Do you have personal income tax queries?

Mihir Tanna, Associate Director, S K Patodia & Associates (external link), a chartered accountants firm that offers consultancy, audit and tax services, will answer your queries.

Please mail your queries at getahead@rediff.co.in with the subject line Ask Mihir.

Sekar K: Some of my friends, few retired people, few salaried people and few business people who filed their ITR-1 / ITR-4 respectively for AY 2022-23 got their 143(1) intimation approving their refunds but ITD says in portal that their names in PAN and Bank Account are mismatching. On physical verification that was found to be correct. Refund status in NSDL site says to approach AO but on Grievance to AO no proper response. How to resolve this? Please guide. Thank you.

Mihir Tanna: ITRs are processed by Centralised Processing Centre, Bangalore (CPC) of Income Tax Department.

In certain cases, wherein the computerised system is unable to process any return, then the rights are transferred to the Assessing Officer (AO). So, you have to follow up with AO in his office for the processing of the refund.

If AO is unable to process your refund due to some technical issues which are beyond her/his control; you may request for a solution at Centralised Public Grievance Redress and Monitoring System (CPGRAMS), which is an online platform. 

Caetanofrancisco Dmello: I was a NRE and I am having NRE FDR maturing at different dates. I have come to settle in India. My question is do I need to file IT returns? But the interest is from my NRE FDs. 

Please advise me in details considering me as a lay man. 

Mihir Tanna: Interest earned on NRE FDs is exempt from tax till the time a person is non-resident in India as per provisions of FEMA, 1999. As you have come to settle in India, for the purpose of taxing FD Interest income, you may be treated as a Resident and entire Interest income may be taxed.

Regarding filing income tax return, person is required to file Income tax return in following scenarios:

1. If income is above Rs.2.5 lakh in a Financial Year; or

2. Further following specified persons are also required to file income tax return even if earned income is below Rs.2.5 lakh: 

a. People with Sales turnover of Rs 60 lakh and above from Business

b. Professional income exceeding Rs 10 lakh

c.  TDS or TCS of Rs 25,000 or more (Rs 50,000 or more in case of senior citizen) - even if person don't want to claim refund

d. Deposited at least Rs 50 lakh in one or more savings accounts

e.  Deposited amounts exceeding Rs 1 crore in one or more current accounts

f.   Spending above Rs 2 lakh on a foreign country travel Electricity bill exceeding Rs 1 lakh

g. Where there is an income from foreign sources for resident

h. Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India

i.   If you are a Resident and a signing authority in a foreign account  

Apart from above, it is also advised to file ITR in following situations, if same is applicable in your case:

• If TDS is deducted by payer of income, filing income tax return makes you eligible to claim refund with interest @6% p.a. - If person wants to carry forward certain loss to future years, it is advisable to file return
• Proof of return filing is also asked when a person applies for a loan or a visa. So in future, if you are planning to apply for the same, it is advisable to file income tax return if you have earned reasonable income which makes you eligible for application.

Read more of Mihir Tanna's responses here.

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