Income Tax Return Filing
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
Individual | 31st 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 |
Individual | 10th 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 Slab | Existing Regime Slab Rates for FY 19-20 and FY 20-21 | New Regime Slab Rates for FY 20-21 | ||
---|---|---|---|---|
Resident Individuals & HUF < 60 years of age & NRIs | Resident Individuals & HUF > 60 to < 80 years | Resident Individuals & HUF > 80 years | Applicable for All Individuals & HUF | |
Rs 0.0 – Rs 2.5 Lakhs | NIL | NIL | NIL | NIL |
Rs 2.5 – Rs 3.00 Lakhs | 5% (tax rebate u/s 87a is available) | NIL | NIL | 5% (tax rebate u/s 87a is available) |
Rs. 3.00- Rs 5.00 Lakhs | 5% (tax rebate u/s 87a is available) | NIL | ||
Rs. 5.00 – Rs 7.5 Lakhs | 20% | 20% | 20% | 10% |
Rs 7.5 – Rs 10.00 Lakhs | 20% | 20% | 20% | 15% |
Rs 10.00 – Rs. 12.50 Lakhs | 30% | 30% | 30% | 20% |
Rs. 12.5 – Rs. 15.00 Lakhs | 30% | 30% | 30% | 25% |
> Rs. 15 Lakhs | 30% | 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
Leave Travel Allowance (LTA)
House Rent Allowance (HRA)
Conveyance allowance
Daily expenses in the course of employment
Relocation allowance
Helper allowance
Children education allowance
Other special allowances [Section 10(14)]
Standard deduction on salary
Professional tax
Interest on housing loan (Section 24)
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
Transport allowance for specially abled people
Conveyance allowance for expenditure incurred for travelling to work
Investment in Notified Pension Scheme under section 80CCD(2)
Deduction for employment of new employees under section 80JJAA
Depreciation u/s 32 of the Income-tax act except additional depreciation.
Any allowance for travelling for employment or on transfer