How to fill ITR form for the AY 2020-21

How to Fill ITR form for the AY 2020-21.

ITR form and criteria of filling appropriate ITR.

Sr No	Particulars	Criteria
1	ITR-1	For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house the property, other sources (Interest, etc.), and agricultural income up to Rs.5 thousand Not for an individual who is either Director in a company or has invested in unlisted equity shares
2	ITR-2	For Individuals and HUFs not having income from profits and gains of business or profession (Please see Rule 12 of the Income-tax Rules, 1962
3	ITR-3	(For individuals and HUFs having income from profits and gains of business or profession) (Please see rule 12 of the Income-tax Rules,1962)
4	ITR-4	For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and the profession which is computed under sections 44AD, 44ADA or 44AE  [Not for an individual who is either Director in a company or has invested in unlisted equity shares]
5	ITR-5	For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) a person filing Form ITR-7  (Please see Rule 12 of the Income-tax Rules,1962)
6	ITR-6	For Companies other than companies claiming exemption under section 11 (Please see rule 12 of the Income-tax Rules,1962)
7	ITR-7	For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only (Please see rule 12 of the Income-tax Rules, 1962)

 

Modifications  in Income tax due to the COVID-19 effect.

·         Government to impart Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates”

·         “Among other measures, Due date of all income-tax return for FY 2019-20 will be extended from 31st July 2020 & 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020”

·         “The Period of ‘Vivad se Vishwas Scheme’ for making payment without an additional amount will be extended to 31st December 2020”

·         “Extend the last date for income tax returns for (FY 18-19) from 31st March 2020 to 30th June 2020.” Note: CBDT department has revised the due date till 31st July 2020.

·         “Aadhaar-PAN linking date to be extended from 31st March 2020 to 30th June 2020 (Extended till 31st March 2021).”

·         “Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020 (Extended till 31st December 2020).”

Online filing of Income Tax returns has become very stress-free and suitable today, allowing one to do it by themselves instead of depending on a tax practitioner. So any individual who is eligible for the ITR-1 form can be filled his/her ITR online easily. For others like businessmen, companies, institutions, they have their own recruited or hired consultants.

What is the Income Tax Return (ITR) 1 Form?

ITR 1 Form is filed by the taxpayers and the individuals being a Resident (other than Not Ordinarily Resident) having Total Income up to INR 50 lakhs, having Income from Salaries, One House The property, Other Sources (Interest, etc.), and Agricultural Income up to INR 5 thousand. (Not for an individual who is either Director in a company or has invested in Unlisted Equity Shares). Also to note down, from now onwards, as mentioned by the tax department, furnishing PAN and Aadhaar card details on the official website of the Income Tax Department is mandatory.

The income tax department has notified ITR forms for taxpayers based on their source of income in order to create a simple tax compliance structure. Therefore, you are required to furnish the return as per the source of your income.

Eligibility to File ITR 1 Online For AY 2020-21

ITR-1 is filed by the taxpayers whose income is up to Rs 50 lakhs from below-mentioned sources:

·         If the income is from one house property (the case where losses of previous years are carried forward are not included in this ITR)

·         If the source of income is pension or salary

·         If the source of income is other sources

·         If the clubbed income of minor or wife is shown, then ITR-1 can be filed only in case their source of income as mentioned in the above points.

Not Eligible for ITR 1 Filing Online for AY 2020-21

·         Such a person will have to file return in ITR-2 or ITR-3, as the case may be.

·         The taxpayer whose income is more than Rs 50 lakhs is not eligible to furnish this form.

·         Non-residents and RNOR (Residents not ordinarily resident) cannot file ITR 1.

·         Taxpayers who have two or more house properties are not eligible.

·         Assesses having income under business or profession head are not eligible.

·         Taxpayers who have long or short-term capital gains

·         Taxpayers whose income from agriculture means is greater than Rs. 5,000

·         The taxpayer who claims relief for foreign taxes paid or claim double taxation relief as mentioned in section 90/90A/91.

·         ITR 1 cannot be used by residents having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.

Penalty for Late Filing of Income Tax Return on the failure of the deadline

The government compromises a four-month time to its citizens to consolidate complete details of their income and file the income tax returns for every assessment year. The tax filing period for the previous year starts from the 1 April and stretches up to 31 July. The income tax filing process takes a few minutes to file ITR. Paying taxes on time is important, but at the same time filing the return before the due date is equally important or one must be ready to face the consequences. Read more to know about the penalty for the late filing of the income tax return.

Starting from April 1, if you file your ITR post the deadline of July 31, 2018 (unless the tax department extends it), you will be liable to pay a maximum penalty of Rs 10,000.

As per the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date but before December 31 of that year and Rs 10,000 post December 31. However, as a relief to small taxpayers, if your income is not more than Rs 5 lakh, the maximum penalty levied will be Rs 1,000.

Modifications Details in ITR 1 Sahaj Form

·         INR 50,000 standard deductions

·         No applicability on directors of any company

·         No applicability on individuals holding unlisted equity shares of any company

·         No changes in computation

·         ITR 1 & ITR 4 offline availability for senior-most citizens aged more than 80 years

·         Section-wise return filing is segregated within the normal filing return and response to the notice

·         Salary bifurcation will be done as the standard deduction, entertainment allowance and professional tax

·         Pensioners column has been added in the nature of employment

·         Details of Employer like TAN of Employer (mandatory if tax is deducted), Name of employer and Nature of Employer), Address of Employer, Town/City, State, PIN/ ZIP Code has been inserted under the head income from salary.

·         Deletion of details of Return of Income filed in response to notice u/s 153A and 153C.

o    A new deduction of 80CCC, 80CCD (1), 80CCD (1B), 80CCD (2),
80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80GG, 80GGC, 80U has been added in the deductions column.

·         Point of the amount of rent which cannot be realized has been inserted under the head house property.

·         The individual income from one house property, salaries and other sources summing up to 50 lakhs, this condition retains its place even after changes

Due Date for Filing ITR 1 Online AY 2020-21

·         Every year ITR -1 has to be filed on or before 30 Nov of the following year. After that, a late fee under section 234F is levied

·         Applicable Income Tax Rates for FY 2019-20 (AY 2020-21)

 

Tax Slab Rates for individuals less than 60 years of age and HUF

Income Tax Slab (in Rupees)	Tax Rate for Individual Below the Age Of 60 Years
0 to 2,50,000*	Nil
2,50,001 to 5,00,000	5% of total income exceeding 2,50,000
5,00,001 to 10,00,000	Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,000
Above 10,00,000	Tax Amount of 1,12,500 for the income up to 10,00,000 + 30% of total income exceeding 10,00,000

 

Tax Rates for Senior Tax Payers between the age of 60 years to 80 years old

Income Tax Slab	Senior Citizens (between 60 years – 80 years)
Up to 3,00,000	Nil
3,00,001 to 5,00,000	5% of income exceeding 3,00,000
5,00,001 to 10,00,000	Tax Amount of 10,000 for the income up to 5,00,000 + 20% of total income exceeding 5,00,000
Above 10,00,000	Tax Amount of 1,10,000for the income up to 10,00,000 + 30% of total income exceeding 10,00,000

                        

Tax Rates for Super Senior Taxpayers above the age of 80 years

Income Tax Slab	Very Senior Citizens of and above 80 years of age
Up to 5,00,000	Nil
5,00,001 to 10,00,000	20% of income exceeding 5,00,000
Above 10,00,000	Tax Amount of 1,00,000for the income up to 10,00,000 + 30% of total income exceeding 10,00,000

 

(ITR) 1 Online:

ITR 1 is divided into 7 sections where:

Part A – General Information

               

This section contains details of the following general fields:

·         Name/Address/PAN number/Mobile No/Aadhar Number/return filing Details/Nature of employment viz Govt/PSU/Pensioners /Others

Part B – Gross total income

This section contains details related to gross total income:

Part B1

·         Details of Employer like TAN, Name, Nature& Address of Employer

·         Salary details

·         All the allowances which are exempted

·         All the value of perquisites

·         Net salary

·         Deduction in u/s 16

·         Income chargeable under the head ‘salaries’

Part B2

·         Gross Rent received

·         Tax paid to local authorities

·         Annual value

·         30% of the annual value

·         Interest payable on borrowed capital

·         Arrears/unrealized rent less than 30%

o    Income chargeable under head ‘house property’

Part B3

·         Deduction u/s 57(iia)

Part B4 – Gross total income

·         (B1 + B2 + B3)

Part C – Deductions u/c VI-A and Taxable total income

This tab includes all the deductions and taxable total income

Here the deduction limit will be as per inc

incometax act

·         80C,80CCC,80CCD(1),80CCD(1B),80CCD(2),80DD,80DDB,80E,80EE,80EEA,80EEB,80GG,80GGC,80U

·         Value of Total deduction

·         Total income (B4 – C1)

Part D – Computation of tax payable

This tab includes all the valuation of tax payable

·         D1 Tax payable on total income

·         D2 Rebate u/s 87A

·         D3 Tax after rebate

·         D4 Cess on D3

·         D5 Total tax and cess

·         D6 Relief u/s 89(1)

·         D7 Interest u/s 234A

·         D8 Interest u/s 234B

·         D9 Interest u/s 234C

·         D10 Fee u/s 234F

·         D11 Total tax, fee, and interest

·         D12 Total tax paid

·         D13 Amount payable

·         D14 Refund

·         Exempt income

Part E – Other Information

This tab includes banking details

·         IFSC Code of the bank

·         Name of the bank

·         Account Number

Schedule-IT: IT Details of advance tax and self-assessment tax payments

·         BSR code

·         Date of deposit

·         The serial number of challan

·         Tax Paid

Schedule-TDS: TDS details of TDS/TCS

·         TAN of deductor/ PAN of tenant

·         Name of deductor

·         Gross payment

·         Year of tax deduction

·         Tax deducted

·         TDS/TCS credit

Schedule DI – Details of Investment

·         The eligible amount of deduction during FY 2019-20 (As per Part C- Deductions and taxable total income)

·         Deduction attributable to investment/expenditure made between 01.04.2020 to 30.06.2020

Verification                                  

 

The taxpayer has to verify and self-attest the form at the last by signing the verification content after entering all the details such as name, parent name and PAN details.

Medium To Online Furnish Income Tax Return 1 (ITR)

An ITR-1 form can be furnished either in online or offline mode. In online mode, either XML needs to be uploaded or the client can directly login to the income tax portal and select the submission mode as “prepare and submit online”. In the case of online filing, some data can be imported from the latest ITR or form 26AS.

Also, super senior citizens (Age of 80 years or more) are exempted from the online filing of ITR.

Offline here means to furnish the return form in paper format.

File ITR 1 Online or Electronically:

1. While furnishing ITR-1 online, feed the details and e-verify return using EVC via Bank
   Account/Net Banking/Demat Account/Aadhar OTP or
2. Feed the details using electronic medium and send a physical copy of ITR V to Centralized Processing Centre (CPC), Bengaluru through speed post or normal post.

When you furnish the ITR-1 return form using an electronic medium, the receipt will be seen in the inbox of the registered email id. It can also be downloaded from the official income tax website manually. After downloading the acknowledgment, you need to sign the form and then send to the CPC office, Bangalore before completing 120 days counting from the e-filing date. On the other side, it is not required to send the ITR V to the CPC if EVC/OTP option is used.

Important Terms to Realize In ITR-1 SAHAJ Form for AY 2020-21

Notice Number: Notice Number is required to be mentioned when the taxpayer furnishes the return in answer to the notice issued by the Income Tax Department.

Revised Return: There is an option of re-file, so if you have made certain mistakes, you can rectify them again. For the FY 2019-20, the taxpayer can furnish the revised return on or before 31 March 2021.

Advance Tax: If the tax on other income is above Rs. 10,000 in a year, the assessee is required to calculate and deposit the advance tax. This advance tax is to be paid on a quarterly basis such as on, June, December, September, and March.

Annexure-less Return: Annexure-less a return which means it doesn’t require to affix any documents with the ITR-1 Form.