Know who should file income tax return for FY 2019-20. Understand if you are liable to file return.
Know who should file income tax returns for FY 2019-20. Understand if you are liable to file the return.
What is Income Tax filing (ITR filing)?
Income Tax Return is the form in which the assessee files information about his income from all sources, eligible deductions, and tax payments if any to Income Tax Department. Income tax return (ITR) filing is a way to inform the government about the income you have earned during a financial year. It is a yearly affair and it should be completed before the deadline.
Liability to file Income Tax Return for A. Y. 2020-21
All individuals having taxable income or those who satisfy other prescribed conditions are required to file an annual income tax return (ITR) within the specified due date. For the financial year (FY) 2019-20, the specified due date for individuals, HUFs, Private Limited Companies, OPCs, LLPs, Association of Persons (AOPs), and Body Of Individuals (BOI) is November 30, 2020, for filing tax returns (as extended by the government).
Extension of Due date for ITR filing
Important Update- Due date for Income Tax Return Filing has been extended
The due date for filing Income tax Returns by taxpayers, Including their partners (who are required to get their accounts audited) for FY 2019-20 has been extended to 31st January 2021 from October 31, 2020.
The due date for filing Income tax Returns by other taxpayers (who do not require to get their accounts audited) for FY 2019-20 has been extended to December 31st, 2020 from November 30, 2020.
The due date for filing Income Tax Returns for the taxpayers required to furnish reports in respect of international transactions has been extended to January 31, 2021, from November 2020.
Also, the due date for furnishing the Tax Audit Report and report in respect of international/specified domestic transactions for the FY 2019-20 has also been extended to 31st December 2020.
Who should file ITR for FY 2019-20?
Filing an ITR for FY 2019-20 is mandatory for the following persons/reason:
The individual’s taxable income exceeds the maximum amount not chargeable to tax.
Every Company, Firm, LLP, BOI, Societies, Trusts, and other persons irrespective of whether having Income or Loss during the previous financial year.
The individual needs to claim an income tax refund
The individual qualifies as an ordinarily resident during FY 2019-20 and holds foreign assets such as foreign bank accounts, foreign properties, financial assets, signing authority which need to be specifically reported in the ITR.
Every individual whose income exceeds the exemption limits before allowing any deductions under Section 80C To 80U The basic exemption limits for FY 2019-20 are as follows:
Age
Annual income exceeding
Up to 60 Years
Rs. 2,50,000
From 61 Years to 80 Years (Senior Citizens)
Rs. 3,00,000
Above 80 years (Super Senior Citizens)
Rs. 5,00,000
The individual has undertaken specific transactions as follows:
payment of electricity bill in excess of Rs 1 lakh during the FY
deposited more than Rs 1 crore in one or more current accounts during the FY
spent more than Rs 2 lakh on overseas travel for self or any other person during the FY.
However, Other than these mandatory reasons, it is a good practice to file ITR since tax return documentation is very important and useful for multiple reasons.
Why should a person file Income tax returns?
For the following reasons, a person should file an income tax return:
Government offers various benefits for prompt tax filers
The income tax filers get the Loans easier
Avoid paying penalties, embarrassments
Get your refund back on the excess tax payments
Hurdle free for Foreign VISA Stamping with IT returns filing
Improve your creditworthiness for future loans
Be a good citizen to contribute to India’s growth and get peace of mind for you and the family.
ITR forms for the Financial year 2019-20
Every year, the Central Board of Direct Taxes (CBDT) notifies the ITR forms for the previous completed financial year. The details of these ITR forms for FY 2019-20 including who should use them and who should not use them are summarized as under:
Individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession.
Individuals who have opted for the presumptive income scheme
The turnover of the business exceeds Rs 2 crore
Individual who is a Director in a company
Individuals having an investment in unlisted equity shares
Having foreign assets or foreign income
If your total income exceeds Rs 50 lakh or Having income from more than one house property
Have income from any source outside India
Form ITR 5
Firms
LLP (Limited Liability Partnership)
AOPs (Association of Persons)
BOIs (Body of Individuals)
Artificial Juridical Person (AJP)
Estate of deceased
Estate of insolvent
Business trust and investment fund.
Individual, HUF, or company filing ITR 7
Form ITR 6
All the companies
Companies claiming exemption under section 11
Income from property held for charitable or religious purposes
Form ITR 7
Persons including companies which are a charitable or religious trust, political party, scientific research association, news agency, hospital, trade union, university, college or other institutions such as an NGO or similar organizations.
For persons including companies required to furnish a return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).
No other category of taxpayer
Form ITR V
Indian Income Tax Return Verification Form
Where the data of the Return of Income in Form ITR-1 (SAHAJ), ITR-2, ITR3, ITR-4(SUGAM), ITR-5, ITR-7 filed but NOT verified electronically
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Penalty for not filing ITR on time
Table showing late ITR filing fees for an income taxpayer
Time Period of filing
Penalty in INR
After the deadline but on or before December 31, 2020
5,000
between 1 January 2021 and March 31, 2021
10,000
If you are a small taxpayer whose gross total income does not exceed Rs 5 lakh then the maximum fee you are liable to pay is Rs 1,000.
Dharti Popat (B.Com, LLB) is a young, enthusiastic and intellectual Content Writer at Ebizfiling.com. She studied Law and after practicing as an Advocate for quite some time, her interest towards writing drew her to choose a different career path and start working as a Content Writer. She has been instrumental in creating wonderful contents at Ebizfiling.com !
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