| SL. NO. | TYPE OF TAXPAYER (ASSESSEE) | DUE DATE | TAX AUDIT CAES |
|---|---|---|---|
| 1. | Company | 30- Sep -2020 | 30- Sep -2020 |
| 2. | Limited Liability Partnership | 31 July 2020 | 30- Sep -2020 |
| 3. | Partnership | 31 July 2020 | 30- Sep -2020 |
| 4. | Proprietor | 31 July 2020 | 30- Sep -2020 |
| 5. | Individual | 31 July 2020 | 30- Sep -2020 |
| ITR Forms for Individuals | ITR Forms for Non-Individuals |
|---|---|
| ITR – 1 (Sahaj) – For individuals earning income from salaries, one house property, interest income, agriculture, other sources, etc. | ITR – 5 – Entities other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 |
| ITR – 2 – For Individuals and HUFs having income other than from profits and gains of business or profession. It may be from capital gain, lottery or foreign assets, etc. | ITR – 6 – All companies except those that claim tax exemption as per Section 11. |
| ITR – 3 – For individuals and HUF with income from profits of a business or profession. | ITR – 7 – Persons incl. companies required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only. |
| ITR – 4 (Sugam) – For Individuals, HUFs and Firms (other than LLP) having presumptive business income tax returns. This is computed under sections 44AD, 44ADA or 44AE. |
Form 16 can be termed as Salary TDS (Tax Deducted at Source) Certificate that an employer issue to you for the TDS deducted. Form 16 is an Income tax form, used by the companies to provide their salaried employee’s information on the tax deducted.
As soon as the income from your salary for the financial year exceeds the basic exemption limit, the employer is required to deduct TDS. The deducted amount is to be deposited to the Government.
After deducting TDS from the salary, the employer is required to give a certificate to the employee consisting of the details. This certificate is known as Form 16.
It consists of two parts i.e. Part A and Part B. Part A consists of details about the employer & employee, name and address, PAN and TAN details, TDS deducted & deposited, etc. And Part B consists of details related to other income, deductions allowed, etc.
Listed below are some of the most common tax filing mistakes you can avoid.
The appropriate ITR form for filing of returns must be selected. Failure can result in your return not getting processed by the income tax department.
Which form is to be selected depends on the sources from which income is earned in the financial year and the category.
All incomes that are taxable and/or tax-exempt are to be reported using the correct ITR form applicable. If the ITR is filed in the wrong type of Form, then the return will be termed as “defective”. Then, you will have to file a revised return using the correct form, within a certain time frame.
By using the LegalRaasta e-filing platform, where the selection of form is done technically, you do not have to worry about choosing the right form.
A common mistake taxpayers make is failing to disclose all the sources of their income. The income must be disclosed whether it is taxable or exempt.
All incomes, not only the primary one earned from employment, profession, or business, are to be reported. Whether they are savings account interest, fixed deposit interest, rental income from house property, income from short-term capital gains, and any other source.
Remember, any income earned by a minor from interests, investments, etc. is taxable for the parent. According to the tax slab, an exemption up to Rs. 1,500 u/s 10(32) can be claimed when a minor’s income gets clubbed with the parents.
Not reporting such incomes might attract notice from the income tax department.
If you have switched jobs, make sure you report the income earned through your previous employer also. Not reporting such incomes might attract notice from the income tax department.
Because all information will get recorded in the Department’s databank and may be verified, it is extremely important to enter the personal details correctly before filing your taxes. PAN number, name, address, mail id, phone number, date of birth, bank account number, IFS Code, etc. must be accurately mentioned. A minor mistake in these details means that you may miss your refund claim or some other important notifications. So check and re-check before filing.
It is important to compare ITR with Form 26AS before filing. Form 26AS includes all the income details, Tax Deducted at Source (TDS), advance tax paid by you, self-assessment tax, etc. TDS may have been deducted from your salary. You must verify the details of Form 16, issued by the employer, with the Form 26AS.
If the TDS is not reflected in Form 26As, your refund and tax deduction credit will be lost. The mismatched would lead to more tax being paid.
Income tax laws require all income to be reported, whether exempt or not. Many types of incomes are exempt from tax. For example, long-term gains, dividends, etc. Although you do not have to pay any taxes on them, you still need to report them.
Also, though your gross total income may not exceed the basic exemption limit, you are to file ITR in certain situations.
There is a set format for filing returns. All details are to be entered in a particular format, in the rows and columns provided. If incorrectly put in this complicated format, the returns will have errors. This is where taking professional assistance from LegalRaasta is recommended.
Employers are required to deduct tax at source from salary, and interest income respectively. It is mandatory to file an income tax return when your annual income exceeds Rs. 2.5 lakh. And report the interest income in those returns. You should disclose the income on which tax has been deducted and claim credit for TDS in the income tax return.
The interest on deposits with banks is provided after deducting a flat tax rate of 10%. You can claim a deduction under section 80TTA up to Rs 10,000 for interest earned on your deposits. For senior citizens, a deduction of interest up to Rs 50,000, can be claimed u/s 80TTB.
A deduction of up to. Rs 1.5 lakh in a financial year by investing in certain funds and schemes. But how much can be claimed from these schemes is complex. Similarly, most taxpayers are not aware of some expenses that are eligible as deductions.
Every person or entity is liable to pay tax in India if his total income is more than the income notified by the government in the slab rates.
1. Individual – Salaried, Self-employed or Professional,
2. Hindu Undivided Family (HUF)
3. Company
4. Firm
5. Association of Persons (AOP)
6. Local Authority
7. Artificial Juridical Person
8. Body of Individuals (BOI)
9. Political Party,
10. Educational or medical institution,
11. Trade Union, etc.
It is mandatory to file income tax returns in India if any of the below conditions apply to you, whether you are a man, woman or NRI, for the Assessment Year 2019-2020 (as per the Income Tax Act):
(a)Earn gross annual income (before deductions u/s 80C to 80U) more than-
1. Rs. 2.5 Lakhs – For individuals below 60 years,
2. Rs. 3 Lakhs – For individuals above 60 years but below 80 years,
3. Rs. 5 Lakhs – For individuals above 80 years,
(b) Earn income other than salary like house property, etc.,
(c) Want to claim an income tax refund of taxes already paid. Such as TDS, Advance Tax, etc.,
(d) Earn from or have invested in foreign assets,
(e) Looking to apply for visa or loan applications,
(f) Company or a firm, irrespective of profit or loss,
(g) Having Bank Deposits of over Rs. 1 crore,
(h) Bought foreign exchange of more than Rs. 2 lakh,
(i) Paid an electricity bill of more than Rs. 1 lakh.
Taxable income is to be calculated as per the provisions and rules contained in the Income Tax Act, 1961.
For calculating income tax, slab rates are applied to the taxable income earned during the previous year. These slabs are notified in the budget at the end of each financial year. The income is calculated under various heads of Income and added. Next, deductions and/or exemptions available under Chapter VI-A, are deducted to get the Net Income Chargeable to Tax.
You just need Form – 16, if you are a salaried individual. No other document, like a TDS certificate, proof of investment, needs to accompany your ITR. Still, you must keep them handy, as you may need to submit to authorities if they ask for it.
When you don’t get Form-16, given below is a list of documents that you may have:
(a) Copy of the previous year’s tax return (to declare any losses or other details),
(b) Your Bank statements (for the interest paid to your loans, balances, etc.),
(c) Your TDS certificates (to include taxes that have already been paid),
(d) Your Savings Certificates, Deductions, Donations, etc. (to include deductions),
(e) Certificates of Disability in your family (for deductions),
(f) An Interest statement that shows the interest paid to you, (possibly from Bank and/or Post Office),
(f) If having business income/loss, have balance sheets, Profit & Loss account statements, and other requisite Audit Reports.
The previous year is the same as the Financial Year in which the income is earned. Tax is payable on the income earned during this Previous Year. And this tax is payable in Assessment Year, which is the year next to the Financial or Previous Year. For example, for the Income earned in Financial Year (Previous Year) April 1, 2019, to March 31, 2020, the liability to pay tax will fall in 2020-2021, known as the Assessment Year.
