Income Tax Returns (ITR): All You Need To Know In 10 Points

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Income Tax Returns (ITR): All You Need To Know In 10 Points

Income Tax Returns (ITR): All you need to know in 10 points

Income tax returns (ITR) filing is a must for everyone, even if your tax liability is zero and your income is well below the taxable limit provided by the government. There was no change to the tax structure in the latest Union Budget, carrying forward from last year the rates and the income tax slab limits.

Here Is Your 10-Point Guide To Income Tax Returns (ITR) Filing:

  1. The due date for filing your income tax returns for the financial year 2020-21 is March 31, 2022. The initial deadline was July 31, 2021, but because of the pandemic, the government extended the date and revised it to December 31, 2021, and then to February 15, 2022, and March 15, 2022. Beyond the last date of March 31, taxpayers are given a three-month window under the income tax law to file belated ITR. 

  2. But delays in filing ITR beyond the last date is not advisable because that leads to a penalty and demand for interest payment from the I-T department.

  3. The penalty is  Rs 5,000 under Section 234F of the Income Tax Act for not filing your income tax return by the due date. However, if your total income is below Rs 5 lakh, you have to pay Rs 1,000.

  4. This rule applies to all taxpayers, and the penalty must be paid even if you are filing for a non-taxable amount. The income tax department can also charge you a penalty of 50 per cent of tax payable, and you could, in extreme cases, face a jail term of three years. In addition to paying penalties, you may also have to pay interest of 1 per cent per month or part of the month for tax left unpaid.

  5. A taxpayer can file their income tax returns either using the online platform (but only for ITR-1 or ITR-4 forms) or the JSON utility.

  6. Any taxpayer choosing the offline mode to file Income Tax Returns needs to use the Offline Utility for ITRs. With the utilities, you can file Income Tax Returns (ITRs) by uploading the utility-generated JSON: Post login to the e-Filing portal or Directly through the offline utility. This service on the e-Filing portal offers two separate offline utilities for filing ITRs, which are as follows: ITR-1 to ITR-4 and ITR-5 to ITR-7 forms.

  7. The pre-requisites for using the JSON utility: Registered user on the e-Filing portal, Valid user ID and password for filing ITR through the offline utility and Downloaded offline utility for ITR-1 to ITR-4 or ITR-5 to ITR-7 forms. For more details, lookup: https://www.incometax.gov.in/iec/foportal/help/offline-utility.

  8. The I-T department provides (since 2018) pre-filled ITRs on the online platform, but the information needs to be checked thoroughly as there are technical issues in the newly launched tax filing platform.

  9. Income Tax Refund: There are instances when you have paid more than your tax liability, and you can claim a refund of the additional money over and above what is due. That is, if you have paid more tax to the government than you are liable for in a financial year as a result of advance tax paid or tax deducted at source (TDS), then you can claim this additional tax money paid as a refund when you file your income tax return (ITR).

  10. While filing ITR, your bank account information needs to be updated as the refund is credited directly to the taxpayers’ bank account if accepted by the I-T department as due. Income tax refunds also come with interest, calculated using the simple interest method on the amount due for a refund at the rate of 0.5 per cent for a month or part of the month or at 6 per cent per annum. But there are several factors considered for the interest calculation.

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