FAQs

Advice and answers from the ClearTax team

Aadhar/PAN

I don't have an Aadhaar, can I still file tax?

Do NRIs need Aadhar to file tax?

Deductions

Exemptions - HRA

ITR Status

File Tax Returns

Aadhaar and PAN Related

I don't have an Aadhaar, can I still file tax?

No, you cannot e-file without Aadhaar card. If you don't have an Aadhaar card, please apply for one and quote the Aadhaar enrollment number.

Do NRIs need Aadhar to file tax?

Only a resident Indian is entitled to sign up for the Aadhar card in India. Indians who have lived outside India for more than six months (182 days) in the last 12 months, do not have to quote an Aadhar number. But if you have an Aadhaar card, it is a good idea to mention it in your tax return and then e-file.

Deductions

What are some of the deductions that can be claimed?

You can reduce your tax liability by claiming deductions from your income. Deductions are available under section 80C, 80CCC, 80D, 80DD, 80DDB, 80U, 80G, 80GGC, 80RRB, 80CCG, 80E, 80TTA

What is the maximum limit that can be claimed under section 80C?

Section 80C allows a maximum deduction of Rs 1.5 lakh every year from the taxpayers total income. Section 80C includes subsections 80CCC, 80CCD (1), 80CCD (1b) and 80CCD (2). Click here to learn more.

It is important to note that overall limit including the subsections for claiming deduction is Rs 1.5 lakh except an additional deduction of Rs 50,000 allowed u/s 80CCD(1b)

Can I get an additional Rs 50,000 tax benefit if I opt for NPS if my 80C is already filled with PF, FD and home loan?

Yes, if you have exhausted the Section 80C limit of Rs 1,50,000, then consider investing in NPS. Deduction for self-contribution to NPS - section 80CCD (1b) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Click here to learn more about NPS.

What is the maximum deduction available on medical insurance under section 80D?

Every individual or HUF can claim a deduction from their total income under section 80D for medical insurance premium paid in any given year.

The deduction benefit is available not only for a health insurance plan for self but one can also take the advantage of buying the policy to cover spouse, or your dependent children or parent.

It is over and above the deductions claimed under section 80C.The amount of deduction allowed under section 80D prior to Budget 2015-16 was Rs 15,000 which was then increased to Rs 25,000. In case of senior citizens , the deduction limit was increased from Rs 30,000 to Rs. 50,000. Click here to learn more.

Exemptions - HRA

Can a salaried person get exemption under Section 80GG?

If you are salaried and receive HRA from your employer, you cannot claim this deduction. Submit the rent receipts to your employer and this will be included in your Form 16.

If you are salaried and do not receive HRA as part of your salary, then you can claim deduction under section 80GG for rent. Click here to learn more.

How do I claim HRA if I forgot to submit rent receipts to my company?

Please be sure to have the rent receipts with you if you are claiming HRA in the tax return directly. After your tax return is submitted and processed, the Department may ask you to upload the rent receipts on the Income Tax website. Click here to learn more about HRA - exemption rules and tax deductions.

How can I claim HRA that is not considered by my second company?

You will require your payslip or offer letter to determine your basic salary and the HRA allowance your employer gives you.

Use an HRA calculator to determine the HRA amount that is exempt. Claim this amount in your tax return.

ITR Status

How do I check the status of my filed ITR?

You can check status of e-filed ITR at www.incometaxindiaefiling.gov.in

• No record found

• Return processed

• Return submitted and not verified

• Return processed and refund paid

• ITR Verification (ITR-V) Rejected

• Return submitted and verified

• Return processed with demand and no refund

• Defective return

File Tax Returns

How can you file an income tax return in India?

You can file your income tax returns online, either on the income tax department's website or with us on www.cleartax.in. Income Tax filing or e-filling is made easy on Cleartax.in. You can e-file your returns within just 7 minutes! Also note that the due date to e-file your income tax returns for the assessment year 2020-21 is on or before December 31, 2020.

My company deducts TDS. Do I still have to file my tax return?

Yes, deducting TDS and filing a tax return are two different things. In fact, you file a tax return to show that you've paid all the tax you needed to pay. The income tax return is also a very useful document when it comes to applying for a loan or visa.

Which income tax return should I select for e-filing?

Great question! There are seven forms - ITR 1, 2, 3, 4, 5, 6 and 7 for each type of tax situation. Honestly, choosing the correct income tax form is a lot of work. Which is why if you are e-filing with ClearTax, we automatically decide the correct income tax return form.

How do I pay tax to the government?

You can pay tax to the government directly on the Income Tax Department website using your net banking account with challan 280.

I am a salaried individual and don't have a Form 16. How can I file my tax return?

You can still file your tax return on ClearTax without a Form 16. You're just going to need your pay slips. Follow the instructions on this guide to e-file without Form 16.

What is ITR-V?

ITR-V is a 1-page document that you receive after e-filing your income tax return. In case you have not e-verified your income tax return, you must print, sign and send the ITR-V to the Income Tax Department within 120 days from e-filing your tax return.

Is it necessary to attach any documents along with the return of income?

ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

Can I file ITR-1 with exempt agricultural income?

You can file ITR 1 if the agricultural income is up to Rs 5,000. For agricultural income exceeding Rs 5,000, you have to file ITR 2.To know about ITR 2.Click here.

If I have paid excess tax, how will it be refunded to me?

The excess tax paid can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. Don’t make mistakes in mentioning bank details such as account number, IFSC code etc. in the ITR form.

Is it necessary to file return of income when I don’t have any positive income?

You must file your return before the due date, if you have sustained loss in the financial year and if you want to carry forward it to the subsequent year for adjustment against subsequent years positive income. Loss can be carried forward only if you have filed the return claiming such loss before the due date.

Who can file tax return on ClearTax?

As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns (ITR). a. Individuals who only have Salary income b. Individuals who have switched jobs (Multiple Form 16) c. Individuals having Income from Capital Gains (mutual funds & stocks), business/profession, House Property, other income such as Interest etc. d. Individuals having Foreign Income (Onsite deputation), Foreign Assets, NRI

Is it mandatory for me to do the ITR e-filing or can someone else do it on my behalf?

You can seek the help of chartered accountants and agencies dedicated to ITR filing. It is wiser not to allow anyone to have your PAN and password in order to prevent any kind of fraud. Also you can always take assistance from CA to file IT returns. With ClearTax you can get an Expert to calculate your taxes and e-file your tax return on your behalf. See Prices here.