amount.
Schedule SPI The income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of INR 1500 per child, to be included) Name and PAN of Person, Relationship, Nature of Income, Amount.
Schedule SI Income chargeable to income tax at special rates Description of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon.
Schedule EI Details of Exempt Income (Income not to be included in Total Income) Interest income, Dividend, Agricultural Income.
Schedule PTI Details of Income from Business Trust or Investment Fund  Details of Income earned from Business Trust or Investment Fund as per section 115UA, 115UB. 
Schedule FSI Details of Income from outside India and tax relief A country, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A
Schedule TR Summary of tax relief claimed for taxes paid outside India Details of tax relief claimed
Schedule 5A Information regarding the appointment of income between spouses governed by Portuguese Civil Code Name and PAN of a spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details.
Schedule FA Details of Foreign Assets and Income from any source outside India Details of foreign bank accounts, financial interest in any entities, Immovable Properties, Other Capital Assets.
Schedule AL Details of Assets and Liabilities Details of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP.
ITR for Equity, Intraday and F&O Traders
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FAQ

Can we file ITR 3 without balance sheet?

If you have business income, you need to fill Business head income(BP), Balance Sheet, Trading Account, Profit and Loss Account, Quantitative Details, Depreciation (If claimed), Deductions Chapter VI-A, Tax paid, TDS, etc. You need to check which schedules are applicable to you and fill the requisite data in it.

Is quoting of Aadhaar Number mandatory?

Yes, it is mandatory to mention the Aadhaar number in the return of income or Aadhaar Enrolment ID if applied for.

How can I download ITR 3 utility?

Follow below steps to download ITR Utility:
1. Visit Income Tax E-filing Portal
2. Go to “Income Tax Return Preparation Utilities”.
3. Select your Assessment Year.
4. Download the utility (Excel/Java)

Where do we give disclosure of unexplained income and Dividend Income?

New fields have been inserted in schedule ‘Other Sources’ to declare unexplained credit or investment and dividend received from domestic companies. Further, such persons cannot opt for ITR 1 Sahaj.

Union Bank of India: Net Banking Registration, Login, Reset Password, Download Bank Statement, Tax Payment & e-verify ITR

Union Bank of India is one of the leading public sector banks in India. The government of India has a holding of 89.07% of banks total share capital. With network of 9500+ domestic branches, the bank also has 13300 + ATMs, 75000+ employees and has a 120 million customer base. Moreover, the bank also has three overseas branches in Hong Kong, Dubai and Sydney. Recently in 2020, Andhara Bank and Corporation Bank merged into Union Bank of India.

The Government of India has built an infrastructure which will help in smoothening the tax filing and compliance process online via net banking login from selected banks such as by Union Bank of India net banking. This article will guide you in the following:

How to Register for Union Bank of India Internet Banking?

You can activate Internet banking service on your Union Bank of India account by following these steps:

  • Step 1: Visit Union Bank of India website
  • Step 2: From the top bar, select Digital > Internet Banking
  • Step 3: Select Internet banking again. A new tab will be opened.
  • Step 4: From the top bar, select Download application forms > Internet banking application
  • Step 5: The form will look like the following:
  • Step 6: Lastly, fill out this form and submit to your nearest Union Bank of India Branch. You will receive an user id once your form will get processed.

How to Login to Union Bank of India Internet Banking?

Once you receive your user id, here’s a guide on how to login by following these steps:

  • Step 1: Visit Union Bank of India website
  • Step 2: From the top bar, select Digital > Internet Banking
  • Step 3: Select Internet banking again. A new tab will be opened.
  • Step 4: On the right side column, select Retail user login
  • Step 5: Mention your user id, verification code, password and OTP (sent to your registered mobile number).
  • Step 6: Finally, you will be logged in and now will be able to use the Internet banking services.

How to Reset net banking login using Forgot Password?

Here’s how you can reset your Internet banking password:

  • Step 1: Visit Union Bank of India website
  • Step 2: From the top bar, select Digital > Internet Banking
  • Step 3: Select Internet banking again. A new tab will be opened.
  • Step 4: On the right side column, select Forgot/Reset password
  • Step 5: Mention your user id, account number, DOB, verification code and click on continue
  • Step 6: Enter an amount from your past 5 bank transactions for security purpose
  • Step 7: Lastly, you will get an option of Set new password. Confirm the new password. Click on confirm.
  • Step 8: Your Internet banking password will be changed.

How to Download account Statement?

Here’s how you can download the account Statement:

  • Step 1: Visit Union Bank of India website
  • Step 2: Login to you Internet Banking
  • Step 3: From the top bar, select Accounts > Balance & Transaction info > Account summary.
  • Step 4: Click on your account number mentioned
  • Step 5: You will be able to see your transaction history
  • Step 6: Additionally, You can select the date range and transaction type based on your requirement.
  • Step 7: Lastly, on the bottom left, there will be an option of PDF. Click on that and your statement will be downloaded.

How to make Direct Tax Payment through net Banking Online?

The Income Tax department has built an infrastructure to collect taxes online via net banking/ Debit cards from selected banks. You can pay your direct taxes online using your Bank Account by following these steps:

  • Step 1: Visit the TIN-NSDL portal and hence, click on Services > e-Payment: Pay Taxes Online
  • Step 2: Select the necessary challan as per your tax liability. Click on Proceed. Select the necessary challan by reading the following:
    • TDS/TCS SectionTax Deducted at Source (TDS) and Tax Collected at Source (TCS) section refers to as:
    • Any tax collected while making any specified payments such as rent, commission, salary, interest, etc.
    • Any tax collected by the seller at the time of sale
    • If you have paid TDS or collected TCS then you need to look for challans under TDS/TCS Section
TDS Calculator
TDS (Tax Deducted at Source) is a part of Income Tax. TDS should be dedcuted by a person for specific payments made.
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TDS Calculator
TDS (Tax Deducted at Source) is a part of Income Tax. TDS should be dedcuted by a person for specific payments made.
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  • Non-TDS/TCS Section- Challans that are not regarding TDS or TCS are found under Non- TDS/TCS Section. Any type of Tax that doesn’t involve TDS or TCS has to be paid by challans mentioned under the Non- TDS/TCS Section.
    • Challan 280 of the Income Tax Department- Challan 280 is a much easy way to pay your advance tax, regular assessment tax, self-assessment tax, Surtax, etc. online in a few simple steps.  
  • Step 3: Enter the required details
    • Type of Tax Applicable
    • Type of Payment
    • Mode of Payment (Net Banking or Debit Card)
    • Select the name of the Bank from a drop-down
    • PAN Number
    • Assessment year
    • Address
    • Email id
    • Phone number

Enter the captcha code and click on Proceed.

  • Step 4: Finally, your challan has been created. Verify the details inserted. Check the Tick box click on Submit to the bank.
  • Step 5: You will be redirected to the Union Bank of India portal. Select the type of user and click on the mentioned link.
  • Step 6: Lastly, Log in to your Account and verify Challan details. Click on Continue.
  • Step 7: Enter the OTP received on the registered mobile number to complete the transaction.

How to e-verify ITR using net Banking?

The process of filing your Income Tax Return is not complete until you e verify your ITR. E-Verification should happen within 120 days of e-filing your ITR.

Here’s the step-by-step process to e-verify ITR using net banking:

  • Step 2: Subsequently, click on the “View Returns/Forms” option
  • Step 3: Click on the “Returns pending for e-Verification” option
  • Step 4: Next, click on the option to e verify the ITR
  • Step 5: Generate an EVC through Net banking
  • Step 6: Select the Union Bank of India option and log in using the net banking credentials
  • Step 7: Click on ‘Income Tax e-Filing’ in the Operating Account Section
  • Step 8: Finally, enter your Account Number & PAN with which you want to e verify ITR. After this click on the Submit button
  • Step 9: Click on “Login into e-Filing
  • Step 10: Lastly, You will be redirected to the income tax e-filing portal where a pop-up message will appear. Click on the option to continue

Your ITR is successfully verified and you can download an attachment.

Track Your ITR Status
Check your Income Tax Return Status using the PAN and Acknowledgment number - which is allocated by the Income Tax Department after filing your ITR.
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Track Your ITR Status
Check your Income Tax Return Status using the PAN and Acknowledgment number - which is allocated by the Income Tax Department after filing your ITR.
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FAQs

When can I download account statement using net banking for ITR filing?

You will require your Bank statement pdf for a particular financial year. The financial year begins on 1st April and ends on 31st March.
Example: if you are filing the ITR for the FY 2019-20 you need a bank statement from 1st April 2019 to 31st March 2020.
This Bank statement will represent all the incomes, expenditures and undertaken financial activities.

What are the documents required from my Union Bank account to file Income Tax Return?

To file your ITR you will need your Bank Account Statement from your Bank’s Net banking Account for the financial year.

What are the ways to make e-Payment of taxes through Union Bank?

The facility provides a platform for taxpayers to pay Income Tax payments online. You can use either Net banking login or through your Union Bank debit card.

SFT – Statement of Financial Transaction

Statement of Financial Transaction – SFT consists of certain specified financial high-value transactions undertaken by citizens that the Government proposes to track, with an intent to curb black money and widen the tax base in India.
The Government of India requires certain specified persons and entities to report high-value transactions undertaken by citizens to the Income Tax department.
Such specified persons were required to submit ‘Annual Information Return (AIR)’ introduced in 2003 with respect to specified financial transactions under Section 285BA.

What is SFT?

SFT is a report of specified financial transactions specified persons need to submit to the to the income tax authority or such other specified authority or agency.

Also, as per section 285ba of Income Tax Act, specified persons who need to register, maintain or record such specified financial transaction are under an obligation to submit SFT.

Specified transactions required to be reported in SFT or Statement of Financial Transaction

Financial transaction under Section 285BA are as follows:

  • Transaction of purchase, sale or exchange of goods or property or right or interest in a property; or
  • The tansaction for rendering any service; or
  • Transaction under a works contract; or
  • Any transaction by way of an investment made or an expenditure incurred; or
  • Transaction for taking or accepting any loan or deposit

Specified persons required to report such transactions

Following persons shall be required to furnish statement of financial transactions or reportable accounts registered or recorded or maintained by them during a financial year to the prescribed authority:

  • An assessee;
  • The prescribed person in the case of an office of Government;
  • A local authority or other public body or association;
  • The Registrar or Sub-Registrar appointed under the Registration Act, 1908;
  • The registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988;
  • The Post Master General as referred to in section 2 of the Indian Post Office Act, 1898;
  • The Collector referred to in section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013;
  • The recognised stock exchange referred to in section 2 of the Securities Contracts (Regulation) Act, 1956;
  • An officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934;
  • A depository referred to in section 2 of the Depositories Act, 1996 (22 of 1996); or
  • A prescribed reporting financial institutions
  • A person, other than those referred to in clause (a) to (k), as may be prescribed.

When the transactions are required to be reported?

Section 285BA authorizes CBDT to prescribe values for specified financial transactions.
Moreover, based on such specified value of different nature of transactions, specified persons need to report the same in SFT.
The nature and value of transactions prescribed by CBDT via Rule 114E is given below:

Sr No Nature of transaction to be reported Monetary Threshold limit Specified person required to submit SFT
1

Cash payment for purchase of bank drafts or pay orders or banker’s cheque

Payments in cash for purchase of pre-paid instruments issued by Reserve Bank of India

Cash deposits or Cash withdrawals from one or more current account of a person

Aggregating to INR 10 lakh or more in a FY

Amount aggregating to INR 10 lakh or more during the FY 

 

Aggregating to INR 50 lakh  or more in a FY

A banking company or Co-operative bank to which Banking Regulation applies

2

Deposits in one or more accounts other than a current account and time deposit of a person Aggregating to INR 10 lakh or more in a FY A banking company or Co-operative bank to which Banking Regulation applies
Post-Master General of post office
3 One or more time deposits (other than renewed time deposit of another time deposit) of a person Aggregating to INR 10 lakh or more in a FY

(i) A banking company or a co‑
operative bank

(ii) Post Master General

(iii) Nidhi Company

(iv) Non-banking financial company

4 Credit card payments made by any person either in cash or by any other mode in a FY. Aggregating to INR 1 lakh or more in cash or INR 10 lakh or more by any other mode in a FY A banking company or Co-operative bank to which Banking Regulation applies or any other company or institution issuing credit card
5 Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than renewal) Aggregating to INR 10 lakh or more in a FY A company or institution issuing bonds or debentures
6 Receipt from any person for acquiring shares (including share application money) issued by the company Aggregating to INR 10 lakh  or more in a FY Any company issuing shares
7 Buyback of shares from any person (other than the shares bought in the open market) Aggregating to INR 10 lakh  or more in a FY Listed company purchasing its own securities under section 68 of the Companies Act, 2013
8 Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than transfer from one scheme to another) Aggregating to INR 10 lakh or more in a FY A trustee of a Mutual Fund or any such other person authorized to manage the affairs of the Mutual Fund
9 Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travelers cheque or draft or any other instrument Aggregating to INR 10 lakh or more during a FY Authorized person as referred in the Foreign Exchange Management Act, 1999
10 Purchase or sale of immovable property Transaction value or valuation of stamp duty authority referred in Section 50C for an amount of INR 30 lakhs or more. Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act.
11 Cash receipt for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10) Exceeding INR 2 lakh Any person who is liable for audit under section 44AB of the Act
12 Cash deposits during the period 09th November, 2016 to 30th December, 2016 Aggregating to INR 12,50,000 or more in one or more current account of a person or INR 2,50,000 or more in one or more account (other than current account) of a person A banking company or Co-operative bank to which Banking Regulation applies
Post Master General of post office
13 Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable under Sl.No.12.   A banking company or Co-operative bank to which Banking Regulation applies
Post Master General of post office

Aggregation rule

As it can be seen from the above monetary threshold for specified financial transaction except SI No 10 and 11, aggregation is required to analyze if monetary threshold is being crossed. While aggregating the amount, the following shall be noted:

  • All accounts of the same nature in respect of that person during the Financial Year shall be taken into account
    • For eg: If Mr. Z has two current accounts and deposited amount of INR 10 lakh each, in order to check monetary threshold of INR 20 lakh, amount in both savings account need to be aggregated
  • All transactions of the same nature in respect of that person during the FY shall be aggregated
    • For eg: If Mr. Y has purchased shares for a value of INR 15 lakhs in October in a FY also INR 7 lakhs in November of the same FY, value of both shares need to be aggregated to check monetary threshold of INR 22 lakhs
  • In a case where the account is maintained or transaction is recorded in the name of more than one person like joint account, attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons
    • For eg: In case Mr. Y and Mr. Z holds two joint savings account of INR 8 lakhs and INR 12 lakhs, aggregation of INR 20 lakhs is attributed to both Mr. A and Mr. B separately to check for monetary threshold

Forms to be used for furnishing SFT

The statement of financial transaction shall be furnished electronically (under digital signature) in Form 61A to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation).

However, Post Master General or a Registrar or an Inspector General may furnish Form 61A in a computer readable media being a Compact Disc or Digital Video Disc (DVD), along with the verification in Form-V on paper.


What is the Procedure to Submit SFT?

SFT shall be submitted through following procedure:

  1. Generate New ITDREIN

    Log in on e-filing portal and go to My Account> Manage ITDREIN (Income Tax Department Reporting Entity Identification Number)
    Select form type and Reporting entity category and click on ‘Generate ITDREIN’
    Based on this selection, appropriate ITDREIN will be generated and confirmation email and SMS will be sent to registered email id and mobile number respectively
    ITDREIN generated will now appear under My Account>Manage ITDREIN

  2. Prepare Form

    Go to e-file>Upload Form ‘xxx’ (appropriate Form No appears based on the selection made during registration)
    Verify/enter PAN, Form Name, FY, Reporting entity category, Half year, upload type i.e., whether original/correction form /Nil statement

  3. Upload the file

    On successful validation of above details, upload the file along with digital signature certificate

Success message will be displayed on the screen on successful uploading and confirmation email and SMS will be sent to registered email id and mobile number respectively

Uploaded file may be either ‘accepted’ or ‘rejected’. In case of rejection, reason for rejection would be mentioned and correction form shall be submitted through above procedure

Due date of furnishing SFT

The statement shall be furnished on or before 31st May immediately following the financial year in which the transaction is registered or recorded.

Information under SI No. 12 and 13 in the Table being related to demonetization period, the due date was 31 January 2017
Tip
Information under SI No. 12 and 13 in the Table being related to demonetization period, the due date was 31 January 2017

Inaccurate or defective statement of financial transaction

If any person, after filing the statement, comes to know or discovers any inaccuracy in the information provided in the statement, he shall inform such inaccuracy to the prescribed income-tax authority within a period of ten days and furnish the correct information.

On the other hand, the prescribed income-tax authority may also intimate the defect to the person and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such extended period as may be allowed by prescribed income-tax authority.

Non-furnishing of statement of financial transaction or reportable account will attract penalty under section 271FA. Penalty can be levied of Rs. 500 per day of default

In case of non-furnishing of SFT within due date, the prescribed income-tax authority may serve notice upon such person requiring him to furnish SFT within a period not exceeding 30 days from the date of service of such notice and he shall furnish the statement within the time specified in the notice.

If person fails to file the statement within the specified time, then a penalty of INR 1,000 per day will be levied from the day immediately following the day on which the time specified in such notice for furnishing the statement expires.

FAQs

What is the remedy available if inaccurate information is submitted in the SFT?

If any person, after filing the statement, comes to know or discovers any inaccuracy in the information provided in the statement, he shall inform such inaccuracy to the prescribed income-tax authority within a period of ten days and furnish the correct information.

What if SFT is not rectified within the due date as mentioned in the intimation sent by concerned income-tax authority for defects in SFT?

If defect is not rectified within such period, such statement shall be treated as invalid and consequences of non-furnishing of SFT shall apply

Is it mandatory to file nil return also?

Nil Statement is not mandatory but to stay on the safer side an assessee should consider filing the SFT (Statement of Financial Transactions).

Form 10E Filing Procedure

What is Form 10E?

Form 10E is a form to be submitted on Income Tax e-filing portal to claim relief under Section 89 for any salary arrears or advance salary received during a financial year. It gives relief to the taxpayer arising due to the timing difference of the receipt of the income. Tax Rates keep on changing every financial year and therefore the income shall be taxed at the rate applicable when it was earned and not at the rate when it is received. The Form 10E filing procedure is to be carried out on the new e-Filing portal.

Who shall file Form 10E?

An individual has to submit Form 10E if he/she has received the following income during any previous financial year:

  • Arrears of Salary
  • Family Pension in arrears
  • Advance Salary
  • Gratuity
  • Compensation on termination of employment

Form 10E Filing Procedure on e-Filing Portal

Follow the procedure mentioned below to complete the Form 10E filing process

  1. Login to your account

    Login to your e-filing account using valid username and password

  2. File Income Tax Returns

    On your Dashboard, click e-File > Income tax forms > File Income Tax Forms

  3. Search Form 10E

    On the File Income Tax Forms page, select Form 10E. Alternatively, enter Form 10E in the search box to file the form

  4. Assessment Year

    Select the appropriate assessment year and click on continue

  5. Required Sections

    Click on lets get started and you will move to the next page. Select the applicable items regarding particulars of income and click on continue

  6. Preview details

    After entering all the details, click on the preview option

  7. e-Verify the Form

    On the next page, click on the proceed to e-verify option. After successful e-Verification, a success message is displayed along with a Transaction ID and Acknowledgement Receipt Number. An email confirming successful submission of your form is sent to the email ID and mobile number registered with the e-Filing portal

Ask an Expert (Income Tax)
Need help to file Form 10E? Talk to an expert
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Ask an Expert (Income Tax)
Need help to file Form 10E? Talk to an expert
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Consequences of not filing Form 10E

  • Relief under Section 89 claimed in income tax return will be disallowed by the IT Department
  • Receive a notice from IT Department for such non-compliance

FAQs

When to file Form 10E?

Form 10E is required to be filed before filing ITR to claim the relief mentioned in the return.

What if Form 10E not filed?

In case of Form 10E is not filed, relief will be disallowed and you may receive a notice from the Income Tax Department for such non-compliance.

How do I get my 10e form online?

-Open the Income Tax Department Website and Log on using your PAN and Password
-From “E-File” select Income Tax Forms from the menu.
-Select “Form 10E”- Click on Form for Relief u/s 89 from the drop-down menu. Select your relevant Assessment Year and Submission mode.
-Under the Form 10E heading, you can view your details like Name, PAN, Address, etc. Select “Residential Status” from the drop-down menu.
-Select the relevant Annexure.
-Verify the Form. Click on “Review and Submit”.
-You can download the PDF copy. If need be, you can also edit to click on “Edit” to make changes to the form.

Where do I send my 10E income tax form?

Form 10E has to be filed online via the Income Tax Department website. However, Taxpayers who claimed relief in the previous FY but were not able to file the Form 10E receive a notice from the Income Tax Department for non-compliance.

Form 10BA : Claim Deduction under section 80GG

What is Form 10BA?

Form 10BA is a declaration to be filed by a taxpayer who wants to claim deduction under section 80GG for rent paid on rental property. In order to claim deduction u/s 80GG following two conditions should be satisfied:

  1. ​The taxpayer should not be receiving HRA from an employer AND,
  2. ​The taxpayer, his spouse, minor child or if the assessee is a member of HUF, then the HUF should not own any self-occupied residential accommodation.

If both the above conditions are satisfied, then the taxpayer can submit a declaration in Form 10BA. A taxpayer should submit Form 10BA before filing ITR.

Other important ITR documents include: Form 16, Form 26AS, Form 12BB, Form 15G & Form 15H.

  • Taxpayer’s Name and PAN,
  • Address of rental property,
  • Rent paid,
  • Name and Address of Landlord.
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Example

During FY 2019-20, Arun was employed for the first 6 months and after that, he started doing freelancing work. Arun stayed at rented premises during the entire year. During his employment he received HRA. He does not own any self-occupied house property.

In the above scenario, Arun is eligible to claim deduction under section 80GG and can file Form 10BA for the last 6 months’ rent paid by him. Since he was not receiving any house rent allowance during that time and he did not own any self-occupied property.

How to submit Form 10BA?

A taxpayer has to submit the form online from his/her e-filing account on IT Department website.

  1. Go to the Income Tax e-Filing Portal

    Log in to the e-filing account from the e-filing portal.

  2. Navigate to e-file > Income Tax Forms

    It is right next to the My Account tab.

  3. Select FORM NO. 10BA from the drop-down, select the relevant Assessment Year

    Select Submission Mode as Prepare and Submit Online and click Continue.

  4. Enter the details like Name of Landlord, Details of Rent Paid etc.

    Preview and submit

What are the details required in Form 10BA?

Following details are required:

It is advisable to submit Form 10BA before filing income tax return and claiming deduction under section 80GG.

FAQs

Can I claim a deduction on rent paid if House Rent Allowance forms part of my salary?

No. As per primary conditions, you can not claim a deduction on rent paid if you receive an allowance from your employer. In this case, only HRA is allowed as deduction.

I am a freelance and I stay in rented premises, can I claim a deduction under section 80GG and file Form 10BA?

Yes, you can file Form 10BA. Provided you, your spouse, a minor child or your HUF does not own any self-occupied residential accommodation.

When can I claim deduction under section 80GG?

You can claim deduction u/s 80GG while filing your ITR. However, Form 10BA needs to be filed before filing ITR.

Income Tax Form 15G and 15H

What is Form 15G/15H?

Form 15G/ 15H is used to make sure that TDS is not deducted from your income if you meet certain conditions as mentioned below. You can submit these forms to the deductor who deducts TDS on your income.

The best use case is that of Banks. Banks deduct TDS @ 10% if your interest income from deposits exceeds INR 10,000 (INR 50,000 in the case of senior citizens). If your total income is not taxable then you can submit the Form 15G /15H to banks so that they don’t deduct TDS from your interest income. Some of the banks provide the facility to upload Forms online through their website as well.

Form 15H is for senior citizens who are 60 years or elder and Form 15G is for a non-senior citizen. It is to be filed every financial year at the beginning of the year.

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What are the conditions for filing Form 15G/ 15H?

Below are the conditions for filing Form 15G:

  • Your age is less than 60 years,
  • ​You are a Resident Individual or HUF,
  • Tax Calculated on your Total Income is zero,
  • Total Interest income is less than the basic exemption limit of that particular year.

The conditions for filing Form 15H are the same as above except the condition that their age should be of 60 years or above.

Age of the individual Basic Exemption Limit (INR)
Below 60 2,50,000
Between 60 and 80 3,00,000
More than 80 5,00,000
From FY 2020-21 onward TDS will be deducted @10% on Dividend Income above INR 5,000. Treaders can submit Form 15G/Form 15H to the deductor to avoid TDS Deduction.
Tip
From FY 2020-21 onward TDS will be deducted @10% on Dividend Income above INR 5,000. Treaders can submit Form 15G/Form 15H to the deductor to avoid TDS Deduction.

Let’s take an example to understand better:

 

Particulars

Anjana

Rahul

Gautam

Pravin

Age

25

50

70

65

Residential Status

Resident of India

Resident of India

Non-Resident of India

Resident of India

Salary Income / Pension Income

2,70,000

0

0

1,50,000

Interest Income

10,000

2,60,000

85,000

20,000

Total Income

2,80,000

2,60,000

85,000

1,70,000

Deduction under Section 80

40,000

50,000

0

0

Total Taxable Income

2,40,000

2,10,000

85,000

1,70,000

Basic Exemption Limit

2,50,000

2,50,000

3,00,000

3,00,000

Form 15G/15H eligibility

Yes

No

No

Yes

Reason

Anjana can submit Form 15G Since the tax calculated is zero and interest income is less than the basic exemption limit

Rahul cannot file Form 15G. Even Though the tax calculated is zero because his interest income exceeds the basic exemption limit (INR 2,50,000)

Gautam cannot file Form 15H since he is not a resident Indian 

Pravin can file Form 15H since his tax calculated is zero and interest income is less than the basic exemption limit (INR 3,00,000)  

How to file Form 15G & Form 15H?

Form 15G/ Form 15H is used to make sure that TDS is not deducted from your income. If your tax liability for a year is zero then you can file these forms with the deductor. These can be filed in the following two manners:

1. Physical Submission

  • You can Download Form 15G/ 15H
  • Fill the form and submit it to the deductor in paper form.

2. Online Submission

  • Go to the website of the deductor i.e, Bank’s website.
  • Log in to your account,
  • Fill the Form 15G/ 15H and submit.

Details required

  • PAN
  • Residential Status
  • Address Details
  • Contact Information
  • Estimated Income Details
  • Previously Filed Form 15G/ 15H Details

When should Form 15G / Form 15H be submitted?

The forms should be submitted for the following income source when TDS is deducted on:

  • EPF withdrawal: TDS is deducted when you withdraw from the EPF account before 5 years of continuous services. So if you have not completed 5 years of service and you are planning to withdraw your EPF balance for more than INR 50,000 (Effective from 1st June 2016. Earlier the limit was INR 30,000), you can save yourself from TDS by submitting Form 15G /15H.
  • Rent: If your rental income for a year exceeds INR 2,40,000 (INR 1,80,000 till FY 2018-19), TDS is deducted by the tenant. However, if your total income including rent is not taxable then you can submit Form 15G / 15H to the tenant to save yourself from TDS deduction.
  • Interest income from FDs with Banks / Post office: If your total income including the interest from deposits is not taxable, you can submit Form 15G / 15H to the Banks /Post office, requesting them not to deduct the TDS from your interest income.
  • Corporate Bonds: If your interest income from corporate bonds is more than INR 5000 then TDS is to be deducted from the same. You can submit form 15G / 15H to the issuer asking him not to deduct the TDS.
  • Insurance Commission: Earlier if the insurance commission earned by the agent exceeded Rs. 15,000 then TDS used to get deducted from it. But from FY 2017-18 insurance agents can also submit Form 15G/ 15H for non-deduction of TDS if the tax on their total income is zero.
  • Dividend Income: Earlier there was no TDS on Dividend Income due to DDT (Dividend Distribution Tax). But from FY 2020-21, TDS @ 10% will be deducted on dividend income if it is more than INR 5,000. However, a trader can submit Form 15G/ 15H for non-deduction of TDS if the tax on their total income is zero.

FAQs

Do I have to submit Form 15G / 15H to all the branches of the bank where I have deposits?

Yes, you will have to submit Form 15G / 15H to all the bank branches where you have deposits.

Can NRIs file Form 15G / 15H?

No. Form 15G / 15H can only be filed by an Indian Resident.

Can HUF file Form 15G / 15H?

Yes. If the HUF meets all the conditions mentioned above, then it can submit Form 15G / 15H to the deductors.

Will my interest income become tax-free if I file Form 15G/ 15H?

No. Submission of Form 15G/ 15H does not mean that your income is tax-free. It only means no TDS will be deducted on such income by the deductor. You still need to show the same as income while filing your ITR.

When to submit Form 15G/ 15H?

Form 15G/15H needs to be submitted at the beginning of the financial year. Thus the deductor shall not deduct TDS while filing quarterly TDS returns during the year.

Who can submit Form 15G?

Any resident Individual/HUF who is not a senior citizen can file Form 15G to the deductor if their total income is less than INR 2,50,000.

Who can submit Form 15H?

Any resident Individual/HUF being a senior citizen can file Form 15H to the deductor if their total income is less than INR 2,50,000.

AY 2021-22 ITR 1 SAHAJ Form – Salaried Individuals

What is ITR 1?

ITR 1 is the simplest one-page Income Tax Return Form for individuals having income from Salary / Pension, One House Property, and income from other sources. It is the basic ITR Form.

ITR 1 Form for AY 2021-22
Download the latest ITR 1 form for AY 2021-22
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ITR 1 Form for AY 2021-22
Download the latest ITR 1 form for AY 2021-22
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Up to FY 2018-19 (AY 2019-20), it was not mandatory to file Income Tax Return if the total income was less than the basic exemption limit. However, Budget 2019 inserted the seventh proviso to Section 139(1). As per this new provision, if a taxpayer has entered into high-value transactions, it is mandatory to file the ITR even if the total income does not exceed the basic exemption limit. The high-value transactions can be either of the following:

  1. If the taxpayer has deposited more than INR 1 Cr in a current account
  2. If the taxpayer has incurred foreign travel expense of more than INR 2 lacs
  3. Or, if the taxpayer has incurred electricity expense of more than INR 1 lac
Upload Form 16
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Who can file ITR 1 Form?

Any individual whose total income does not exceed INR 50 lakh and includes:

  • Salary / Pension Income.
  • Income from one House Property (If there is a brought forward loss from previous years, ITR-1 cannot be filed).
  • Income from Other Sources (excluding winning from Lottery and Income from racehorses).

In case the income of a spouse or minor child is clubbed with the taxpayer’s income then they can file it only if their clubbed incomes include the above categories.

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Who can not file ITR 1 Form?

It should not be used by Non-Resident of India (NRI) and the individuals whose total income includes:

  • Income from multiple House Property
  • Income from winnings from lottery or income from racehorses
  • Capital Gains Income (short term and long term Capital Gains from the sale of house, plot, shares, etc.)
  • Agricultural income exceeding INR 5000/-
  • Income from Business and Profession
  • Resident individual having
    • Any asset (including financial interest in any entity) located outside India or
    • Signing authority in any account located outside India
  • Individuals claiming relief of Foreign Tax paid or Double Taxation Relief under section 90/90A/91.
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List of Documents Required to File ITR 1

Before you start working on your ITR, you should have the following documents handy:

Essential documents

Additional Documents

  • Salary Income
    • Form-16 or Salary slips received from your employer and
    • Pension statement/passbook.
  • House/Property Income
    • Address of the property,
    • Co­owner details in case the property is co­owned,
    • In case of house/property loan Interest certificates/repayment certificate from a bank,
    • In case of let out property ­Rent agreement
  • Other sources
    • Savings/current account statements/Passbook
    • Interest certificates for deposits/bonds/NSC
    • PPF account statement/Passbook
    • Dividend warrants/counterfoils
    • Rent agreement in case of let out machinery
    • Details about receipts of any other incomes

Income Tax Return Form – ITR 1

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Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Major Changes in ITR 1 for AY 2021-22

  • Taxpayers are given the option to choose between the old tax regime and the new tax regime
  • Dividend Income has to be added with a quarterly breakdown for accurate calculation of Interest under Section 234C

Major Changes in ITR 1 for AY 2020-21

  • The individual taxpayers who meet the following criteria:
    • Make cash deposits above INR 1 Crore with a bank,
    • Incur expenses above INR 2 Lakh on foreign travel or,
    • Spend above INR 1 Lakh on electricity should also file ITR 1
  • Condition of the individual having income from salaries, one house property, other income, and having total income up to INR 50 Lakh continues
  • Resident individuals owning a single property in joint ownership can also file ITR 1 where the total income is up to INR 50 Lakh
  • Taxpayers should separately disclose the amount of the investment or deposits or payments towards tax saving made from 1 April 2020 until 30th June 2020
Income Tax Calendar
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Income Tax Calendar
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Major Changes in ITR 1 for AY 2019-20

  1. The Income Tax Return form for FY 2018-19 is not applicable to an individual who is either a director of a company or has invested in unlisted equity shares
  2. Under Part A, there is an introduction of ‘Pensioners’ checkbox under the ‘Nature of employment’ section.
  3. The Return filed under section has been segregated between normal filing and filed in response to notices.
  4. Segregation of Deductions under salary will into standard deduction, entertainment allowance, and professional tax.
  5. The taxpayers will have to provide income-wise detailed information under the ‘Income from other sources’.
  6. Introduction of a separate column under ‘Income from other sources’ for deduction u/s 57(iia) – in case of family pension income.
  7. Deemed to be let out property’ option now available under ‘Income from house property
  8. Inclusion of Section 80TTB column for senior citizens.

FAQs

Can Non-Resident of India (NRI) file ITR 1?

No. NRI can file any other ITR form depending upon the source of income earned by them in India. ITR 1 can only be filed by an Ordinary Resident of India.

Do I need to submit supporting documents along with ITR 1?

It is an annexure less form. Hence no need to send any supporting documents to the IT Department.

Can I file ITR 1 if I have multiple Form 16?

Yes. Any resident individual who has earned income from salary during the financial year can file ITR 1. Change in employment does not affect the ITR form type.

Can I file ITR 1 without Form 16?

Yes. A taxpayer can file ITR 1 without Form 16. However, he needs to calculate his taxable salary income for a financial year while filing ITR.

Is it mandatory to provide bank account details in Income Tax Return?

Yes. It is mandatory to provide active bank account details. You are also required to select one account as your primary account. Since your refund will be directly issued to your Bank Account vis ECS.

Can I file a return after the Due Date?

Yes. You can file a ‘Belated Return’ after the due date. You can file a belated return before the end of Assessment Year or before the completion of the assessment whichever is earlier. Late filing fees as per section 234F will also be levied.

Can I file exempt income in ITR-1?

Yes, you can file exempt income in ITR 1. However, if agriculture income exceeds INR 5000 then you will have to file ITR 2.

Do we have to report exempt LTCG in ITR 1?

Yes, you need to report exempt LTCG in ITR 1 provided it is exempt u/s 10(38). In case you have any taxable LTCG, you can use the other income tax return forms that are applicable. Additionally, it is necessary to e file tax returns if LTCG exceeds INR 2.5L even if your income is below taxable limit.

Is it necessary to add dividend income from mutual funds?

Yes. Dividend income from mutual funds is exempt u/s 10(35). It is shown in the Part D under the head Exempt Income (others).

I have no due refund. Do I still have to enter my account details in the return?

Yes, it is mandatory to fill in your bank account details, whether you have refund due or not. This is because it has been noticed that many taxpayers end up paying more than their required tax liability. In such cases, it is important for the Income Tax Department to send refunds within a certain amount of time.

How many returns can I file using the same mobile number and e-Mail address?

You can only file 10 returns using the same e-Mail ID and mobile number.