Personal & Corporate Tax

  What is the Income Tax Return in India? Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1st April and ending on 31st March of the next year. If Tax Payer paid more taxes than “payable”, Tax Payers are entitled to Income tax refund. If the reverse is the case, Tax Payer should pay remaining amount before filing Income tax return. Cases, where more taxes have been paid beforehand, are TDS or Advance Tax paid by Tax Payer. In such a scenario, Tax Payer should show correct incomes and taxes in their Tax Returns To make tax compliance easier, the income tax department has categorized taxpayers into many groups based on income and its source. So, you need to file your returns accordingly. Income tax return forms array from ITR 1 to ITR 7, used for different types of income and different types of entities. Depending on the type of forms, there are various disclosure and requirements in all these forms. ITR- 1 (Sahaj) This form is to be filed by INDIVIDUAL/TAX PAYER residents having total income up to Rs. 50 lakhs and agricultural income up to Rs. 5,000. INDIVIDUAL/TAX PAYER ELIGIBILITY TO FILE ITR-1 FOR AY-2021-2022: When Tax Payers have- • Income from Salary/Pension • Income from One House Property • Income from Other Sources • In case income of some other person is required to be clubbed in your income, INDIVIDUAL/TAX PAYER can use this form only if the nature of the income to be clubbed falls under any of the three heads of income enumerated above. INDIVIDUAL/TAX PAYER IN-ELIGIBILITY TO FILE ITR-1 FOR AY-2021-2022: • An individual/Tax Payer having income above Rs 50 lakh cannot use this form. • An individual/Tax Payer who is either a director in a company and has held any unlisted equity shares at any time during the financial year cannot use this form. • Residents not ordinarily resident (RNOR) and non-residents cannot file returns using ITR -1 • An individual/Tax Payer who have • An individual/Tax Payer who have More than one House Property • An individual/Tax Payer who earned money through Lottery, Racehorses, Legal Gambling etc. • An individual/Tax Payer who have Taxable capital gains (Short term and Long term) • An individual/Tax Payer who have Agricultural income exceeding Rs. 5,000 • An individual/Tax Payer who have earned income from Business and Profession • Individual/Tax Payer who is a Resident and has assets (including financial interest in any entity) outside India or signing authority in any account located outside India. • Individual/Tax Payer claiming relief of foreign tax paid or double taxation relief under section 90/90A/91. • If income-tax is deferred on ESOP • Where TDS has been deducted u/s 194N PENALTY PROVISION AS PER INCOME TAX ACT1961: As per section 234F of the Income Tax Act where a person is required to mandatorily furnish a return of income under section 139, fails to do so by the due date, attracts levy of late fee under this section to the amount of Rs 5,000/-, if the return is furnished on or before the 31st day of December of the assessment year; Rs 10,000/-, in any other case: In case the total income of the taxpayer does not exceed Rs 5,00,000/- then, the late fee payable shall not exceed Rs 1,000/- in any circumstances. Section 234F was made applicable in respect of Income Tax Return filed on or after the 1st April, 2018. MODE TO FILE INCOME TAX RETURN: OFF LINE MODE: Filing ITR in India is completely online and paperless. But I.T ACT 1961 provide option to file the return in paper form for following person: • An individual having age of 80 years or more at any time during the previous year • An individual or HUF whose income does not exceed Rs 5 lakhs and who has not claimed any refund in I.T.R In offline mode, the return is furnished in a physical paper form. The Income Tax Department will issue an acknowledgement at the time of submission of your physical paper return. ON-LINE MODE: • In online mode, file return online and e-verifying the ITR V through net banking/Aadhaar OTP/EVC. • By feeding the data electronically and then submitting the physical copy of the return in the form of ITR-V to CPC, Bengaluru. NOTE- When Individual/Tax Payer furnish the ITR-1 return using electronic medium, the acknowledgement will be seen in the inbox of the registered email id. It can also be downloaded from the official income tax website manually. After downloading the acknowledgement, you need to sign the form and then send to the CPC office, Bangalore through registered/Speed post before completing 120 days counting from the e-filing date. On the other side, it is not required to send the ITR V to the CPC if EVC/OTP option is used. DUE DATE OF ITR FOR AY2020-2021: Income tax filing due dates for the FY 2020-21 (AY 2021-22) Category of Taxpayer Due Date for Tax Filing – FY 2020-21 Individual / HUF/ AOP/ BOI (books of accounts not required to be audited) 30th Sep 2021 (extended from 31st July) Businesses (Requiring Audit) 30th Nov 2021 (extended from 31st October 2021) IMCOME TAX SLAB RATE BETWEEN OLD TAX REGIME AND NEW TAX REGIME : INCOME TAX SLAB SLAB RATE FOR FY2019-2020 & 2020-2021 NEW REGIME SLAB RATE FOR FY 2020-2021 RESIDENT INDIVIDUAL/HUF <60>60 < 80YEARS>80 YEARS OF AGE FOR ALL INDIVIDUALS/HUF RS 0.0 – RS 2.5 LAKHS NIL NIL NIL NIL RS 2.5 – RS 3.0 LAKHS 5%(TAX REBATE U/S 87A IS APPLICABLE) NIL NIL 5%(TAX REBATE U/S 87A IS APPLICABLE RS 3.0 – RS 5.0 LAKHS 5%(TAX REBATE U/S 87A IS APPLICABLE 5%(TAX REBATE U/S 87A IS APPLICABLE NIL 5%(TAX REBATE U/S 87A IS APPLICABLE RS 5.0 – RS 7.5 LAKHS 20 % RS 7.5 – RS 10.0 LAKHS 20 % RS 10.0 – RS 12.5 LAKHS 3000 % RS 12.5 – RS 15.0 LAKHS 3000%% RS >15.0 LAKHS 30000% NOTE- #Additional health and education cess at the rate of 4% will be added to the income tax liability in all cases ( Increased from 3% since FY 2018-19) #An applicable surcharge as per tax rates below in all categories mentioned above: 1. 10% of the income tax if total income > Rs.50 Lakh 2. 15% of the income tax if total income > Rs.1 crore 3. 25% of the income tax if total income > Rs. 2 crore 4. 37% of the income tax is the total income > Rs. 5 Crore. CONDITION FOR OPTING NEW TAX REGIME: 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. There are 70 deductions & exemptions that are not allowed, out of which the most commonly used are listed below: 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. Standard Deduction on salary 8. Children education allowance 9. Other special allowances [Section 10(14)] 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)) 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 DOCUMENT REQUIRED FOR FILING ITR-1: • Copy of PAN & Aadhaar • Address details • Bank Account details • Additional disclosures with reference to income from payroll & fixed deposits • Data required for claiming deduction • Data required regarding TDS return filing and advance tax payments • Investment proof • TDS certificate in Form 16 • Interest income certificate in Form 16A • Form 26AS • Other specific documents SERVICE PROVIDED & PROCESS: • Documentation • Verification of Document • Preparation of Appropriate Form • Tax Return Preparation • Justification • Return Filing CHOOSE REQUIRED PLAN: • Basic: ITR-1 FILING FOR SLAB RATE upto 05 Lakhs. Service Fees- 549/- Including Taxes • Standard: ITR-1 FILING FOR SLAB RATE upto 5.0-10 Lakhs. Service Fees- 1049/- Including Taxes • Ace: ITR-1 FILING FOR SLAB RATE more than 10 Lakhs. Service Fees- 2449/- Including Taxes Working Process :

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Frequently Asked Question (FAQ’S)- Q-What are the head under which pension & Family Pension taxable? Income from salary’ is the head for levying a tax on pension whereas family pension is taxable under the head ‘Income from other sources. Q-What is Form 16? Form 16 can be coined as Salary TDS- Tax Deducted at Source Certificate that an executive issue for the TDS subtracted. Q-Whether NIL ITR is necessary to be filed? All the company and business entities need file ITR even if their total income or tax due is zero. In a matter of an individual, when revenue exceeds the basic exclusion limit, it is advised to file ITR to avoid investigation from the 'Income Tax Department'. Additionally, if your tax liabilities is zero and have offered the ITR before, it is essential to be filed. Q-is it needed to file a return if there is a visible loss in business income? Yes, finishing ITR in case of loss would be in your business itself. With online ITR filing, you can move forward the damages/losses to a specific expected financial year to set off losses upon the future profits. Q- Who should file income tax return? • Individuals (Indian residents & NRI's) – Necessary for those whose income is exceeding the prescribed limit. • Sole Proprietors • Companies • LLPs and Partnership Firms • The ITR filing is compulsory for 'Partnerships Firm', 'Sole Proprietorship Firm', 'Companies', and 'LLPs' irrespective of their turnover, income, profit or loss. Q- What are the advantage of filing income tax return? • It makes tax payer eligible for loan processing. • It helps in claiming TDS refund or any other tax paid in excess. • Also, it allows carry forward of losses. • It makes individual a responsible citizen. • Helps in avoiding penalty provisions. • Considered as a financial evidence for availing loan or visa. • Helps government in keeping track of the income of taxpayer. Q- What will happen in delay receiving TDS/TCS Reports? If it fails to deposit the TDS/TCS return on the due date appointed, then he shall be responsible for paying a sum of Rs. 200 for every day of the delay, Under Section 234E. Q- Where should the books of accounts of business be kept and for how long? All the books of account and related documents should be kept at the main place of business, i.e., where the business or profession is generally carried on. These documents should be preserved for a minimum of eight financial years. Q- What is the purpose of Form 26 AS? Form 26 AS is consolidated tax statement (Form 26AS) is used as a proof of tax deducted/collected on your behalf and the tax directly paid by you along with your income tax return. Q Is it mandatory to file a return after getting my PAN Card? No. Return is to be filed only if you have taxable income. Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state. ***