INCOME TAX FILING | INCOME TAX RETURN | ITR FILE | TAX FILING GUIDE| DUE-DATES OF INCOME TAX RETURN| LATE FEES | TYPES OF INCOME TAX RETURNS
INTRODUCTION:
Taxation has always been an important and integral part of a ‘STATE’. Without the imposition of Taxes, a state cannot survive and thrive. On various occasions, Kautilya (Chanakya) can be heard speaking about Taxes to run the Empire. Evidences of the taxation system can be seen from the Ashokan period to the Mughal period and from British India to Modern Independent India. It has always been an essential source of income for every state.
The history of taxation in modern India dates back to British times when British India’s first Finance minister James Wilson introduced the first income tax in February 1860 and imposed the Indian Income Tax Act, 1860. Gradually, there are many amendments to it, and today we are governed by Income Tax Act, 1961.
Definition:
Income Tax is a kind of direct tax paid by an individual or a business entity on their earned income in proportion to the tax slabs decided by the government in accordance with their income. The income can be actual, notional, or both.
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What are the kinds of taxes in India?
There are basically 2 types of taxes as per the Income Tax Act, 1961;
1. Indirect Tax is a tax imposed on an individual or an entity but is paid through the final consumer of the goods or services. Consumer pays it by paying more for the product than the actual price of the product, e.g., excise duties, service tax, custom duties, CGST, SGST, etc
2. DirectTax is paid directly by an individual to the government on the income earned by him. It is paid in accordance with the tax slab decided by the government. Example; Income Tax, corporation tax, property tax, gift tax, etc.
INDIAN TAXPAYER
Every citizen of India who is less than sixty years of age, must pay income tax on their income above 2.5 lakhs INR. Individuals above the age of 65 years shall pay income tax if they earn more than 3 lakhs INR. Moreover, these are other entities who shall pay income tax on their earned income;
• Hindu Undivided family
• Associations of Persons
• Local Authorities
• Body of Individuals
• Corporate Firms
• Companies
• All artificial juridicial persons
TAX SLABS
Tax slabs keep on changing according to circumstances and policies made by the government of India. From year to year, it seems a dynamic pattern. The tax slab is primarily decided by the government based on the income of the individuals. If you earn more, you have to pay more is the underlying principle for deciding the tax slabs. Due to the ongoing Covid crisis in the country, the government of India has decided to keep the income tax slab of FY2020-21, along with it is providing an alternative tax slab for the taxpayers. The senior citizens above seventy-five years of age are this time exempted from the filings of the income tax returns, but TDS will be automatically deducted from their bank accounts.
VARIOUS INCOME TAX SLABS FOR FY 2021-22:
| Old Income Tax Slab (2020-21) | Percentage | New income tax Slab (2021-22) | Percentage |
| Upto 2,50,000 | NIL | Upto 2,50,000 | NIL |
| 2,50,001-5,00,000 | 5% | 2,50,001-5,00,000 | 5% |
| 5,00,001-10,00,000 | 20% | 5,00,001-7,50,000 | 10% |
| Above 10,00,000 | 30% | 7,50,001-10,00,000 | 15% |
| 10,00,001-12,50,000 | 20% | ||
| 12,50,001-15,00,000 | 25% | ||
| Above 15,00,000 | 30% |
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KINDS OF INCOME TAX RETURNS:
| S.NO. | ITR | DESCRIPTIONS | ONLINE | OFFLINE |
| 1 | ITR 1 | Individuals drawing income from salaries, 1 house property, other sources(interest etc) and having total income up to Rs.50,00,000. | Yes | Yes |
| 2 | ITR 2 | Individuals and HUFs not carrying out business or profession under any proprietorship. | No | Yes |
| 3 | ITR 3 | Individuals and HUFs draws income from proprietary business or profession. | No | Yes |
| 4 | ITR 4 | For presumptive income from business and profession | Yes | Yes |
| 5 | ITR 5 | For persons other than; (1)individual, (2) HUFs, (3) company, (4) person filing Form ITR-7 | No | Yes |
| 6 | ITR 6 | Companies other than company claiming exemptions under section 11 | No | Yes |
| 7 | ITR 7 | Persons including companies required to furnish return under sections 139(4a) or 139(4c) or 4d or 4e or 4f | No | Yes |
FILING OF INCOME TAX RETURNS: ITR E-FILING
The taxpayer citizens can pay the income tax through two methods; offline and online
1. Filing return Offline: Download the applicable ITR, fill the form online, save, then generate XML file and thereafter upload it.
Tin order to e-File the ITR using the upload XML method, it is mandatory for the user to download either of the below ITR utility:
• Excel Utility
• Java Utility
here how you can download the Java Utility or Excel Utility, then to generate and Upload the XML:
Step 1 Go to the income tax e-filing portal www.incometaxIndiaefiling.gov.in.
Step 2 Download the appropriate ITR utility under ‘downloads>IT Return preparation software’.
Step 3 Extract the downloaded Utility zip file and open the utility from the extracted folder.
Step 4: Fill in the applicable and mandatory fields of the ITR form.
Step 5: Validate all the tabs of the ITR form and calculate the tax.
Step 6: Generate and save the XML.
Step 7: Login to e-filing portal by entering user ID(PAN), password, Captcha code add click ‘login’.
Step 8: Click on the e-file menu and click ‘income tax return link’.
Step 9: On Income Tax Return Page:
On Income Tax Return Page:
• PAN will be auto-populated
• Select ‘Assessment Year.’
• Select ‘ITR form Number.’
• Select ‘Filing Type’ as ‘Original/Revised Return.’
• Select ‘Submission Mode’ as ‘Upload XM
Step10
Choose one of the methods to verify the Income Tax Return:
•Digital Signature Certificate (DSC).
• Aadhaar OTP.
• EVC using Pre-validated Bank Account Details.
• EVC using Pre-validated Demat Account Details.
Generate EVC
• Already generated EVC through My Account
Option or Bank ATM. The validity of such EVC is 72 hours from the time of generation.
• I would like to e-Verify later. Please remind me.
• I don’t want to e-verify this Income Tax Return and would like to send signed ITR-V through normal or speed post to “Centralised Processing Centre, Income Tax Department, Bengaluru – 560500”
DOs and DONTs:
| DOs | DONTs |
| Select the right ITR Form for filing income tax return. | Do not confuse b/w FY and AY during ITR filing. |
| Verify the IT Return using Aadhar/EVC or DSC. | Do not make a mistake in email address, Bank account, TAN |
| Do mention obligatory details in ITR. | Do not Forget to claim Reductions. |
| Always file the ITR before deadline. | Do not be in hurry while filing income tax return. |
| Always create a strong password for accessibility to the e-filing account. | Never work ITRs while using public Wi-Fi. |
| Do use an internet security system/ software. | Do not Forget to update softwares, |
| Always stay cautious, aware and informed. | Do not share your personal details or any reply to fraud email, Phone call and SMS. |
FAQs
Ques. 1: I am an NRI not having a mobile number in India. How will I register in E-filing?
A: A NRI can come up with a foreign mobile number and email address while registering for e-filing in India. However, all the information and relevant verification OTPs/ PINs and communications will be shared only on the email.
Ques. 2: Is it compulsory to file ITR forms electronically?
A: yes, electronic filing of ITR is mandatory. In the case when a company is filing the ITR, it needs to be e-filed under a Digital signature certificate(DSC).
Ques. 3: Is it mandatory to use Java/ Excel utility created by the income tax department? Or may are you some other utility?
A: users are free to adopt any other utility created by any software developers. However, the JAVA/ EXCEL utility found on the website of income tax is free for use and error-free.
Ques. 4: how many reject the ITR form file by my chartered accountant?
A: login to e-filing credentials> Work list> For your action. You need to select the ITR form you wish to reject, mention some comments and click the reject button.
Ques. 5: What is a notice under section 245?
A: it means that you are getting information about your ITR being processed at CPC. And it has resulted into a refund. The refund will be adjusted against outstanding demand.
Ques. 6: Can I send the ITR 5 to CPC by registered post?
A: no, you can send it only by ordinary post or by speed post to CPC.
Ques. 7: Can I send the rectification application and other correspondence with CPC in paper form?
A: no. You can only file another rectification when the previous one is processed by the CPC.
Ques. 8: I have filed my ITR but have not received any refund till now?
A: there may be the following reasons for not receiving a refund;
1. Your ITR has not been processed yet.
2. Your ITR is processed, but no refund is determined.
3. Your ITR is processed, Refund is Determined, but ECS Credit failed.
4. Go login to My Account> Service request> E-file form and check the link given for Acknowledgement Number.
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