Income Tax Return Filing

Income Tax Return Filing
Income Tax return filing is mandatory for every person whose income is more than income not chargeable to tax.

Benefits of Filing Income Tax Return

Filing the ITR helps individuals when they have to apply for a vehicle loan or house loan. All major banks can ask for a copy of tax returns.

Income Tax Return can be used as proof of income and address.

Most embassies and consulates require individuals to furnish copies of tax returns for the past couple of years at the time of the visa application.

If the return is filed within due date, taxpayers will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.

In case ITR is not filed, the tax officer deserves the right to impose a penalty of up to Rs 10,000. Taxpayers are required to pay Rs 5,000 if the return is furnished on or before December 31 of the assessment year. The penalty increases to Rs 10,000 if the assessee files the return next year between January 1 and March.

Besides this, a delay in filing ITR also makes one liable to pay interest.

In case an assessee doesn’t file ITR at all, a penalty may be levied which is a minimum of 50 percent of the assessed tax or a maximum of 200 percent of the assessed tax. Assessee may have to face prosecution also (i.e. rigorous imprisonment for a term up to 7 years and fine), in extreme and high-value cases.

Income Tax Return Filing Forms & its Applicability

ITR-1

Applicable for: Individual

Income Heads: Salary, Other Source, One House Property

ITR-2

Applicable for: Individual/HUF

Income Heads: Salary, Other Source, One or more than one House Property

ITR-3

Applicable for: Individual/HUF

Income Heads: All Income Heads

ITR-4

Applicable for: Individual/HUF/Firm (Other than LLP)

Income Heads: Salary, Other Source, House Property, Business/Profession (Presumptive Basis)

ITR-5

Applicable for: Firm (incl LLP)

Income Heads: Business/Profession, Other Source, House Property, Capital Gain

ITR-6

Applicable for: Company

Income Heads: Business/Profession, Other Source, House Property, Capital Gain

ITR-7

Applicable for: Charitable Org

Income Heads: Business/Profession, Other Source, House Property, Capital Gain

ITR-V

This is Acknowledgement

Provided with Income Summary if verified. If not verified, it is merely  verification form only

Income Tax Return Due Dates

Individual31st July 2021
Body of Individuals (BOI)31st July 2021
Hindu Undivided Family (HUF)31st July 2021
Association of Persons (AOP)31st July 2021
Businesses (Requiring Audit)30th September 2021
Businesses (Requiring TP Report)30th November 2021
Individual10th January 2021
Body of Individuals (BOI)10th January 2021
Hindu Undivided Family (HUF)10th January 2021
Association of Persons (AOP)10th January 2021
Businesses (Requiring Audit)15th February 2021
Businesses (Requiring TP Report)15th February 2021

Income Tax Rates

Income Tax SlabExisting Regime Slab Rates for FY 19-20 and FY 20-21New Regime Slab Rates for FY 20-21
Resident Individuals & HUF < 60 years of age & NRIsResident Individuals & HUF > 60 to < 80 yearsResident Individuals & HUF > 80 yearsApplicable for All Individuals & HUF
Rs 0.0 – Rs 2.5 LakhsNILNILNILNIL
Rs 2.5 – Rs 3.00 Lakhs5% (tax rebate u/s 87a is available)NILNIL5% (tax rebate u/s 87a is available)
Rs. 3.00- Rs 5.00 Lakhs5% (tax rebate u/s 87a is available)NIL
Rs. 5.00 – Rs 7.5 Lakhs20%20%20%10%
Rs 7.5 – Rs 10.00 Lakhs20%20%20%15%
Rs 10.00 – Rs. 12.50 Lakhs30%30%30%20%
Rs. 12.5 – Rs. 15.00 Lakhs30%30%30%25%
> Rs. 15 Lakhs30%30%30%30%

The taxpayer opting for concessional rates in the New Tax regime will have to forgo certain exemptions and deductions available in the existing old tax regime. In all there are 70 deductions & exemptions that are not allowed, out of which the most commonly used are listed below:

List of common Exemptions and deductions “ not allowed” under New Tax rate regime

  1. Leave Travel Allowance (LTA)

  2. House Rent Allowance (HRA)

  3. Conveyance allowance

  4. Daily expenses in the course of employment

  5. Relocation allowance

  6. Helper allowance

  7. Children education allowance

  8. Other special allowances [Section 10(14)]

  9. Standard deduction on salary

  10. Professional tax

  11. Interest on housing loan (Section 24)

  12. Deduction under Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2))

List of deductions “allowed” under new Tax rate regime

  1. Transport allowance for specially abled people

  2. Conveyance allowance for expenditure incurred for travelling to work

  3. Investment in Notified Pension Scheme under section 80CCD(2)

  4. Deduction for employment of new employees under section 80JJAA

  5. Depreciation u/s 32 of the Income-tax act except additional depreciation.

  6. Any allowance for travelling for employment or on transfer

Get your ITR Filed by Gupta Chandan & Associates at affordable cost