ITR (Income Tax Return) – Overview & Penal Provisions

• Income Tax Return (ITR):

Income Tax Return (ITR) is the form in which assessee files information about his/her Income and tax thereon to Income Tax Department. The tax liability of a taxpayer is calculated based on his or her income. it is compulsory to file income tax returns if  income is more than the basic exemption limit. The income tax rate is pre-decided for taxpayers.

• Income Tax Slab:

Income Tax Slab	Tax Rates for FY 2020-21 (Applicable for All Individuals & HUF)
Rs 0.0 – Rs 2.5 Lakhs	NIL
Rs 2.5 lakhs- Rs 3.00 Lakhs	5% (tax rebate u/s 87a is available)
Rs. 3.00 lakhs – Rs 5.00 Lakhs
Rs. 5.00 lakhs- Rs 7.5 Lakhs	10%
Rs 7.5 lakhs – Rs 10.00 Lakhs	15%
Rs 10.00 lakhs – Rs. 12.50 Lakhs	20%
Rs. 12.5 lakhs- Rs. 15.00 Lakhs	25%
> Rs. 15 Lakhs	30%

• Income tax slab for Individual aged below 60 years & HUF

Income Tax Slab	Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs
Up to Rs 2.5 lakhs	NIL
Rs. 2.5 lakh -Rs. 5Lakhs	5%
Rs 5 .00 lakh – Rs 10 lakhs	20%
> Rs 10.00 lakh	30%

Kindly note that:

Income tax exemption limit is up to Rs.2,50,000 for Individuals , HUF below 60 years aged and NRIs for FY 2018-19.

• ITR Forms:

Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Sl.	ITR	Description	Online	Offline
1	ITR 1	For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh	Yes	Yes
2	ITR 2	For Individuals and HUFs not carrying out business or profession under any proprietorship	No	Yes
3	ITR 3	For individuals and HUFs having income from a proprietary business or profession	No	Yes
4	ITR 4	For presumptive income from Business & Profession	Yes	Yes
5	ITR 5	For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7	No	Yes
6	ITR 6	For Companies other than companies claiming exemption under section 11	No	Yes
7	ITR 7	For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)	No	Yes

 

1. Due date for Filing ITR:

The last date for filing the income tax return is generally on 31st July of the assessment year (AY).

But due to Covid-19 Pandemic, The Due date of income tax return filing for the financial year 2019-20 was extended multiple times and finally extended till January 10, 2021.

• Belated ITR Filing:

Belated return: An ITR filed after the due date is called a belated return.

Belated Income Tax Returns can be filed anytime on or before 1 year from the end of the relevant Assessment Year (AY). When you file a belated return, you are not allowed to carry forward certain losses.

Example: you can file a belated return for FY2019-20 by 31.03.2021, i.e., before the end of the assessment year (AY) 2020-21

 

• Penalty for late filing of income tax return:

1. The maximum penalty is Rs. 10,000.

2. Rs 5,000 if tax return is filed after the deadline but on or before December 31 of the relevant assessment year

3. b) Rs 10,000 if tax return is filed after December 31 but before the end the relevant assessment year, i.e., before 31st March.

4. If you are a small taxpayer whose total income does not exceed Rs 5 lakh then the maximum fees you are liable to pay is Rs 1,000 if the ITR is filed any time after the expiry of the deadline (i.e. January 10, 2021) but before March 31, 2021.

5. If a belated return is filed after the income tax due date, the taxpayer would be liable to pay the tax along with Interest @ 1% per month (simple interest) under Section 234A.

 

• Penal Provisions for Tax Evasion:

If the tax evaded exceeds Rs 25 lakh the punishment could be imprisonment of 6 months to 7 years, as per the website of the Income Tax Department.

• Covid-19 Extension:

Due to difficulties faced by taxpayers owing to the pandemic, the government pushed the deadline for filing ITR thrice -- first from the normal deadline of July 31 to November 30, 2020, and then to December 31, 2020 and then finally till 10th January, 2021. Kindly note that for businesses the deadline is extended till February 15, 2021.

As per the provisions of the Act, the due date for filing of the audit report under Section 44AB is one month prior to the due date of filing of ITR which is January 15, 2021.

• Tax Returns Data:

The tax department in a tweet said 5.95 crore ITRs for Assessment Year 2020-21 were filed till January 10, 2021, as compared to 5.67 crore ITRs filed for the previous Assessment Year by September 10, 2019.

File your ITR @ https://incometaxindiaefiling.gov.in

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.  

Last updated 3 years ago