Important Keyword: EPF, EPF Balance, EPFO Portal, Salary Income.
Table of Contents
EPF Balance Check: Step-by-Step Process
The Employee Provident Fund (EPF) is a retirement benefits scheme specifically designed for salaried individuals. Administered by the Employees Provident Fund Organisation (EPFO), it ensures financial security post-employment. By law, any company with 20 or more employees must register with the EPFO, facilitating seamless management of EPF contributions and withdrawals.
Check Employee Provident Balance using EPFO Portal
Checking the EPF balance online is a very simple process. To check your balance through EPFO portal make sure that your employer has activated your UAN (Universal Account Number). Go to EPFO Portal
Select the relevant options from the Menu: Go to Our Services > For Employees
From the Services page: Click on Members Passbook
In Memeber Passbook: Enter your UAN, Password and Captcha to log in,
Additionally, you can check your balance once you log in.
To check your EPF balance conveniently using different methods, ensure that your Universal Account Number (UAN) is integrated with your KYC details. Here are step-by-step instructions for each method:
Check Employee Provident Balance by Missed Call
Ensure Integration: Your UAN must be linked with your KYC details.
Missed Call: From your registered mobile number, give a missed call to 011-22901406.
Receive SMS: Shortly after the missed call, you will receive an SMS containing your EPF balance details.
Check Employee Provident Balance using SMS
Ensure Integration: Verify that your UAN is integrated with your KYC details.
Send SMS: From your registered mobile number, send an SMS in the format: EPFOHO UAN ENG to 7738299899.
Replace ENG with the first three characters of your preferred language (e.g., HIN for Hindi).
Receive SMS: You will receive an SMS with your EPF balance details.
Check Employee Provident Balance using EPFO App
Activate UAN: Before downloading the EPFO or UMANG app, ensure your UAN is active and linked with your mobile number.
Download App:
EPFO App: Download the EPFO mobile app from the Google Play Store or Apple App Store.
UMANG App: Alternatively, use the UMANG (Unified Mobile Application for New-age Governance) app.
Login: Open the app and log in using your UAN and registered mobile number.
View EPF Balance: Navigate to the EPF balance section within the app to view your current EPF balance and transaction history.
Important keyword: Advance Tax Rules, Presumptive Tax, Salary Income.
Table of Contents
Advance Tax Rules, Calculations, and Due Dates
Human behavior often inclines towards increased spending when funds are easily accessible, potentially jeopardizing savings goals. Consider a scenario where someone earns income steadily throughout the year but tends to spend it on various needs and desires, often neglecting tax obligations. This oversight can lead to a situation where insufficient funds remain when it’s time to file tax returns and settle tax dues.
To prevent such predicaments, Advance Tax serves as a crucial solution. It allows taxpayers to pay their taxes in installments throughout the year based on their estimated income, ensuring that the tax burden is managed proactively rather than accumulating as a surprise expense during tax filing season. This systematic approach not only helps in avoiding financial strain but also promotes fiscal discipline by encouraging individuals to plan and allocate resources efficiently.
What are Advance Tax Rules?
Advance Tax Rules, as the name implies, involves paying income tax in advance rather than in a single payment at the end of the financial year during the filing of Income Tax Returns (ITR). This system requires taxpayers to make installment payments throughout the year based on their estimated income. Often referred to as “Pay As You Earn” tax, it ensures that individuals pay their tax liabilities proportionately and quarterly during the financial year.
One of the primary benefits of Advance tax is its contribution to a consistent cash flow into government accounts, which helps meet operational needs effectively. By spreading out tax payments, taxpayers can manage their financial obligations better and reduce the burden of a large lump-sum payment at the year-end. This proactive approach not only aids in financial planning but also promotes compliance with tax regulations, ensuring smooth operations for both taxpayers and the government.
Who is liable to Pay Advance Tax Rules?
Advance tax is mandatory for individuals whose tax liability for a financial year amounts to INR 10,000 or more. It must be paid in installments based on estimated income across all sources. When calculating tax liability, taxpayers need to include income from various heads, ensuring all earnings are accounted for. Additionally, any Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) amounts deducted or collected should be factored in during the computation process. This ensures that the final tax liability accurately reflects all income streams and deductions, promoting transparency and adherence to tax regulations.
To determine whether advance tax is applicable and how to calculate it, taxpayers need to consider various factors based on their income sources. Here’s a breakdown:
Exceptions for Advance Tax Liability:
A resident individual aged 60 years or more, not having any taxable income under Business and Profession, is exempt from paying advance tax.
Income Tax on Different Income Heads:
Salary: Typically, tax on salary income is deducted by the employer as TDS. Salaried individuals usually do not have an advance tax liability unless they have additional income such as rental income or interest income exceeding INR 10,000.
House Property: Advance tax is applicable on rental income if the tax liability on rent exceeds INR 10,000 after adjusting TDS deducted by the tenant.
Capital Gains: Tax liability on capital gains arises when the gains are realized, not estimated. Advance tax is payable on capital gains income if it exceeds INR 10,000 in a financial year.
Business & Profession: Businesses and professionals must calculate and pay tax in installments throughout the year. TDS deducted may not cover the entire tax liability.
Income From Other Sources: Income like interest, dividends, or gifts requires calculation of tax liability. If the tax exceeds INR 10,000, advance tax must be paid.
How to Calculate Advance Tax:
Estimate Income: Calculate total taxable income from all sources.
Deduct Deductions: Subtract eligible deductions under Section 80 such as investments.
Calculate Tax Liability: Determine tax liability based on applicable tax rates.
Assess Net Tax Liability: After accounting for taxes paid already (like TDS or TCS), if the remaining tax liability is INR 10,000 or more, advance tax is due.
Advance Tax Payment Schedule:
Advance tax is paid in installments as per specific due dates:
On or before 15th June: 15% of estimated tax liability.
On or before 15th September: 45% of estimated tax liability.
On or before 15th December: 75% of estimated tax liability.
On or before 15th March: 100% of estimated tax liability.
Advance Tax Rules Due Dates
Tax is paid on the following dates of a financial year.
On or Before
In the case of Individual and Corporate Taxpayers other than taxpayers opting for presumptive income u/s 44AD
Taxpayers opting for presumptive income u/s 44AD
15th June
15% of net tax payable
NIL
15th September
45% of net tax payable
NIL
15th December
75% of net tax payable
NIL
15th March
100% of net tax payable
100% of net tax payable
According to Section 234C of the Income Tax Act, any shortfall or failure in payment of advance tax attracts a penal interest of 1% per month until the total tax liability is paid. However, if tax liability of up to 12% in the first quarter, 36% in the second quarter and 90% in the last is paid then no interest will be levied.
Let’s understand through an example
Mr Akash has estimated his taxable income for the current year to be INR 20,00,000. He is not eligible to claim any income deductions. According to the rule, he is liable to pay a tax of INR 4,29,000 as per the old regime slab rate.
Important Keyword: Form 16, Form 26AS, Income Tax, ITR Forms & Documents, ITR-1, Salary Income.
Table of Contents
AY 2021-22 ITR-1 SAHAJ Form – Salaried Individuals
ITR-1, also known as Sahaj, is the simplest one-page Income Tax Return Form tailored for individuals with income from Salary/Pension, One House Property, and income from other sources. However, there are certain criteria to consider before determining eligibility for filing ITR 1.
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 (excluding brought forward losses from previous years).
Income from Other Sources (excluding winnings from Lottery and Income from racehorses).
If the income of a spouse or minor child is clubbed with the taxpayer’s income, they can file ITR 1 only if their clubbed incomes fall within the above categories.
Who Cannot File ITR-1 Form?
Non-Resident Indians (NRIs)
Individuals with total income including:
Income from multiple House Properties
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 individuals 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.
List of Documents Required to File ITR 1:
Essential Documents:
PAN (Permanent Account Number)
Aadhaar Number
Bank Account Details
Form 26AS
Form 16
AIS – Annual Information Statement
Details of original return if filing revised return
Details of notice if filing in response to a notice
Additional Documents:
For Salary Income:
Form-16 or Salary slips received from your employer
Pension statement/passbook.
For House/Property Income:
Address of the property
Co-owner details (if applicable)
Interest certificates/Repayment certificate from a bank (for property loan)
Rent Agreement (for let-out property)
For Other Sources:
Savings/Current Account Statements/Passbook
Interest Certificates for deposits/bonds/NSC
PPF Account Statement/Passbook
Dividend warrants/counterfoils
Rent Agreement (for let-out machinery)
Details about receipts of any other income
Income Tax Return Form – ITR 1
Here are the major changes in ITR 1 for Assessment Years 2021-22, 2020-21, and 2019-20:
For AY 2021-22:
Option to Choose Tax Regime: Taxpayers can opt between the old and new tax regimes.
Quarterly Breakdown for Dividend Income: Dividend income must be reported with quarterly breakdowns for accurate calculation of interest under Section 234C.
For AY 2020-21:
Expanded Eligibility Criteria: Individuals meeting specific criteria like cash deposits above INR 1 crore, foreign travel expenses above INR 2 lakh, or electricity expenses above INR 1 lakh must file ITR 1.
Continued Basic Criteria: Individuals with income from salaries, one house property, other income, and total income up to INR 50 lakh remain eligible.
Single Property Ownership: Resident individuals owning a single property in joint ownership can also file ITR 1 if their total income is up to INR 50 lakh.
Disclosure of Tax-Saving Investments: Taxpayers must disclose investments, deposits, or payments towards tax-saving made from April 1, 2020, to June 30, 2020.
For AY 2019-20:
Exclusion of Certain Individuals: ITR 1 is not applicable to individuals who are directors of a company or have invested in unlisted equity shares.
Introduction of Pensioners Checkbox: Under Part A, a ‘Pensioners’ checkbox is introduced under the ‘Nature of employment’ section.
Segregation of Returns: Returns filed under section segregated between normal filing and filing in response to notices.
Deduction Segregation: Deductions under salary segregated into standard deduction, entertainment allowance, and professional tax.
Detailed Income Information: Taxpayers required to provide income-wise detailed information under ‘Income from other sources’.
Family Pension Deduction: Introduction of a separate column for deduction under Section 57(iia) for family pension income.
Deemed Let Out Property Option: Inclusion of ‘Deemed to be let out property’ option under ‘Income from house property’.
Section 80TTB for Senior Citizens: Inclusion of Section 80TTB column for senior citizens.
Important Keyword: Aadhaar, Business and Profession Income, Capital Gains, Income from House Property, Income Source, ITR Documents, ITR Form, Salary Income, Tax Saving Investments.
Table of Contents
Documents required for Income Tax Return filing in India
Income Tax Return (ITR) forms vary depending on the taxpayer’s sources of income. Specific documents are necessary for filing the ITR.
Additional documents required may vary depending on the taxpayer’s income situation. These documents do not need to be submitted to the Income Tax Department during the filing of the Income Tax Return since ITR forms are annexure-less. However, if a taxpayer receives a notice from the Income Tax Department, such documents may be required to be submitted.
List of Basic Documents required for filing the Income Tax Return – ITR
Here’s a breakdown of the essential documents required for filing an Income Tax Return (ITR) in India, based on different income heads:
Salary Income/ Pension Income:
Form 16
Salary Slips (if Form 16 is unavailable)
Pension Statement/ Passbook
House Property Income:
Property Address
Rent Agreement
Co-ownership details for co-owned property
Municipal Tax Receipts
Form 16A (if TDS is deducted on rental income)
Home loan repayment certificate/ Interest Certificate from the bank
Pre-Construction Interest Details
Capital Gains Income:
Sales and Purchase deed, stamp duty valuation (for sale of land/ building)
Details of Improvement cost
Details of expenses related to the transfer of capital assets
Proof of cost of the asset, cost of improvement, and sales receipts (for movable assets)
Details of investments made to claim exemptions
Capital Gains Deposit Account details (if applicable)
For shares & securities: Trading statement/ Stock Ledger/ Contract Notes
Business and Professional Income:
Balance Sheet and Profit & Loss Statement
Bank Account Statement/ Passbook
Supporting documents for expenses incurred
Cash Register
Any other documents required to maintain business & profession books of accounts
Audit Report (if profit from business is less than 8% of Total Turnover)
Income from Other Sources:
Total interest income earned from savings/ current account
Interest certificate from deposits/ Bonds/ NSC
PPF Account Statement/ Passbook
Dividend Warrants/ counterfoils
Proof of details of receipt of any other incomes
Rent Agreement (in case of let out machinery)
These documents provide comprehensive support for accurate tax filing across various income categories.
Documents Required for Tax Saving Investments (Section 80)
For individuals seeking tax-saving investment opportunities, certain documents play a crucial role in claiming deductions. Here’s a list of documents essential for tax-saving investments:
ELSS/ ULIP/ NSC Investment Details:
Documents confirming investment in Equity Linked Savings Schemes (ELSS), Unit Linked Insurance Plans (ULIP), or National Savings Certificate (NSC).
PPF Account Passbook/ Statement:
Passbook or statement reflecting transactions and balances in the Public Provident Fund (PPF) account.
Life/Medical Insurance Receipts:
Receipts or premium payment details for life insurance policies or medical insurance plans.
Details of Tax-Saving FD:
Information related to investments in Tax-Saving Fixed Deposits, including deposit receipts and interest certificates.
National Pension Scheme Investment Details:
Documentation supporting contributions made to the National Pension Scheme (NPS).
Senior Citizen Saving Scheme Investment Details:
Documentation pertaining to investments in the Senior Citizen Saving Scheme (SCSS).
Donation Receipts:
Receipts or certificates acknowledging donations made to eligible charitable organizations.
Children Tuition Fees Paid Receipts:
Receipts confirming payment of tuition fees for children’s education.
Repayment Certificate for Home Loan/ Education Loan:
Certificate or statement from the lending institution confirming repayment of home loan or education loan, eligible for tax deduction.
Certificate from Specified Medical Authorities in Case of Disability:
Certification from designated medical authorities validating disability for claiming tax benefits.
Receipts/Proof of Any Other Tax-Saving Investments/Contributions:
Supporting documents for other tax-saving investments or contributions made during the financial year.
Documents Required for Foreign Income and Foreign Investments:
Details of foreign income earned and taxes deducted, if applicable.
Information regarding assets held outside India, including foreign bank accounts.
These documents serve as evidence of tax-saving investments and contributions, facilitating the process of claiming deductions while filing income tax returns.
Important Keyword: Capital Gains, Income from Business & Profession, Income from House Property, Income from Other Sources, Salary Income.
Table of Contents
What are the 5 Heads of Income?
In the quest to enhance earnings and foster financial growth, individuals and businesses explore various avenues such as employment income, interest from savings or investments, profits from sales, and revenue from diverse sources like equity trading, cryptocurrency, and more. However, the complexity of managing multiple income streams often poses challenges during tax filing. To simplify this process, the income tax department has devised five primary categories, or heads, under which all types of income can be classified.
Heads of Income
To ensure seamless tax filing and compliance with regulatory requirements, the income tax department has delineated five distinct heads under which taxpayers must categorize their earnings accurately. This meticulous allocation helps prevent potential issues and ensures smooth ITR filing.
Here are the five heads of income:
Income from Salary
Income from House Property
Income from Capital Gains
Income from Business and Profession
Income from Other Sources
Income from Salary:
This head encompasses various forms of remuneration received by an individual as part of their employment, including salaries, wages, allowances, bonuses, commissions, and pensions. It also covers advance salary, gratuity, and arrears received post-employment. It’s crucial for these earnings to arise from an employer-employee relationship to be classified under this head. Additionally, certain exemptions like standard deduction, house rent allowance (HRA), and conveyance allowance are available under this category.
Income from House Property:
Under this head, individuals must declare rental income earned from properties they’ve leased out, such as rental income from land or property. Taxpayers can claim deductions for interest paid on home loans for both self-occupied and rented properties. However, if an individual owns multiple properties, only one can be considered self-occupied, while the others are deemed let out.
Income from Capital Gains:
This category encompasses profits or losses incurred from the sale of capital assets, including investments like land, buildings, shares, jewelry, bonds, and mutual funds. It’s divided into short-term and long-term capital gains based on the duration of asset ownership. Short-term gains arise from assets held for a short period, typically up to 12 months, while long-term gains stem from assets held for longer durations.
Income from Business and Profession
This category encapsulates the profits or losses derived from engaging in any business or profession. Business activities encompass various endeavors such as trade, commerce, manufacturing, and similar ventures. On the other hand, a profession refers to a specialized field where individuals have acquired expertise through formal education and examination.
Within this head, there are three distinct sub-categories for business income:
Speculative Business Income: This pertains to income generated from speculative transactions where there’s no actual delivery of assets involved.
Non-Speculative Business Income: This category covers income earned from regular business activities, including trade, manufacturing, or any professional services rendered.
Specified Business Income: Certain specific types of business income fall under this category, often subject to specialized regulations or provisions.
Moreover, taxpayers have the option to opt for the presumptive taxation scheme, allowing them to declare profits at reduced rates and pay taxes accordingly based on this declaration.
Income from Other Sources:
Any income not categorized under the above heads is reported under income from other sources. This includes earnings like interest from savings accounts or deposits, dividends from shares or mutual funds, proceeds from lotteries or games, and gifts received, among others.
