1. What is Income Tax Return?
Income Tax Return (ITR) is a form in which you report details of your income received from various sources and pay taxes to the tax department. The ITR contains all the details of the income and tax savings made by a person in a particular financial year. The tax department has introduced 7 types of ITR forms namely ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 for filing tax returns (Forms suitable for each person, company, company, etc.).
2. Why Filing of a tax return in India is important ?
The Income Tax Act 1961, requires certain eligible people to file their tax returns once a year. Completion of your income tax return guarantees your income and investment and not contributing means that you have not disclosed your eligible income that needs to be legally recognized, which is your black money. Also, by entering your Income-tax return you can get a tax refund, if you have paid excess tax to the government. Continuously your income tax return plays an important role in applying for a loan, credit card, etc.
3. What is e-Filing of Income Tax Return?
Another traditional method is offline in paper format, where the return is physically delivered to the IT DEPARTMENT and, another electronic mode, where you can deposit your money back online using the income tax website or by following a few simple steps in Myitronline. According to a recent announcement by the revenue department, at the moment income forms can only be submitted online. However, the highest citizens are allowed to use offline paper mode.
4. Who is required to file an Income Tax Return?
Every Indian who submits an NRI is required to file a tax return when the total income exceeds the exemption limit of Rs. 2,50,000 per person; Rs. 3,00,000 in the case of an older citizen and Rs. 5,00,000 in the case of an adult citizen.
Total revenue consists of revenue from all sources i.e. income from salary, House property, business income,Capital gains or other taxable income. This limit should be checked before giving a drawback advantage such as 80C, 80D, 80DDB etc.
Please return the files whether you have paid taxes or not. Therefore, even if the employer has issued a full TDS it will still file a tax return.
In what cases residents of india are required to compulsory file their return irrespective of income criteria:-
- You are a beneficial owner of any asset located outside India.
- Have any financial interest in entities located outside India.
- Beneficiary of any asset located outside India.
In simple words, if you have an income connected to other countries, you must file your ITR on or before the due date.
According to the 2019 budget, provided below, people are also required to file an Income Tax even if their income is below the FY exemption limit. 2019-20 in the following cases:
who received the cost of Rs. 2 lakhs or more for an outdoor trip, either for himself or someone else
Who deposited Rs. 1 Cr or more on existing accounts held by a banking or corporate bank
Also, a person applying for exemption under sections 54 and 54F (long-term interest refund or LTCG from the sale of assets), where the income before the exemption exceeds the minimum exemption limit, will have to file an ITR.
Let’s take a few quick and easy examples of real life situations to understand it better:-
|Income from salary (after Standard deduction)||2,90,000||2,71,000||8,92,000||4,98,000||1,90,000|
|HRA, Medical and other allowances- EXEMPT||8,000||74,000||2,43,000||1,00,000||0|
|Net taxable salary||2,82,000||1,97,000||6,49,000||3,98,000||1,90,000|
|Gross Total Income||3,13,000||1,97,000||7,79,000||3,98,000||1,90,000|
|Deductions (80C,80D etc.)||45,000||-||1,90,000||1,50,000||-|
|Total Income Taxable||2,68,000||1,97,000||5,89,000||2,48,000||1,90,000|
|ITR filing required||Yes||NO||Yes||Yes||NO|
5. When should I file my Income Tax Return?
The due date for submitting income tax returns is July 31 (after the end of each financial year you must submit them). This date may be added by the department of revenue. Therefore for the financial year 2020-21 ends on 31.03.2021, the payment date has been extended to 31 december, 2021.
The due date for submitting income tax returns is July 31 (after the end of each financial year you must submit them). This date may be added by the Department of Revenue. Therefore for the financial year 2020-21 ends on 31.03.2021, the payment date has been extended to 31 December, 2021.
People who fall within the scope of Tax Audit are:
- Person carrying on business and sales/turnover exceeds Rs.1 Cr.
- Person carrying on profession and Gross Receipts exceeding Rs 50 Lakhs.
- Person carrying on business or profession under the provisions of section 44AD and sales/turnover exceeds Rs 2 Cr. or declaring income lower than the deemed income under the applicable section.
The Rs 1 crore tax audit limit is proposed to be increased to Rs 5 crore from AY 2021-22 (FY 2020-21) if taxpayers' cash receipts and cash payments are limited to 5% of major receipts or major payments. The same limit has increased from Rs. 5 crore to Rs. 10 pounds from AY 2021-22 (FY 2020-21)
6. Can I e-file ITR without Form 16?
Yes, you can still e-file your Income Tax Return even if you do not have form 16. You need to fill in the required information in the software and submit the ITR at the end.
7. What will be the next steps after e-filing of Income Tax Return?
Once you have completed the income tax return details, you should: -
Check your email inbox as provided on your income tax return form, You will receive a presentation by successfully entering your Income Tax Return, and the
attached to the email.
Cross Check all numbers in your full form ITR or ITR-V for any error, error etc. Confirm Revenue Tax Return by sending a portable copy to CPC Bangalore or you can confirm online. Once the refund has been successfully verified, the application process returns here. And now your job is done.
IMPORTANT, In the event of a refund of your tax return you will receive the same in your bank account in the next few days. It is best to keep track of your recovery status so that you do not miss important updates from the department. You can continue to check the recovery status from here
ITR verification is an important step unless your application form is completed. within the time limit (120 days) before you have confirmed your tax return, it will be considered "Invalid" i.e. not valid or invalid. It means that no Income Tax Form has been submitted at all.
8. What is the timeline & methods for completing e-Verification of an Income Tax Return ?
Please complete the verification process by signing it by hand or electronically within 120 days from the date of completing your tax return.
There are various methods to e-verify ITR:
- Through Net banking
- Through Bank ATM
- Aadhaar OTP
- Bank Account number Demat Account.
- Physically sending ITR-V.
Frequently Asked Questions
Q- What is Income Tax?
Income Tax is simply the Tax payable on your income. The amount is required to be paid to the government (Department of Revenue)
Q- What is the last date for filing income tax returns for the FY 2020-21 (AY 2021-22)?
Last (or last) day to submit income tax returns to individuals and other taxpayers (HUFs, Association of Persons, Body of Individuals) whose accounts do not need to be audited FY 2020-21 (AY 2021 -22) 31 December.
Due date (last date) for others assessee please Click on Link
Q- Is linking of Aadhar PAN compulsory to e-file ITR?
As a media release issued by the Department of Income Tax on 31/08/2017 linking PAN to Aadhaar is required for the continuation of the ITR. CBDT has issued circulars repeatedly since then extended with appropriate connection dates. now Aadhar and PAN linking the due date is March 31, 2020
Q- How to link Aadhar Number with PAN Card?
Online: Using Income Tax Entry Website
Linking PAN to Aadhaar can also be done via SMS. Type UIDPAN
Connect the Aadhaar-PAN manually by completing Annex 1 and supporting documents which means a copy of the PAN card and Aadhaar card. by visiting PAN / UTIITSL / NSDL centers.
To read it more detail click here
Q- Who can file the return Offline (In paper form)?
Offline mode is only available to Super Senior Citizens (people aged 80 or older during the financial year) and their income is less than Rs 5 lakh per year and they do not have to claim a refund.
Q- How to calculate the amount of tax to be paid?
You can easily calculate your taxes using our Income tax Calculator. Here you just need to fill in the required details in an orderly manner and eventually you will get the required amount to be paid as tax.
Q- How to make tax payment online?
Everyone can pay their taxes online or offline as determined by the Department of Revenue. Please refer to this link for more details on ithttps://myitronline.com/guide/online-income-tax-payment
Q- I have filed my return, when will I get a refund?
It usually takes 20-50 days to receive your return after submitting your Income Tax Return. You can track the live refund status from here.
Q- How to correct a mistake made while filing ITR?
In terms of Section 139(5) of the Income Tax Act , taxpayers may file a revised waiver to rectify an error made during the installation of the ITR. Tax rebates can be reviewed no later than 3 months prior to the relevant year of review which is a filed refund.
Q- Do I need to file returns even if my company has deducted tax on my salary?
Yes, please submit your tax return even if TDS is deducted by your employer, as long as your income exceeds the basic exemption limit of Rs. 2,50,000. In addition, you cannot claim a refund without submitting your tax return.
Q- What is ITR-V?
ITR-V is to approve the return of your form which is sent to your email as soon as it is returned.
Q- Is it necessary to attach documents while e-filing ITR?
No, documents do not need to be attached / uploaded but it is advisable to keep them for you. can be asked by income tax authorities if you are given notice of future inspections.
Q- Can I file my ITR for A.Y. 2020-21?
If you did not submit your return form by the due date i.e. 31st July 2020 (extended date 10th Jan, 2021), then a bound refund can be filed in this case. Deadline for submission of A.Y. tax returns 2020-21 was March 31, 2021.
Due to the outbreak of COVID-19 the deadline for submitting tax returns for A.Y. 2020-21 extended to 31st May, 2021 from 31 March 2021.
Q- How to file an income tax return for salaried employee for FY 2019-20?
For a refund of online income tax, please refer to the paragraph above of this guide which explains the process in detail.
Q- Which ITR should be filed for Income from salary or commission or both?
If you only earn revenue by authorization, you will need to enter ITR-3 because the transfer is treated as business revenue. However, if you have income from the salary and the commission and salary is your main source of income, you can file ITR-1 and you can show commission income as income from other sources, For income only, file ITR-1