Income Tax Return Filing in India: What you need to know?
Income Tax Return
The Financial year 2021-22 has just ended and now the due
date for filing Income Tax return for FY 2021-22 is fast approaching.
Income tax return filing in
India is an annual exercise which every tax payers
need to do as per his or her legal as well as moral duties.
Every year, Central Board of Direct Taxes notifies Income
Tax Return filing forms for different categories of tax payers. For FY 2021-22
also, the CBDT has notified the relevant forms. There are total 7 forms
prescribed depending upon the types of assessee. It is very important for the
assessee to choose the correct Income Tax return form as filing return in wrong
form may lead to the tax return filing being invalid.
Compulsory
filing of Income Tax Return in India
There are 2 criteria for compulsory filing of
Income Tax Return. Fist is financial criteria and second is non
financial criteria. Every assessee needs to file their Income tax return in
India in case their total income during a financial year exceeds basic
exemption limit of Rs.2.5 lac.
Similarly, there are non-financial criteria
which means that income tax filing needs to be done even if there is no taxable
income however, the assessee has done some transactions like foreign travel,
made electricity bill payment of more than Rs.1 lac, have turnover form trading
of goods of more than Rs.60 lac or turnover from profession is more than Rs.10
lac etc.
What
are the Due Dates of filing Income Tax Return
In case of individual and HUF assessee, due
date of filing tax return is 31st July
In case of companies, due date is 30th
September
In case of proprietorship subject to tax
audit, due date is 30th September
In case of assessee to which transfer pricing
provisions are applicable, due date is 30th November
What is
the process or steps involved in filing Income Tax Return?
Following steps are involved in filing Income
tax return in India:
a)
Computation
of tax liability under 5 heads of income
b)
Providing
deduction u/s 80C from gross total income to arrive at total income
c)
Computation
of final taxable income and tax liability after deducting advance tax and TDS
already paid and calculation of any interest payable under the Act.
d)
Payment
of final tax liability through self-assessment challan 280
e)
Filing
of Income Tax Return
f)
E
verification of Income tax return- This is the most crucial step after Income
Tax return filing as without proper verification of the return, it will be
considered as invalid return.
Some other points which shall be kept in mind
at the time of Income Tax return filing in India
Following points shall be kept in mind at the time of Income Tax Return Filing
in India:
1) Late filing of Income tax return would
attract interest u/s 234A in case there is tax liability
2) Nonpayment of advance tax within time would
attract interest u/s 234B and 234C
3) Late filing of Income Tax return would also
lead to penalty of Rs.1000 to Rs.10,000 depending upon case to case basis.
4) In case tax return is filed late, any brought
forward loss cannot be carried forward.
From the above, it may be inferred that Income Tax Return
filing in India is a complex procedure and requires expertise of tax
consultant/tax advisors.
In case
you need any further clarification or assistance, please contact www.ezybizindia.in or
call at +919899217778
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