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Deadline To File Income Tax Returns Extended To December 31

The government announced on Thursday, that the deadline for filing income tax returns has been extended to December 31, due to the coronavirus epidemic and ongoing technical issues with the government’s website. Normally due by the end of July, the deadline was earlier postponed from May to September 30, owing to the coronavirus epidemic.

filing income tax return deadline

“In light of the difficulties reported by taxpayers and other stakeholders in filing Income Tax Returns. And The rise of various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961(the “Act”). The Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for filing Income Tax Returns. As well as, various reports of audit for the Assessment Year 2021-22,” according to the Finance Ministry.

Deadlines and schedules for filing Income Tax Return

“The due period for filing Income Returns for the Assessment Year 2021-22; which was 31st July 2021 under sub-section (1) of section 139 of the Act. As extended to 30th September 2021 by Circular No.9/2021 dated 20.05.2021. It is thus further now 31st December 2021”.

From November 30, 2021, the CBDT has extended the deadline for filing ITRs for businesses until February 15, 2022.

income tax return filing date extended

The deadlines for filing the tax audit report and the transfer price certificate got extended to January 15, 2022, and January 31, 2022; from the previous deadlines of October 31 and November 30 respectively. The deadline for filing a late or revised income tax return is also extended by two months, i.e., to March 31, 2022.

Concerning the tax portal’s difficulties, the finance ministry stated on Wednesday that it is working with Infosys to provide a smooth filing experience for taxpayers.

The CBDT released the paperwork for filing Income Tax Returns for the 2020-21 fiscal year on April 1. Under section 115BAC of the I-T Act, the government had given taxpayers the option of choosing a new tax regime for the fiscal year 2020-21. For more such updates, keep watching this space!

Daily News

Top mistakes to avoid while filing Income Tax Return (ITR) for AY 2021-22 this month

For the fiscal year 2021-22, all people with an annual income of more than Rs 2.5 lakh and who are under the age of 60 must file an ITR. Senior individuals with an annual income of less than Rs 3 lakh are not required to file an Income Tax Return. ITR filing is not necessary for senior persons over the age of 75; whose main source of income is pension and interest on deposits.

The deadline to file your income tax return for FY 2020-21 (AY 2021-22) is September 30. Despite the fact that the ITR filing deadline is set to be extended, taxpayers should make every effort to file their taxes this month. Tax filing is a yearly obligation, and it is usually preferable to do it as soon as possible.

income tax return

Here are some common mistakes that taxpayers should avoid while filing their ITR:

01

Interest income from a savings account is not reported

Many people overlook the interest earned on their savings accounts. However, according to income tax laws, you must report your interest income from savings account deposits as well.
Individuals are excluded from paying income tax on the interest generated on savings accounts up to Rs 10,000 under Section 80 TTA of the Income Tax Act. Under Section 80TTB, the exemption ceiling for older citizens is Rs 50,000.
02

Not including the interest income earned from Fixed Deposits

Interest income from fixed deposit accounts is taxable under the Income Tax Act. As a result, you must report this income on your ITR.
03

Filing incorrect ITR form

There are numerous ITR forms for different types of income. As a result, you must use the ITR form that corresponds to your revenue sources.
04

Ignoring the importance of e-verification

It is required to e-verify ITRs within 120 days of filing returns. The processing of your ITR will be hampered if you do not e-verify. E-verification is simple to complete using your net banking account, Aadhaar OTP, and other methods.
05

Failure to compare the new and old tax regimes in order to maximize tax savings

This year, you can file your ITR under both the new and old tax regimes. You'll obtain deductions and exemptions under the previous tax system, but not under the new one, which has a low tax rate and no deductions or exemptions. To maximize your tax savings, choose the better of the two options.
06

Ignoring the interest earned on money given to a spouse or child as a gift

Interest gained on the money you may have gifted to your spouse or child must be included in your income. When the money given to you is invested, you will earn interest.
07

Failure to record dividend income

Dividend income from stocks and mutual funds was previously tax-free. Individual dividends from equities and mutual funds will be taxed at the slab rate beginning in FY 2020-21. As a result, you should report dividend income in your ITR this year and pay the appropriate tax.
08

Not matching Income and TDS with the details filled on Form 26AS

Form 26AS is an annual tax statement that lists all of your earnings for the previous fiscal year. As a result, the information you supply on your ITR should match the information on Form 26As. If the income stated on your ITR does not match the income shown on Form 26AS, you may receive an Income Tax Department notification or a reduced refund.

For more such updates, keep watching this space!

Daily News

Your Queries (Income Tax): Aggregate of all dividend income taxable under ‘other sources’

In this article, we are looking at some of the most common questions that come to one’s mind while filing Income Tax. Here we will cover the aggregate of all dividend income taxable under other sources.

From FY 2020-21, is the stated dividend on shares taxable? The dividend amount I got on shares is reported in Form 26AS, but no TDS is shown. If the dividend amount is less than Rs 5,000, is TDS deducted?

Dividends declared and dispersed on or after April 1, 2020, are taxable in the hands of the shareholders who received them. If the amount received in a year exceeds Rs 5,000, the dividend income is subject to a 10% TDS.

When submitting an ITR, you must state the total amount of all dividend income obtained during the fiscal year under the heading “other sources”. The TDS deducted (as shown on Form 26AS) will be granted as a credit against the ultimate tax liability.

Income Tax
My employer's gross salary for AY2021-22 is Rs 8 lakh. In Part B, there is no distinction between basic/DA and HRA. Is it possible to show my salary in several sections in order to claim a refund and file an ITR-1?

Allowances that have not been received must not be claimed as deductions or exemptions. While filing the ITR, one must only fill in the genuine and correct income details. You can invest in tax-saving products to save money on taxes. Individuals who do not get HRA may also recover rent paid under Section 80GG, subject to the limitations and criteria set forth therein.

There are two types of dividends in ITR-2 for AY 2021-22. Which of these applies to dividends received from Indian stocks?

Dividend income from Indian firm shares held as an investment is taxable under the heading “other sources,” and you must disclose it in your income tax return as dividend income [other than (ii)].

My yearly pay is less than Rs 50 lakh. Mutual funds provide long-term financial gains, while tax-free bonds and PPF provide interest. I'm not sure which ITR form to use.

You may include information on income obtained in ITR-2 for FY21. ‘Schedule CG’ records the Long-term capital gains. Whereas ‘Schedule OS’ records interest income, i.e. income from other sources. Moreover, one must record, the Interest income from tax-free bonds and PPF as exempt income in Schedule EI of ITR.

For more such updates, keep watching this space!

Budgeting Daily News Education

Income Tax Department functionality to identify ‘specified persons on whom higher TDS will be levied on.

Now there will be a special provision for deduction of tax at source for non-filers of Income-tax returns. You must be thinking about how all this will work and how can we identify who is the specified person on whom higher tax will be levied. We will learn about certain sections related to the deduction of TDS and TCS. The provision will commence from 1st July 2021.

What are sections 206AB and 206CCA?

206AB– This section implies TDS( Tax deduction at source ) on the payable amount. It is for the specified persons who are not filing their income tax returns. The tax rate will be higher than specified in the act.

206CCA- Also, if according to section 206CCA, it allows Tax collection at source (TCS) on amounts received by the specified person. It will also be for the people who are not filing income tax returns and even don’t furnish their pan card.

Section 206AB will be applicable along with 206AA.

Income tax return

Where it is applicable and where not?

Exemptions – It isn’t applicable on certain conditions.

  • In case of premature withdrawal of EPF (under section 192A)
  • Income earned through any lottery (under section 194B)
  • Investment income from securitization trust (under section 194LBC)
  • TDS on cash withdrawals
  • Salary (under section 192)
  • Earning from horse races

Applicable on- It applies to the specified persons who satisfy all three conditions given below.

  • Persons who have not to file income tax returns for two consecutive years
  • A person who has crossed the time limit of filing returns under section 139(1).
  • TDS +TCS deducted is greater and equal to 50,000 in each of 2 years
  • It will be deducted on TDS or TCS whichever rate is higher.
TDS and TCS differences

Who are not eligible as a 'specified person'?

  • All those who file their income tax return from time to time.
  • A person is not a specified person if He/She is a non-resident in India. Also, the people who do not have a permanent establishment in India.

At what Rate?

If the person is specified and has to pay TDS on higher rates, the rates will be higher of

  • Twice the rate specified in the relevant provision

Or

  • At the rate of 5%

Above two whichever will calculate the higher amount, shall be paid.

For more such updates, keep watching this space!

Daily News

Glitches in new e-filing Income Tax Portal: Finance Ministry, Infosys meeting TODAY at 11 AM

Are you worried about how to access the new Income Tax E-filing portal? E-filing Income tax portal has launched newly on 7th June 2021 www.incometax.gov.in for various compliances and timelines to be met. Especially renewal of registrations under section 12A/ 12 AA 10(23c) and 80G.

Multiple technical glitches are coming in the way of using the income tax portal. Taxpayers, professionals, and other stakeholders are complaining about these glitches. From the very first day of the portal launch, there are multiple inconveniences for taxpayers like

  • Unable to login with their old passwords,
  • Difficult to find form 10a,
  • Problem in uploading a digital signature

Certain technical glitches associated with the portal specifically related to the renewal of registration to date. Many users posting tweets tagging finance minister to resolve the problem. We will further discuss these in detail.

Unable to login with old password

It generates an error while logging into the income tax portal. It seems that the password is not integrated with the PAN of the taxpayer.

Form 10a

In case the login successfully takes place, the user faces a problem in finding the form 10a from various income tax forms listed under the e-file tab.

Digital signal utility software

In this section instead of the java utility, the em sign utility is available on income tax portal. It implies that you will require a physical token of digital signature. Previously, the signature files could have been generated and attached even later.

Information saving

Complete information is not saved on the new income tax portal. Some of the organizations tried to fill up form 10a in the initial days of the new portal. They say that their information did not save on the new portal. Previously this facility was available on the old income tax portal.

Expiring of session

There is a number of complaints about session expiring the session while filling up the details. Even after multiple attempts, they were not able to completer the form and upload the documents.

In the press release on 15 June 2021, the ministry of finance has informed that the senior officers of the ministry will be holding an interactive meeting on 22nd June 2021 between 11 am to 1 pm with the Infosys team on the issues and glitches of income tax portal. They will clarify and resolve the queries related to such technicalities and receive inputs on the working of the new portal.

The other stakeholders including other members of the ICAI auditors, consultants, and the taxpayers will also join the interaction.

For more such updates, keep watching this space!

Budgeting Business Daily News Education

What to look for, while filing an Income Tax return this year.

The Income-tax department of India introduces some changes in the Income-tax filing process every year. The taxpayers need to be aware of these changes. It is better to have awareness and make no mistakes in the tax filing process or the tax forms.

The Income tax is levied on the income earned in India, by all the individuals, partnership firms, and corporates as per the Income-tax Act of India. In the case of individuals, if their income is above the minimum threshold limit. The tax is levied as per the slab system given by the Income Tax Department of India.

Income Tax Slab

tax return

In India, a slab system governs the tax levied on an individual taxpayer. A slab system means different tax rates for different income ranges. Tax slabs generally increase the tax rates as the income increases; this system ensures fair taxation in the country. These income tax slabs go through certain changes every financial year.

Whether you are filing a tax return for the first time or if you’ve been in the game for long. It is advisable to keep an eye on these factors while filing your tax return for FY 2020-21.

Income Tax Slab Rates for the Financial year 2020-21 (AY 2021-22)

In this new regime, taxpayers have options to pay their income taxes as per the new regime or to continue with the old regime. The new regime offers to tax at a lower slab rate but the taxpayer has to forgo various deductions and exemptions available under the old regime. Or, The assessee can continue with the rebates and exemptions by staying in the old regime and paying tax at the existing higher rate.

It is advisable that the taxpayers must choose their regime at the beginning of the year. However, if you were not able to make the planned investments or expenses against which you could claim the tax deduction under the old regime. You can switch to the new one if it is resulting in lower liabilities for you.

Extension of date

The last date for filing ITR (Income Tax Return) is extended to 30 September. However, it doesn’t provide any relief from the tax liabilities. If you have an advance tax due, you may need to pay the penal interest. Hence, it makes sense to file the ITR as soon as possible. This will also help in the faster processing of your tax refunds.

Changes in tax forms

The tax department notifies about the income tax forms every year after incorporating any changes. Therefore, It is necessary to be aware of these changes in order to choose the right ITR form.

This year, there are certain changes introduced within the eligibility criteria of ITR 1, which is generally used by salaried taxpayers.. For this year, A person can not file ITR 1, if their TDS (Tax Deducted at Source) has been deducted for cash withdrawal under Section 194N. Or if the person has deferred tax on employee stock options (ESOPs) received from the employer.

Unclaimed deductions

In case you forgot to submit the proof of investments like life insurance, or health insurance premium with your employer and the tax has already been deducted. You can still claim these deductions at the time of filing ITR and claim a refund of the tax paid.

To ease the process, it will be better to collect all the documents like Form 16, Form 26AS and bank statements before filing your Income Tax Return.

For more such updates, keep watching this space!

Advices Budgeting Daily News Finance Strategy

New Income Tax Portal!

Isn’t it exciting! Income Tax has launched a new portal for e-filing. It is named ‘e-filing2.0’. What are the new changes? Will it be easier to use than the previous one. Let’s discuss and learn more about it.

Income Tax Portal is in its initial stage, So there may be some issues sometimes like delay in opening the website, slow in filling the detail. So if you are facing these issues and worried about how to file your returns, you can choose the offline option for now. Infosys has said and regretted these glitches. The new URL for the website is www.incometax.gov.in.

About Portal

Despite all these glitches, the new portal is very much sorted in comparison to the previous one. Representation of the portal is very effective. Additionally, there are many videos for awareness about different income tax topics and processes. You will find some sections like:

  • Dashboard
  • e-file
  • Authorized Partners
  • Services
  • Pending Actions
  • Grievances
  • Help

For News and updates, you have to scroll down and access the folder. All the resources are mentioned for ITR related problems.

How to Log In?

As for the user id, you can use the PAN card number or the Aadhar number which is linked. Thereafter, you will receive an access message. After that entering your password you will be completely logged in.

You will need to update your profile step by step. You will find a dashboard and a Modified “You ask and we Answer” section in it. By clicking on this section you can ask all the queries related to income tax file returns and other services provided. you will not need any professional guide for the problems, only by visiting and learning the portal you will be able to do all of it by yourself.

Modes

This is the main attraction of the portal in comparison to the previous portal. It is very much user-friendly now. You will need to select a mode of filing to proceed. There are two modes mentioned in the portal

  • Offline (using HTML utility)
  • Online (recommended)

You will then need to choose your type of income tax form according to your income. If you do not know which type of form you should fill then help is there to help you out. Some beneficial services will be available only when the profile update is done 100%. The new portal also includes all-new mobile app services for tax-related issues. File your returns now in a more easy manner!

For more updates like these, keep watching this space!