INCOME TAX
Income tax return filing online is a popular and effective technique to file tax returns. anyone trying to simplify their tax filing procedure is recommended to use up to date compliance services with the most recent regulations .You straight away pay income tax to the government based on your earnings. Income tax is a fee that you directly pay to the government based on your earnings. India’s government collects income tax. Taxes are of two types – direct tax and indirect tax.Direct tax is a type of tax that is imposed on income and profits that you pay directly to the government. Indirect taxes, on the other hand, are assessed on products and services that are purchased by someone else on your behalf and paid to the government, such as at theatres, eateries, and other establishments. Indirect taxes include things like service tax, which you pay at restaurants, whereas direct taxes include things like income tax, which is withheld from your paycheck each month in the form of TDS.
The government uses the funds obtained through direct taxation to fund infrastructure improvements as well as pay staff of both the federal and state governments. India passed the Income Tax Act in 1961. The provisions of the income tax and the different deductions that apply are governed by this Act. But since 1961, the statute has undergone numerous revisions to account for inflation and other socio-economic issues.
What is Income Tax Return(ITR)?
A document known as an income tax return (ITR) is used to submit data about your earnings and taxes to the income tax department. A taxpayer’s tax obligation is determined by factoring in their income. If the return reveals that too much tax was paid in a given year, the taxpayer will be entitled to an income tax refund from the Income Tax Department.
A person or corporation that receives any income during a financial year is required by law to file a return each year. The revenue may come from a wage, business profits, rental income from real estate, dividends, capital gains, interest payments, or other sources. Either an individual or a firm must file tax returns by a certain deadline. A penalty must be paid by the taxpayer if the deadline is missed.
What is Income Tax Return(ITR)?
According to the Income Tax Act, only people or firms that fall under particular income bands are required to pay income tax. Entities or businesses who must come fully file their ITRs in India are listed below:
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- Those who seek to get a refund for any overtaxes deducted or income taxes paid.
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- Individuals with assets or financial stakes in organizations based outside of india.
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- All registered companies generate income, regardless of whether they’ve made any profit or not throughout the year.
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- Foreign businesses that profit from treaty advantages on transactions conducted in India.
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- NRIs who generate more than rs. 2.5 lakh in income or accruals during a single fiscal year.
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- Anyone under the age of 59 whose annual income exceeds rs 2.5 lakh is subject to this tax. The limit rises to Rs. 3 lakh for senior citizens (aged 60 to 79), and to rs. 5 lakh for super senior citizens (aged 80 and above). It is critical to remember that the income amount should be determined prior to taking into account sections 80c through 80u deductions and additional section 10 exemptions.
Different Income Tax Return (ITR) form types
A tax payer can file his taxes using one of nearly nine different ITR Filing form types in total. However, as per the Central Board of Direct Taxes in India, only the following forms should be used by people for submitting returns:
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- ITR 1- The ITR 1 Form must be filled out by taxpayers and residents who have a total income of up to INR 50 lakhs, including income from salaries, one primary residence, other sources (interest, dividends, etc.), and up to INR 5,000 in agricultural income.
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- ITR 2- Individuals and HUFs that get income other than “Profits and Gains from Business or Profession and the Individuals that are Not Eligible to File the ITR-1 Form” must file the ITR2.
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- ITR 2A- The recently established ITR-2A return form is for people and HUFs who earn a salary, own several homes and do not earn income from capital gains.
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- ITR 3- Individuals and Hindu Undivided Families who earn money from their own businesses or from practicing their profession but who are not qualified to submit forms ITR 1, ITR 2, or ITR 4 may use the ITR-3 form.
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- ITR 4- For taxpayers who have chosen the presumed income scheme under Sections 44AD, Section 44ADA, and Section 44AE of the Income Tax Act, there is an ITR 4 Sugam Form.
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- ITR 4S-Individuals, Hindu Undivided Families, and small business taxpayers who have presumptive business income, salary or pension, one house property, and income from other sources are required to file Form ITR 4s, also known as Sugam.
Only businesses and firms are required to use the following income tax return forms:
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- ITR 5- ITR 5 Form is intended for businesses, LLPs, AOPs and BOIs (Association of Persons and Body of Individuals), co-operative societies, estates of the deceased and the insolvent, business trusts, and investment funds, subject to certain restrictions.
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- ITR 6-For all businesses that do not claim the exemption under Section 11, there is a tax return form called ITR 6. (Income from property held for charitable or religious purposes). The ITR 6 for AY 2020–21 must be submitted by October 31st.
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- ITR 7- For all businesses that do not claim the exemption under Section 11, there is a tax return form called ITR 6. (Income from property held for charitable or religious purposes). The ITR 6 for AY 2020–21 must be submitted by October 31st.
Benefits of Filing ITR :-
- Loss with an advantage Loss carryover: Taxpayers who suffered losses in any given year are allowed to take those losses forward and use them to balance their income in future years. But only if ITR is submitted by the deadline will this benefit of loss carryover be accessible. In the event that the ITR is submitted after the deadline, the opportunity to carry the loss forward is lost.
- No Late Cost: If the return is not submitted by the deadline, a late fee of Rs. 5,000 will be assessed. However, if the total income is less than Rs. 5 lakh, only a late fee of Rs. 1,000 will be charged instead of the whole amount of Rs. 5,000.
- Income Tax Refund: The return can only be processed after the ITR has been filed. If there is an excess TDS/TCS, taxpayers can receive income tax refunds sooner by filing income tax returns early.
- Few Deductions are only available if the return is submitted before the deadline. For example, deductions under sections 80HH to 80RRB, 80IA, IB, and IC are only available if the income tax return is submitted by the deadline. Such deductions are refused if a return is filed late.
ITR Filing 2022: Documents Required
- Form 16 – For salaried employees.
- Form 26AS
- Capital Gains Statement
- Bank Statement
- Details of Foreign Assets including house property, bank accounts, and any other assets.
- Deduction or Exemption Form
Steps to fill the ITR Form :-
- Log on to the Income Tax Department portal.
- Register using your Permanent Account Number (PAN); it will also serve as the user ID.
- Under the ‘Download’ section, go to e-filing under the relevant assessment year and select the appropriate Income Tax Return (ITR) form.
- If you are a salaried individual, download ITR-1 (Sahaj) return preparation software.
- Open the Return Preparation Software you have downloaded, and enter all details from your Form 16.
- Compute tax payable, pay tax and enter relevant challan details in the tax return.
- Confirm the details entered by you and generate an XML file. It will be automatically saved on your computer.
- Go to the ‘Submit Return’ section and upload the XML file.
- Sign the e-return digitally.
- The message of successful ITR filing will be shown on your screen. The acknowledgementform will be sent to your e-mail ID.
Penalty if you don’t fill ITR
- The income tax return (ITR) deadline for the financial year 2021–2022 is July 31, 2022.
- Missing this deadline can cost you even if you don’t have any
- The penalty amount was decreased by half starting in FY 2020–21 (AY 202–22), or last year. As a result, someone filing a belated ITR will now be subject to a maximum fine of Rs. 5,000.
How to file a belated return?
Income tax return filing online allows an individual or business to electronically file their income tax return using the Internet. Taxpayers can use this technology to file their returns from anywhere without visiting physical office, it is quick, easy and reliable.
- The procedure for submitting a late return is the same as submitting it on time.
- The primary distinction would be that you would need to check the box next to the appropriate box on the applicable ITR form for “Return submitted under section 139(4).”
- Additionally, keep in mind that if you are submitting a belated return for FY2021-22 (AY 2022-23), you must fill out the relevant ITRs as announced for FY 2021-22 alone and not for any earlier or later FY.
Can you revise the belated ITR?
- You can, truly. You are allowed to revise a late return starting with FY16-17, or AY17-18.
- However, if you submit your tax return after the cutoff date, you will lose some benefits and be charged a penalty
SRV Associates teams are experts in Income Tax Return Filing in Delhi, SRV Associates helps with all the rules while maximizing tax savings
What if I have filed my returns but there is an error?
If after filing your tax return you find that you have not reported certain incomes, or some deductions were not availed of in the return computation, it is possible to file a revised return.
How much time do I get to verify my return?
- The process involves more than simply filing your tax return; you also need to have it verified.
- You have 120 days after filing your return to validate it in accordance with current tax legislation.
Can I carry forward losses if I file a belated return?
- Losses under any head of income other than income from house property.
- It may only be carried forward in accordance with Indian income tax laws if the tax return is submitted before the deadline, which is July 31 of the relevant AY (unless extended by the government).
- However, even if the tax return is filed after the deadline, taxpayers can carry the loss forward under the heading “Income from House Property.”
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