Income Tax Return Filing and Types of ITR Forms

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For every individual whose are not subject to audit, the Income Tax Return filing deadline for the financial year 2020-21 was extended by 3 months from September 30 to December 31. In 1st it was extended from the usual deadline of July 31 because of glitches in the new Income Tax Portal (ITP) developed by Infosys India.

Every taxpayer is allowed to choose between both the options to file ITR the old and new according to Income Tax Regimes. The people who choose the new regime will not be able to claim certain standard deductions, like house rent allowance and the people who are under Section 80C and 80D.

It is an important role to select the right ITR forms based on your sources of Income and Residential status.

ITR -1: If we talk about ITR -1 instance can only be used by the people which live in a resident and their income have up to Rs. 50 lakhs, which can be salaried or pensions, income from one house property, or in many other sources.

Those people whose income from capital gains, regarding the amount, have to file ITR – 2. Tax-payer people whose income from more than 1 house property as well as foreign income will also fill this form.

Income Tax Return Forms 3 and 4 are for taxpayers with income from Business or professional income or those people who opted for presumptive taxations.

The task of filing Taxes easier and faster for every taxpayer, the government of India for financial 2021 introduced the Annual Information Statement (AIS) which provided comprehensive information to taxpayers on their financial transactions. The Annual Information Statement contains more information than the existing form 26AS.

The people who pay Income Tax can take the information contained in the Annual Information Statement directly to his or her Income Tax Return Forms through the prefilled facilities. Tax fillers needed to see if the information contained in Form 26AS matches with the information in the AIS and in Form 16 issued by employers.

Form 26AS includes all details about Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and Advance Tax Paid, Self-Assessment Tax Paid, and Financial Transactions exceeding certain prescribes thresholded limitations.

Now, this time, the forms will also include remittances received from Overseas, Interests on Income Taxes Refund, Dividend from Mutual Funds, purchases of MF’s, all among others.

Excess of taking Tax Credits while filing the return could lead to a notice from the Income Tax Department. Therefore, if a person files the ITR (Income Tax Return) after December 31, 2021, he or she will face a penalty of Rs 5,000 (Five Thousand).

For every Taxpayer whose total income does not exceed up to Rs. 5 lakhs, the maximum late filing fee will be Rs 1,000 (One Thousand) only.

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