Types of Forms and Penalties for Missing the Deadline

Electronic filing has made it easier for taxpayers to file their tax returns.

The central government is not considering giving exemptions to those who do not file their income tax returns (ITRs) by the July 31 deadline. “Dear Taxpayers, Don’t forget to file your ITR if you haven’t already. The ITR file for AY 2022-23 is July 31, 2022. No time to waste #FileNow. Please visit: http:/ / incometax.gov.in,” the Income Tax Department said on its official Twitter account.

Why should you file your tax returns on time?

Having a clean record in tax returns makes it easier to get loans. There are other benefits of filing taxes on time, such as avoiding penalties, lawsuits, easy loan approvals, loss deferral, and faster visas for international travel.

What happens if you miss the deadline?

A survey of local circles on July 21 found that around 54% of individual income taxpayers had yet to file their return. The sanction is also severe this year for those who do not respect the deadline for filing the RTI.

A delay in filing the ITR may result in a penalty of Rs 10,000. Through the ITR, a person is supposed to submit information about income and taxes payable on it to the Indian Income Tax Department. here during the year.

If an individual’s income exceeds the exempt limit, they must file a tax return. Under the new tax regime, the exemption limit is set at Rs 2.5 lakh.

Under the old regime, the exemption limit is Rs 2.5 lakh for those under 60; Rs 3 lakh for people aged 60-80 (seniors); and Rs 5 lakh for people over 80 (super seniors).

While the new regime removed several exemptions, the tax slabs show much lower rates than the old regime.

Income tax (IR) is levied on a slab basis, which means that rates vary according to income levels. The tax rate changes as income increases.

Seven types of forms

The Department of Income Tax has prescribed seven types of ITR forms, the applicability of which will depend on the nature and amount of income and the type of taxpayer.

ITR 1 or Sahaj: This tax return form is for people whose total income in a financial year is less than Rs 50 lakh. This includes the following: salary/pension income, property gains (this excludes cases where the loss is carried over from the previous year), income from other sources (winning the lottery and at home are excluded) and income from agricultural activities does not exceed Rs 5,000.

RTI 2: These are Hindu Undivided Individuals and Families (HUF) whose total income in a financial year from the following sources exceeds Rs 50 lakh.

RTI 3: This form can be used by individuals or HUFs whose source of income is generated by a business or profession.

RIR 4: Individuals, HUFs and Partnerships (other than LLPs) and Residents of India are eligible to file returns under ITR 4 if their income includes business income in accordance with the Income Scheme presumed under Article 44 AD / 44 AE, professional income in accordance with the presumptive regime. income scheme under ADA Section 44 and salary/pension income not exceeding Rs 50 lakh.

IRR 5: It is aimed at the following taxpayers – companies, limited liability companies (LLP), associations of persons (AOP), body of individuals (BOI), artificial legal person (AJP), estate of the deceased, estate of the insolvent, business trust and investment fund

IRR 6: This form is for businesses claiming tax exemption under Section 11. This section relates to income from property held for charitable trusts and religious institutes. The important thing to note here is that this ITS can only be filed electronically.

IRR 7: It is to be used by individuals and businesses that are required to file tax returns under the following sections: 139(4A), 139(4B), 139(4C), 139(4D), 139(4E) and 139 (4F).

What are the changes in the ITR rules from this year?

The government has, since last year, provided conditional relief to people aged over 75 who are exempt from filing the ITR.

This exemption was granted due to Article 194P, introduced in the 2021 Union budget.

Read also | These people must file an income tax return. Read details

According to Section 194P, senior citizens are not required to file an ITR if they meet the following criteria: If they live in India and are 75 or older in the previous year.

The budget also introduced a 24-month window from the end of the tax year to file a revised ITR in the event that an assessee failed to report income or discovered an error in the first tax return filed. .

It is also possible to pay unpaid taxes for two years.

Income tax notice for these high value transactions

The Income Tax Department monitors large cash transactions over a specific limit. If you fail to report these transactions on your tax return (ITR), you will likely receive a notice.

Filing tax returns is no longer the chore it used to be. No more long lines and endless anxiety about meeting tax filing deadlines.

With online filing, also known as e-filing, it is convenient to file returns from the confines of your home or office and in a very short time.

Comments are closed.