[FAQs] Income Tax Returns (ITR) | Deductions & Rebates

  • Blog|Income Tax|ITR Week 2023-24|
  • 4 Min Read
  • By Taxmann
  • |
  • Last Updated on 5 July, 2023

The Income-tax Act provides various deductions to the taxpayer to reduce taxable income. These deductions are investments and expenses that the taxpayer incurs during the year.

Set-off of losses means adjustment of losses against profits from another source or head of income.

This write-up answers a few questions related to income tax deductions and income tax rebate and Set Off of losses.

Relief under Section 89 | Form 10e Income Tax

income tax deductions; income tax rebate

FAQ 1. I am a Govt. employee and have received arrears of salary as per recommendations of 7th pay commission. Whether I need to file any form to claim relief under Section 89?

If you want to claim relief under 89, filing of Form 10E online on the e-filing website is mandatory. Taxpayers who claim relief under Section 89 without filing Form 10E will get a notice from Income-tax Dept. stating that

The relief under Section 89 has not been allowed in your case, as the online form 10E has not been filed”.

Thus, you are required to file Form 10E online before filing your Income-tax return.

If the employer fails to provide relief under section 89 and deducts excess tax, then you can claim such relief in your return of income and claim a refund of excess tax deducted. However, it is mandatory to file Form 10E online on the e-filing website.

FAQ 2. How to file Form 10E?

Form 10E can be filed online in the following steps:

Step 1: Login to www.incometax.gov.in.

Step 2: After you log in, click on tab e-File > Income Tax Forms> File Income Tax Forms. On the landing page, select the following options:

income tax deductions; income tax rebate

(Read More: How to file Form 10E online? on taxmann.com/practice)

FAQ 3. I failed to submit rent receipt and proof of tax-saving investment to my employer, due to which HRA exemption and certain other deductions were not given to me. How can I claim a refund of such excess tax paid, as the tax deducted from my income is higher than my actual tax liability?

Even if exemption of House Rent Allowance under Section 10(13A) and deductions under Chapter VI-A are not considered by the employer in Form 16, they can be claimed in the Income-tax return. Accordingly, the excess tax deducted by the employer can be claimed as a refund.

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FAQ 4. I am a salaried class person living in a rented premises. The HRA component in my CTC is less than the actual rent paid. Can I claim Section 80GG deduction in respect of such excess rent?

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

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FAQ 5. How to claim the deduction of donation given to an organization registered under Section 80G?

To claim a deduction under section 80G, the taxpayer must provide the details of their donations in ‘Schedule 80G’ in the ITR form as applicable to them. This schedule consists of four tables, i.e., Table A, B, C, and D. Each of which corresponds to a different category of NGO/charitable institution. One must ensure that donation information is entered in the correct table.

While filling the table, a taxpayer will be required to provide the following details of their donations to charitable institutions or specified funds during the year:

  • Name and address of the donee
  • PAN of the donee
  • Total amount of the donation – with a break-up of the amount paid in cash and other modes
  • Eligible amount of the donation, which is the amount that is eligible for deduction

In the ITR forms for the Assessment Year 2023-24, a new column has been added to ‘Table D’. This column requires disclosure of the ARN (Donation Reference Number) for donations made to entities where a 50% deduction is allowed, subject to the qualifying limit. The ARN should be obtained from the donation certificate issued in Form 10BE by the donee institutions and should be mentioned in the ITR.

In addition to providing the necessary information in ‘Schedule 80G’, it is also essential to separately mention the total amount of deduction claimed under Section 80G in Schedule VI-A if you are filing a return of income in form ITR-2 or ITR-3

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FAQ 6. Is it mandatory to furnish PAN of the landlord to the employer for claiming exemption of HRA?

If the annual rent paid by the employee exceeds Rs. 100,000 per annum, it is mandatory for the employee to report the PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord with the name and address of the landlord should be filed by the employee.

Dive Deeper:
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Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

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