Delaying ITR Filing Can Invite Penalty up to INR 10,000
An Income Tax Return (ITR) is a tax that files the income details of an Indian with the Income Tax Department. Tax returns are filed every year for any person whose income during the year exceeds the Indian government’s limit. You can generate your income through salary, property rental, or other resources, and you must file all of it.
The usual tax return dates are:
- 31st July without tax audit.
- 30th September with the tax audit.
7 ITR Forms
There are seven ways of filing ITR, and they are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR6, and ITR 7.
The forms of ITR are as follows:
ITR 1: ITR-1 form applies to salaried individuals. It applies to those with a total income of up to Rs 50 lakhs from salary, one house property and other sources such as interest income, etc.
ITR 2: ITR-2 form is the ones for filing income from Salary/Pension and Income from House Property (Income Can be from more than one house property).
ITR 3: ITR-3 form applies to the people whose income is chargeable to tax under “profits and gains of business or profession” like interest, salary, bonus, commission, or remuneration. Only HUF or an individual can utilize ITR 3.
ITR 4: ITR-4 form applies to individuals and HUFs, Partnership firms (other than LLPs) who get their income from a business. In addition, those who choose the presumptive income scheme as per Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act are covered.
ITR 5: ITR-5 form is applicable to LLPs, a person being a firm, AOP, BOI, an artificial juridical person referred to in section 2(31)(vii), the estate of deceased, the estate of the liquidated, business trust and investment fund, cooperative community and local authority.
ITR 6: ITR-6 form is applicable to businesses filing returns that are not declaring exemptions under Section 11 of the Income Tax Act. These are businesses that do not look for exemption on income from property owned for charitable or religious purposes.
ITR 7: ITR-7 form implies to Companies, Firms, Local authority, Association of Person (AOP), and Artificial Judicial Person claiming exemption as one the following: Charitable /Religious trust under Section 139 (4A).
Date Extended for FY 2019-2020
For the assessment year 2019-2020, the filing of ITR for FY 2019-2020 (AY 2020-21) is extended to 30th November 2020 due to the pandemic.
Details Required to File ITR:
- PAN Card of the taxpayer and business directors/partners
- Salary slips
- Tax saving investment proofs u/s 80
- Previous year financial statement
- Aadhaar Card of all the company directors or partners
- Bank account statement or cancelled cheque
- Taxes deposited against your PAN (Form 26AS)
- Form 16(for a high salaried person)
The entities need to follow the upcoming due date of ITR filing:
- NRI or not, individuals whose income exceeds ₹2.5Lakhs needs to file ITR.
- For earned NRI income is taxable in India.
- There is a section that does not have to file ITR. These are people with Gross Total Income (GTI) below exempted income of ₹2.5L.
ITR should be filed timely by the volunteer because of the following consequences:
- It is essential to file your ITR on time to claim losses in future (as it compensates losses in the next financial year)
- To avoid penalties.
- ITR receipt is an essential document for the processing of bank loans.
- If the ITR is not filed on time, a late filing fee will be applicable under section 234F. The maximum penalty is INR 10,000. If you file after the due date, but before December of the same year, then a penalty of INR5000 will be charged.
Exemptions Under ITR
Individuals with net income of INR 5 lacs are exempted from taxes.
Why Do We Need to File ITR?
ITR gives you a detailed scenario of your total income earned during a year and the taxes paid. You should file your ITR timely to carry forward the losses you have experienced against subsequent years’ income.
Here is what you get on timely filing of ITR:
- Easy loan approvals from banks
- To claim TDS refunds
- To carry forward of losses
- Avoid interest on tax liability
Due to the extension of the ITR, the deadline has been extended to 30th November 2020. If you don’t wish to invite penalty, then have your ITR prepared in advance. 3E Accounting India can file ITR for you in the right manner, meeting all the requirements. With us, you needn’t worry about missing a deadline.