Finance Minister Nirmala Sitharaman announced no filing of Income Tax Return by senior citizens (above 75 years of age) who have only pension and interest income.
Budget 2021 has extended the ITR filing due dates for a certain category of taxpayers whose accounts need to be audited. The timeline for filing revised returns has also been proposed to be reduced from April 1, 2021.
ITR filing is made easy. Details of Capital gains, income from list securities, dividend income, income from interest on bank deposits will come pre-filled in ITR.
Paying an Income Tax Return (ITR) is definitely a milestone of the year, whether it is for the first time or 100th. However, for those who aren’t aware of it profoundly, the entire process can turn out to be tedious and daunting.
Sure, being a legal concept, you may come across such terms that may just go over your head, leaving you even more baffled. Don’t worry, now that you have come here, this post comprises a comprehensive guide to Income Tax Returns.
Scroll down and know more about what is ITR and all about the different aspects associated with it.
Income tax returns is a form that is used to claim tax deductions, account the total taxable income and proclaim the gross tax liability. Till date, the government department has brought seven different forms into the attention of taxpayers.
Individuals who earn, irrespective of the amount, are liable for ITR filing. Basically, the government has made it mandatory for Hindu Undivided Families (HUFs), salaried or self-employed individuals, and companies or firms to file the Income Tax Return to the Income Tax Department.
As per the rules and regulations set by the government, those who match any of the following criteria are responsible for income tax filing:
If the ones who are less than 60 years of age are earning a gross total annual income of Rs. 2,50,000 (before the deduction under 80C to 80U)
If the ones who are more than 60 years, but less than 80 years are earning a gross total annual income of Rs. 3,00,000
If the ones who are 80 years and above of age are earning a gross total annual income of Rs. 5,00,000
If it is a firm or a company, regardless of the loss or profit made in a financial year
If a tax return has to be claimed
If an Indian resident has a financial interest or asset situated abroad
If a loss under income head requires to take forward
If an individual is applying for a visa or a loan
If an individual is gaining income from religious purposes, research association, medical or educational institute, any authority, property held under a trust for charity, infrastructure Debt fund, news agency, or a trade union
Further, now that the efiling of income tax has been implemented, the following cases would be required to file the tax online:
ITR 3, 4, 5, 6, 7 are mandatory to file online
If a refund has to be claimed
If an income tax refund has to be claimed
If the gross total annual income is more than Rs. 5,00,000
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The ones who are eligible for income tax return filing would have to determine their tax slabs under which they would be falling. Basically, the lower the income, the lesser will be the tax liability. These are the latest income tax slabs for FY 2021-22:
You can find more information below:
|Income Tax Slab||Tax Rate|
|Up to Rs. 2.5 lakh||Exempted|
|Between Rs. 2.5 lakh and Rs. 5 lakh||5% of the amount more than Rs. 2.5 lakh + 4% cess|
|Between Rs. 5 lakh and Rs. 10 lakh||Rs. 12,500 + 20% of the amount more than Rs. 5 lakh + 4% cess|
|More than Rs. 10 lakh||Rs. 1,12,500 + 30% of the amount more than Rs. 10 lakh + 4% cess|
As mentioned above, seven different types of income tax return forms have been introduced. But, how can you figure out which one is suited for your tax slab? Have a look at the table below:
|ITR 1||Used by those who have an annual income of less than Rs. 50 lakh through salary, one house property or pension|
|ITR 2||Used by the ones with an income of more than Rs. 50 lakh; the list includes private companies, shareholders, non-resident Indians (NRIs), directors of companies, and individuals who gain income through two or more residential properties, Capital Gains, and foreign sources|
|ITR 3||Used by professionals and those who have a proprietorship|
|ITR 4||Used by those who come under the presumptive taxation scheme and have an income of less than Rs. 50 lakh from professions and less than Rs. 2 crores from business|
|ITR 5||Used by partnership firms, limited liability partnerships (LLPs), individuals and associations for either tax computation or reporting income|
|ITR 6||Used by companies registered in India|
|ITR 7||Used by scientific research institutes, religious or charitable trusts, political parties, and universities or colleges|
Now that you have a basic idea of IT return, don’t step back from fulfilling your responsibilities. If you fall under any categories mentioned above, file your ITR well before the due date to gain maximum returns and to avoid penalties.
A: Income tax in India is paid by the following categories of people and institutions:
A: The tax slab for individuals and HUF are as follows:
A: This is a part of your IT returns: surplus income that you earn from the sale of assets such as property, Mutual Funds, shares, or other similar assets. However, this will not be a part of your IT returns that you file every year. It can be a taxable earning for the particular year in which you have made the capital gains.
A: Under the new tax regime, transport allowances are made for specially-abled individuals. The conveyance allowance you have incurred as a part of previous employment is exempt from taxation. The compensation that you get as a part of the tour or transfer is exempt from taxation.
A: It is not necessary to file income tax returns if you do not fall under the tax slab. But you can file ITR-1 if you want to.
A: The documents that you require for income tax filing are as follows:
A: Yes, you must disclose all your income in your ITR even if it is exempt under Section 80C.
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