Income Tax Return E Filing for Asst Year 2023-24 Made Easy –Part 6

 Filing Form 10E Online

·         To file Form 10E online, follow these steps:

a.     Log in to www.incometax.gov.in.

b.    After logging in, click on the tab "e-File" and then select "Income Tax Forms" followed by "File Income Tax Forms."

c.     On the landing page, choose the relevant options.

Claiming Refund for Excess Tax Paid due to Unconsidered Deductions

·         If you failed to submit rent receipts and proof of tax-saving investments to your employer, resulting in non-consideration of House Rent Allowance (HRA) exemption and certain deductions, you can still claim a refund for the excess tax paid.

·         Even if these exemptions and deductions were not considered by your employer in Form 16, you can claim them in your income tax return. The excess tax deducted by your employer can be claimed as a refund.

 Ineligibility for Section 80GG Deduction with HRA Component

·         If you are a salaried individual living in a rented premise and your CTC includes a House Rent Allowance (HRA) component that is less than the actual rent paid, you cannot claim a deduction under Section 80GG.

·         Section 80GG explicitly denies the deduction to individuals receiving any income falling under Section 10(13A) (House Rent Allowance). Since your salary structure already contains an HRA component, you are not eligible for claiming a deduction under Section 80GG.

Claiming Deduction for Donations under Section 80G

·         To claim a deduction for donations made to organizations approved under Section 80G, provide the donation details in "Schedule 80G" in the applicable Income Tax Return (ITR) form.

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·         "Schedule 80G" consists of four tables (Table A, B, C, and D) corresponding to different categories of NGOs/charitable institutions.

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·         While filling the tables, provide the name and address of the done, PAN of the done, total donation amount (breakup of cash and other modes), and eligible amount of the donation (amount eligible for deduction).

·         In the ITR forms for Assessment Year 2023-24, a new column in 'Table D' requires the disclosure of the ARN (Donation Reference Number) for donations made to entities where a 50% deduction is allowed. Obtain the ARN from the donation certificate issued in Form 10BE by the done institution and mention it in the ITR.

·            Additionally, mention the total deduction claimed under Section 80G separately in Schedule VI-A if you are filing ITR-2 or ITR-3.

 Furnishing PAN of Landlord for HRA Exemption

·         If the annual rent paid by an employee exceeds Rs. 100,000, it is mandatory to report the PAN of the landlord to the employer.

·       If the landlord does not have a PAN, the employee should file a declaration with the employee, including the landlord's name and address, stating the absence of a PAN.

 Set-Off of Losses

Set-Off of Loss from House Property against Salary Income

·         If you have earned a salary income of Rs. 800,000 and incurred a loss of Rs. 300,000 from a house property, you can set off such a loss against your salary income.

   According to Section 71 of the Income Tax Act, losses from house property can be set off against any other income.

·         However, there is a limit to the set-off of losses from house property. You can only set off a maximum loss of Rs. 200,000 against your salary income in any assessment year.

  In this case, you can adjust a loss of Rs. 200,000 against your salary income, and the remaining loss of Rs. 100,000 can be carried forward for set-off in subsequent years.

Set-Off of Long-Term Capital Loss from Sale of Listed Equity Shares

·         If you have incurred a long-term capital loss of Rs. 70,000 from the sale of listed equity shares, you can set off and carry forward this loss.

   The tax on long-term capital gains from the transfer of listed equity shares is levied at a concessional rate of 10% under Section 112A if the gain exceeds Rs. 1 lakh.

 The new Section 112A specifies the taxability of long-term capital gains above Rs. 1 lakh. Since gains up to Rs. 1 lakh are not taxable they are not considered exempt income.

 Therefore, any long-term capital loss arising from the sale of listed equity shares can be set off against taxable gains and carried forward for future set-off.