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personal finance | IST

Money Money Money: Experts discuss everything you need to know about ITR filing

The ITR filing deadline for individual taxpayers is now December 31. 

The government has extended the deadline for ITR filing for FY20-21. The ITR filing deadline for individual taxpayers is now December 31.
In this episode of Money Money Money; Rakesh Nangia, Chairman of Nangia Andersen and Suresh Surana, founder of RSM India, discussed everything you need to know about filing your returns.
"But people tend to procrastinate and wait for the last moment and again, you see the rush coming up in the last week or in the month of December. You must realise if your taxes are unpayable or something remains unpaid, you end up paying an interest rate of 1 percent per annum, which is pretty steep, actually. So every assesse if you are ready with all the details, all the banking details, compile your return, file it and avoid last-minute rush, avoid last-minute tech failure at times and then why should you pay interest, which you in any will have to be after two months’ time.”
On website glitches, Surana said the government has really embarked upon a very ambitious digitalisation, where the assessments are going to be more data-driven and not based on the jurisdiction of the assessing officers
There were some glitches, the government is trying to fix them, he said.
"I think the government is trying to address those issues. The latest one that we have heard is that by 15th of September, many of the glitches are expected to be sorted out. So I think definitely one of the reasons for extension apart from the COVID related challenges people are facing is also the portal related challenge, you know, which many people are facing.”
He added, “I would feel that - if you have self-assessment tax payable exceeding Rs 1 lakh as we discussed earlier, you must pay it before 30th September, and then maybe I would say, just wait for the portal to stabilise because otherwise you may get notices, because there are still things to be sorted out at the portal level. So hopefully it will happen very soon. But you don't want to get notices, which are unwarranted or some kind of errors or discrepancies, which a lot of people are facing right now.”
On knowing which form to fill, Nangia said, “Form number one and two both are there, which are meant for the salaried people. Form number one is there when your total income is 50 lakhs and less and form number two for all other people basically who do not have a business income. In addition to that, in the form number one you should not have any capital income amounts."
"There are a lot of limitations you should not be doing any business, you should not be a director in a company, you should not own unlisted shares, you should have only one house, if you breach any of these conditions, you will automatically have to go to form number two basically where your income is more than 50 lakhs. But here again you should not have any business. For business you have to fill form number 3 and 4. So form number 1 and 2 is for salaried people, interest income, rental incomes, no capital gain, and no business income.”
For the entire discussion, watch the accompanying video.