Get your Income Tax Return Filled by 31 July

Get your Income Tax Return Filled by 31 July

How to file Income Tax Return?

This was the most common question in the comments section of my post on the e-Filing Income Tax Procedure of AY 2020-21. In spite of the easy ITR form and quick e-filing option, we can make mistakes.

One may miss adding tax-saving deductions in the ITR form. We may miss account capital loss to carry forward. We may also fill a gross salary in place of taxable income. We may also fill the home loan interest in positive value.

RJA is here to help you to avoid all these errors and let all your Tax related worries simply fly.

There are two types of tax levy one is direct tax second one is an indirect tax. Income tax is a direct tax that is directly attributable to the income of the assessee.

Income which is generated from the various head of income viz. Salary, House Property, Business, Capital Gain, and Income from other sources.

The assessee has to pay Income tax if his total Income after allowing Chapter VI-A Deduction is more than the taxable income limit.

Income Tax Forms for E-filling and Due Dates of Income Tax for AY 2020-21.

Department has made new ITR forms in various formats viz PDS, Java utility, Excel utility on income tax website for AY 2020-21.

The deadline for submitting the ITR for the fiscal year 2019-20, i.e. the assessment year 2020-21 for the Normal category of taxpayers, which includes all workers, was 31 July 2020 and has since been extended to 31 December 2020.

What happens if you miss the bus and do not file your Income Tax Return for the 2020-21 assessment year by 31 Dec 2020? Let’s talk about it

Be ready to file your tax return before deadlines.

There are different categories of taxpayer viz. Individual, HUF, Firm, LLP, Company, Trust, and AOP/BOI. Due Date is different according to audit or non-audit case of such categories as defined in section 139(1).

Last Date of Filing Income Tax Return

• 31^st July – Last Date of Return Filling for non-audit cases.
• 30^th September – Last Date of Return Filling for audit cases.

Advance Taxes of Income Tax for AY 2020-21

If the tax liability is more than Rs 10,000 in a financial year then advance tax needs to be paid by assessee.

Is the due date even the last date of Income Tax Return filing?

People usually believe that the due date is also the last date after which you cannot apply for your ITR, which is not right. There are two dates that are applicable to Income Tax Return filing. One is the due date, the other is the last date.

If you do not apply your ITR by the due date, you can always file it by the last date. The deadline for submission of the ITR for the 2020-2021 assessment year was 31 July 2020 and is extended to 31 December 2020. The last day, however, is 31 March 2021. However, if you apply for your ITR after the due date, a few consequences will follow.

What happened if you cannot able to file on the due date?

In the event that you fail to file your present Income tax return by 31 December 2020, you may still do so by 31 March 2021, but you may forfeit the right to carry forward any damages that may be offset against the income of following years.

So, in the event that you have a loss under the head company profits or capital gains or a loss above 2 lakh rupees under the head household property during the current year and that you are otherwise entitled to carry forward for set-off in succeeding years, you would not be able to do so if you meet the deadline of 31 December 2020.

In the event that the taxes charged by you or on your behalf are higher than your tax obligation and so you are entitled to a full refund of the additional taxes paid, you would not be eligible to claim any interest in respect of the additional taxes paid for the time of delay due to you.

In the event that taxes collected on your behalf are smaller than your total tax liability, in addition to interest on such a discrepancy, You will still have to compensate interest for the duration of delay in filing your ITR even though you have already paid the deficiency after 31 March 2020.

What happens if you don’t file your ITR till the last date?

If the last date of filing of the ITR for the AY 2020-2021 is increased throughout 31 March 2021 and in the event that you failed to file it until 31 March 2021, the Tax Department will impose a minimum penalty equal to 50% of the tax that would have been avoided by you in addition to the income tax and interest liability until the date on which you actually filed your Income-tax Return in the response of Notices from the Income-tax department.

Just a few people know that the government has the power to sue you and put you behind bars if you don’t file your ITR. The New income tax Regulation allows for a minimum term of three years in prison and a maximum of seven years in prison.

It is not that the department may initiate litigation against you in any case of failure to file an ITR. The tax department may begin prosecution only if the amount of tax sought to be prevented exceeds INR 10,000.

You can made-up your mind to submit Your Income tax return before 31st Dec 2020.

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