Author: Financial Analyst

🧾 Introduction

Future trading is one of the most popular derivatives trading methods in India, used by both beginners and professional traders to hedge risk and earn profits. However, without proper knowledge of contracts, margins, risks, and taxation, futures trading can result in heavy losses.

This Saving Mantra guide explains the step-by-step process for future trading in India, from opening a trading account to execution, risk management, and tax compliance.

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📈 What Is Future Trading?

A futures contract is a legal agreement to buy or sell an asset at a predetermined price on a specified future date. In India, futures are traded on:

• Equity (Stocks)
• Indices (NIFTY, BANK NIFTY)
• Commodities
• Currencies

Futures trading is regulated by SEBI and executed through recognized stock exchanges.

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👥 Who Should Trade in Futures?

• Beginners with basic market understanding
• Active traders seeking leverage
• Hedgers protecting portfolio risk
• Professional traders & institutions

⚠️ Futures trading is high-risk and not suitable for casual investors.

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📝 Step-by-Step Process for Future Trading in India

Step 1: Learn the Basics of Futures

Understand:

• Contract size & lot size
• Expiry date (weekly/monthly)
• Margin requirement
• Mark-to-market (MTM) settlement

💡 Futures involve leverage, amplifying both profit and loss.

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Step 2: Open Trading & Demat Account

You need:

• Trading account
• Demat account
• Linked bank account

Complete KYC using:

• PAN
• Aadhaar
• Address & bank proof

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Step 3: Enable F&O Segment

• Request broker to activate Futures & Options (F&O)
• Sign risk disclosure documents
• Complete suitability declaration

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Step 4: Understand Margin Requirements

Margin includes:

• Initial margin
• Exposure margin
• Additional volatility margin (if applicable)

⚠️ Insufficient margin can lead to forced square-off.

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Step 5: Select the Right Futures Contract

Choose based on:

• Liquidity
• Volatility
• Expiry cycle
• Market trend (bullish/bearish)

Popular contracts:

• NIFTY Futures
• BANK NIFTY Futures
• Stock Futures

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Step 6: Place Futures Trade

• Choose Buy or Sell
• Enter quantity (lot size)
• Place market or limit order
• Monitor MTM profit/loss

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Step 7: Risk Management Is Mandatory

Use:

• Stop-loss orders
• Position sizing rules
• Risk–reward ratio
• Avoid over-leveraging

💡 Professional traders focus more on risk control than profit.

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Step 8: Exit or Square Off Position

• Square off before expiry, or
• Hold till expiry for settlement (cash-settled contracts)

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📊 Taxation on Futures Trading in India

• Futures income is treated as Non-Speculative Business Income
• Taxed as per income tax slab rates
• Loss can be carried forward for 8 years
• Tax audit may apply based on turnover & profit

📌 Filing is done using ITR-3.

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❌ Common Mistakes Traders Should Avoid

• Trading without stop-loss
• Overtrading due to leverage
• Ignoring margin calls
• Not maintaining trading records
• Incorrect tax reporting

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✅ Benefits of Futures Trading

• Leverage with lower capital
• Profit in rising or falling markets
• Portfolio hedging
• High liquidity
• Short-term trading opportunities

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🤝 Why Choose Saving Mantra for Traders?

• F&O tax & compliance expertise
• Accurate turnover & audit evaluation
• Trader-friendly advisory
• Loss carry-forward planning
• End-to-end ITR & compliance support

👉 Trade smart and stay tax-compliant with Saving Mantra.

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⚠️ Disclaimer

This article is for educational and informational purposes only and does not constitute investment, trading, or tax advice. Futures trading involves substantial risk. Please consult a SEBI-registered advisor or tax professional before trading or filing returns.

🧾 Introduction

Receiving an income tax refund failure message can be stressful, especially when your return has already been processed. Refunds usually fail due to incorrect bank details, inactive accounts, or Aadhaar issues. The good news is that the Income Tax Department allows taxpayers to submit a Refund Re-issue Request easily through the online portal.

This Saving Mantra guide explains the step-by-step process to raise an Income Tax Refund Re-issue Request, common reasons for failure, and precautions to ensure faster credit.

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🔁 What Is a Refund Re-Issue Request?

A Refund Re-issue Request is filed when:

• Your ITR is processed
• Refund is approved
• Refund fails due to technical or banking reasons

Once re-issued, the refund is credited directly to your validated bank account.

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❌ Common Reasons for Income Tax Refund Failure

• Incorrect bank account number
• IFSC code mismatch
• Bank account not pre-validated
• Account closed or dormant
• Aadhaar not linked with PAN
• Name mismatch with bank records

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📝 Step-by-Step Process to File Refund Re-Issue Request

Step 1: Log in to Income Tax e-Filing Portal

• Visit the Income Tax e-Filing Portal
• Log in using PAN, Aadhaar, or User ID

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Step 2: Go to Refund Re-Issue Section

• Click on Services
• Select Refund Re-Issue
• Choose the relevant Assessment Year

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Step 3: Check Refund Failure Reason

• System displays refund failure details
• Note the reason carefully before proceeding

💡 Tip: Correct the issue first (bank/Aadhaar) before submitting request.

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Step 4: Validate or Add Bank Account

• Go to My Profile → Bank Account Details
• Add or select a pre-validated bank account
• Ensure account is active and linked to PAN

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Step 5: Submit Refund Re-Issue Request

• Select the validated bank account
• Submit the refund re-issue request
• A confirmation message will appear

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Step 6: Track Refund Status

• Visit e-File → Income Tax Returns → View Filed Returns
• Check refund status under processed returns

⏳ Refund is usually credited within 7–15 working days.

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⚠️ Important Points to Remember

• Only processed returns are eligible
• Bank account must be pre-validated
• PAN-Aadhaar linking is mandatory
• Multiple re-issue requests are not allowed simultaneously

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❌ Common Mistakes to Avoid

• Submitting request without correcting bank details
• Using inactive or joint bank accounts
• Ignoring Aadhaar-PAN linkage
• Expecting instant credit without validation

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✅ Why Choose Saving Mantra for Refund Assistance?

• End-to-end refund tracking support
• Bank & PAN-Aadhaar issue resolution
• Expert handling of delayed refunds
• Accurate compliance & follow-ups
• Hassle-free taxpayer support

👉 Let Saving Mantra help you receive your refund faster and without errors.

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⚠️ Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Income tax laws and procedures are subject to change. Please consult a qualified tax professional for personalized assistance.

🧾 Introduction

Small businesses form the backbone of India’s economy, but income tax compliance often becomes a challenge for proprietors and entrepreneurs. Whether you run a shop, service firm, consultancy, or online business, filing your Income Tax Return (ITR) correctly is mandatory and beneficial.

This Saving Mantra guide explains the step-by-step process to file Income Tax Return for Small Businesses, including presumptive taxation, audit applicability, deductions, and common mistakes.

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🏢 What Is Considered a Small Business for Income Tax?

For income tax purposes, small businesses generally include:

• Sole proprietorships
• Freelancers & consultants
• Traders & shop owners
• Service providers
• Small manufacturers
• Online sellers & digital businesses

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💰 Types of Taxation for Small Businesses

1️⃣ Normal Taxation Scheme

• Profit calculated as Income – Expenses
• Books of accounts required
• Audit may apply if turnover crosses limits

2️⃣ Presumptive Taxation Scheme (Section 44AD / 44ADA)

• Presumed profit declared at fixed rate
• No detailed books required
• Simplified compliance

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📝 Step-by-Step Process to File Small Business ITR

Step 1: Collect Required Documents

Keep these documents ready:

• PAN & Aadhaar
• Bank statements
• GST returns (if registered)
• Sales invoices & expense bills
• TDS certificates (Form 26AS)
• Previous year ITR (if any)

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Step 2: Calculate Business Turnover

Turnover includes:

• Total sales or receipts
• Online platform receipts
• Cash and digital collections

💡 Tip: GST turnover and income tax turnover may differ.

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Step 3: Choose Taxation Scheme

Scheme	Applicable Section
Presumptive (Trading)	44AD
Presumptive (Profession)	44ADA
Normal Business	Regular provisions

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Step 4: Check Tax Audit Applicability

Audit is required if:

• Turnover exceeds ₹10 crore (subject to cash transaction limits), or
• Profit declared below presumptive rate and income exceeds basic exemption

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Step 5: Select Correct ITR Form

Business Type	ITR Form
Presumptive Scheme	ITR-4
Regular Business	ITR-3

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Step 6: Claim Eligible Deductions

Small businesses can claim:

• Section 80C investments
• Section 80D health insurance
• Depreciation on assets
• Office rent, salary, utilities
• Internet, phone, professional fees

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Step 7: Fill ITR on Income Tax Portal

• Log in to Income Tax e-Filing Portal
• Select Assessment Year
• Choose applicable ITR form
• Enter income, deductions, tax details
• Review tax payable or refund

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Step 8: Submit & Verify ITR

• Submit the return
• Complete e-Verification via Aadhaar OTP / net banking

⚠️ Unverified returns are treated as invalid.

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❌ Common Mistakes Small Businesses Should Avoid

• Choosing wrong ITR form
• Ignoring presumptive taxation benefits
• Mismatch between GST & ITR data
• Missing depreciation claims
• Skipping audit requirements

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✅ Benefits of Filing ITR for Small Business

• Avoid penalties & notices
• Easy access to loans & credit
• Carry forward business losses
• Improved business credibility
• Legal compliance & peace of mind

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🤝 Why Choose Saving Mantra for Small Business ITR?

• Expertise in small business taxation
• Presumptive & regular tax planning
• GST & ITR reconciliation support
• Audit handling assistance
• End-to-end compliance services

👉 Let Saving Mantra manage your business tax compliance while you focus on growth.

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⚠️ Disclaimer

This article is for informational purposes only and does not constitute legal, financial, or tax advice. Tax laws are subject to change. Please consult a qualified tax professional before filing your income tax return.

🧾 Introduction

Filing an Income Tax Return (ITR) for senior citizens in India is simpler than many people think—provided the correct rules, exemptions, and forms are followed. Senior citizens enjoy higher basic exemption limits, special deductions, and relaxed compliance norms under the Income Tax Act.

This Saving Mantra guide explains the step-by-step process for filing Income Tax Return for Senior Citizens, including eligibility, applicable ITR forms, deductions, and common mistakes to avoid.

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👴 Who Is Considered a Senior Citizen for Income Tax?

As per Indian income tax laws:

• Senior Citizen: Resident individual aged 60 to 79 years
• Super Senior Citizen: Resident individual aged 80 years or above

⚠️ Age is calculated during the financial year, not at the time of filing.

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💰 Basic Exemption Limit for Senior Citizens

Category	Exemption Limit
Below 60 years	₹2,50,000
Senior Citizen (60–79)	₹3,00,000
Super Senior Citizen (80+)	₹5,00,000

If total income exceeds these limits, ITR filing becomes mandatory.

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📝 Step-by-Step Process to File ITR for Senior Citizens

Step 1: Gather Required Documents

Keep these documents ready:

• PAN Card
• Aadhaar Card
• Bank account statements
• Form 16 / Pension certificate
• Interest certificates (FD, savings, post office)
• Investment proofs (if any)
• Previous year ITR (optional)

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Step 2: Calculate Total Income

Senior citizen income may include:

• Pension income
• Interest from banks / post office
• Rental income
• Capital gains (if any)
• Other income

💡 Tip: Pension income is treated as salary income for tax purposes.

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Step 3: Identify Applicable Tax Regime

Senior citizens can choose between:

• Old Tax Regime – Allows deductions & exemptions
• New Tax Regime – Lower tax rates but fewer deductions

For most senior citizens, the old regime is more beneficial.

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Step 4: Claim Deductions Available to Senior Citizens

Important deductions include:

• Section 80C – Up to ₹1.5 lakh
• Section 80D – Medical insurance up to ₹50,000
• Section 80TTB – Interest income deduction up to ₹50,000
• Section 80DDB – Specified disease treatment
• Section 80G – Donations

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Step 5: Choose the Correct ITR Form

Income Type	ITR Form
Pension + Interest	ITR-1
Capital Gains	ITR-2
Business Income	ITR-3

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Step 6: Fill ITR on Income Tax Portal

• Log in to Income Tax e-Filing Portal
• Select Assessment Year
• Choose correct ITR form
• Enter income, deductions, and tax details
• Verify tax payable or refund

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Step 7: Submit & Verify the Return

• Submit the ITR
• Complete e-Verification via Aadhaar OTP, net banking, or bank account

⚠️ Returns not verified within 30 days are treated as invalid.

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❌ Common Mistakes Senior Citizens Should Avoid

• Not reporting interest income
• Missing Section 80TTB deduction
• Selecting wrong ITR form
• Ignoring capital gains reporting
• Skipping e-verification

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✅ Benefits of Filing ITR for Senior Citizens

• Faster tax refunds
• Income proof for loans & visas
• Avoidance of tax notices
• Carry forward of capital losses
• Compliance peace of mind

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🤝 Why Choose Saving Mantra?

• Senior-friendly tax experts
• Accurate pension & interest reporting
• Maximum deductions ensured
• Error-free ITR filing
• End-to-end support & advisory

👉 Let Saving Mantra handle your ITR while you enjoy peace of mind.

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⚠️ Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Tax laws may change from time to time. Please consult a qualified tax professional before filing your income tax return.

🧾 Introduction

Equity trading has become a popular source of income in India, but many traders struggle with correct income tax return (ITR) filing. Whether you trade intraday, futures & options (F&O), or delivery-based equity, tax treatment and compliance rules differ.

This Saving Mantra guide explains the step-by-step process to file Income Tax Return for Equity Traders, covering applicable ITR forms, audit applicability, expense claims, and common mistakes to avoid.

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📊 Types of Equity Trading & Tax Treatment

Before filing your return, identify your trading type:

1️⃣ Intraday Equity Trading

• Classified as Speculative Business Income
• Profit taxed as per slab rates
• Loss can be carried forward for 4 years

2️⃣ Futures & Options (F&O) Trading

• Classified as Non-Speculative Business Income
• Taxed as per slab rates
• Loss can be carried forward for 8 years

3️⃣ Delivery-Based Equity Trading

• Treated as Capital Gains
• Short-Term Capital Gain (STCG): 15% tax
• Long-Term Capital Gain (LTCG): 10% above ₹1 lakh

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📝 Step-by-Step Process to File Equity Trader ITR

Step 1: Collect Required Documents

Keep the following ready:

• PAN Card
• Aadhaar Card
• Bank Statements
• Trading P&L statement from broker
• Capital gains statement
• Demat account statement
• Previous year ITR (if any)

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Step 2: Prepare Trading Profit & Loss Account

Calculate:

• Turnover (absolute profit method for F&O)
• Net profit or loss
• Brokerage, STT, exchange charges
• Internet, laptop, advisory fees, office expenses

💡 Tip: Equity traders are allowed to deduct genuine business expenses.

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Step 3: Check Tax Audit Applicability

Tax audit is applicable if:

• Turnover exceeds ₹10 crore (₹2 crore in some cases), or
• Profit is less than 6% (digital) and income exceeds basic exemption

If audit applies, Form 3CA / 3CB & 3CD must be filed.

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Step 4: Choose Correct ITR Form

Trading Type	Applicable ITR
Intraday / F&O	ITR-3
Capital Gains only	ITR-2

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Step 5: Fill ITR on Income Tax Portal

• Log in to Income Tax e-Filing Portal
• Select Assessment Year
• Choose applicable ITR form
• Enter:
  • Business income
  • Capital gains
  • Other income
  • Deductions under Chapter VI-A

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Step 6: Claim Eligible Deductions

Equity traders can claim:

• Section 80C (LIC, ELSS, PPF, etc.)
• Section 80D (Health Insurance)
• Section 80G (Donations)

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Step 7: Verify & Submit ITR

• Cross-check tax payable or refund
• Submit return
• Complete e-Verification via Aadhaar OTP / Net Banking

⚠️ Unverified returns are treated as invalid.

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❌ Common Mistakes Equity Traders Should Avoid

• Filing ITR-1 instead of ITR-3
• Ignoring tax audit requirements
• Not reporting losses
• Incorrect turnover calculation
• Missing expense deductions

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✅ Why Choose Saving Mantra for Equity Trader ITR?

• Expert handling of F&O & intraday cases
• Accurate turnover & audit assessment
• End-to-end compliance support
• Loss carry-forward optimization
• Dedicated CA & tax advisors

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📞 Need Help Filing Equity Trader ITR?

Saving Mantra helps equity traders stay 100% tax-compliant while maximizing deductions and minimizing risk of notices.

👉 Connect with Saving Mantra today for hassle-free ITR filing.

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⚠️ Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Income tax laws are subject to change. Please consult a qualified tax professional or CA before filing your income tax return.

Who Is Considered an NRI for Income Tax?

You are treated as an NRI for income tax purposes if you do not satisfy the residential status conditions under the Income Tax Act. Residential status is determined based on number of days stayed in India during the financial year.

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Is ITR Filing Mandatory for NRIs?

An NRI must file ITR in India if:

• Total Indian income exceeds the basic exemption limit
• TDS has been deducted and refund is to be claimed
• Capital gains arise from sale of Indian assets
• You want to carry forward losses
• Compliance is required for loans, visa, or documentation

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Income Taxable for NRIs in India

Only income earned or received in India is taxable for NRIs, such as:

• Salary received for services rendered in India
• Rental income from Indian property
• Capital gains on Indian assets
• Interest from Indian bank accounts (except exempt NRE interest)
• Business income from India

Foreign income is not taxable in India for NRIs.

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Step-by-Step Process to File Income Tax Return for NRI

Step 1: Collect Required Documents

Keep the following ready:

• PAN card
• Passport (for residential status)
• Form 16 / Form 16A
• Form 26AS and AIS
• Bank statements
• Capital gain statements (if applicable)

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Step 2: Login to Income Tax e-Filing Portal

Visit the official income tax e-filing website and log in using:

• PAN
• Password
• Captcha

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Step 3: Select “File Income Tax Return”

Go to:
e-File → Income Tax Returns → File Income Tax Return

Choose:

• Assessment Year
• Online mode

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Step 4: Select Residential Status as NRI

While filing the return, select your residential status as Non-Resident correctly. This step is critical to ensure correct tax computation.

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Step 5: Choose the Correct ITR Form

NRIs generally file:

• ITR-2 – If income includes capital gains or more than one house property
• ITR-3 – If income includes business or professional income

ITR-1 is not applicable for NRIs.

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Step 6: Enter Income and Tax Details

Fill in:

• Indian income details
• TDS deducted
• Deductions under Chapter VI-A (if applicable)
• Capital gains details

Ensure data matches Form 26AS and AIS.

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Step 7: Calculate Tax Liability

The portal will auto-calculate:

• Tax payable or refund
• Interest, if applicable

Pay additional tax if required before submission.

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Step 8: Verify and Submit the ITR

Submit the return and verify using:

• Aadhaar OTP
• Net banking
• Digital Signature Certificate (DSC)

Unverified returns are treated as invalid.

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Due Date for NRI ITR Filing

• 31 July – If audit is not applicable
• 31 October – If audit is applicable

Late filing may attract penalties and interest.

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Common Mistakes NRIs Should Avoid

• Selecting wrong residential status
• Filing incorrect ITR form
• Ignoring capital gains tax
• Not reporting TDS correctly
• Missing e-verification

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Benefits of Filing ITR for NRIs

• Claim income tax refunds
• Avoid income tax notices
• Maintain clean compliance record
• Useful for loans, visas, and repatriation

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Why Choose Saving Mantra for NRI Tax Filing?

Saving Mantra offers specialized NRI taxation services including:

• Residential status evaluation
• Accurate ITR filing for NRIs
• Capital gains and DTAA advisory
• End-to-end compliance support

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Income tax laws are subject to change and interpretation. NRIs are advised to consult a qualified tax professional before filing their Income Tax Return. Saving Mantra shall not be responsible for any loss arising from reliance on this information.

What Is Advance Tax?

Advance Tax means paying income tax in advance on income earned during the financial year. It applies to:

• Salaried individuals with additional income
• Freelancers and professionals
• Business owners and self-employed individuals
• Taxpayers with capital gains, rental income, or interest income

If your total tax payable after TDS is ₹10,000 or more in a financial year, advance tax payment becomes mandatory.

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Advance Tax Due Dates

Advance tax must be paid in the following instalments:

Due Date	Advance Tax Payable
15 June	15% of total tax
15 September	45% of total tax
15 December	75% of total tax
15 March	100% of total tax

Presumptive taxpayers can pay 100% advance tax by 15 March.

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Step-by-Step Process to Pay Advance Tax on Income Tax Portal

Step 1: Visit the Income Tax e-Filing Portal

Go to the official income tax e-filing website and log in using:

• PAN
• Password
• Captcha code

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Step 2: Go to e-Pay Tax

Navigate to:
Dashboard → e-Pay Tax → New Payment

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Step 3: Select Income Tax as Payment Type

Choose Income Tax and click on Proceed.

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Step 4: Select the Correct Challan

Choose Challan No. ITNS 280 for advance tax payment.

Select:

• Tax applicable: (Income Tax – Other than Companies / Companies)
• Type of payment: Advance Tax (100)

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Step 5: Enter Assessment Year and Payment Details

Fill in:

• Assessment Year
• Address and contact details
• Mode of payment (Net Banking / Debit Card / UPI)

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Step 6: Enter Advance Tax Amount

Enter the advance tax amount you wish to pay based on your estimated income and tax liability.

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Step 7: Make Payment

Proceed to payment and complete the transaction through your selected bank.

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Step 8: Download Challan Receipt

After successful payment:

• Download the challan receipt
• Note the BSR code, challan number, and payment date
  These details are required while filing your Income Tax Return.

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Important Points to Remember

• Advance tax is based on estimated income, not actual income
• Capital gains tax should be paid in the next instalment after the gain arises
• Late or non-payment attracts interest penalties
• Challan details must be correctly reported in the ITR

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Interest for Non-Payment of Advance Tax

• Section 234B: Interest for non-payment or short payment of advance tax
• Section 234C: Interest for delay in payment of advance tax instalments

Timely payment helps you avoid unnecessary financial burden.

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Benefits of Paying Advance Tax on Time

• Avoid interest and penalties
• Better cash flow management
• Smooth income tax return filing
• Improved financial discipline

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Why Choose Saving Mantra?

Saving Mantra provides expert income tax services including:

• Advance tax calculation and planning
• Online tax payment assistance
• End-to-end ITR filing support
• Compliance advisory for individuals and businesses

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Tax laws and due dates may change from time to time. Readers are advised to consult a qualified tax professional before making advance tax payments. Saving Mantra shall not be responsible for any loss arising from reliance on this information.

What Is Advance Tax?

Advance Tax means paying income tax in advance on income earned during the financial year. It applies to:

• Salaried individuals with additional income
• Freelancers and professionals
• Business owners and self-employed individuals
• Taxpayers with capital gains, rental income, or interest income

If your total tax payable after TDS is ₹10,000 or more in a financial year, advance tax payment becomes mandatory.

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Advance Tax Due Dates

Advance tax must be paid in the following instalments:

Due Date	Advance Tax Payable
15 June	15% of total tax
15 September	45% of total tax
15 December	75% of total tax
15 March	100% of total tax

Presumptive taxpayers can pay 100% advance tax by 15 March.

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Step-by-Step Process to Pay Advance Tax on Income Tax Portal

Step 1: Visit the Income Tax e-Filing Portal

Go to the official income tax e-filing website and log in using:

• PAN
• Password
• Captcha code

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Step 2: Go to e-Pay Tax

Navigate to:
Dashboard → e-Pay Tax → New Payment

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Step 3: Select Income Tax as Payment Type

Choose Income Tax and click on Proceed.

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Step 4: Select the Correct Challan

Choose Challan No. ITNS 280 for advance tax payment.

Select:

• Tax applicable: (Income Tax – Other than Companies / Companies)
• Type of payment: Advance Tax (100)

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Step 5: Enter Assessment Year and Payment Details

Fill in:

• Assessment Year
• Address and contact details
• Mode of payment (Net Banking / Debit Card / UPI)

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Step 6: Enter Advance Tax Amount

Enter the advance tax amount you wish to pay based on your estimated income and tax liability.

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Step 7: Make Payment

Proceed to payment and complete the transaction through your selected bank.

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Step 8: Download Challan Receipt

After successful payment:

• Download the challan receipt
• Note the BSR code, challan number, and payment date
  These details are required while filing your Income Tax Return.

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Important Points to Remember

• Advance tax is based on estimated income, not actual income
• Capital gains tax should be paid in the next instalment after the gain arises
• Late or non-payment attracts interest penalties
• Challan details must be correctly reported in the ITR

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Interest for Non-Payment of Advance Tax

• Section 234B: Interest for non-payment or short payment of advance tax
• Section 234C: Interest for delay in payment of advance tax instalments

Timely payment helps you avoid unnecessary financial burden.

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Benefits of Paying Advance Tax on Time

• Avoid interest and penalties
• Better cash flow management
• Smooth income tax return filing
• Improved financial discipline

---

Why Choose Saving Mantra?

Saving Mantra provides expert income tax services including:

• Advance tax calculation and planning
• Online tax payment assistance
• End-to-end ITR filing support
• Compliance advisory for individuals and businesses

---

Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Tax laws and due dates may change from time to time. Readers are advised to consult a qualified tax professional before making advance tax payments. Saving Mantra shall not be responsible for any loss arising from reliance on this information.

What Is Rectification of Income Tax Return?

Rectification of Income Tax Return is a facility provided under Section 154 of the Income Tax Act, 1961, that allows taxpayers to correct mistakes or errors in an already filed Income Tax Return (ITR) or in an intimation/order issued by the Income Tax Department.

Rectification is applicable only for apparent errors, such as calculation mistakes, TDS mismatches, or incorrect data entry — not for major revisions or new claims.

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When Can You File Income Tax Rectification?

You can file a rectification request if:

• Tax demand is raised due to TDS mismatch
• Incorrect tax calculation in 143(1) intimation
• Income or deduction considered incorrectly
• PAN/TAN or assessment year error
• Clerical or arithmetical mistake by the department

⚠️ Rectification cannot be used to:

• Change income head
• Claim new deductions
• Revise return beyond allowed timelines

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Who Can File Rectification Request?

• Individuals
• Companies
• LLPs
• Partnership firms
• Trusts & NGOs
• Co-operative societies

Provided that:

• ITR is already filed
• Intimation/order is issued

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Time Limit for Filing Rectification

• Rectification can be filed within 4 years from the end of the financial year in which the order was passed.

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Documents Required for Income Tax Rectification

• Copy of ITR acknowledgment
• Section 143(1) intimation or order
• Form 16 / Form 26AS / AIS
• Bank statements
• Proof of deductions or income
• Challan details (if tax paid)

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Step-by-Step Process for Filing Rectification of Income Tax Return

Step 1: Login to Income Tax Portal

• Visit the official income tax e-filing portal
• Login using PAN and password

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Step 2: Go to Rectification Section

• Click on Services → Rectification
• Select Income Tax Rectification

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Step 3: Select Assessment Year

• Choose the relevant Assessment Year
• Select the order/intimation to be rectified

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Step 4: Choose Rectification Type

Select one of the following:

• Tax Credit Mismatch Correction
• Return Data Correction (XML/JSON upload)
• Reprocess the Return

Choose carefully based on error type.

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Step 5: Provide Rectification Details

• Select mistake category
• Enter corrected details
• Upload supporting documents if required

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Step 6: Submit Rectification Request

• Review details carefully
• Submit rectification request online

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Step 7: Verify Rectification Request

• Verify using:
  • Aadhaar OTP
  • Net banking
  • EVC

⚠️ Request is invalid without verification.

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Step 8: Track Rectification Status

• Login → View Filed Rectifications
• Check processing status:
  • Submitted
  • In Progress
  • Rectified
  • Rejected

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What Happens After Rectification Is Filed?

• Department reviews the request
• Revised intimation/order is issued
• Refund may be released or demand reduced/removed

Processing time may vary.

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Common Mistakes to Avoid

• Filing rectification for ineligible changes
• Selecting wrong rectification type
• Uploading incorrect data/XML
• Ignoring mismatch with AIS
• Missing verification step

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Benefits of Filing Rectification

• Removal of incorrect tax demand
• Faster refund processing
• Correction of departmental errors
• Clean tax records
• Avoid unnecessary appeals

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Why Choose Saving Mantra for Income Tax Rectification?

• Expert analysis of 143(1) intimations
• Correct identification of error type
• Accurate rectification filing
• End-to-end portal handling
• Notice-to-resolution support

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Disclaimer

This blog is for informational purposes only and does not constitute legal or tax advice. Rectification under Section 154 is limited to apparent mistakes and is subject to verification by the Income Tax Department. Outcomes depend on case-specific facts. Saving Mantra recommends consulting a qualified tax professional before filing a rectification request.