FAQ - Frequently Asked Questions

What is the difference between Non-Urgent and Urgent? Clients who are not able to submit docs and payment by the non-urgent Milestone date(s) can avail of Urgent service.
Computation only after TDS details: Actual ITR computation work in our back office will be started only after the Income Tax server shows the TDS details vide 26AS information, expected by Jun 6th latest. However documents, payments etc for the ITR filing may be done beforehand to avoid last minute rush.
Is TDS taken into account while claiming the refund by filing the ITR? TDS is applicable on the various incomes such as interest received, commission received, dividends etc. Can be claimed if the taxable income comes below the threshold. Any capital gain TDS can be claimed against capital loss if any.
Incomplete TDS on Form 26AS? Deductor has not filed his TDS statement, You have not provided PAN to the deductor, You have provided incorrect PAN to the deductor, The deductor has made an error / missed quoting your PAN in the TDS return, The details of challan against which your TDS was deposited was wrongly quoted in the statement by the deductor or wrongly quoted in the challan details uploaded by the bank.
Incomplete Declaration of assets and Bank a/c's: When filing IT returns with us, kindly list all your bank a/c's including joint a/c's. Withholding of bank a/c statements is a prosecutable offence for which assessee is solely responsible
Reduce tax: Ask for list of deductions such as life and health insurance premium, contribution towards EPF, PPF and NPS accounts, interest from banks, tuition fee for children, repayment of home loan etc. etc. Exemption from long term capital gains under Section 54, 54EC, 54F etc.
Advance Tax - Option 1] is to pay the 100% of it in the 1st instalment (Jun 15th) or Option 2] is to pay the same in 4 instalments (15% on Jun 15th, 45% on Sep 15th, 75% on Dec 15th & 100% on Mar 15th). First option saves a lot of time (note - excess tax paid will be refunded along with interest) and service charge for same is waived.In the second option, the payment steps have to be followed 4 times and there will be service charge of Rs. 200 per instalment. Please decide which option is suitable for you.
Must NRI's file returns? Simple answer is Yes. Even if assumed tax liability is zero, please file returns to avoid the 6 years trap i.e. ITD has the right to query upto 6 years earlier. Also after 6 years most people are not able to get bank statements which can compound the problem
NRI ITD Notices: The IT department already has a full list of your transactions thanks to the PAN tracking system. ITD has the right to query transactions upto 6 years earlier, sometimes such notices fail to reach due to change in your address or delivery to the wrong person etc. This is a common problem and can be solved only by filing returns annually. Notices come mostly by post but can also come by email and SMS. Please ensure all notices are replied to officially
NRI TDS on NRO interest: TDS can be claimed back by filing returns
NRI / OCI with . . . real estate transactions, NRO fixed deposits, NRO a/c's, loan's, PIS or PINS accounts, F&O, Mutual Funds, insurances, rental income etc. you are strongly advised to file returns..
NRI deposits which have come through the banking channel exceeding 1 crore for all accounts taken together need to file an ITR
NRI's still have to file the ITR even if entire income consists of such long term capital gains which were fully exempt under Section 10(38) till assessment year 2019-2020
NRI's who have come back to India to spend rest of their life in India, will have to file ITR here even if they do not have any income here in India in case they have assets/investments left outside India. The asset need not necessarily be immovable or even if you are a signatory in a bank outside India irrespective of balance in the account, you have to file an ITR here in India
Ex-NRI paying more than two lakhs for foreign travel for anyone must file returns
Payment for electricity charges of more than one lakh in a year. It is not necessary that the electricity connection stands in your name so even if you are using rented premises and have paid more than one lakh for electrify charges during the year, you have to file your ITR.
NRI Below / above 60: For individuals below 60 years exemption limit is Rs. 2.50 lakhs, whereas for those who are resident for tax purposes and are over 60 but below 80, it is 3 lakhs and for those tax residents who have already crossed 80 years, it is 5 lakhs per year.
Grievance E-Nivaran can be filed to bring grievances to the notice of IT Dept. Currently there are no charges for this intervention. Response to E-Nivaran requests can be expected within a month
What if I dont file or miss the date? Under Section 234F the penalties are small initially (5,000-10,000Rs) but keep increasing depending on the delay and the number of notices served. In case it is determined at some later date (ITD has the right to query upto 6 years earlier) that there was tax due, you (assesee) are liable to pay tax + penalty upto 300% + Interest at 18% pa. It is therefore advisable to file returns annually for all resident, NRI, having income or not
Email from company asking for TRC and other documents while declaring dividends? TDS on Div to NRI client's will be 20% and can be claimed back by filing the ITR if taxable income comes below the threshold. Please ensure that you are filing your returns and claiming TDS refunds. If not please contact us to start IT return filing.
Details of dividends deduction Tax for resident and NRI - Finance Act 2020 has given effect to Budget 2020 proposal that Dividend Distribution Tax (DDT) be abolished and dividend be taxed in the hands of the investor as per the slab rate of tax applicable to her/him. This provision has come into effect from 01.04.2020. So now the DDT at 20.6% is abolished. However, all dividend payments made after 01.04.2020 will be subject to Tax Deducted at Source (TDS) at the rate of 10% (7.5% till 31st March, 2020 thanks to Covid related concessions) in the case of residents and 20 % in the case of NRIs. The residents whose income is less than 2.5/3/5 lacs in a financial year can file form 15G/15H, depending on age, claiming waiver of TDS. NRIs, however, are not eligible to use form 15G/15H even if their income in India is less than 2.5 lacs. They can however, claim a refund of any tax paid in excess of what is due to be paid by filing an annual tax return.
Amount exempted form Dividend Tax - It is true that the Rs 5000 limit is company wise. However, companies are playing safe by asking you to file 15G/15H so that they don’t violate IT provisions in the event of repeated (interim) or special dividends exceeding Rs 5000.This provision is beneficial to NRIs who reside in a country with whom India has signed a Double Taxation Avoidance Agreement.(DTAA - India & Canada have signed such an agreement), since they can set off taxes paid in India against their tax dues in the country of their residence. Earlier since DDT was deducted by the company and dividends were tax free in the hands of the investor, NRIs could not claim such a set off.
Refund: process takes about 20-45 days from the date of e-verification of the income tax return. However, if the acknowledgement has been sent physically to the CPC, it may take a longer time. Precautions: We recommend Res / NRO (not NRE) a/c numbers be given for refund. PAN should be linked to the given Res / NRO a/c number. Problems: Refunds sometimes still fail even after taking such precautions. In such an event refund re-issue requests can be raised on your behalf and refund status can be followed up online. In case of NRI's refunds often fail due to technical problems with foreign numbers being linked to the NRO a/c which the IT dept website has not yet resolved successfully. Please note that tax filing for the subsequent years must still be submitted and fresh tax, if any, needs to be paid and is not adjusted to the outstanding refund. The IT Dept normally adds interest to refunds which are delayed. However in cases where the delay is due to 'invalid' bank a/c or IT dept. website glitches it is not yet clear if interest will be added to refund. Refunds however will surely be received once all the glitches are resolved. (Update Aug 2021 : Kindly expect technical problems to continue to delay refunds until the IT website is finally set right)
Ancillary charges (not incl. GST): Courier/regd post, Conf of address / email in IT dept sys, Correspondence to IT Dept, Physical appearance, Updation on IT portal, Handling of Summons / Notices / Condonation of Delays, Collection of clients bank statements for ITR filing / Change of bank account / Change of contact details (email & mobile) / Tax status change (res to NRO / NRE or vice versa). All charges, ancillary and basic are fixed by management from time to time and updated in pricelist.
Internal emails: emails to / from statutory bodies, strictly cannot be shared, forwarded or contents divulged to any other person.
Shifting: If you are unsatisfied with your present ITR service provider, please contact office for shifting procedure
Thinking Long term: IT filing is required every year for the next 30, 40 years. Select a service provider with a stable partnership and without conflict of interests
How to make correction in 26AS or when deductor has wrongly entered PAN card data : A correction procedure using Form 26QB maybe initiated immediately. Delays will result in unnecessary notices from Income Tax department even though it is not your mistake.
Tax on properties? For the FY 2019-20 and onwards, 2 properties can be shown as self occupied. Additional properties have to be declared and tax paid on rent / deemed rent if vacant. If you are NRI / OCI and have properties, you need to file yearly returns (even if it is a zero return) to pre-empt punitive tax claims later.
Payments: Since 2011, we do not accept cash / documents / clients at our management office in JLT Dubai. It is solely for liaison with Govt. and other statutory bodies. Click here to see payment methods.
Official communication by email. No phone or whatsapp consultation. Opinion / Advise / Calculations will strictly be given only via formal office email and not over phone / whatsapp etc. You are requested to only use email channel (no whatsapp / messenger etc) to communicate with us formally