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Article explains Eligibility for claiming rebate u/s 87A, ITR form​ applicable for LIC agent, How to file return of income, Can total deductions exceeds the Gross Total Income (GTI), Need to file Income Tax Return when all taxes been paid in advance and  What to do  when TDS has  been deposited under wrong PAN.

1. Eligibility for claiming rebate u/s 87A?

Following are the conditions for claiming rebate under section 87A:

  • An assessee is a resident Individual
  • Total Income does not exceed Rs. 5,00,000 in the A.Y 2020-21 (Rs. 3,50,000 till A.Y 2019-20)
  • Rebate is 100% of Income tax or Rs. 12,500, whichever is less in the A.Y 2020-21 (Rs. 2,500 till A.Y 2019-20​)

Rebate under section 87A is not available to a non-resident individual, resident or non-resident HUF/AOP/BOI and company.

2. ITR form​ applicable for LIC agent

​​Ans: LIC agent can use ITR-3 as LIC agent receiving the commission from insurance company.

3. How to file return of income?

Return of income can be filed either in hard cop​y (Only ITR 1/4 in specified cases) at the local office of the Income-tax Department or can be electronically filed at

ITR Description
ITR 1 (SAHAJ) For Individuals being ​a resident other than not ordinarily resident ​​having​ Income from Salaries, One house property, Other sources (Interest etc.) and having total ​income upto Rs. 50 lakhs​
ITR 2 It is applicable to an individual and HUFs whose income chargeable to income-tax under the head “Profits or gains of business or profession” is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.
ITR 3 It is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietory business or profession.
ITR 4 Also known as SUGAM is applicable to individuals or Hindu Undivided Family or partnership firm (other than limited liability partnership firm) who have opted for the presumptive taxation scheme of section 44AD/ 44ADA/44AE.
Visit the below link for step by step guide for e-Filing of Income-tax return:

4. Can total deductions exceeds the Gross Total Income (GTI)

​​​​​Ans: Deductions provided under Chapter VIA of the Income tax Act, cannot exceed the Gross Total Income (GTI). Income here means all the income accumulated in the GTI and reduced by the incomes mentioned below.

  • Long term Capital Gain (LTCG) under section 112 of the Act
  • Long Term Capital Gain (LTCG) under section 112A of the Act (Applicable from A.Y 2019-20​)
  • Short Term Capital Gains (STCG) under section 111A of the Act
  • Incomes referred to in sections 115A, 115AB, 115AC, 115AD, 115BBA and 115D
  • Casual incomes like winnings from lotteries, horse races, etc., under section 58(4) of the Act.

5. Do I need to file the income-tax return even when I have paid all the taxes in advance?

Filing of Income-tax return is mandatory for every person whose income (before considering certain exemptions and deductions) exceed maximum exemption limit. With effect from Assessment Year 2020-21, it is mandatory for every person, who is not required to furnish return of income under any other provision of section 139(1)​, to file return of income if during the previous year he:

1. Has deposited an amount (or aggregate of amount) in excess of Rs. 1 crore in one or more current account maintained with a bank or a co-operative bank.

2. Has incurred aggregate expenditure in excess of Rs. 2 lakh for himself or any other person for travel to a foreign country.

3. Has incurred aggregate expenditure in excess of Rs. 1 lakh towards payment of electricity bill.

4. ​Fulfils such other conditions as may be prescribed.

    • Even when the advance taxes have been paid, the same need to be reported to the Department through Income-tax return filing procedure.
    • This completes the self-assessment of income and taxes are computed on the same.
    • Failure to file the income tax return will attract levy of penalty.
    • Form 26AS reflects the taxes which have been reported by the third party to whom the taxes have been deposited or by whom the taxes have been deducted.
    • Income-tax return helps in reconciling the records as submitted by assessee and as per Income-tax department records.​
    • Assessee claims refund.

6. TDS has been deposited under wrong PAN. How can I claim that TDS?

TDS credit must be checked in Form 26AS before filing of Income-tax return. If it is not reflected correctly there may be several reasons like:

  • TDS is not deposited by deductor
  • TDS is deposited but return is not filed by deductor
  • TDS is wrongly deposited under some other PAN
  • TDS credit is not updated in Form 26AS
  • Any other reason

When deductor deposits TDS under some wrong PAN, he has to make correction in the statement for PAN. In some cases, online PAN correction can also be made.

Assessee can claim TDS in Income-tax return after that PAN correction.


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April 2024