Taxwise: All that you need to know about ITR filing

CHENNAI: It is that time of the year, when everyone is scrambling to file the Income Tax Return (ITR).

Since the last day to do so falls on July 31, the income tax department has been doing its part by sending reminders – via SMS and emails.

So all that one needs to know about ITR is given below:

TIMELINE TO FILE ITR:

ITR is filed for a particular financial year ie between 1 st April and 31st March. In the following year, you need to file ITR. The last date to file ITR is usually 31st July of the next financial year.

WHO IS REQUIRED TO FILE ITR?

Any individual whose income exceeds Rs 2.5 lakh in the financial year is required to file an income tax return in India. The limit may differ in case of senior citizens. In that case, it is Rs 3 lakh in the financial year and the threshold limit Rs 5 lakh in case of super senior citizens. It is noteworthy to know that for an NRI or a non-resident Indian, income earned or accrued in India is taxable in India.

DOCUMENTS REQUIRED FOR FILING INCOME TAX:

• Form 16

• Salary slip

• Form 26AS

• Tax savings certificate

• Deductions if any.

WHICH ITR TO FILE?

ITR1: Resident individual having income < Rs 50 lakhs from: Salary/pension, other sources, One house property

ITR2: Income source: every income from ITR1 > Rs 50 lakhs, Capital gains, more than one house property, foreign income / asset, holding directorship in a company, Holding unlisted equity shares

ITR3: Every income from ITR 2, Business/ professional, As partner in a firm, Presumptive income > Rs 50 lakhs

ITR 4: Every Income form ITR 1 presumptive income under Salary, pension other sources, house property I=total income > Rs 50 lakh

ITR 5: Applicable to firms, LLP’s, AOP’s and BOI’s

ITR-6: Companies not claiming exemption under Section 11

ITR7: Person / Companies under Section 139(4A), 139(4B), 139(4C) and 139(4D)

PENALTY ATTRACTING NON FILING OF IT RETURNS:

• Fine of Rs 10,000 for those who do not file their income tax returns

• Fine of Rs 5,000 will be imposed for those whose return is submitted after the due date

• Rs 1,000 penalty for small taxpayers with their total income not exceeding Rs 5 lakh. In addition, belated filing may attract many other penalties/restrictions

• Interest on due amount of Tax under Sections 234A

• Tax Refund without any interest from IT department

• Restriction in not allowing losses to set-off against future income

CATEGORY OF TAXPAYER & DUE DATE FOR TAX FILING-FY 2021-22:

Individual/HUF/AOP/BOI (Books of accounts not required to be audited): 31st July 2022

Businesses (Requiring Audit): 31st October 2022

Businesses (Requiring TP Report): 30th November 2022

Credit: S Rajeshkumar, CA, Yoganandh & Ram LLP