Homepersonal finance News

    Here are the key things to keep in mind while filing ITR

    Here are the key things to keep in mind while filing ITR

    Here are the key things to keep in mind while filing ITR
    Profile image

    By Anshul   IST (Published)


    The deadline to file an income tax return (ITR) for FY 2019-20 will end on November 30.

    The deadline to file an income tax return (ITR) for FY 2019-20 will end on November 30. ITR filing is compulsory for individuals earning a specified amount of income in a year. The process of filing an I-T return online is known as e-filing.
    Here are the things to keep in mind while ITR filing:
    Where to file ITR?
    The I-T Department has established an independent portal for e-filing of income tax returns -- incometaxindiaefiling.gov.in.
    Additionally, there are certain private entities, registered by the Income Tax Department that enable the e-filing process through their websites. While filing ITR on the I-T Department's platform is entirely free, some of the private websites may charge for certain services.
    Different forms to file ITR
    Under the current income-tax laws, several forms are available for different types of assessees to file their income tax return for the financial year 2019-20 namely ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. These tax forms are applicable for the assessment year 2020-21, which means they relate to income earned in the financial year 2019-20.
    Additionally, ITR-V is available for verification. ITR-V is received when taxpayers file their I-T return online—without using a digital signature.
    This time some of the key changes notified in the forms include a declaration from taxpayers in detail if they have paid over Rs 1 lakh in electricity bills in a year. Taxpayers have also been given a dedicated column to declare their expenditures/income/ investments/donations made between April 2020 till June 2020, for which they can claim I-T benefits.
    What are the mistakes to avoid while filing ITR?
    One should be careful while choosing the ITR form. A wrong form can render the tax return filed defective and the taxpayer may receive a notice to file the return once again.
    While computing the ITR, it is vital to take into account all sources of income whether from the previous or current employment or income from investments and file them under the appropriate ITR form. If any income (from a previous job) is not reported, then a discrepancy is bound to reflect in the TDS certificate (Form 16) and Form 26AS.
    What is Form 16 and 26AS?
    Form 16 is a certificate issued by an employer that contains the information that one requires while filing the income tax return (ITR). These certificates provide details of TDS/TCS for various transactions between deductor and deductee.
    Form 26AS - a consolidated annual tax statement – is an essential document required during filing ITR. This is just like tax passbook, which has all the information of all the incomes which have been reported, the taxed that have been deducted and other specific financial transactions that have been reported against assessee’s Permanent Account Number (PAN).
    What happens when a taxpayer is not able to file ITR?
    If the taxpayer cannot file ITR within the deadline, he/she can file belated returns with certain charges. Taxpayers are required to pay Rs 5,000 if a return is furnished on or before December 31 of the assessment year. The penalty increases to Rs 10,000 if the assessee files the return next year between January 1 and March. Besides this, a delay in filing ITR also makes one liable to pay interest. In case an assessee doesn't file ITR at all, he/she will not be able to carry forward the losses of the current assessment year.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All