All About E-filing Income Tax Return Filing In India

In India, every assesse who earns income is required to compute its tax liability in a year and do Income Tax return filing every year.

Previously, Income Tax return were filed manually however, now, government has made arrangement for filing Income Tax return electronically.

Every year, approx. only 4-5% of total population of Indian assesse resort to efiling Income Tax which is very less for a huge developing economy like India.

What are various Due dates for filing Income Tax Return in India?

  1. Due date for filing Income Tax Return is 31st July for Individual/HUF.
  2. Due date for filing Income Tax Return filing for Companies/LLP is 30th September every year.
  3. Due date for filing Income Tax Return by assessee’s subject to tax audit is also 30th September
  4. Due date for efiling Income Tax for companies subject to Transfer pricing Audit is 30th November every year

What are various types of Incomes for which Income Tax Return needs to be filed?

Various types of Incomes are as under:

  1. Income from Salaries
  2. Income from House Properties
  3. Income from Capital Gains
  4. Income from Business and Profession
  5. Income from Other sources

What is tax rate in case of Individual and HUF?

For Individuals and HUF, following are the tax slab:

  1. Upto Income of Rs 2.5 lac- No Tax
  2. Income between Rs 2.5 lac and Rs 5 lac- Tax rate is 5%
  3. Income between Rs 5 lac and Rs 10 lac – Tax rate is 20%
  4. Income above Rs 10 lac- Tax rate is 30%

If an individual or HUF also has capital gains, then it will not be included in aforesaid tax slab and would be taxed separately at special rate depending upon period of holding of such capital asset.

If capital assets is House and are held for more than 24 months, it will be considered as Long term and tax rate would be 20%

If capital assets are shares and are held for more than 12 months, it will be considered as Long term and tax rate would be 20%

Taxability of Income also depends upon your residential status.

  1. In case of Resident assesse, His/hers global income becomes taxable in India
  2. In case of Non Resident assesse, His income accrued or arise in India becomes taxable.

What are the various deduction allowed from gross total Income?

While computing tax liability and Income Tax Return filing, an assesse can avail benefit of following deductions:

Tax deductions allowed under House Property

  1. Home loan Principal is allowed as deduction u/s 80C subject to maximum limit of Rs 2 lac.
  2. Interest on Home loan is also allowed u/s 24
  3. First time home owner advantage of Rs 50000 u/s 80EE
  4. In case of self-occupied House property, interest on home loan is allowed upto Rs 2 lac
  5. In case of rental property, interest on home loan is allowed as deduction without any limit.
  6. Stamp duty and registration is allowed up to Rs 1.5 lac subject to maximum deduction allowed u/s 80C

 

Other popular deductions allowed u/s 80C

Investment in Life Insurance premia

Investment in equity linked saving scheme mutual funds

Investment in 5 years FDR of banks

Investment in NSC certificate.

Investment in employees Provident fund

Investment in medical insurance

 What are the other deductions available other than Section 80C deduction?

  • Purchasing health insurance for yourself and your parents u/s 80D
  • Making donation u/s 80G
  • Making investment in National Pension Scheme upto max Rs 50,000 u/s 80CCD (1B)
  • Savings bank interest is allowed upto Rs 10,000 u/s 80TTA

 

Various forms in which tax can be paid to government

Taxes are paid to the government in one of the following ways:

  • By way of TDS- This is normally deducted by person making payment to assesse like employer or some other payee
  • By way of Advance Tax- Every assesse has to make an estimation of his tax liability during the year and pay the same in advance on or before 15th September, 15th December and 31st March of every year
  • By way of Self-assessment tax- In case any amount of tax is still payable even after TDS and payment of advance tax, same shall be paid by assesse before filing His/Her Income Tax return.

 

Some more facts about Income Tax Return filing

  • Normally, you are required to file Income Tax Return if your total income exceeds Rs 2.5 lac. However, you can still file your Income tax return even if total income is below Rs 2.5 lac.
  • Income tax return is required at time of applying various types of loans like Home loan, Personal loan, Business loan etc. Also, it is required at time of applying visa for going abroad. Therefore, it is advisable to file Income tax return even if Income is below taxable limit if anybody is planning for loans or want to apply for visa in future.
  • Salaried employee’s TDS are deducted by employer and employer issue form 16 to employees as an acknowledgement of tax deduction which is required at time of efiling Income Tax of employees.

In case, instead of salary a person is getting retainership fee or contractual fees, then person paying him such fees would deduct TDS and issue form 16A to deductee.

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Author: Anil Agrawal
EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.

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