Frequently Asked Questions

ABOUT TAXFRIDAY

1. How can I start using TaxFriday?

TaxFriday is an easy to use web application. Create an account (Or you can directly login with your social media login credentials) and you will be given a unique dashboard. All TaxFriday services can be used from the dashboard.


2. What is complete tax companion? Will TaxFriday take care of all my taxation needs?

Apart from IT return filing there are many needs that you might need in the domain of taxation. Be it the basic information need to complex tax planning advices. A complete tax companion is one which caters to all those needs.

Yes, TaxFriday aims to cater to all your taxation needs. Refer to our Mission statement.


3. How is TaxFriday different from other competitors?

TaxFriday is a complete tax companion and not just a return filing application. We aim to become your virtual personal CA. As part of that endeavour, we started out with a set of 3 services and will keep adding more to our portfolio to make TaxFriday your one stop solution.


4. What are the services offered by TaxFriday?

For now, we offer these services:

  • IT return filing - Free Self filing
  • IT return filing - Expert filing
  • Tracking
  • IT notice advice
  • Investment advice

Apart from the above we also offer ancillary services like filing rectification requests, refund reissue requests, etc.


5. How much does TaxFriday charge for its services?

TaxFriday is a freemium product where we offer all do-it-yourself services for free, and charge only when you use our expert's time. The following are the prices for chargeable services:

  • Expert filing - Starting from Rs. 200/return
  • IT notice advice - Rs. 300/notice
  • Refund reissue request - Rs. 100
  • Rectification request - Rs. 300

Pricing of other ancillary services changes from case to case.


6. Tax is deducted from my salary. Why at all would I need all these services?

Paying tax and filing of IT returns are 2 distinct legal obligations which has to be met independently. Apart from return filing, we have other services which you will require to maintain a healthy financial discipline. You might need these services generally, without connection with paying taxes.


7. How safe and secured is TaxFriday?

Very much. Apart from the 256 bit SSL encryption, tried and tested Amazon servers, secured open source cloud applications, sturdy code design and architecture, and frequent OWASP compliance security testing, we have a well regulated internal policy. We have a healthy organisational culture and uncompromising employee morale which ensures that TaxFriday is completely safe and secure.


8. There is a lot of sensitive information that is flowing in. How safe is my information?

TaxFriday has a defined Privacy policy which is in compliance of Information Technology Act. Please refer to it for detailed information about how we handle your data.


9. I am comfortable filing my return using the government website. Why should I change to TaxFriday?

TaxFriday is equally secured, accurate, and completely free like the government utility. Additionally, we have the following advantages:

  • a .TaxFriday is a complete tax companion meaning that we have a wider set of services to offer.
  • b. Using TaxFriday is much simpler, easier, and faster.
  • c. We pull data from your Form 16 automatically.
  • d. TaxFriday is designed to be used by users with nil or low tax knowledge.


10. Can I use TaxFriday's services for my friends and family?

Yes. You can use this portal for any number of your friends or family. However, you have to take a written consent from them that you are using these services for them.


SUPPORT

1. I am unable to create an account. What should I do?

Please mail us your issue at ask@taxfriday.com. We also want you to note that we have a social media login feature where you can login without creating an account.


2. I am unable to login. What should I do?

We are sorry. Please mail us your issue at ask@taxfriday.com.


3. Social media logins (FB, Twitter, LinkedIn) are not working. What can I do?

Please mail us your issue at ask@taxfriday.com. We also want you to note that creating an account with TaxFriday is a direct and more controllable option. If problems persist with social media login, please create an account with TaxFriday.


4. I forgot my password. What should I do?

Click on 'Forgot password?' link in the login page. A password reset link will be sent to your registered mail address. If you still have issues, please mail us at ask@taxfriday.com.


5. How can I change my password?

You can change your password from your dashboard. Open settings page, use change password tab.


6. How can I change my email/username?

You can change your email/username from your dashboard. Open settings page, use change email tab.


7. I didn't receive email verification link after account creation. What should I do?

We are sorry! Please email us at ask@taxfriday.com.


8. How can I contact TaxFriday?

We have only email contact support for users who don't have a dashboard (ask@taxfriday.com). If you are a registered user, use our 'Issue resolution' page for contacting us.


9. How can I delete my account?

We thought you would never need an answer to this question. However, just in case, please mail us at ask@taxfriday.com.


ABOUT INCOME TAX

1. What is income tax?

Income tax is the tax payable on your income. Central government levies tax at specified rates and they change every year. You are supposed to pay tax on your income in the manner prescribed by the government.


2. Who are supposed to pay income tax?

Generally, whoever earns income more than a specified limit (Changes every year. For F.Y 2014-15 it is Rs.2,50,000) is liable to pay income tax. However, there are quite a number of other rules which determine if you will become liable to pay tax or not.


3. What are the categories of income that are subject to income tax?

Any income, unless specifically exempt, is taxable. For IT purposes, the incomes are categorised into the following 5 heads.

  • a. Salary
  • b. Rental income from house properties
  • c. Income from business or profession
  • d. Profit on sale of assets
  • e. Other income (Misc category)


4. What is TDS?

TDS stands for tax deducted at source. When you are receiving certain types of incomes like salary, professional fees, rent, interest, etc., certain percentage will be deducted as tax (deducted in advance). This deduction is called TDS and will be paid by the deductor to the government, and for all purposes it is treated as tax paid by you to the government.


5. What is Form 16?

Form 16 is a TDS certificate given by employers to employees annually. Form-16 has two parts. Part-A contains details about the employer, amount paid as a salary, and total TDS deducted and paid to the government. Part-B contains details about salary, its breakup, computation of Net Income, and tax thereon. Form 16 is used as a primary information document while filing returns.


6. How will I know the amount of TDS deducted from the payments made to me?

All taxes deducted from your payments, if paid to government, will be reflected in your tax credit statement (Also called 26AS statement). You can find your tax credit statement in your account in incometaxindiaefiling.gov.in or in the TRACES website.


7. I am not liable to tax. How should I apply for non deduction of TDS by my employer?

Your employer will not deduct TDS If you are not liable to tax. However, your employer will only consider loss from your house property. If the loss is on account of loss on sale of assets or business or any other loss, your employer will not take them into account.

Note:- Irrespective of your tax liability if your total income before claiming deductions exceeds basic exemption limit you should file your Income tax return.


8. What is CPC?

CPC stands for Centralized Processing Centre, and it is located in Bangalore. All the electronically filed returns are processed centrally at CPC. If CPC finds any discrepancies in the filed returns, they will be handed over to relevant assessing officers having jurisdiction over you for further proceedings. CPC is the single point of contact for all issues relating to return filing until they are specifically transferred to any assessing officer.


9. What is PAN? How should I apply for it?

PAN stands for Permanent Account Number. This is a unique identification number issued for tax purposes by the IT department. You must hold a PAN for various purposes including filing a return.

You can apply a PAN physically or electronically. Please go through these links for applying PAN online - https://tin.tin.nsdl.com/pan/ (or) https://www.myutiitsl.com/PANONLINE/


10. What is assessment year and previous year?

Previous year and Assessment year are a verbatim of Indian taxation. Previous year is the financial year in which income is earned (It is not to be confused with the english definition of previous year). With respect to any previous year, assessment year is the financial year immediately following the previous year. They are so named because income earned in the previous year is assessed to tax in the assessment year.

Example - With respect to the income earned in the financial year 2014-15, Previous year is 2014-15, and Assessment year is 2015-16.


11. What is 26AS statement?

26AS is your tax credit statement. It contains the details of TDS credited to your account. Apart from the tax deducted from your salary, tax might also have been deducted from various other payments made to you. For example, TDS will be deducted on rent, interest, professional fees, etc. 26AS contains the details of all such deductions and it contains details of tax payments made by you and refund amounts credited into your account in a financial year.

*If any TDS deduction is not reflected in your 26AS statement, it means that the deductor didn't file TDS returns to the IT department after making TDS payments to government. In those cases you need to check with the deductor to get more information.


12. Am I liable to pay any interest or penalty for delay in filing return?

Yes. If you don't file your returns within the due date, you are liable to pay an interest of 1% every month on the tax remaining payable. It implies that if no tax is pending payable, there would be no interest for delay in filing of IT return along with interest for delay in payment of advance tax. However, if the return is not filed within 1 year from the end of the Assessment year, a penalty of Rs.5000 may be levied


IT RETURN FILING

1. What is IT return filing?

IT return is a declaration stating the income that you earned in a year, along with the tax computation thereon. You are supposed to prepare the return and submit it to the IT department either electronically or manually, which is called return filing.


2. Why should I file my returns at all?

Please refer to our blog for a detailed article on this.


3. How can I file my return?

You can file your return manually or electronically. Filing a return electronically is much simpler and easy. You can file your return electronically yourself using the IT department's utility. Alternatively you can use TaxFriday's free, simple, and easy to use application.


4. Tax is deducted from my salary. Why at all should I need all these services?

Refer question 6 in 'About TaxFriday' section.


5. What is self filing, what is expert filing?

TaxFriday has developed a return filing application which can be used without any taxation knowledge. Using this application to file your returns by yourself is called Self filing. You can also choose to have an expert prepare your return which is called expert filing.


6. How much does TaxFriday charge for filing my return?

Our expert filing prices starts from Rs. 200. They vary depending upon the complexity and difficulty of your return. Please refer to our price sheet for more details.


7. What is the deadline for filing the IT returns?

31 July is the deadline for filing the returns which are not required to be audited (Normally, salaried class are not required to get audited). However, the date can be extended by the IT department. For example, deadline for filing returns for the year 2014-15 is extended to 31 August.


8. I missed the deadline for return filing. What options do I have?

You can still file your return. You can file your return within 1 year from the end of the financial year (i.e 31 March of the year succeeding the financial year for which return has to be filed) and save a penalty upto Rs.5000. After 1 year, you can still file your return. You can file your return only until 2 years from the end of the financial year, after which you need a condonation from IT dept. for filing returns.


9. How can I rectify a mistake in the filed return?

If you have filed your return within the due date for filing return ,you can rectify your mistakes voluntarily by filing a revised return. If the processing has been completed by CPC and intimation u/s 143(1) is sent, you can only apply for rectification by placing rectification request with CPC. While applying rectification you can also request for correction of mistakes done by CPC too.

Please mail us at tracking@taxfriday.com if you need assistance with filing rectification returns.


10. Does TaxFriday take responsibility for the mistakes in the returns filed?

Yes. If the information you gave while filing a return is complete and correct, we take the responsibility for any mistakes in the return filed. However, it is highly unlikely that there will be a mistake if you give complete and correct information.


11. What after filing support does TaxFriday offer?

TaxFriday has the best in class after filing support. We offer the following support for the returns we filed:

  • - Tracking of refund/return with auto notifications
  • - IT Notice advice, if the notices concern the return
  • - Storage of ITR V, return copy

Apart from the above, we are coming up with new tax planning and tax saving advisory services.


12. Can I file the returns of my friends and family?

Yes. You can use this portal for any number of your friends or family. However, you have to take a written consent from them that you are using these services for them.


13. Do I need to submit any documents/proofs for filing returns?

While using Self filing, you don't need to upload or submit any documents or proofs. However you will need them for information for yourself. While using Expert filing, you need to upload some documents which will help our experts take the information from them. However, they are not mandatory nor they are required as proofs for submission to IT department.


14. What is ITR V?

ITR V is an acknowledgement generated by IT department after you have filed your return successfully. In case of manual filing you should fill ITR V copy and need to get it stamped by IT department.


15. I didn't receive my ITR V after filing the return. What should I do?

You should have received your ITR V through an email from the IT department immediately after filing your return. Please check your spam folder as well. If you have filed your IT return with TaxFriday, use 'History' page to download ITR V. You can also download it by logging in to your account with IT department.


16. What should I do with ITR V?

You must sign the ITR V and send it to CPC, Bangalore to complete the return filing process. If the ITR V doesn't reach CPC, Bangalore in 120 days from the date of filing the return, you are treated to not to have filed the return at all.


17. Can I send my ITR V by a courier?

No. CPC accepts ITR V sent only by ordinary or speed post without acknowledgement due.


18. What are the steps in return filing process?

Please refer to our article in the blog.


19. My ITR V is rejected by the IT department. What should I do?

Your ITR V could have been rejected as it could have been received by the IT department after the due date or that it is not signed or that it is not in order. If there still is time for submitting ITR V, resend it. Else, you should file your return again.

Please refer this page about the correct procedure to send ITR V.


20. What if ITR V is not received by the department?

If there still is time for submitting ITR V, resend it. Else, you should file your return again.


21. My employer didn't pay the TDS deducted from my salary to the govt. Can I still claim it as tax paid? How should I proceed?

You can claim the TDS as displayed in your Form 16. However, if you feel that additional tax is deducted from you but is not reflected in your Form 16, you can't claim it. You must proceed by reporting it to the concerned IT officer who has jurisdiction over your employer.


22. Which ITR form should I use for filing my return?

Please refer this page

If you are using TaxFriday's application, we will automatically choose the relevant ITR for you.


23. I received salary from more than 1 employer. How should I file the return?

You must club the salary received from all your employers and calculate your income. Be cautious while calculating deductions for investments. You must do that only once.


24. Can I file the returns of previous financial years now?

Please refer question 8 in this section. As indicated in there, you can file a return of the financial year only within 2 years from the end of such financial year.


25. How long will the return processing take?

A simple answer is, it depends. It depends on so many factors. It is not uncommon for the processing to take as long as 1 year. Further, while the return is being processed, there is no option to request for a speedy processing.


26. I have a digital signature. How should I use it while filing returns?

It depends upon the application you are using to file returns. Please read the concerned instructions.


27. I was asked to pay more tax by the IT department. What should I do?

You have 2 options. If you agree to the grounds on which you are demanded higher tax, you can pay it. Else, you can raise objections by filing a rectification request.

Mail us at tracking@taxfriday.com for assistance.


28. I was refunded a lesser amount than the refund applied by me. What should I do?

You have 2 options. If you agree to the grounds on which you are denied the refund amount claimed by you, you can settle for what has been refunded. Else, you can raise objections by filing a rectification request.

Mail us at tracking@taxfriday.com for assistance.


29. My tax consultant filed my return incorrectly. What can I do? Will the tax consultant be responsible for the loss?

Filing a return is your legal obligation, and taking help from a tax consultant amounts to taking his professional advice. The tax consultant will not be liable for his incorrect professional advice. You have to take responsibility for the mistakes in the return filed.


TRACKING

1. Why should I track my returns?

Return filing is a process with many stages, and consequently different possible outcomes arising at each stage. It is necessary to be watchful of the process (Especially if you have a refund claim) to ensure that the processing is not stuck in the middle. In those cases, you have to intervene to set it right. For example, if your ITR V is rejected by the CPC, you must file the return again. If you quoted wrong bank account number, you must raise a refund reissue request.


2. When can I be peaceful about the return filed?

The last stage in the process is refund being credited to your account, or you paying off the demanded tax, or the IT department accepting your return with no refund or demand. However, the IT department might also choose to pick your return for further verification.


3. What is subscription service?

TaxFriday's subscription service gives you automatic updates when you return processing escalates to next stage. It will also suggest you with the course of action required to be taken, if any.


4. Will TaxFriday help me if the return processing is stuck at any stage?

Yes. Please mail us at tracking@taxfriday.com for assistance when your return processing is stuck in between.


5. I didn't send my ITR V. What should I do now?

If there still is time for sending ITR V, send it now. If the deadline is passed, you have to file your return again.

There are cases where CPC accepts ITR V even when received after due date. So, you can try sending the ITR V even if deadline is passed. However, we strongly suggest you to not be hopeful that it will be accepted and wait for a long time.


6. When will I get my refund?

It depends. If everything is in order, it usually takes around 5 months for you to receive your refund. However, refund taking longer time to be credited is not uncommon.


7. Can I send the ITR V by courier?

No. CPC accepts ITR V sent only by ordinary or speed post without acknowledgement due.


8. What is the last date for sending ITR V?

Your ITR V should REACH CPC, Bangalore within 120 days from the date of filing of the return. You must post it factoring in the time in transit and unusual delays to ensure that you are safe (As the 120 days limit is for ITR V reaching CPC).


9. I lost my ITR V. What should I do?

Refer question number 15 in 'IT return filing' section.


10. Should I save my ITR V?

Yes. ITR V is the proof that you have filed your return, and it might be useful in circumstances of applying for loans, Visa, etc.


11. What are the guidelines for sending ITR V?

Please refer these guidelines given in www.incometaxindiaefiling.gov.in.


12. What if ITR V is not received by the IT department?

If there still is time for submitting ITR V, resend it. Else, you should file your return again.


13. How long will the return processing take?

Please refer question 25 in 'IT return filing' section.


14. I was asked to pay more tax by the IT department. What should I do?

Please refer question 27 in 'IT return filing' section.


15. I was refunded lesser amount than what is claimed by me in the return. What should I do?

Please refer question 28 in 'IT return filing section'.


16. How and when should I pay the additional tax demand? Can I object the additional tax demand from the IT department?

You have 2 options. If you agree to the grounds on which you are demanded higher tax, you can pay it. You can pay your taxes using challan no 280 at a bank or online. You can raise objections by filing a rectification request.

Mail us at tracking@taxfriday.com for assistance.


17. I have filed my return long back, but didn't receive the refund. What should I do now?

You have to wait. There is no procedure in place to request for a speedy processing. We suggest you to verify if you received any intimation from the IT department that your refund payment has failed due to any particular reason. Use our Tracking application to know more.


18. My refund is taking long. Can I do anything to speed up the process?

No. There is no procedure in place to request for a speedy processing. We suggest you to verify if you received any intimation from the IT department that your refund payment has failed due to any particular reason. Use our Tracking application to know more.


19. My return is in processing stage from a long time. What can I do?

You have to wait. There is no procedure in place to request for a speedy processing.


20. My return is processed but my refund is not paid yet. What should I do?

You have to wait. We suggest you to verify if you received any intimation from the IT department that your refund payment has failed due to any particular reason. Use our Tracking application to know more.


21. I gave wrong bank account details while filing return. What can I do now?

You have to raise a refund reissue request from the account you hold with IT department. Alternatively, you can also mail us at tracking@taxfriday.com, and we will guide you through.


22. Can I keep my refund with the IT department and adjust it the later years?

No. Your refund will automatically be credited to your bank account.


IT NOTICE ADVICE

1. What are IT notices?

IT notices are notices from the Income Tax department. They require you to take some action. You are obliged to comply with such notices.


2. Why would I get an IT notice?

Please refer our article in the blog.


3. Should I respond to an IT notice?

Yes. You must either do what the notice asks you to do, or take challenge the notice by taking appropriate action. Either case, you must respond to the notice.


4. What if I don't respond to an IT notice?

For those notices which IT department seeks a reply or action, you must comply with them. Else, the IT department will enforce serious action which involves imposing penalties, attaching your bank accounts for recovering taxes, etc.


5. Should I take IT notices seriously?

Yes. Non compliance of IT notices is a serious offence, and it is strongly recommended to not to do so.


6. What notices should I take seriously?

Please refer our article in the blog.


7. What are the most common IT notices served on salaried employees?

Please refer our article in the blog.


8. How will TaxFriday help me?

TaxFriday will read, analyse, and explain the contents of the notice to you. We will also suggest you a course of action. We might also help you with taking such action, which is chargeable in addition.


9. After explaining the notice content, what if I need more assistance? Will TaxFriday offer follow up services?

Yes. However, we charge for them. The charges vary from case to case depending upon the complexity and difficulty.


10. What are the limitations of the service provided by TaxFriday?

TaxFriday doesn't take up the case in entirety. We just explain you the contents of the notice. Further, we will not represent you before any IT officer or authority.


11. Are emails from IT department IT notices?

Not all emails from IT department are serious enough to be considered as notices. Some of them are simply acknowledgements, information emails.


12. Should I go to IT office to resolve IT notices?

Not always. The action required to be taken towards an IT notice depends on the notice.


13. Will TaxFriday represent me before IT authorities?

No.


14. Should I go to a CA if I get a notice?

Not always. Many of the IT notices you get can be resolved without visiting a CA. Use our online IT notice advice to first understand the notice, and get assistance with the action that should follow.


INVESTMENT ADVICE

1. Why should I invest?

Please refer to our article in the blog.


2. What is tax saving investment advice?

Advice on where to invest with the primary objective of tax saving.


3. How much tax can I save?

Depends on how much income you are earning, how much investment you already made, and your tax liability. Use our free Investment advice to know more.


4. How is this advice different from conventional investment advice?

Conventional investment advice focuses on higher return, lower risk, liquidity and various other parameters. However, TaxFriday's investment advice primarily focuses on tax saving with secondary focus on return, risk, liquidity, etc.


5. How useful is this advice to me?

This advice is preliminary and very basic, but by being so it is useful for a wide set of users. This could be your first step towards investment planning, wealth management, retirement planning, etc.


6. To which financial year is this advice relevant to?

We update the application so that the advice will be useful for the current financial year. If you are using the application in 2015-16, the advice advises you on investments to be made in the year 2015-16.


7. Is there any guarantee of performance?

No.


8. Does TaxFriday offer me stock market investment advices?

No.


9. What if I need more information about any particular option?

We have a premium investment advice service coming up which aims to evaluate specific options for you. Keep checking our website for more information.


10. Can I invest for my family?

Yes. We have a premium investment advice service coming up which will advice you better on this. Keep checking our website for more information.


11. What are the risks associated with this advice?

The advice clearly categorises risky and risk free investments. While the risk free investments are mostly government schemes, they offer fixed (however, low) rates of return and are risk free. The risky investments are those where there is direct or indirect investment in stock markets. They are risky in the sense that there is no guarantee of return.


Close button
Start filing your return
Upload Button
(Optional)