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Dharti Popat

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:

  1. payment of electricity bill in excess of Rs 1 lakh during the FY
  2. deposited more than Rs 1 crore in one or more current accounts during the FY
  3. 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:

ITR form

Who should file ITR?

Who should not file ITR?

Form ITR 1 (Sahaj)
  • Individuals qualifying as Ordinarily Resident who have total income up to Rs 50 Lakhs.
  • The source of income shall be Salaries, one house property, other sources (Interest, etc.) and
  • Agricultural Income up to Rs 5000.
  • This form is not applicable to the individual who is either director in a company or has invested in Unlisted Equity Shares.
  • Total income exceeding Rs 50 lakh and Agricultural income exceeding Rs 5000
  • If you have taxable capital gains
  • If you have income from business or profession
  • Having income from more than one house property
  • If you are a Director in a company
  • Owning assets outside India if you are a resident, including signing authority in any account located outside India
  • If you are a resident not ordinarily resident (RNOR) and non-resident
  • Having foreign assets or foreign income
  • If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.

 

Form ITR 2
  • Individuals and HUF receiving income more than INR 50 lakhs, other than income from “Profits and Gains from Business or Profession”
  • Director in a company
  • Holding investments in unlisted equity shares
  • The source of income shall be as follows:
  • Income from Salary /Pension
  • Income from House Property (Income Can be from more than one house property)
  • Income from Capital Gains/loss on sale of investments/property (Both Short Term and Long Term)
  • Income from Other Sources (including Winning from Lottery, bets on Race Horses, and other legal means of gambling)
  • Foreign Assets/Foreign Income
  • Agricultural Income more than Rs 5000
  • Resident not ordinarily resident and a Non-resident

 
  • Any individual or HUF having income from Business or Profession
  • Individuals who are eligible to fill out the ITR-1 Form

Form ITR 3

This form is for Individuals and HUFs having income from profits and gains of business or profession.

The source of income shall be

  • Carrying on a business or profession
  • If you are an Individual Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • The return may include income from House property, Salary/Pension, and Income from other sources
  • Income of a person as a partner in the firm

 
  • Individuals / HUF who do not have business income/income from profession

Form ITR 4 (Sugam)
  • 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

 

–

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.

 

Suggested read: Due date for ITR filing for FY 2019-20

Categories: Articles - Income Tax Income tax
Tags: Income tax return filing
Dharti Popat: 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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