Added: Kimblery Smalley - Date: 14.09.2021 13:29 - Views: 19799 - Clicks: 4984
In this article, a few important aspects which one must consider before filing ITR have been enumerated:. For example, form ITR-1 can only be used by a resident individual having total income up to Rs 50 lakh from salary, iyytr house property and income from other sources. It cannot be used by a taxpayer who is a non-resident or a not ordinary resident or have capital gains for which form ITR-2 has to be used. Choose new tax regime or old tax regime whichever is more beneficial The Finance Act, introduced a new optional tax regime iyytr taxpayers with modified tax slabs and rates, in lieu of foregoing prescribed exemptions and deductions.
Taxpayers will have the option to choose from the old and new tax regimes while filing the tax return. Salaried taxpayers can also change the regime, iyytr they have already declared to their employer at the time of filing ITR. Prefilled ITR forms This year, ITR forms will import pre-fill information such as personal details of the taxpayer along with details of salary income, dividend income, interest income and capital gains as available in the Form 26AS.
This would aid taxpayers in ease of filing ITR as most of the essential details would already be captured therein. It will, therefore, be relevant for individuals to verify this information and make necessary additions of income not reported therein iyytr the tax return.
Verification of prepaid taxes with Form 26AS It is pertinent for taxpayers to verify their prepaid taxes including tax deducted at source, advance tax and self-assessment tax with Form 26AS. Payment of balance taxes Once the total taxable income is determined, post including income under all he and claiming necessary deductions available under Chapter VI-A of the Act, applicable tax rates should be applied to compute the total tax iyytr.
Any taxes due on the tax return after claiming credit of prepaid taxes should be paid including applicable interest if any before filing the tax return.
It would be pertinent to note that if such self-assessment tax exceeds Rs 1 lakh, it should be iyytr before 31 July to avoid additional interest liability even though the tax return filing deadline is extended to 30 September Various disclosure requirements Following disclosures of various assets and financial investments forms an integral part of an ITR: Specified details of all Indian bank s Specified details of unlisted equity shares Details of directorship held in Indian or foreign companies.
Schedule Assets and Liabilities: Details of specified assets [such as land, building, movable assets etc. Schedule Foreign Assets: Ordinarily Resident individuals are obligated to furnish details of their assets held outside India both as an owner and as a beneficiary as per specified disclosure guidelines.
Change of employment during the year In case the taxpayer has furnished requisite salary, income details earned from employer s to the current employer, a consolidated Form 16 and 12BA can be issued by the current employer iyytr which an ITR can be filed.
Otherwise, it may lead to shortfall in TDS owing to duplication of slab benefit, deductions, exemptions provided by iyytr employers. In that scenario, additional taxes due on the return along with applicable iyytr should be paid before filing the tax return. They would be required to furnish the same if they enter high-value transactions during the relevant FY as under: i Payment of electricity bills aggregating over Rs 1 lakh; ii Deposit of more than Rs 1 crore in aggregate in one or more current bank s; iii Spent more than Rs 2 lakh in aggregate on overseas travel for self or any other person.
Regardless of the reason, in case ITR filing deadline is not met, iyytr may lead to varied consequences under the Act such iyytr levy of late filing fee, payment of interest on balance tax liability, ineligibility to carry forward certain losses, etc.
In doing so that should take cognisance of aforesaid aspects amongst others, for filing their ITR accurately without attracting any penal consequences. Like us on Facebook and follow us on Twitter. Financial Express is now on Telegram. Here are a few important things which individual taxpayers should know before filing their income tax return for AY In this article, a few important aspects which one must consider before filing ITR have been enumerated: Related News.
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Income Tax Return filing: 10 important things individual taxpayers must know before filing ITR