Income Tax is a type of direct tax that you pay on income earned during the financial year. In India, a direct tax is governed as per Income Tax Act, 1961 along with Income Tax Rules, 1962 Income Tax is levied based on the different types of incomes and taxpayers.
- Who should file Income Tax Return (ITR)?
- When is Income Tax Return (ITR) filing mandatory?
- Who is considered as Resident?
- What are the Due Dates to file Income Tax Return (ITR)?
- Due Date for Filing ITR for AY 2021-22
- What are the Documents required to file ITR?
- Which ITR Form to File?
- What are the Income Tax Rates for AY 2019-20?
- How to file ITR?
- What is ITR e-Verification?
Who should file Income Tax Return (ITR)?
A taxpayer is required to file ITR if their income is more than the basic exemption limit. The basic exemption limit for Individuals and HUFs below the age of 60 years is INR 2.5 Lakh in AY 2019-20.
However, a taxpayer with income less than the basic exemption limit can also file an ITR. This is known as a NIL return.
What are the Due Dates to file Income Tax Return (ITR)?
|Individuals to whom audit is not applicable||31st July of the Assessment Year|
|Companies||30th September of the Assessment Year|
|Individuals to whom audit is applicable||30th September of the Assessment Year|
|Individuals/ HUF who are partners in a firm and firm’s accounts are subject to audit||30th September of the Assessment Year|
Due Date for Filing ITR for AY 2021-22
What are the Documents required to file ITR?
The basic documents required to file ITR are:
- PAN (Permanent Account Number)
- Aadhar Number
- Form 26AS
- Bank Account Details
- Challan of any advance tax or self-assessment tax (if paid during the year)
- Details of the original return (if filing a revised return)
However, documents required to submit ITR may differ based on the income situations and ITR form the taxpayer has to file.
Which ITR Form to File?
The ITR form a taxpayer should file differs based on their income source and residential status. The Income Tax Department has prescribed 7 different ITR forms for different income situations. The taxpayer is required to choose the ITR Form that is applicable to them for that particular assessment year. The most common ITR form filed by individual taxpayers is ITR 1 or ITR 4.
|ITR-1 (SAHAJ)||The most basic ITR form for individuals having income up to Rs. 50,00,000 from salary/pension, one house property, and interest.|
|ITR-2||For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and partner’s income from the partnership firm.|
|ITR-3||For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and income from proprietary business or profession.|
|ITR-4||For individuals/HUF/Partnership firms having income from presumptive business or profession.|
What are the Income Tax Rates for AY 2019-20?
Income is taxed based on the category of a taxpayer. In India, income tax rates are declared every year in Union Budget by the finance minister. The Income Tax Slab Rates for Individuals and HUFs below the age of 60 years are:
|Taxable Income||Tax Rate|
|Up to INR 2,50,000||Nil|
|INR 2,50,000 to INR 5,00,000||5%|
|INR 5,00,000 to INR 10,00,000||20%|
|Above INR 10,00,000||30%|
- Rebate u/s 87A of INR 2,500 or 100% of the tax (whichever is lower) is available to Individuals with income is less than Rs. 3,50,000
- A surcharge is applicable if your taxable income is:
- between INR 50,00,000 to 1,00,00,000 : Surcharge 10%
- above INR 1,00,00,000 : Surcharge 15%
- Health & Education Cess is 4% on the total of income tax + surcharge
How to file ITR?
You can file Income Tax Return using:
- Income Tax e-filing Website
- Income tax account
- IT utilities
- ERI (e-Return Intermediary): these are government-approved intermediaries like Quicko
e-File ITR using Income Tax e-Filing Website
To e-file your ITR by using an income tax e-filing website, you should use your income tax e-filing account.
- Log in to the e-Filing portal by entering the user ID (PAN), Password, Captcha code and click ‘Login’.
- Navigate to e-file > Income Tax Return
- Select ITR Form, Assessment Year and other details
- Prepare your ITR
- Pay Self-Assessment Tax if you have outstanding tax dues. Or claim Tax Refund if you have paid excess tax during the financial year.
- Click on ‘Submit’ to e-File your ITR.
e-File ITR using Income Tax Utilities
Income Tax Department provides Java and Excel utilities to prepare and e-file your income tax returns. These utilities allow the taxpayer to prepare their ITR offline, and using the income tax e-filing account the taxpayer can submit their ITR.
- Go to incometaxindiaefiling.gov.in click on Offline Utilities under the Download section. Now go to Income Tax Return Preparation Utilities and select the assessment year
- Select the ITR Form you are required to file and Download ITR Utility for that ITR Form.
- Extract the files from a zip folder: You need to have java runtime environment to unzip the utility
- Prepare your ITR offline
- Upload the utility on your Income Tax e-filing account.
What is ITR e-Verification?
ITR filing process is not complete until you e-Verify your return. When a taxpayer files the ITR, they receive ITR V on their registered email id from the income tax department. ITR-V means Income Tax Return Verification Form, it is also known as ITR-V (Acknowledgement).
You can e-verify your ITR by the following methods:
- Aadhaar OTP
- Bank ATM
- Net Banking Option
- Bank Account Option
- Demat Account Option
- Physically sending ITR-V to the Income Tax Department: Use your income tax account to download ITR-V.
The due date to file the Income Tax Return (ITR) for individuals, Hindu Undivided Families (HUF), and taxpayers whose accounts are not required to be audited July 31st unless extended by the government.
The Income Tax slab rates for individuals for the Financial Year 2020-21 are given below. The table consists of both the current regime and new regime tax slab rates.
PAN (Permanent Account Number)
Bank Account Details
Challan of any advance tax or self-assessment tax (if paid during the year)
Details of the original return (if filing a revised return)
The Income Tax Return (ITR) filing process is not complete until the filed ITR is verified by the taxpayer. The taxpayer can either e-verify the ITR or can send signed ITR-V (Acknowledgement) to the Income Tax Department (ITD). If the e-Verification of ITR is not possible then the taxpayer needs to send the signed ITR-V to the Income Tax Department within 120 days at CPC Bangalore.