ITR Filing: The tax department has notified the 2010 ITR form and extended the ITR submission deadline to September 30th. However, we recommend that you prepare your tax return now and file your ITR as soon as possible. Not only will it help faster processing of tax refunds, but it will also reduce the likelihood of errors on your part. However, there are a few things to keep in mind before you start.
New vs old tax regime
The government has introduced a new optional tax system in its 2020 budget. Starting in 2009, individual taxpayers have the option of choosing between two tax systems. The new system proposes to tax at a lower slab rate, but taxpayers will have to waive the various deductions and exemptions available under the old system.
Taxpayers are usually advised to choose the scheme at the beginning of the year. However, if the old system fails to pay the investment or expenses that would allow you to claim a tax credit, you can switch to a new one if it helps reduce your tax obligations.
Pallas Jain / mint
This is more important for business owners. “Business owners need to carefully choose the right regime because once they choose, they can only change it once. However, salary individuals who earn income from salaries, housing assets, and other income Abhishek Soni, co-founder and CEO of Tax2win.in, an income tax filing portal, said:
No date extension, no tax reduction: The final submission date for the ITR has been extended to September 30th. However, it does not provide relief from tax obligations. If you have a tax obligation in advance, you will have to pay a fine interest. Therefore, we recommend that you pay taxes and submit your ITR as soon as possible.
“CBDT provides interest mitigation under Section 234A only if self-assessed tax obligations (after providing TDS, prepaid taxes, etc.) are not exceeded. ￡10,000 rupees. Therefore, unless the self-assessed tax obligation is exceeded. ￡Relief for Rs 10,000, Section 234A will not be provided to taxpayer assessors, “said Suresh
Surana, founder of RSM India.
Under Section 234A, if you delay the submission of the ITR, you will be charged a monthly interest rate of 1%. “In addition, taxpayer assessors may be subject to interest under Sections 234B and 234C, regardless of the extension of the due date,” he added.
Interest under Section 234B applies if the taxpayer has not deposited prepaid tax or if the prepaid tax deposited is less than 90% of the total tax liability.
If the taxpayer does not deposit the prepaid tax in accordance with the prescribed quarterly installments, the fine under Section 234C will apply.
Elderly people without business income are exempt from prepayment.
Changes to tax returns
The tax department must notify the tax form each year after incorporating the changes. Knowing the changes is essential to choosing the right ITR form. This year, certain changes have been made to the ITR1 eligibility criteria commonly used by payroll taxpayers.
This year, ITR 1 is submitted by persons whose tax withholding tax
(TDS) has been deducted for cash withdrawals under Section 194N, or employees who have deferred employee stock option (ESOP) tax received from their employer. you can not. Therefore, keep these charges in mind when choosing your form.
Unclaimed deductions
If you forget to give your employer a certificate of investment, such as life insurance or health insurance, and your taxes have already been deducted, don’t worry. You can claim these deductions when you submit your ITR and claim a refund of the taxes you paid. However, keep a copy.
This year, you may get a lot of pre-filled information, such as interest earned, dividends received capital gains on stocks and trusts. It is important to see these details in the documentation you have. Therefore, we recommend that you collect documents such as Form 16, Form 26AS, and Bank Statements before you begin submitting
your ITR.
“Assessors are advised to wait by July 15 as all TDS deductions or TCS (Tax withholding) may be renewed on Form 26AS by that date. The deadline for filing returns has been extended to June 30, “said Vivek Jalan, consulting firm Tax Connect Advisory Services LLP.
The tax filing process will not be completed until you confirm the ITR. Must be done within 120 days of submitting the ITR. This can be done online or by mailing a formal signed ITR-V.
What precautions should be taken while filing an I-T return?
Keep them in check
July 31 is the last date to complete the income tax return (ITR) process every year as of now. Depending on the nature of one’s income, one has to choose the most appropriate ITR form out of the several such forms made available by the income tax department. Here is a list of some important.
Remember the date
First and foremost, file I-T returns on or before the due date. Taxpayers should avoid the practice of filing belated returns. Following are the consequences of delay in filing I-T return:
- Losses (other than house property loss) cannot be carried forward.
- Levy of interest under Section 234A/234B/234C as applicable.
- Exemptions/deductions under Section 10A, section 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available.
- Late filing fees of Rs 5,000 if returns are filed on or after 1 August 2018 and 31 December 2018. Rs 10,000 if returns are filed between 1 January 2019 and 31 March 2019. However, as a relief to small taxpayers not earning more than Rs 5 lakh, the maximum amount of penalty will be Rs 1,000.
Form 26 AS
The taxpayer should download Form 26AS and should check actual TDS/TCS/tax paid. If any discrepancy is observed then suitable action should be taken to correct it.
Arrange and organize
Compile and carefully study the documents to be used while filing I-T returns, like bank statements/passbooks, interest certificates, investment proofs for which deductions are to be claimed, books of account and balance sheet, and P/L A/c (if applicable), etc. No documents are to be attached along with the I-T return.
Stay in form
The taxpayer should identify the correct return form applicable in his case. The taxpayer should carefully provide all the information in the return form.
Calculate and recalculate
Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.
Pay your dues
If any tax is payable as per the I-T return, then the same should be paid before filing I-T return, otherwise, the return would be treated as a defective one.
Check all details
Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.
Proceed to file
After filling and confirming all the I-T return details, one can proceed with filing the I-T return.
Forgot to sign?
In case the return is filed electronically without a digital signature and without an electronic verification code, do not forget to post the acknowledgment of filing the I-T return to CPC Bangalore.
How to Avoid Mistakes?
There is more than one way of avoiding all the mistakes on your ITR. If your income includes more than three sources of income, you can easily handle filing ITR for the following three heads of income:
- Salary income
- Interest or Gift income (Income from Other Sources)
- Income from House Property
- If you have taxable incomes from other heads, it’s better to get assistance from professionals. If you are using an ITR form other than ITR-1 you will need to calculate your income tax offline. Thus, you will be better off using professional services to navigate complex tax calculations.
Documents required to file your Income Tax Return: Checklist here
The procedure of filing an Income Tax Return varies as per the income earned per year and income source like salary, business profit, investment profit, and so on. Check here the detail about the documents needed for filing Income Tax Returns in India.
The Income Tax Return (ITR) filing deadline for the financial year 2019-20 (assessment 2020-21) earlier would have ended on November 30, 2020. Normally, the due date for filing ITRs for all assessees whose accounts are not required to be audited is July 31.
The government extended the deadline for filing an income tax return, the deadline is December 31. To provide relief to taxpayers in view of the current Covid-19 pandemic. Individual taxpayers now have until the end of the month to file their return of income earned between April 1, 2019, and March 31, 2020
The procedure of filing an Income Tax Return varies as per the income earned per year and income source like salary, business profit, investment profit, and so on. Collating all your documents ready is just one aspect of it. There are certain documents required to be submitted and held as evidence under the Income Tax Act, 1961
and Income Tax Rules, 1962.
Generally, the required document is a copy of the PAN card, a Copy of the AADHAR card, a Bank Statement / Bank passbook, Income Tax Login id & password. Other than that it depends on which tax you leviable to pay. Check here the detail about the documents needed for filing Income Tax Returns in India.
Types of income on which tax is leviable:
Income from Salary
Income from House Property
From Business & Profession
Income from Capital Gain
Income from Other Sources
List of documents required to file your Income Tax Return:
1. Form 16
Form 16 is also known as the TDS (Tax Deducted at Source) Certificate. It is the basis for filing income tax returns. Thus, Form 16 is the first form that should be collected.
The form is provided by your employer after furnishing the information related to the taxes paid on your behalf. This is done after taking your salary, allowances, and deductions into consideration.
2. Salary slips
For salaried taxpayers, it is important to keep the salary slip ready. The salary slip consists of all the basic details related to the salary of an individual including basic salary, Dearness Allowance (DA), TDS amount, House Rent Allowances (HRA), Travelling Allowances (TA), standard deductions, etc. These details are necessary to file income tax returns.
3. Form 26AS
Form 26AS is also known as the annual consolidated statement, which contains all tax-related information of the taxpayer. It also contains details of tax which is deducted at source and details of advance tax. Form26AS is a very important financial document required before filing ITR. Apart from this, Form 26AS also reflects
details of Annual Information Return (AIR), which is filed by different entities based on what an individual has invested or spent, mostly high-value transactions.
4 Form 16A
Form 16A mentions TDS on interest income on fixed deposits. For instance, you will receive a Form 16A when your bank will deduct TDS on your interest income earned from Fixed Deposits, TDS on rent receipts, TDS on insurance commission, or any other income which is liable for such deduction. Form 16A provides details of the income earned and TDS deducted and deposited on such income. It also contains the name and address of the deductor/deductor, PAN details, TAN details of the deductor, and challan details of TDS deposited.
5. PAN card
A PAN card is one of the most important documents that you should keep ready with you. Your Permanent Account Number (PAN) acts as your identity proof and has to be mentioned in your Income Tax Returns.
6. Aadhaar card
Providing Aadhaar details is mandatory to successfully file your ITR. According to section 139AA of the Income-tax Act, an individual is required to provide his/her Aadhaar details while filing the return of your income.
7. Deductions under Section 80D to 80U
Apart from the standard deductions under Section 80C, an individual can also claim exemptions under Section 80D to 80U of the Income Tax Act.
Also read: Aadhaar-PAN Linking Last Date Today: Easy Steps To Link Aadhaar-PAN Online
8. Capital Gain Statement
In case you have invested in shares, mutual funds, etc., you are required to collect a capital gain statement. This statement will be issued by your broking house. It contains the details of all the short-term capital gains that are required to be paid in case you have exited certain shares before the tenure of 1 year. Even though you may not pay taxes on long-term capital gains, you are required to mention them as well in your statement.
Also read: Income Tax New Rules From Tomorrow: All You Need To Know