Dear Friends,
Please note that, it is beneficial to file your income tax returns even though your total income from all sources is lower than threshold limit of Rs. 2,50,000/-. Please note that in below mentioned circumstances you have to compulsory file your income tax returns;
- Your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs 2.5 lakhs. This limit is Rs 3 lakh for senior citizens (aged above 60 but less than 80) or Rs 5 lakhs for super senior citizens (aged above 80);
- You are a company or a firm irrespective of whether you have income or loss during the financial year;
- You want to claim an income tax refund;
- You want to carry forward a loss under a head of income;
- Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs);
- If you are a Resident and a signing authority in a foreign account. (Not applicable to NRIs or RNORs);
- You are required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust;
- If you are a foreign company taking treaty benefit on a transaction in India;
- A proof of return filing may also be required at the time of applying for a loan or a visa;
- If you have paid electric bill more than Rs. 1,00,000/- during previous year under consideration;
- You have travelled abroad and total expenses crossed limit of Rs. 2,00,000/- during previous financial year.
We have in our earlier articles discussed a lot related to various rebates, allowances, reliefs and deductions available under various sections of Income Tax Act, 1961. In this article we shall discuss some important points to be kept in mind for proper tax return filing.
1. Link PAN and Aadhaar
It is mandatory to link PAN and Aadhaar. You cannot e-verify ITR through the Aadhaar-OTP option without linking Aadhaar and PAN. The last date for PAN-Aadhaar linking is 30th September 2021.
2. Link bank account and PAN
Linking PAN with the bank account is required because refunds are directly transferred to the bank account of the taxpayer. Also, without linking PAN with the bank account, you cannot open an FD or make a cash deposit beyond a certain limit.
3. Collect Form 16/ Form16 A from the employer
Form 16 provides details of the taxes deducted from your salary. The employer is responsible to issue this.
Form 16A is provided by other deductors like banks. The last date for the issue of Form 16 and Form 16A was 31st July 2021. You need to get them and verify with Form 26AS and bank statements for ITR filing.
4. Check your Capital gains tax liability
You need to pay a capital gains tax after selling any capital asset like shares, mutual funds, residential property, gold, etc. You should check your capital gains tax liability if you made any such transactions during the FY 2020-21.
5. Submit Form 15G/ 15H
There is a provision for deduction of tax on interest paid on your bank accounts. However, if you don’t have income under the taxable bracket, you can avoid this tax deduction by submitting Form 15G /Form 15 H (whichever is applicable).
6. Download Form 26AS
Form 26AS is your annual tax credit statement. It is one of the most important documents for ITR filing. Several changes to Form 26AS were made this year. You can download this Form from the new Income tax website, TRACES website, or from your net banking account.
7. Other documents required
You need to keep some other documents handy before tax filing.
Such as:
- Interest certificate from the bank
- Details of dividend income
- Interest certificate for home loans (if any)
- Proof of tax savings investments for filing taxes
CONCLUSION
It is advisable to file your income tax returns before due date of filing of the same the government has extended time for filing income tax returns up to 30/09/2021. The return filing will help you a lot in your future plannings , even your income is less than threshold limit file your return and pay proper tax to the government. It is our duty to pay our taxes after taking all benefits available under taxing statue. The tax planning is allowed not tax evasion.
DISCLAIMER: The above article is only for information and knowledge of readers. It is advisable to take professional advise before acting on any part of above article. The article has been prepared on the basis of variable details and information available at the time of preparation. The author is not responsible in case of any loss incurred by acting on any part of this article by the readers.
CAclubindia
