INCOME TAX RETURN

Who should pay Income Tax in India?

It is mandatory to file ITR for individuals If the gross total income is over From slab rate in a financial year. Slabs rate of income tax is not fixed IT changes on time to time any F.Y .

Income Tax slab under New tax regime for FY 2020-21 & AY 2021-22

Up to Rs.2,50,000 Nil

From Rs.2,50,001 to Rs.5,00,000 5%

From Rs.5,00,001 to Rs.7,50,000 10%

From Rs.7,50,001 to Rs.10,00,000 15%

From Rs.10,00,001 to Rs.12,50,000 20%

From Rs.12,50,001 to Rs.15,00,000 25%

Income above Rs.15,00,001 30%

Important Income Tax related dates

Before January 31 Individuals must submit their proof of investment

Before March 31 It is deadline before which any investments under Section 80C of the Income Tax Act, 1961 must be made

Before 31 July Due date to file income tax return Between October and November Tax returns must be verified by this time

Important Income Tax Forms

ITR 1

For Individuals having Income from Salaries, One house property, other sources (Interest etc.)

ITR 2

For Individuals and HUFs not having Income from Business or Profession

ITR 2A

For Individuals and HUFs not having Income from Business or Profession and Capital Gains and who do not hold foreign assets

ITR 3

For those Who Running there Proprietor ship firm and maintain there accounts Section 44ab

For ITR 4

For individuals and HUF having income from a proprietary business or profession filling under section 44ad (Above 2 cr. turnover or up to this form is not valid in that case use ITR 3 )

Income Tax Saving Investments

Declaring investments - From HRA, Life Insurance Premiums, National Savings Certificate, Leave Travel Allowance to Fixed Deposit (minimum of 5 years), ELSS Tax Saving Mutual Funds, and more, by ensuring that you have declared all your investments, you can achieve more deductions on tax. The following options can be considered for saving on income tax.

Other tax Saving Options

Insurance

Home Loan

Fixed Deposits (FD),National Saving Certificate (NSC, Provident Fund (PF)

List of Income Tax Deduction

80C

Allowances under this part are simply accessible to people and HUF. This part considers certain ventures like NSC, and so on and uses to be absolved from tax collection up to the measure of Rs.1.5 lakh

80CCC

Derivations under this segment are on installments made to LIC or some other supported insurance agency under an endorsed benefits plan. The benefits strategy should be up to Rs.1.5 lakh and be removed for the individual himself from the available pay.

80CCD

Derivations under this part are for commitments to the New Pension Scheme by the assessee and the business. The allowance is equivalent to the commitment, not surpassing 10% of his compensation.

The complete allowance accessible under Section 80C, 80CCC and 80CCD is Rs.1.5 lakh. Nonetheless, commitments to the Notified Pension Scheme under Section 80CCD are not considered in the Rs.1.5 lakh limit.

80D

This is the segment that arrangements with personal assessment allowances on health care coverage expenses paid. On account of people, the protection strategy can be taken to cover himself, companion, subordinate youngsters – for up to Rs.15,000 and guardians (if subordinate) – for up to Rs.15,000. An extra allowance of Rs.5,000 is material if the safeguarded is a senior resident. On account of HUF, any part can be safeguarded, and the overall derivation will be for up to Rs.15,000 and an extra allowance of Rs.5,000.

An aggregate of Rs.2.0 lakh can be asserted as derivations whether the asses is an individual or a HUF.

80DDB

This part is for derivations on clinical costs that emerge for treatment of a sickness or infirmity as determined in the guidelines (11DD) for the assessee, a relative or any individual from a HUF.

80E

This segment manages the allowances that are material on the interest paid on schooling credits for training in India.

80EE

This segment manages charge investment funds relevant to first time property holders. Applies for people whose first home bought has a worth under Rs.40 lakh and the credit taken for which is Rs.25 lakh or less.

80RRB

Derivations concerning pay via sovereignties or licenses can be asserted under this segment. Annual expense can be saved money on a sum up to Rs.3.0 lakh for licenses enrolled under the Patents Act, 1970.

80TTA

This part manages the duty investment funds that are pertinent on premium acquired in investment funds financial balances, mail

center or co-employable social orders. People and HUFs can guarantee a derivation on an interest pay of up to Rs.10,000.

80U

This part manages the level allowance on personal duty that applies to impaired individuals, when they produce their inability authentication. Up to Rs.1.0 lakh can be non-burdened, contingent upon the seriousness of the handicap.

Section 24

This part manages the interest paid on lodging credits that is excluded from tax assessment. A measure of up to Rs.2.0 lakh can be guaranteed as allowances each year, and is notwithstanding the derivations under Sections 80C, 80CCF and 80D. This is just for s

elf-involved properties. Properties that have been leased, 30% of lease got and metropolitan expenses paid are qualified for charge exception.

For information about income tax call us or mail us group of CA/CS/ADVOCATE.