Who is liable to pay Income tax?
Every person is liable to pay tax in India if his Income is more than the income notified by the government in the slab rates. Here the definition of person includes,
• An Individual
• A Hindu Undivided Family(HUF)
• A Company
• A Firm
• An Association of Persons (AOP) or a Body of Individuals (BOI)
• A Local Authority
• Artificial juridical persons
How is the return filed processed?
Now the processing of return filed will be through Aadhaar Number, where, you can link your Aadhaar Number with your PAN and get rid of sending ITR V to CPC, Bangalore.
Is having PAN(Permanent Account No.) mandatory for income tax return filing?
Yes, a person must have PAN to proceed for filing the income tax return.
What is EVC?
For electronic verification of return, a code (EVC) is generated. EVC will be a unique number linked to assessee’s PAN. One EVC can be used to validate one return, irrespective, of assessment year or type of return.
How to generate EVC?
Taxpayers can generate EVC by any of the four ways given below:
• Through E-filing Website of Income Tax Department
• Through Net- Banking
• Through Aadhaar number
• Through ATM
Why e-filing of return?
With e-filing income tax return, the processing speed is kicked up and secures personal information, get instant notification of Income Tax Return receipt, check the status of tax return or tax refund and get acknowledgment receipt immediately.
What is 26AS? Is it required to file an income tax return?
26AS is a consolidated statement showing the tax credit associated with our PAN. It shows how much tax has been received by the government by way of TDS deposited by the deductor (employer, bank) on our behalf, Advance tax deposited by us, self-assessment tax deposited, etc. It is important to match tax payments and TDS deducted with 26AS before filing your income tax return to get a tax credit as we can take a tax credit of only those items appearing in our 26AS.
How to pay Income tax?
Online income tax return allows you to pay taxes at any time and from anywhere through the net-banking account without being in the long queue at the Bank.
Which Income Tax Return form applies to me?
The type of return form in which you should file your return varies as per the category of Assesse:
• For Individuals/HUF: ITR-1, ITR-2A, ITR-2, ITR-3, ITR-4S, and ITR-4
• For Company: ITR-6, ITR-7
• Other than Individuals and Company: ITR-5
What are the due dates for filing an income tax return?
|Type of Tax Payer
|Persons whose accounts are required to be Audited u/s 44AB
|Working Partner in a firm (where firm’s accounts are required to be audited)
|Individuals, HUF, AOP, BOI, etc. whose accounts are not required to be audited u/s 44AB
What are the consequences if a return is not filed within the due date?
Interest on tax due shall be paid. If the return is not filed up to the end of the assessment year, in addition to interest, a penalty of Rs. 5,000 shall be levied under section 271F.
Any provision to file a return after the due date?
There is an option to file Belated Return. It shall be filed within one year from the end of the assessment year or before completion of the assessment, whichever is earlier. It is to be noted that Belated Return can be filed but interest and penalty shall be levied.
What is Presumptive Taxation under income tax return?
To give relief to small taxpayers having income from business or profession from maintaining books and accounts presumptive taxation scheme was introduced in the Income Tax Act, 1961. This section gives exemption to taxpayers opting for this scheme from maintaining books, audit, paying quarterly advance tax. The scheme is framed under three section of the Income-tax act 1961:
• Section 44AD: For small taxpayers engaged in business other than the business of plying, hiring or leasing goods carriages.
• Section 44ADA: For small taxpayers having income from profession.
• Section 44AE: For small taxpayers engaged in the business of plying, hiring or leasing goods carriages.
What penalties are imposed if the return is not filed at all if there is taxable income?
Interest and penalty are followed by the prosecution if, tax not paid. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).
Is there any provision to revise the return already filed?
Revision of return filed is possible if, the original return is filed within due date and Department has not completed the assessment relevant to that year. Mistake shall be genuine and bona fide and shall not be any deliberate mistake.
What is Advance Tax?
If the income tax liability in any financial year is more than Rs. 10000 then, the advance tax shall be paid in installments during the year itself.
Is the filing of return is mandatory even if income is below the exemption limit?
If the income is below exemption limit then it is not mandatory to file the return but you may file the return as you cannot file the return for past years once the due date elapses. Also, ITR is a valid document for bank credit, housing loans, etc.
Is the filing of return is mandatory even if the employer already deducted TDS from salary?
Mere deduction of TDS does not exempt you from the filing IT return. Even if your employer has deducted TDS from your income, you must file your return. To claim the TDS amount, filing of IT return is mandatory.
|ITR – 1 (Also known as SAHAJ)
||It applies to an individual having:
• salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses).
• Exempt income without ceiling limit (other than agricultural income exceeding Rs. 5000)
||It applies to an individual or a Hindu Undivided Family having income from any source other than “Profits and gains of business or profession”.
|ITR – 2A
||It applies to an individual or a Hindu Undivided Family having income from Salary, more than one House Property but does not have Capital Gain or PGBP.
|ITR – 3
||It is applicable to an individual or a Hindu Undivided Family who is a partner in a firm and income chargeable to income-tax in his/its hands under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm.
|ITR – 4S
||Also known as SUGAM applies to individuals and HUFs who have opted for the presumptive taxation scheme of section 44AD/ 44AE.
|ITR – 4
||It applies to an individual or a Hindu Undivided Family who is carrying on a proprietary business or profession.
|ITR – 5
||Income Tax Form ITR 5 is used by most partnership firms as it is intended for persons other than individuals, Hindu Undivided Families, companies and person filing Form ITR-7.
|ITR – 6
||It applies to a company, other than a company claiming an exemption under section 11 (charitable/religious trust can claim an exemption under section 11).
|ITR – 7
||Income Tax Form ITR 7 is used by persons, political parties, news agencies, universities and entities in receipt of income from property held under trust for charitable or religious purposes.
|ITR – V
||It is the acknowledgment of filing of return of income