In a recent announcement, the Finance Ministry extended the date for filing Income Tax Return for AY 2020 – 21 to 30th November 2020. Earlier, this deadline for ITR filing was maintained on 31st July 2020. Moreover, the GOI also extended the date for issuance of Form 16, a crucial document for ITR filing, by 20 days from 10th June 2020 to 30th June 2020.
- According to CBDT, 1.46 crore individuals are liable to pay income tax in India, as of February 2020.
- 5% of this income-tax paying population disclosed income in the range of Rs.5 lakh to Rs.10 lakh.
What are the income tax slabs as per Budget 2020?
In Budget 2020, the Finance Ministry announced a new tax regime that would coexist with the previous tax regime, widening the options for eligible taxpayers. The tax liabilities as per the previous regime are –
- Nil – For an annual income of up to Rs.2.5 lakh.
- 5% – For annual income in the range of Rs.2.5 lakh to Rs.5 lakh.
- 20% – For annual income ranging between Rs.5 lakh to Rs.10 lakh.
- 30% – For annual income above Rs.10 lakh.
The tax liabilities as per the new regime are –
- Nil – For an annual income of up to Rs.2.5 lakh.
- 5% – For annual income ranging between Rs.2.5 lakh and Rs.5 lakh.
- 10% – For annual income in the range of Rs.5 lakh to Rs.7.5 lakh.
- 15% – For annual income between Rs.7.5 lakh to Rs.10 lakh.
- 20% – For annual income in the range from Rs.10 lakh to Rs.12.5 lakh.
- 25% – For annual income ranging between Rs.12.5 lakh to Rs.15 lakh.
- 30% – For annual income above Rs.15 lakh.
As per the new tax regime, individuals with income up to Rs.5 lakh will receive a rebate under Section 87A. However, upon choosing the new regime, they will lose entitlement of up to 70 tax exemptions like tax benefits on a joint home loan.
How to file Income Tax Return online?
As the first step in e-filing of Income Tax, log in to the official portal of the Income Tax Department. In case you are a first-time taxpayer, register yourself first. If you are eligible to file Income Tax Return via the ITR-1 and ITR-4 forms, you can carry out the entire process online.
Here are the steps to file an Income Tax Return online –
- Log in to the official website of the Income Tax Department using PAN, password, and captcha.
- Click on “e-file” and select “Income Tax Return” from there.
- Then, choose the assessment year, relevant ITR form, as well as submission mode.
- Fill out the details in the ITR form and upload the necessary documents.
- Verify ITR electronically or via physical verification.
Once verification and processing are successful, you shall receive a corresponding email from the IT department. Note that if you choose the filing of Income Tax Returns under the old regime, you must ensure to orderly mention the investments or expenses that are eligible for tax exemptions. Before that, thoroughly educate yourself on the tax benefits that you can avail.
For instance, if you are repaying a home loan, you need to know what are the tax savings and other advantages offered by home loans to minimise your tax liability.
- The new tax regime truncated the total number of taxpayers from 5.7 crores in December 2019 to 1.46 crore in February 2020.
In case you cannot file IT returns via the ITR-1 and ITR-4 forms, you need to download the Income Tax Return form. Based on the tax regime under which you choose to file ITR, and also other specific conditions, the form shall vary.
- Visit the official website of the Income Tax Department.
- Click on “ITR Notified Forms AY 2020 – 21” under the Downloads section on the homepage.
- Download the relevant form as per your financial profile.
Once downloaded, duly fill in the application form and upload the XML file for e-filing ITR. Also, ensure to keep the necessary documents like salary slips, Form 16, etc. handy for a speedy process.
How to check ITR status online?
To check ITR status, follow these steps –
- Visit the IT Department’s official website.
- Click on “ITR status” under the “Quick links” section.
- Fill out your Acknowledgment number, PAN, and the captcha, and click on “Submit”.
efiling income tax will show the status of your Income Tax Returns post that, it is advisable to file ITR even when your annual income does not necessitate it. It is because doing so allows you to avail specific financial services and products like a home loan. Financial institutions accept the ITR as a substantial document for advancing such credit.
- Currently, 4.3 crore taxpayers are categorised as “zero tax filers.”
In case you avail a home loan, you must also make yourself conversant in the ways of its tax benefits and check out everything you need to know about saving tax on a home loan. Nevertheless, now that there are two tax regimes in co-existence, it is paramount to choose the appropriate one that allows you to minimise your tax liabilities for Income Tax Return filing.
