Frequently Asked Questions

Find answers to the most common questions about Income Tax filing and our services.

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General Questions

What's the difference between e-filing and manual filing?
E-filing is done online via the Income Tax portal and is mandatory for most taxpayers, while manual filing (paper returns) is rare and only allowed in specific cases. We handle e-filing for faster, error-free submission.
How do I verify my ITR after filing?
You can verify your ITR electronically via Aadhaar OTP, net banking, or by sending a signed ITR-V to CPC Bangalore within 30 days. We'll walk you through the easiest option.
What if I make a mistake in my filed ITR?
You can file a revised return before December 31, 2025, for FY 2024-25, correcting errors or omissions. Our team can review and fix it for you.
What is Form 26AS, and why do I need it?
Form 26AS is your tax credit statement showing TDS, TCS, and advance tax paid. It's essential to match your ITR data with it—we'll help you access and use it.
Can I file my ITR without linking Aadhaar to PAN?
No, Aadhaar-PAN linking is mandatory for e-filing unless exempted. We'll guide you through the process if they're unlinked.
What's the benefit of filing ITR even if my income is below the tax limit?
Filing establishes a financial record, aids loan approvals, and lets you carry forward losses. We'll assess if it's worth filing in your case.
Which ITR is suitable for me?
It depends on the sources of income you have. We suggest you go through the table on our ITR Forms page, where we've clearly laid out a comparison to help you easily decide which ITR form is suitable for you. Here's the link you can check: ITR Forms Comparison Table
Can I file ITR for a deceased family member?
Yes, a legal heir can file using the deceased's PAN, registering as a representative on the e-filing portal. We'll assist with the process.
What if my PAN is inoperative, can I still file ITR?
No, an inoperative PAN (e.g., unlinked to Aadhaar) blocks e-filing. We'll help you reactivate it quickly.
What's the difference between advance tax and self-assessment tax?
Advance tax is paid quarterly during the year if liability exceeds ₹10,000; self-assessment tax is paid at filing if there's a shortfall. We'll calculate both.
Can I file ITR without paying all taxes due?
Yes, but unpaid tax attracts 1% monthly interest under Section 234B/C. We'll help you settle it to minimize penalties.
What if I lose my ITR acknowledgment?
You can download it from the e-filing portal using your PAN and filing details. We'll retrieve it for you if needed.
What if I need my refund instantly—are there any shortcuts?
The Income Tax Department doesn't provide instant refunds, but filing early and accurately with us can shave weeks off the standard 2-3 month wait.
Can Credfill offer instant refund services like some online platforms?
We don't provide instant cash advances, but our quick filing process and expert oversight ensure your refund request reaches the department fast and flawless.
What if I pre-validate my bank account—does it speed up refunds?
Yes, pre-validating your bank account on the e-filing portal ensures smoother refund crediting once processed. We'll guide you through it.
What if I'm looking for an instant TDS refund—where do I go?
Traditional refunds take time, but we're working on partnerships with banks and NBFCs to offer quicker solutions. We're hunting for collaboration with different agencies to roll this out asap.
What's the difference between ITR-V and ITR acknowledgment?
ITR-V is the verification form you sign and send to CPC, while the acknowledgment is the receipt you get post-filing. We'll ensure both steps are completed.

ITR 1 (Sahaj) Questions

Can I file ITR-1 if I'm a non-resident individual?
No, ITR-1 is only for resident individuals. If you're a non-resident with income from India, you'll need to file ITR-2 or ITR-3, depending on your income sources. Our experts can assess your residency status and recommend the right form.
What documents do I need to file ITR-1?
You'll need your PAN card, Aadhaar card, Form 16 (from your employer), bank statements, and details of income from other sources like interest or rent from one house property. We'll guide you through collecting and submitting these efficiently.
Can I include agricultural income in ITR-1?
Yes, agricultural income up to ₹5,000 can be reported in ITR-1 as exempt income. If it exceeds ₹5,000 or impacts your tax slab, you may need ITR-2 instead. We can help clarify how it affects your filing.
Can I file ITR-1 if I have income from a single rental property?
Yes, ITR-1 allows income from one house property, including rent or interest on a home loan. If you own multiple properties, you'll need ITR-2 instead. We'll confirm the right fit for you.
What if my employer didn't issue Form 16 for ITR-1?
You can still file using salary slips, bank statements showing salary credits, and TDS details from Form 26AS. Our experts can help you compile this without Form 16.
Is interest from a savings account included in ITR-1?
Yes, interest from savings accounts falls under "other sources" and can be reported in ITR-1, up to ₹50 lakh total income. We'll ensure it's taxed correctly.
Can I file ITR-1 if I have income from a fixed deposit?
Yes, interest from fixed deposits counts as "other sources" and can be included in ITR-1, as long as your total income is below ₹50 lakh. We'll help you report it correctly.
What if I switch jobs mid-year—can I still use ITR-1?
Yes, ITR-1 works if you have salary from multiple employers, provided your total income stays within limits and other criteria (one property, no business income) are met. We'll consolidate your Form 16S.
Do I need to report tax-free income in ITR-1?
Yes, exempt income like gifts up to ₹50,000 or small agricultural income must be disclosed under the exempt income section. We'll ensure it's filed properly.
Can I file ITR-1 if I have income from a pension?
Yes, pension income is treated like salary and can be reported in ITR-1, as long as your total income is under ₹50 lakh and meets other criteria. We'll slot it in correctly.
What if I have no income but want to file ITR-1?
You can file a nil return using ITR-1 to maintain records or claim a refund for TDS deducted. We'll ensure it's processed smoothly.
Can I include donations in ITR-1?
Yes, donations eligible for deduction under Section 80G can be claimed in ITR-1. We'll verify eligibility and maximize your benefits.
What if I need my ITR-1 refund instantly—can Credfill help?
While the Income Tax Department typically processes refunds in 2-3 months, we can't issue instant refunds ourselves. However, our experts ensure your ITR-1 is filed accurately and quickly to expedite processing—getting you closer to that refund ASAP.
Can I get a faster refund if I file ITR-1 early?
Yes, filing before the July 31, 2025 deadline often speeds up processing, as the department handles early returns before the rush. We'll help you file early and error-free for the quickest turnaround.
What if my employer deducted excess TDS—how soon can I reclaim it with ITR-1?
Once ITR-1 is filed and processed, you'll get a refund for excess TDS within 2-3 months. We'll double-check your Form 16 and Form 26AS to ensure every rupee is claimed.
What if I want my TDS refund instantly after filing ITR-1?
The Income Tax Department processes TDS refunds in 2-3 months, but we're working on partnerships with banks and NBFCs to offer faster solutions. Soon, we'll collaborate with them to explore instant refund options—stay tuned!
Where can I get an instant TDS refund if I file ITR-1 early?
Instant TDS refunds aren't standard yet, but we're seeking NBFC and bank partners to make this happen. We're on the hunt for collaborators to bring you quicker refunds.

ITR 2 Questions

Do I need to file ITR-2 if I only have capital gains and no other income?
Yes, ITR-2 is suitable if you have capital gains from assets like stocks or property, even without other income sources, as long as you don't have business income. Our team can assist with accurate reporting.
What if I forget to report a foreign asset in ITR-2?
Omitting foreign assets can lead to penalties under the Black Money Act, ranging from ₹10 lakh to imprisonment. You can revise your return before assessment to correct it—our experts can ensure full compliance.
Can I claim deductions under Section 80C in ITR-2?
Yes, ITR-2 allows deductions under Section 80C (e.g., LIC, PPF) and other sections like 80D or 80G, reducing your taxable income. We'll help maximize your eligible deductions.
How do I report long-term capital gains in ITR-2?
Long-term capital gains (e.g., from stocks or property held over a year) must be detailed with cost, sale price, and indexation benefits. We'll calculate and report it accurately.
Can I file ITR-2 if I'm a partner in a firm but don't run a business?
Yes, if you only receive a share of profits or interest from the firm (not active business income), ITR-2 works. Active business income requires ITR-3—we'll clarify your case.
What if my foreign income is below the taxable limit?
Even if below the limit, foreign income and assets must be disclosed in ITR-2's FA schedule. Non-disclosure risks penalties—we'll ensure full compliance.
How do I report short-term capital gains in ITR-2?
Short-term gains (e.g., stocks sold within a year) are reported with purchase/sale details and taxed at your slab rate or 15% (for listed securities). We'll handle the math.
Can I file ITR-2 if I've inherited property?
Yes, inherited property income (rent or sale proceeds) can be reported in ITR-2 under house property or capital gains. We'll guide you on tax implications.
What if I don't have details of my foreign bank account for ITR-2?
You must still report it based on available info (e.g., balance estimate) to avoid penalties. We'll help you gather records or revise later if needed.
How do I report mutual fund gains in ITR-2?
Equity fund gains (short-term at 15%, long-term exempt up to ₹1 lakh) and debt fund gains (slab rate) go under capital gains. We'll break it down for you.
Can I file ITR-2 if I've sold a house this year?
Yes, ITR-2 handles capital gains or rental income from property sales. We'll calculate gains and check for exemptions like Section 54.
What if my foreign asset has no income—do I still report it?
Yes, all foreign assets (e.g., idle bank accounts, shares) must be disclosed in ITR-2's FA schedule, even with zero income. We'll ensure compliance.
Are there instant refund services for ITR-2 filers with capital gains?
No instant refund services exist through the tax department, but our team at Credfill can optimize your ITR-2 filing to minimize delays, especially for complex capital gains calculations.
What if I'm expecting a big refund from foreign income in ITR-2?
Refunds involving foreign income take standard processing time (2-3 months), but we'll ensure all foreign asset disclosures are spot-on to avoid holdups.
Can Credfill speed up refunds for multiple properties in ITR-2?
We can't control the department's timeline, but we'll streamline your filing—accurately reporting multiple properties—to reduce errors and get your refund moving faster.

ITR 3 Questions

What if I don't maintain books of accounts for ITR-3?
If your business income requires ITR-3 and you don't maintain books, you risk penalties or scrutiny from the Income Tax Department. We recommend basic records at minimum and can assist with proper documentation.
Can salaried individuals with a side business file ITR-3?
Yes, if you have salary income plus income from a business or profession, ITR-3 is appropriate. We'll ensure both income streams are accurately reported.
How do I calculate depreciation for ITR-3?
Depreciation is calculated based on asset type, purchase date, and rates specified in the Income Tax Act (e.g., 10% for furniture, 40% for computers). Our experts can compute this for your business assets.
Do I need an audit for ITR-3 if my turnover is low?
An audit is mandatory only if your turnover exceeds ₹1 crore (or ₹2 crore with cash receipts under 5%) or profits are below 6-8% of turnover. We'll check if you're exempt.
Can I claim business expenses in ITR-3 without receipts?
You can claim expenses, but without receipts, the tax department may disallow them during scrutiny. We recommend maintaining records—we can help organize them.
What if I have losses from my business in ITR-3?
Business losses can be carried forward for 8 years to offset future profits, but only if filed on time. We'll ensure your losses are properly documented.
Can I file ITR-3 if my business made a loss this year?
Yes, ITR-3 allows reporting losses, which can offset future profits if filed on time. We'll ensure your loss is documented for carry-forward.
What if my business income is below the audit limit but I maintain books?
You can still file ITR-3 without an audit if turnover is under ₹1 crore (or ₹2 crore with low cash). We'll review your records for accuracy.
How do I report freelance income in ITR-3?
Freelance income is treated as business/profession income—report gross receipts, expenses, and net profit. We'll structure it for tax efficiency.
Can I file ITR-3 if I'm a consultant with no fixed office?
Yes, consultants with income from profession (even without an office) use ITR-3 if not opting for presumptive taxation. We'll report your earnings accurately.
What if my business expenses exceed my income in ITR-3?
You can report a loss, deductible from future profits for 8 years if filed on time. We'll document it for carry-forward.
Do I need to report personal expenses in ITR-3?
No, only business-related expenses are reported. Mixing personal costs can trigger scrutiny—we'll keep your books clean.
What if I want an instant refund for my business loss in ITR-3?
Instant refunds aren't available, but we'll file your ITR-3 promptly and carry forward losses correctly, setting you up for quicker offsets against future profits.
Are there services to get ITR-3 refunds faster for freelancers?
No third-party service can bypass the tax department's 2-3 month process, but our experts can expedite your filing and ensure all freelance income details are audit-ready.

ITR 4 (Sugam) Questions

Who is eligible for presumptive taxation under ITR-4?
Individuals, HUFs, or partnership firms with turnover up to ₹2 crore (business) or ₹50 lakh (professionals) under Sections 44AD/44ADA, or transport operators under 44AE, can opt for ITR-4. We'll check your eligibility.
What if I want to declare lower profits than the presumptive rate?
You can declare lower profits, but you'll need to maintain books of accounts and get them audited if your income exceeds the basic exemption limit. ITR-3 would then apply—we can guide you through this shift.
Can I file ITR-4 if I have income from two businesses?
Yes, as long as both qualify under presumptive taxation and total turnover stays within limits. We'll help consolidate your income correctly.
Can professionals like doctors or lawyers use ITR-4?
Yes, professionals with gross receipts up to ₹50 lakh can opt for presumptive taxation under Section 44ADA and file ITR-4. We'll confirm your eligibility.
What if my business has both cash and digital receipts under ITR-4?
You can still use presumptive taxation—8% of cash receipts and 6% of digital receipts count as income. We'll compute it based on your payment mix.
Can I file ITR-4 if I also have a salaried job?
Yes, ITR-4 allows salary income alongside presumptive business income, as long as turnover limits aren't breached. We'll integrate both sources seamlessly.
Can I use ITR-4 if I'm a salaried freelancer?
Yes, if your freelance income qualifies for presumptive taxation (up to ₹50 lakh) alongside salary, ITR-4 fits. We'll blend both income types.
What if I miss the turnover limit for ITR-4 mid-year?
If your turnover crosses ₹2 crore (business) or ₹50 lakh (profession), you'll need ITR-3 with books of accounts. We'll help you transition smoothly.
Can I claim travel expenses under ITR-4 presumptive taxation?
No, presumptive taxation fixes income at 6-8% of turnover—specific expenses like travel aren't deductible. We'll explain your options.
Can I use ITR-4 if I own a small shop?
Yes, if your shop's turnover is under ₹2 crore, you can opt for presumptive taxation (6-8% of turnover) and file ITR-4. We'll confirm it fits.
What if I have a side gig under ITR-4—can I include it?
Yes, multiple presumptive businesses can be combined in ITR-4 if total turnover stays within limits. We'll tally it up.
Can I switch to ITR-4 from ITR-3 next year?
Yes, if your turnover drops below presumptive limits and you qualify, you can switch. We'll assess the best option annually.
Can I get an instant refund under ITR-4's presumptive taxation?
The tax department doesn't offer instant refunds, but our streamlined ITR-4 process ensures your presumptive income is filed fast, cutting down wait time.
What if I'm a small business owner looking for quick refunds with ITR-4?
We'll optimize your filing under Section 44AD to avoid errors, but refunds still take 2-3 months. Our goal is to make the process as swift as possible on our end.

Tax Planning Questions

What are some common tax-saving investments for planning?
Options include PPF, ELSS mutual funds, NSC, and life insurance under Section 80C, plus health insurance under 80D. We'll tailor a plan to your goals.
How does the new tax regime affect my deductions?
The new regime offers lower tax rates but eliminates most deductions like 80C and 80D. We'll compare it with the old regime to see what saves you more.
How can I save tax if I'm in the new tax regime?
The new regime limits deductions, but you can still optimize via NPS contributions (Section 80CCD(1B)) or tax-free perks like food coupons. We'll find what works for you.
What's the benefit of starting tax planning early in April?
Early planning lets you stagger investments, avoid last-minute errors, and lock in better returns on tax-saving options. We'll craft a year-long strategy for you.
How can I reduce tax on rental income?
Claim a 30% standard deduction, interest on home loans, and municipal taxes. We'll optimize your property income tax.
What's the benefit of quarterly tax planning reviews?
Quarterly checks catch income spikes, new deductions, or law changes, keeping your tax liability low. Our plans include this service.
How can I save tax on interest income?
Use Section 80TTA (up to ₹10,000 on savings interest) or invest in tax-free bonds. We'll pick the best route for you.
What's the benefit of splitting income with family for tax planning?
Gifting assets to spouse or kids can shift income to lower tax brackets, but clubbing rules apply. We'll structure it legally.
Can tax planning help me get refunds faster?
Smart planning—like claiming all deductions upfront—ensures your refund is maximized and filed early, speeding up the process. We'll strategize with you.
What if I want instant access to tax savings—are there tools for that?
While refunds take time, our tax planning tools can instantly show you potential savings for relevant financial year. We'll help you act on them before filing.

Refunds & Penalties Questions

Why is my refund taking longer than expected?
Delays can occur due to incomplete details, verification issues, or high processing volumes. We track your refund status and resolve discrepancies to speed it up.
Can I avoid late filing fees for a belated return?
No, late fees (₹1,000 to ₹5,000, depending on income) are mandatory for belated returns unless your income is below the taxable limit. Filing by July 31, 2025, avoids this.
What happens if I don't pay the tax due by the deadline?
You'll face interest at 1% per month under Section 234A from August 1, 2025, until payment. We'll help you calculate and settle it early.
How do I track my ITR refund status?
You can check it on the Income Tax e-filing portal using your PAN and acknowledgment number. We'll monitor it for you and update you.
What if I get a defective return notice after filing?
A defective notice (under Section 139(9)) means incomplete or mismatched data. You must respond within 15 days—we'll fix and resubmit it.
Can penalties be waived if I miss the ITR deadline?
Penalties can't be waived, but late fees may be reduced if you prove reasonable cause (e.g., medical emergency). We'll assist with your appeal.
Why was my refund adjusted instead of paid out?
Refunds can be adjusted against past tax dues or errors in filing. We'll check your Form 26AS and resolve it with the department.
What's the penalty for not responding to a tax notice?
Ignoring a notice can lead to fines, asset seizure, or prosecution under Section 276CC. We'll draft and submit your response on time.
Can I get a refund if I forgot to claim TDS last year?
Yes, by filing a revised return for that year before December 31, 2025 (for FY 2024-25). We'll recover what's due.
Why did I get a refund demand instead of a payment?
A demand means your tax liability exceeded credits—often from errors or unreported income. We'll review and appeal if needed.
Can I avoid interest on late tax payments?
No, interest under Sections 234A/B/C is mandatory, but paying early reduces it. We'll strategize to limit the hit.
What if my refund is stuck due to a processing delay?
Delays can stem from verification holds or system glitches. We'll follow up with the department to expedite it.
What if my refund fails—can I get it instantly reissued?
Refund failures (e.g., wrong bank details) require a reissue request, which we'll file for you. It's not instant, but we'll expedite it to minimize delays.
What if I'm desperate for cash—can Credfill advance my refund?
We can't advance refunds ourselves as of now, but we'll file your ITR swiftly and accurately to unlock your refund from the department as soon as possible.
What if my TDS refund is stuck—can Credfill get it instantly?
We can't bypass the department's process yet, but we're seeking bank and NBFC partnerships to offer instant alternatives. We're close to collaborating—stay posted!

Still have questions?

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