Megha Goswami

Taxability of Medical Facilities: A medical allowance is a set amount granted to employees as a stipend. Employees are paid regardless of whether or not they produce the requisite bills to establish that an expense occurred. This monthly fixed pay is taxed.

• What is Medical Allowance, and How Does It Work?
• Allowance for Medical Treatment and Reimbursement for Medical Treatment
• Taxation for Medical Facilities
• Additional Details About Taxability of Medical Facilities

What is Medical Allowance, and How Does It Work?

Medical allowance is a monthly stipend granted to employees of a company regardless of whether they present bills to verify their expenses or not. On the other hand, medical reimbursement is a payment paid to employees in exchange for specific medical bills supplied by them, subject to eligibility.

If employees want to claim tax benefits, they must submit monthly medical reimbursement bills for the appropriate amount. Medical allowance is not classified as an exemption allowance under the IT Act of 1961. As a result, a medical allowance is a monthly set compensation supplied by a fully taxable employer. Medical reimbursement allows employees to claim a tax advantage of up to 15,000 INR in India (payments for bills).

Allowance for Medical Treatment and Reimbursement for Medical Treatment

Many people confuse the terms “medical reimbursement” and “medical allowance,” assuming they imply the same thing. However, according to the Income Tax Act of 1961, the terms cover various tax regimes. According to experts, the ideal terminology for an employee’s medical component of their income should be “medical reimbursement” rather than “medical allowance,” because the allowance is taxable in certain circumstances unless specifically exempted.

Section 80D of the Income Tax Act provides medical reimbursement, with a maximum limit of 15,000 INR per year. If an employee fails to submit bills for medical reimbursement on time, 30 percent of the 15,000 INR becomes taxable income.

Employees, on the other hand, can recoup 30% of the sum when filing tax returns. Auditors and IT department investigators are on the lookout for medical reimbursement. After employees present original bills to claim tax exemption, employers’ responsibility is to provide a medical refund. TDS-related fines may apply if an employer fails to deduct taxes on an amount for which no bills have been provided.

Taxation for Medical Facilities

The taxable value of medical facilities provided by an employer to his employee is computed as follows:

1. Care in an employer-maintained hospital – Medical treatment offered to an employee or any of his family members in an employer-maintained hospital is not taxed.
2. Medical treatment provided to an employee or any of his family members in a hospital maintained by the government, a local authority, or any other hospital approved by the government is not tax-deductible.
3. Care of a prescribed disease at a hospital approved by the Chief Commissioner – Medical treatment provided to an employee or any of his family members in a hospital supported by the Chief Commissioner for diseases listed in Rule 3A is not subject to tax.
4. Employer-paid health insurance premiums – Any amount of a dividend paid by an employer to keep a health insurance policy in place for his employee or any of his family members under a scheme recognised by the Central Government or IRDA for section 36(1)(ib) is not taxable.
5. Employer-paid health insurance premiums – Any amount of a premium paid by an employer to keep a health insurance policy in force for his employee or any of his family members under a plan recognised by the Central Government or the IRDA for section 80D is not taxable.
6. Other medical costs – Up to Rs 15000/-, any sum spent by the employer in respect of an employee’s medical treatment or the treatment of any of his family members
7. Medical care outside of India – Medical treatment for an employee or a member of his family. Or, to the extent permitted by RBI, the employee, any of his family members, and one attendant are excluded from travel and stay overseas. The exemption is only possible if the employee’s gross total income before incorporating this expense does not exceed Rs 2,00,000/-.

Additional Details About Taxability of Medical Facilities

1. A dispensary, a clinic, or a nursing home are all part of a hospital.
2. Spouses and children of that individual, parents, brothers and sisters of that individual, or any of them totally or primarily reliant on the individual are considered family.

Request for Re-Issue of Income Tax Refund Online: When we file an income tax return, many of us claim the refund of excess income tax which we have paid or TDS deducted. It means the income tax paid by a person is more than the chargeable income tax on the year’s total or overall taxable income.

Filing for a refund by a person depends mainly on one factor: how did the person file for the taxes. The way the person has filed the taxes is how the Income Tax department will make the refund. Here are the two options through which a person can file the taxes and get the refund in the same way:

• Electronic Mode: Directly credited to the bank account of the person.
• Paper Mode: Refund cheque to be sent to the address provided by the person.

There are occasions when the refund issued by the Income Tax Department doesn’t credit the refund to the account of the income taxpayer because of various reasons. Here are some of the reasons why they don’t credit to the account of the assessment:

• Incorrect address details due to which the refund cheque doesn’t reach the person.
• Incorrect bank account details due to which it couldn’t be processed.
• Bank accounts are closed, or the registered bank is shifted to another location.
• Expired cheque because it hasn’t been presented within 90 days of its issuance.

Process to Raise a Request for Re-issue of Refund Online

The process to raise a request for a re-issue of refund of your income tax is simple and easy. If you follow the process step by step, you will see that the process is easy and quick. Using the online website of the Income Tax department is straightforward.

Here is the step by step process for re-issue of income tax refund online:

Step 1: Visit the Indian Income Tax Department website: https://www.incometaxindiaefiling.gov.in

Step 2: On the right side of the Income Tax Department website, there will be an option that says Login Here. Click on that option.

Step 3: After you click on the Login Here, you should fill in your login credentials and click on the Login option available at the end of the box.

Step 4: As soon as you finish the process to Login into your account, you will see an option on a website that says Service Request. Once you click on that option, you will see another option that reads My Account.

Step 5: Once you click on the My Account option, you will see many options, and among them is an option called New Request. You will find an option under this called Request Type. As soon as you click on that, you will see an option which Request Category, and under this, there’s going to be an option that says Refund Re-issue.

Step 6: You will need to click on the Refund Re-issue option and click on the submit button. If you forget to click on the submit button, you will have to repeat the process the next time.

Step 7: You will see the list of all failed refunds, and you need to click on the Submit button again and proceed to the next step of the process.

You are eligible for filing a refund request on your income tax only if you filed your income tax returns electronically. If you used the offline method, you would not be able to file the refund online.

Step 8: After you click on the submit option, the website will direct you to a page that will require you to fill in your bank details. You must add you are correct bank details as the refund will get transferred to that account. Here are points you need to add to your bank account:

• Bank Account Number
• Account Type
• IFSC Code
• Bank Name

Step 9: As soon as you fill in all the necessary bank details, click on the submit option.

Step 10: The next step in the request process is that you need to e-verify your request. You will have to verify your bank account details, mobile number, Aadhar number OTP, etc.

Step 11: You will receive a confirmation message on your computer screen after verifying your EVC code.

After you finish all the steps, you have successfully filed your request for a refund on income tax. You will receive a confirmation email from the Income Tax Department.

Process to View Current Status of the Request of Refund Online

The process to view the current status of the request for a refund online is simple and easy to understand. If you carefully follow each step given below, you will be able to easily find the present status of your income tax refund. The Income Tax website is straightforward to use, and you can switch it in the language of your preference as there are ten options available to change the language.

Here are the steps to request for re-issue of income tax refund online:

• Step 1: Go to the Indian Income Tax Department website: https://www.incometaxindiaefiling.gov.in
• Step 2: On the right-hand side of the menu, you will see the option to log in to the Income Tax e-Filing Portal.
• Step 3: As soon as you click the login option, you will see the opportunity to fill in the username and password. Enter those two options and click on the login option.
• Step 4: Once you have logged in to the portal, immediately go to the My Account option and under that, you will see the option Service Request.
• Step 5: After you click on the option of Service Request, you will find a chance called Request Type, under which there will be an option called Refund Re-issue. You will find this under the Request Category. As soon as you see the Refund Re-issue option, click on it.
• Step 6: Under the Refund Re-issue option, you will find the status of all the refund re-issues that you have applied for in the past. All the refund requests status will be readily available for you to check on the website.

Your request for an income tax refund request will be processed in a few weeks. The refund will be directly transferred to your bank account.

How Salaried And Non-Salaried Persons Can Save Tax: When the return filing date nears, the taxpayers search for ways to shell out the tax amount for the ongoing financial year. They tend to find ways to make a significant deduction on their taxable income. The Government makes several deductions available for both the salaried and non-salaried taxpayers that can help them to save some amount of tax.

Before planning on saving taxes, one should have a proper understanding of tax slabs, taxable income, and the deductions on tax available to the taxpayers. One should have proper tax planning at the beginning of the financial year to avoid mistakes. They should break each component of their income to find ways to save tax. Proper investment planning must be done to avail the deductions on the income.

This article will discuss ways to save tax and the deductions that are available to the taxpayers.

• Deductions for Saving Tax
• Deductions Under Section 80 C
• Deductions under Section 80 CCC
• Deductions Under Section 80 CCD (1)
• Deduction Under Section 80 D
• Deductions Under Section 80 E
• Deductions Under Section 80 G
• Deductions Under Section 80 GG
• Deductions for Loss From House Property

Deductions for Saving Tax

The best way to save tax is to make investments on which the Government allows deductions as per the rules of the Income-Tax Act. A person must have proper knowledge of these deductions and investments. Here is the list of the deductions available for the taxpayers.

Deductions Under Section 80 C

The deductions available under section 80 C are most popular among the taxpayers. These deductions are common for all and help save a significant amount of tax. Both the salaried and the non-salaried taxpayers can avail deductions available under section 80 C. The deductions under section 80 C is not available for companies, LLPs, and Partnership firms. The maximum limit up to which a taxpayer can avail deduction is ₹1,50,000 in a particular financial year. The investments on which deductions under 80 C are available are as follows:

• Investments made in Public Provident Funds (PPF)
• Investments in Employer’s Provident Fund Scheme (EPF)
• Payment towards Life Insurance Premium in Life Insurance Corporation of India (LIC)
• Investments in Equity-linked Saving schemes
• Payment made towards Principal amount of home loans
• Payment made towards registration charges for purchasing property
• Investment made in Sukanya Samriddhi Yojna (SSY) in Post office
• Investment in National Saving Certificate (NSC)
• Investment in Senior Citizen Saving schemes
• An investment made in tax saving FD for five years.

Deductions under Section 80 CCC

Section 80 CCC is a subsection of section 80 C. Under this section, the Income-tax department allows deductions for payments made towards Annuity Pension Plans, Pension amount received from Annuity, and interest or bonus accrued on the Pension amount.

Deductions Under Section 80 CCD (1)

Section 80 CCD(1) is yet another subsection section 80 C. Here deduction is allowed on Employee’s contribution and is least from among the following:

• 10% on salary for salaried taxpayers.
• 20% of gross total income, in case the individual is self-employed.
• ₹1,50,000 deduction allowed under section 80 C.

It should be noted that the amount of deduction under 80 CCD(1) would be the least of the three amounts mentioned above.

Deduction Under Section 80 D

Deduction under section 80 D speaks of the premium paid towards medical insurance. A person being an individual or a HUF (Hindu Undivided Family) can claim deductions of up to ₹25,000 under section 80 D. A person can also claim an additional deduction of ₹25,000 on medical insurance paid for parents if the parents are below 60 years of age. Again, if the parents are aged above 60 years, a deduction of ₹50,000 can be claimed by the taxpayer.

Deductions Under Section 80 E

A taxpayer can claim deduction under section 80 E for payment made towards interest on education loans. The education loan can be taken for the taxpayer himself, or spouse or children or any other person for whom the taxpayer acts as a legal guardian. The taxpayer can claim a deduction of up to 100% of the interest amount paid.

Deductions Under Section 80 G

Deductions under section 80 G are subjected to donations made to various Government institutions and charitable trusts. A person can claim deductions under 80 G for up to 50% or 100% of the amount donated, depending on various threshold limits. The deductions can only be claimed if the donations made exceed ₹2,000 and are made in any mode other than cash. It should be noted that Cash donations do not qualify for deductions.

Deductions Under Section 80 GG

Deductions under section 80 GG speaks of payments made towards house rent. A taxpayer can claim deductions under section 80 GG if they have paid rent for the financial year and have not received any House Rent Allowance. Points that are to be considered to avail deductions under section 80 GG are as follows:

• The Taxpayer, their spouse or minor child should not have any residential property registered in their name.
• The taxpayer must be staying on rent and paying rent regularly.
• The Taxpayer shouldn’t have received any House Rent Allowance.

Deductions for Loss From House Property

A taxpayer can adjust losses incurred from house property towards salary income. It can help you save taxes. A deduction of up to ₹1,50,000 can be availed by a taxpayer on interest paid by them on a self-occupied property.

Leave Salary Exemption Section 10(10AA): The Income Tax Act, 1961 u/s 10A vide its clause (10AA) renders for income tax exemption from leave encashment or leave Salary earned at the time of retirement, resignation or otherwise termination of employment. In many organisations, employees are allowed to take leave during their service time by the management. The employer is provided leaves of many types throughout the employment period, for example, Sick leave, Earned leave, unplanned Leave, Floating Leave, etc. On the other hand, earned leaves can be stored and moved forth to subsequent years. Using these leaves is not always feasible for the employees; therefore, the employees may encash these leaves and receive a salary for the number of days sanctioned to take leaves. The number of leaves permitted to be taken and the leave encashment differs from company to company procedures. An employee can initiate leave encashment while still working and at the time of retirement or superannuation, or resignation.

• Tax on Leave Encashment
• Leave Salary Exemption [Sec. 10(10AA)]
• FAQ’s on Leave Salary Exemption Section 10(10AA)

Tax on Leave Encashment

Under section 17(1)(va), if payment obtained by an employee in respect of any leave period that he does not avail from the employer, is liable to tax as ‘Salary’ income. Moreover, under section 10(10AA) of the Taxation Laws Act, 1984, an amendment was made to clarify that the exemption from leave encashment shall only be permitted where the employee takes the amount on his retirement or superannuation otherwise. Therefore, if an individual is applying for a large number of leaves, then the Salary earned will be quite high for leave encashment. This is particularly valid for government employees. Given are some conditions exercised when considering a tax on leave encashment:

• Encashing one’s leave while still serving in the company or government office, that particular amount is subjected to tax without exemption.
• Government employees are not responsible for paying any tax on leave encashment income at the time of resignation or superannuation.
• Income obtained by the private-sector employees as leave encashment is assessable as ‘Income from Salary’. However, certain exemptions apply to this income. After permitting the exemption, the outstanding amount will be calculated to the regular income and taxed as per the IT slabs.
• Employees from the private sector can get an exemption on leave encashment income u/s 10(10AA).

Leave Salary Exemption [Sec. 10(10AA)]

If an employee receives leave salary encashment while in employment, it is fully taxable in the employee’s hands. If leave encashment obtained at the employee’s termination time, then it is fully accessible. While if leave encashment is obtained in case of superannuation, retirement or resignation, then the exemption is available under  the following conditions:

• In the case of Central Government or State government employees (excluding employees of a statutory corporation or local authority), leave salary encashment is fully exempted
• In the case of any other employee, the least of the following is exempt:
  • The actual amount received
  • 3,00,000 Maximum Limit
  • The Average Salary of 10 months

Average Salary x leaves at an employee’s credit. If an employee has accumulated the number of leaves in a year, the organisation will consider only 30 days of leave per year for the encashment process. According to it, the total number of paid leaves will be calculated collectively during the retirement or resignation, and then encashment will be processed further. If the person has not employed all the paid leaves that estimates for 45 days, the company will still consider 30 days of paid leave for encashment at the time of resignation or retirement.

Average Salary = Average of Salary drawn in the last ten months immediately preceding the date of retirement.

Here basic pay, dearness allowance, retirement benefits and percentage-wise fixed commission on turnover are included in the Salary.

• If an employee receives leave encashment from more than one employer in the same preceding year or different preceding years, the maximum aggregate amount exempt from tax on leave salary cannot exceed Rs 3,00,000.
• If the employee had received leave encashment in any one or earlier PY and had availed of the exemption in respect of such amount, then the limit stipulated above shall be deducted by the amount of exemption availed earlier.

FAQ’s on Leave Salary Exemption Section 10(10AA)

Question 1.
State the exemption from leave salary in case of contract employees?

Answer:
Though employer-employee relations may subsist in the case of contractual work, the closing of such a contract amounts to the end of employment, which cannot be balanced with resignation or retirement. Therefore no exemption from leave encashment collected from the employer by the employee is available for employment termination under a contract. Accordingly, such leave encashment receipt shall be taxable.

Question 2.
How many leaves can be encashed?

Answer:
Leaves received by the employees can be encashed in the subsequent year. However, the number of leaves encashed can not be more than 30 days earned leave or fifty percent of earned leaves at credit, whichever is less.

Common Mistakes While Filing ITR: Income Tax Return or ITR is a mandatory form that needs to be submitted to the Income Tax Department. It contains information about a person’s finances in a particular financial year such as income and taxes, starting on 1st of April to 31st March of the next year.

Your income can be of various forms such as:

1. Income from Salary earned
2. Profits and gain from Business and profession
3. Income from Properties
4. Income for Capital Gains
5. Other sources such as dividend, interest on deposits, royalties, lottery etc.

Mistakes while filing the ITR form is usually made due to a lack of knowledge. Incorrect filing of tax returns will lead to a lot of problems. If you are not confident about filing ITR, you should seek professional help.

While filing ITR, a lot of people make mistakes. It is advisable to fill correct information on the form to avoid any future difficulties. These are the most common mistakes people make which you should avoid while filing your ITR.

• Personal Details
• TDS
• Deductions under 80C
• Selecting ITR forms
• Exempt Income
• Incomplete or Incorrect information
• Property Information
• Failure in Sending ITR-V
• Advance or Self Assessment Tax
• How to File ITR Online?

Personal Details

Every year a lot of returns are rejected due to incorrectly filled personal details such as name, bank account number, IFSC code and address, which leads to delay in refunds. While filing your ITR, be sure to fill in your correct personal details and recheck them to avoid delays.

TDS

TDS stands for tax deducted at source and was introduced to make tax deductions at the source of income. Most of the time people are not aware of the TDS deducted from their incomes which is usually in the form of tax deductions from interest accrued to them in the savings account or fixed deposit interest. You can review your TDS deductions from Form 26AS. Also, if the tax deductions made by your employer are not mentioned correctly, the amount will not reflect in form 26AS. Take timely action to rectify the same.

Deductions under 80C

A common mistake people make is that they claim deductions under the wrong heads leading to their rejection, which also leads to tax liability. Employee contribution to EPF is not be claimed under Section 80C benefits. Also, only the principal repaid on housing loans is mentioned under Section 80C.

Selecting ITR forms

There are a total of seven ITR forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. The applicability of the form depends upon the nature and amount of income and taxpayer. Selecting an incorrect ITR form that is not applicable in their case leads to wrongly filed Income tax return forms.

Exempt Income

Information regarding the PPF interest, dividends, long term capital gain from equities and maturity proceeds of policies need to be mentioned in the separate annexure of the ITR under Exempted Income. Failure to do this will result in unnecessary income tax queries later. Interest income under savings account is also not taxable and therefore it has to be mentioned under the “Income from other sources” to claim exemption.

Incomplete or Incorrect information

Information about certain income which is left erroneously need to be mentioned in the ITR  form. These are interest from bank FD, income from investments made in the name of family members, spouse or children and income from the employer.

Property Information

As per the IT Act of 1961, only one property can be claimed as self-occupied and the other property is taxed at realisable municipal rates after deducting 30% for tax and repairs. All the properties are therefore to be mentioned correctly in the ITR form.

Failure in Sending ITR-V

If the ITR is filed without a digital signature or Aadhar verification, it is mandatory to send a signed copy of the ITR-V to CPC Bangalore. If you fail to submit the ITR-V to CPC within 120 days of filing the ITR form, it will be treated as null and void.

Advance or Self Assessment Tax

For income sources where TDS is not applicable, individuals need to calculate the tax liability and pay advance tax or self-assessment tax. It is to be done before 31st March of the financial year, failure to do so will attract 1% penalty tax.

How to File ITR Online?

ITR-1 and ITR-4 can be filed online by entering the data directly online at the e-filing portal. Follow the steps given below:

Go to the official website of the Income Tax e-filing portal.

• Login using User ID and password.
• Click on the “e-File” menu button and open the Income-tax return link.
• Select assessment year and ITR form number as applicable.
• Select filing type as “original/revised return”.
• Select submission mode as “Prepare and Submit online” and click on Continue.
• Read all the instructions carefully and fill all the applicable and mandatory fields of the online ITR form.
• Click on “Preview and Submit” to verify all details and click on “Submit” to file ITR.
• Verify using EVC/OTP.

 

Interest for Deferment of Advance Tax Section 234C: Income Tax Department allows their taxpayer to submit their return in 4 instalments over a financial year for their convenience. Thus, it helps the taxpayer pay the taxes easily during a 12-month long financial year. However, if the taxpayer failed to return on time, there are some consequences under Section 234 C.

Under Section 234 C assessee have to pay the interest for non-payment or underpayment of advance tax. The rate of interest is 1 % per month at simple interest.

• What is the Intrest Rate for Late Payment Of Advance Tax?
• Methods for Calculation of Interest by Non-Corporate Assessee
• What are the Situations under Which the Interest is not Payable?

What is the Interest Rate for Late Payment Of Advance Tax?

Income Tax Department set a 1 % simple interest rate on the amount of the due tax.

The methods for calculation of interest by Non-Corporate Assessee under:-

1. Interest is payable under Section 234 C if the advance tax paid on or before 15th Sept is less than 30 % of the tax on returned income. The period of interest is three months. The interest is payable on  30 % of tax on the returned income amount.
2. Interest is payable under Section 234 C if the advance tax paid on or before 15th Dec is less than 60 % of the tax on returned income. The period of interest is three months. The interest is payable on  60 % of tax on the returned income amount.
3. Interest is payable under Section 234 C if the advance tax paid on or before 15th March is less than 100 % tax on returned income. There is no period of interest. The interest is payable on 100 % of tax on the returned income amount.

Here, tax on return income stands for the taxes that are chargeable on the total income declared in the return of income granted by the assessee as reduced by the amount of:-

1. Any tax-deductible or collectable at source as per Chapter XVII on any income subject to such deduction or collection is considered in computing such total income.
2. Under Section 90, 90 A, 91, 115 JAA and 115 JD, any relief, deduction or tax credit is allowed.
3. The amount of advance tax that has been paid on or before 15th Sept of the financial year.
4. The amount of advance tax that has been paid on or before 15th Dec of the financial year.
5. The amount of advance tax that has been paid on or before 15th March of the financial year.

Methods for Calculation of Interest by Non-Corporate Assessee

The methods for calculation of interest by Non-Corporate Assessee under:-

1. Interest is payable under Section 234 C if the advance tax paid on or before 15th June is less than 12 % of the tax on returned income. The period of interest is three months. The interest is payable on  15 % of tax on the returned income amount.
2. Interest is payable under Section 234 C if the advance tax paid on or before 15th Sept is less than 36 % tax on returned income. The period of interest is three months. The interest is payable on  45 % of tax on the returned income amount.
3. Interest is payable under Section 234 C if the advance tax paid on or before 15th Dec is less than 75 % of the tax on returned income. The period of interest is three months. The interest is payable on  75 % of tax on the returned income amount.
4. Interest is payable under Section 234 C if the advance tax paid on or before 15th March is less than 100 % tax on returned income. There is no period of interest. The interest is payable on  100 % of tax on the returned income amount.

Here, tax on return income stands for the taxes that are chargeable on the total income declared in the return of income granted by the assessee as reduced by the amount of:-

1. Any tax-deductible or collectable at source as per Chapter XVII on any income subject to such deduction or collection is considered in computing such total income.
2. Under Section 90, 90 A, 91, 115 JAA and 115 JD, any relief, deduction or tax credit is allowed.
3. The amount of advance tax that has been paid on or before 15th June of the financial year.
4. The amount of advance tax that has been paid on or before 15th Sept of the financial year.
5. The amount of advance tax that has been paid on or before 15th Dec of the financial year.
6. The amount of advance tax that has been paid on or before 15th March of the financial year.

What are the Situations under Which the Interest is not Payable?

You should not have to pay the interest if the deficiency in the payment of the advance tax belongs to the account of underestimate or failure estimate.

• Speculative Income from the lottery, gambling from the reference of Section 2(24)(ix)
• Where we can fail to calculate the total capital gains.
• The taxpayer paid all the return in advance. Or we can say no instalment is due from the taxpayer side.

E.g.:-

Ram need to pay Rs. 200000 for your tax liability for the financial year 2020-21:-

Payment Due Date	Advance Payable Tax	Actual Tax Paid	Deficit	Penalty
15th June	50000	20000	30000	1% of 3*30000
15th Sept	80000	60000	20000	1% of 3*20000
15th Dec	130000	120000	10000	1% of 3*10000
15th March	200000	180000	20000	1% of 1*20000

The total penalty is of 900 + 600 +300 + 200 = 2000.

So Ram has to pay Rs. 2000 as a penalty.

E-verify Income Tax Return: You need to send ITR-V to the Income Tax Department CPC within 120 days of e-filing your return, or you need to verify your return at the time of filing the return, or you can even verify your return after filing the return.

Under Section 234 F, you can pay the Income Tax Return before the due date without penalty. Still, if you fail to verify your Income Tax Return before the last date of filing an  ITR, then you are eligible for the penalty.

There are several options to verify your returns.

Option 1 – E-verify your Return at the Time of e-filing

1. Login to the Income Tax e-filing portal from the official website of the e-filing income tax department.
2. E-filing -> User Log in -> Login Home.
3. Visit the e-file menu and update or upload your return.
4. Choose the details from the available options and submit them by clicking on the submit button.
5. After uploading your return, various options will be shown to e-verify your return.

Option 2 – Verify your return at a later stage, i.e., not at the time of filing the Income Tax Return

1. Visit the official website of the e-filing income tax department and log in to the e-filing portal.
2. Visit the My Account menu section and click on the e-verify return option.
3. By clicking on the e-verify return option, you will be redirected to the page where all your return e-verification history will be available and indicate your pending e-verify returns.
4. By clicking on pending e-verify, all the applicable options will become visible to e-verify your income tax return.

It provides three options to e-verify your return after the pre-submission of your ITR.

• Option 1:- I already have an EVC  to e-verify my return.
• Option 2:- I do not have an EVC and I would like to generate EVC to e-verify my return.
• Option 3:- I would like to generate Aadhaar OTP to e-verify my return.

Option 1 – What if you Already have the EVC (Electronic Verification Code) to e-verify my Return

• This option will be used when you already have EVC and want to e-verify now.
• After clicking on Option 1, you will see a box where you have to provide your Electronic Verification Code and click on the Submit button.
• If you have entered the correct EVC, then the “Success” message will be shown.

You can generate your EVC with your Bank ATM card.

1. In a bank ATM, when you swipe your card, you have options available. By selecting the option “Other Services.” you can generate the PIN for your Income Tax Filing. This also depends on the bank and the ATMs which you are using to generate the EVC.
2. After the successful generation of the PIN, you will get a confirmation message on the screen.
3. And the generated EVC will be sent to the registered mobile number and e-mail ID of the taxpayer.

Option 2 – You Want to e-verify your Return with EVC, but you Do not have Your EVC

There are so many options to generate Electronic Verification Code:-

1. ÉCV – Through Net Banking
   1. By clicking on the “ECV – Through Net Banking”, you will be logged out from the e-filing account and redirected to the list of Banks that are available for Net Banking Log in.
   2. Select your bank and log in through your net banking credentials.
   3. After successful login, you will be redirected to an e-verification page from your e-filing account.
   4. Click and verify your return and then click on the “Continue” button.
   5. If the “Success” message will display on your screen, your return is verified, and you are done with your return e-verification process.
2. ECV – Through Bank Account Number
   1. By clicking on the “ECV – Through Bank Account Number”, if your account is not pre-validated, then click on “Pre-validate your Bank Account.”
   2. Now select your bank name and enter the required details like Bank Account Number, IFSC Code, Mobile Number and email ID.
   3. After submitting all the details correctly, click on the pre-validate button. If the information provided by you is correct, then the “Success” page will appear on the screen.
   4. If you have already pre-validated your bank, click on the ”Yes” in the confirmation box, and ECV will be sent to your registered mobile number.
   5. Enter the ECV in the box and click on the “Submit” button. A success message will appear on the screen, and your e-verification is done.
3. ECV – Through Demat Account Number
   1. By clicking on the “ECV – Through Bank Account Number”, if your Demat account is not pre-validated, then click on “Pre-validate your Bank Account.”
   2. Select your depository type and enter the required details like NSDL-DP ID, Mobile Number and email ID.
   3. After submitting all the details correctly, click on the pre-validate button. If the information provided by you is correct, then the “Success” page will appear on the screen.
   4. If you have already pre-validated your Demat Account, click on the ”Yes” in the confirmation box, and ECV will be sent to your registered mobile number.
   5. Enter the ECV in the box and click on the “Submit” button. A success message will appear on the screen, and your e-verification is done.
4. EVC – To Registered Email ID and Mobile Number
   1. By clicking on the “ECV – Through Registered Mobile Number or Email ID.”
   2. You will receive ECV on your Registered Mobile Number or Email ID. Enter that ECV in the box and click on the “Submit” button.
   3. The “Success” message will appear on the screen if the ECV is correct and your e-verification is finished.

NOTE:- If your income is less than Rs. 5,00,000 and tax return is less tha Rs. 100, then only you can use verification through a registered mobile number or email ID.

Option 3 – You Want to e-verify your Return with Aadhaar Generated OTP

• First, you need to link your Aadhaar Card with your PAN Card. Click on the “Link Aadhaar” and enter all your details like Name, Date of Birth, Sex; if the given data matches present data, then the Aadhaar will get linked.
• If your Aadhaar is already linked with your PAN Card, you will receive an OTP on the registered Aadhaar Number.
• Fill the OTP in the given box and click on the “Submit” button.