income tax return Archives -

What is an Updated Income Tax Return?

Fri, 19 Aug 2022 04:06:53 +0000

The Buyt Desk

The income tax department has a provision for updating the income tax returns that are already filed. Through Form ITR-U the ‘Updated’ income tax return can be filed.

In the Union Budget 2022, the concept of updated return in income tax was introduced by the government. And the same is notified by the income tax department of India and Form ITR-U can be used for filing the ‘Updated’ income tax return (ITR).

What is Updated ITR?

A taxpayer can update his/ her ITR within 2 years of filing. The update can be payment of additional taxes, in case of errors or omissions. Under Section 139(8A) of the Income Tax Act, the updated return can be filed for the assessment year (AY) but within 24 months from the last day of the respective AY. The new income tax rules state the form where the updated returns can be filed and the steps for verification.

Who can file an Updated ITR?

Via ITR-U update returns can be filed by a taxpayer who has furnished/not furnished an original return, revised return or belated return, in case of any wrong statement or omission. As per the newly inserted provisions in the Income Tax Act, one can update returns for FY 2019-20 and subsequent assessment years. But only one updated return can be filed for each assessment year.

Who cannot file the updated return?

Below are the cases that cannot file the ITR-U –

Taxpayer, against whom search or survey or prosecution proceedings are initiated for that assessment year
When assessment/reassessment/revision/re-computation is pending or completed for that AY
When there is no additional tax outgo
When the total tax liability is to be reduced, losses to be adjusted against the income, there is a refund or increase in the refund amount

When can ITR-U be filed?

This provision is available from April 1st, 2022. Anytime for 24 months from the end of the respective AY IT-U can be filed. Currently, ITR-U can be filed only for AY 2020-21, AY 2021-22 and AY 2022-23.

Is interest levied on ITR-U tax payment?

According to a new provision in IT law, taxpayers have to pay interest of 25% on the tax due when ITR-U is filed within 12 months and interest of 50% when filed after 12 months but within the valid period. Along with tax due, additional interest should be paid when filing ITR-U.

What details are needed for ITR-U?

In the ITR-U form, the amount of additional income should be specified, under the correct income heads, on which tax is applicable. Detailed income break-ups need not be specified, unlike regular ITR forms. Along with details like name, permanent account number (PAN), tax years, and additional income reported, the taxpayer needs to specify the reason for filing the ITR-U. The reason can be one of the below –

return previously not filed
income not reported correctly
wrong head of income chosen
incorrect rate of tax
reduction of carried forward losses
reduction of unabsorbed depreciation
reduction of Minimum Alternate Tax (MAT) credit/ Alternative Minimum Tax (AMT) credit

If one of the last 3 options is selected, then the tax year should be specified which will be affected because of this update and also should specify if any updated or revised return filing is needed for such affected tax years. An updated version of the applicable ITR form (ITR 1 – 7) should be furnished along with ITR-U.

How is the tax payable for an updated return calculated?

Section 140B describes the net tax liability for an updated return as follows –

Sr. No.	Particulars	Match figure from
A.	Tax payable on additional income as per Part B-TTI of modified ITR	Modified ITR which is submitted along with ITR-U
B.	The interest levied, if any, on additional income under Section 234A/234B/234C (as per Part B-TTI of modified ITR)	Modified ITR which is submitted along with ITR-U
C.	Late fee, if any, under Section 234F (as per Part B-TTI of modified ITR)	Modified ITR which is submitted along with ITR-U
D.	Taxes paid or relief – TDS/TCS/Advance Tax/regular assessment tax/Relief
E.	The total refund issued (including interest)/claimed as per the original return	Original return filed
F.	Aggregate tax liability on additional income	A+B+C+E-D
G.	Additional tax 25% or 50% on (F-C)
H.	Net Amount Payable	F+G

How to verify the ITR-U?

The ITR-U verification option by posting the acknowledgement to Bangalore is not specified but only through a Digital Signature Certificate (DSC) in tax audit cases and filing of returns by a political party. The ITR-U verification by an alternate option of the Electronic Verification Code (EVC) is allowed for non-tax audit cases.

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How To File Income Tax Return When You Have More Than One Form 16 in a Financial Year?

Thu, 07 Jul 2022 15:20:11 +0000

The Buyt Desk

Salaried people need Form 16 from their employer to file Income tax. If you change jobs in a financial year you will have more than one form 16 from your employers.

For the financial year 2021-22, July 31, 2022, is the last date to file income tax returns (ITR). This is the current deadline and can be extended by the Government. This timeline is for individual taxpayers who do not need accounts auditing. All employers need to have their Form 16 from their employers by June 15, 2022. So that they will have a fortnight of time to file their taxes. The employer must also issue the TDS certificate if there is a tax deduction on salary during the financial year.

What is Form 16?

Form 16 is a kind of Income-tax form. It is a certificate that the employer provides which has details of the salary and TDS of the employee. It has 2 parts where the first part contains details of the employee and employerfile income including their PAN, TAN, name, address, TDS and more. The second part of Form 16 is the financial details including income, allowances, deductions, salary paid, taxable income, tax to be paid and more. This is information of a financial year and issued yearly by employers at least 15 days before the last date to file individual taxes.

When will one have more than one Form 16?

During the financial year, an individual may switch jobs and may switch to any number of companies. In such scenarios, an individual will have a form 16 each from every employer he or she has worked for. While filing an income tax return, individuals will need Form 16 from all employers as only with this the total TDS, total tax exemptions on HRA, LTA and total taxable income can be calculated.

How to file your ITR when you have more than one Form 16?

Now let us look into a step-by-step guide on how to file your ITR if you have more than one Form 16.

The first step would be to collect Form 16 from all employers you have worked with the previous financial year.
Then consolidate all forms to get the gross salary earned by you (add gross salary from each form 16) during that financial year.
Similarly calculate the amount of exemption that you can claim for your income like leave travel allowance (LTA), house rent allowance (HRA) etc.
Now calculate the total HRA, LTA etc by consolidating all form 16s. Use online calculators to know your claim eligibility.
Also, you are eligible for a standard deduction of Rs 50,000 from your salary income. If all form 16 mentions this, then you can consider it only and the rest will be taxable.
Next is to claim deductions under sections 80D, 80C etc.
Now you can arrive at total taxable income which is your salary minus deductions, interest earned and income from other sources. And if you have opted for a new tax regime, you will not be eligible for most of the tax exemptions and deductions.
The next step is to calculate the income tax liability.
Then consider TDS from all Form 16 to know the tax already paid. Cross-check the same with Form 26AS and AIS (annual information statement).
Now the final step is to calculate the tax payable based on the total taxable income, total TDS and the income tax slab.

What to do when you do not get Form 16 from all employers you worked with in the FY?

There is a possibility that you have received Form 16 from one of your employers and not from the rest. In such cases, you need to have salary slips from employers who have not given Form 16. For these salary slips, you need to derive all values as needed by the ITR form. You need to have a clear break up of salary. Now that you have values from all employers, you can calculate the total gross salary which is the summation of Form 16 and salary slip values. Now follow steps 3 to 10 as mentioned above. That means calculating total deductions, total exemptions, total income from other sources, total taxable income, tax liability, total TDS and finally tax payable.

What to do when you do not get Form 16 from any employer?

Irrespective of Form 16 received from the employer, an individual should file his/ her Income Tax Returns. When Form 16 is not available, the Salary slip will do the work. Break the salary from all salary slips to get different values. Now calculate the total gross salary, total income from other sources, total deductions, total exemptions, total taxable income, tax liability, total TDS and finally tax payable as discussed above. Do not forget to consider the income tax slab based on the income tax regime chosen. Also, make sure that the TDS reflected in your salary slips is the same as that in Form 26AS/AIS.

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Get Ready to File Your Income Tax Return

Wed, 06 Jul 2022 04:27:41 +0000

The Buyt Desk

Every year the month of July is that time of the year when you file your income tax return. Though due to COVID 19 we saw an extension in the last dates of IT return filing but traditionally 31st July has been the last date for return filing. Pay your income tax as per your income tax slab and file your IT return on time to avoid late charges.

Every Indian who earns needs to pay tax based on income slab to the Indian Government annually. Income tax means different ranges of income are levied with different tax rates. Income tax rates increase with the rise in income. The government tries to have progressive and fair tax systems and hence tax slabs are altered regularly during the budget.

What are the different categories of taxpayers?

The income tax department has divided “individual “taxpayers into three categories –

Individuals – who can be residents or non-residents aged less than 60 years
Resident Senior citizens – who are aged between 60 to 80 years
Resident Super senior citizens – who are aged more than 80 years

What are Income Tax slabs for Assessment Year 2022-23?

The Central Government has made a decision to not alter the income tax slab for the financial year 2020-21 because of the pandemic crisis in the country. And the same is applicable to the financial year 2021-22 i.e. the assessment year 2022-23. But there is a new exemption made for individuals over 75 years of age. Senior Citizens who are dependent on income from interests and pensions will be exempted from filing income tax returns.

What are the changes in tax rates in the New Tax Regime for Assessment Year 22-23?

How is an Income Tax Return filed?

Nowadays everything is online and self-explanatory. So filing tax returns is hassle-free and easy. You need not be anxious about the process anymore. E-filing is the thing and you may not need professional help if you know your income from all sources well and basic laws. And for salaried people, it is a cakewalk as compared to business people. Let us look into the steps to file online IT returns.

Step 1 : Log on to the portal	www.incometaxindiefiling.gov. Register here using your PAN (Permanent Account Number)
Step 2 : Download appropriate ITR form	Under ‘Download’ tab, go to e-filing. Select the relevant assessment year and select the appropriate Income Tax Return (ITR) Form. If you are a salaried individual, download ITR-1 (Sahai ) return preparation software as it will be helpful.
Step 3 : Enter details in Form 16	Enter all details from your Form 16 in the Return Preparation Software (excel utility) that you have downloaded and follow the instructions.
Step 4 : Compute all relevant tax details	Compute tax payable. Pay your tax and enter applicable challan details in the tax return. You can skip this step when you do not have a tax liability.
Step 5 : Confirm the above details	Confirm the entered details and validate. Generate an XML file and it will be automatically saved on your computer.
Step 6 : Submit return	Go to ‘Submit Return’ section. Here upload the XML file.
Step 7 : Digital signature	You can digitally sign the file when prompted. You can skip this step when you do not have a digital signature.
Step 8 : Confirmation from ITR verification	If filing is successful, a message is flashed on your screen. The acknowledgement form ITR- Verification is generated and the same can be downloaded. However the same is mailed to your registered email id.
Step 9 : E-verify Return	You can e-verify the return through any one of the below six modes: Netbanbing, Bank ATM, Aadhaar OTP, Bank Account Number, Demat Account Number or Registered Mobile Number and Email id. E-verification eliminates the need to send a physical copy of the ITR-S acknowledgement to CPC, Bengaluru.

How to download ITR after filing it?

Yes, now you have successfully filed your ITR and on time. By this you are eliminating penalties and last-minute stress. Now look into the income tax verification form generated by the IT department and verify the legitimacy of e-filing. This is validation for you that your ITR is successful. If you have not used a digital signature this is required. The ITR verification form can be downloaded by logging into the website of Income Tax India. An e-filed tax returns can be viewed under the ‘View Returns/ Forms’ option.

https://portal.incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng

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6 Ways To Verify Your Income Tax Return

Thu, 24 Mar 2022 05:09:06 +0000

The Buyt Desk

Your responsibility does not end with filing an income tax return. The next step is verifying the return without which your entire process of IT return is incomplete. If you fail to verify your IT return within the stipulated time it will be deemed invalid. With compulsory online return filing in place, you have the option of e-verifying your return which is very quick too. The best part is that there are not one or two but six ways to verify an income tax return.

Aadhaar Based OTP

It is the first and simplest method for verifying income tax return. Although before opting for this method, make sure that you have the latest number registered on Aadhaar.

Now open the website of income tax or click on the link https://www.incometax.gov.in/iec/foportal, login to your account and tap on the option ‘e-verify return’.

You will get a few options after this. Tap on ‘I would like to generate an Aadhaar OTP to e-verify my return’.

Next, you will receive a 6-digit OTP on your registered number. Enter the OTP in the box and click the submit button. After the successful submission of OTP, your ITR verification will be complete.

Net-Banking

If you are using net banking, you have yet another option to verify your ITR. However, note that only a few banks give the facility to verify ITR via net banking. The list is present on the income tax website. There are a few points you must take into account if you are opting for this method.

Do not log in to the e-filling website and your bank account simultaneously.
Your PAN Card must be registered with the bank.

After this, follow the following steps-

Log in to your bank account.
In the Tax slab, select option e-verify.
After this, you will be redirected to the income tax department e-filling website.
Click on the option ‘My Account’, followed by clicking on the option ‘Generate EVC’.
You would receive a 10-digit alphanumeric code on your registered email and mobile number.
The code remains valid for 72 hours.
Now open the income tax website and click on the option ‘e-Verify’ under the ‘My Account’ tab.
Select the option, ‘I have EVC already’.
Enter the OTP and click on the submit button.
After this, your tax return will be verified.

Verify Through Bank Account

The third method to verify ITR filing is through the bank account. To create EVC via a bank account, you must have a pre-validated bank account.

Note: Income tax collection requires pre-validation of the bank account.

Choose the option ‘Through bank account’ on the e-Verify screen and then tap on the option ‘Continue’. You will receive EVC on your pre-validated and EVC enabled bank account email address and mobile number. Click on the option e-Verify and enter the EVC. Your tax return will be verified.

Verify Account Via Demat Account

The process of verifying ITR via a DEMAT account is similar to the bank account. Here is the guide.

To opt for this process, you must have a pre-validated bank account.

First, in your e-filing account, go to the profile setting to pre-validate your account.

Provide a few details, such as your mobile number, depository name and email ID.

The Demat account must have the registered email ID and phone number.

You can use this account to generate EVC only when your details have been validated by your depository.

Next, go to the option ‘Generate EVC’ and select the option ‘Generate EVC via Demat account number’.

Enter the EVC you had received to verify your ITR.

Generate EVC Via Bank ATM

Note that this service is available only at 6 banks, Axis Bank, Central Bank Of India, ICICI Bank, Canara Bank, SBI and Kotak Mahindra Bank.

To generate EVC via ATM, you need to visit the ATM of any of the above-mentioned banks and swipe your card. Enter your PIN for Income Tax Filing. Soon after, you will receive an EVC on your registered mobile number. Next, log in to your e-filling account on the website of Income Tax and tap on the option ‘e-verify returns’.Select ITR to verify and tap on the option ‘Already generated EVC through bank ATM’.Enter EVC, and you are done with income tax return verification.

Sending A Copy Of ITR-V to CPC

If any of the above methods do not work for you, then you can use this non-electronic method to execute this task. Send a copy of ITR-V to the income tax department.

Send a signed copy of ITR-V to the department. Here is the complete process for the same.

ITR-V is a single-page document that has to be signed in blue ink.
It shouldn’t be couriered. Send it via regular mail or express mail.
There shouldn’t be any other paper except the ITR-V.
The Income-tax department notifies you after receiving the document via SMS or email. The notification is an ITR-V receipt.

You have many ways to complete this last step of the IT return filing process. Do not forget to verify your return or else your return will be invalidated.

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6 Things That Could Go Wrong If You Miss the Income Tax Return Deadline

Thu, 23 Dec 2021 11:54:24 +0000

The Buyt Desk

The last date for filing Income Tax Return for the financial year 2020-21 is 31st December 2021. Usually, the last date is around the end of July but due to COVID concerns, the government extended the IT return deadline. You should file your return by the given deadline or be prepared to shell out money from your wallet. The late filers will have to pay late fees and penal interest.

Here is how missing the Income tax return deadline will impact you –

Late Fees – As per Section 234F of the Income Tax Act 1961, you will file a late return along with a late fee. This late fee would be Rs 1000 for individuals with an income less than Rs 5 Lakhs and up to Rs 10,000 for individuals with an income of more than Rs 5 Lakhs.
Penal Interest – A delay of a single day will also attract a penal interest of 1% on the unpaid tax.
Delay in Refunds – If you file a late return and there is a pending refund then this payment will be delayed too.
Short Window to File Your Return – You will have to file your IT return by 31st March 2022 as after this the window of return filing for FY 2020-21 will be permanently closed. Only if the assessing officer demands some explanation or changes in the return will you be allowed to reopen your return and file it again.
Lesser time for Correcting Mistake – If you erroneously fill in any wrong details you have the option of filing a revised return and correcting the mistake. But when you miss the deadline and file a late return the time you get to correct your mistake will be shorter too.
Notice From Income Tax – If you miss the final date of 31st March 2022 you will not be able to file a return for the FY 2020-21. The income tax department can send you notice as per Section 142 of Income Tax Act 1961 for not filing your return. There could be harsh punishment of imprisonment for evasion of income tax discrepancy in your income earned and tax paid.

Don’t wait or expect that the Income Tax return deadline will be extended but instead file your return before the deadline and be tension free.

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Avoid These Mistakes While Filing Your Income Tax Return

Mon, 01 Nov 2021 03:58:52 +0000

Every year many individual taxpayers file their Income Tax Return (ITR) and they struggle because of the complexity of rules and regulations. There are many parameters to be taken care of while filing the IT returns. Under tax laws, filing ITR is mandatory, and if not done on time and correctly, a heavy penalty can be imposed on the taxpayer. So it is important that you file your return cautiously. Before you file AY 2021-22’s ITR, here are some tips and tricks to make sure that you file a fault free ITR.

Here is a checklist of things that you should not miss –

Remember the due date
Don’t wait until the last minute
Write the assessment year correctly and don’t confuse it with the financial year
Select the right return form
Not declaring income from capital gains
Cross-check your bank details so that if there is any refund it should reach the right account
Do not forget to mention all the sources of income
Not cross-checking TDS details with Form 26AS
Declaring incorrect email ID and mobile number
Incorrect particulars of tax deducted and paid
Not declaring foreign bank accounts
Not verifying the return within the stipulated time

Apart from this you must report and calculate your tax based on all the sources of income. Missing any kind of income can result in an income tax notice or penalties.

Not reporting full-year salary in case of a job change

This financial year 2020-21, if you have switched jobs, do obtain the form-16 issued by all the employers. To file income tax return, consolidate salaries from all employers else notice from the IT department is sure to knock on your doors.

Stating incorrect residential status

Residential status refers to a person’s status with reference to how long the person stayed (physical presence) in India in the current financial year (FY) and the preceding 10 FYs. The income tax liability of a taxpayer is based on the residential status in the financial year. Taxpayers are classified into 3 categories

A resident
A resident not ordinarily resident (RNOR)
A non-resident (NR)

A resident Indian needs to report all his/her foreign assets in their ITR along with income earned in India. An RNOR and NR need to pay taxes only on income earned in India.

Not stating savings account interest

For our emergency needs, we deposit a significant amount in our savings banks. Indian banks pay interest every quarter on savings bank accounts and yearly on fixed deposits. Form 16 does not have any information on this interest earned. This interest must be declared as income from other sources in IT returns. And failing to do so, the taxpayer will attract notice from the income tax department. Interest earned from all types of savings accounts needs to be declared.

Not declaring the income from dividend

As a taxpayer, you should know that the dividend income earned on stocks and mutual funds also needs to be declared in IT returns as income. Since the Finance Act, 2020, TDS is imposed on dividend distribution by companies and mutual funds and tax on dividend income earned on the same. Many miss declaring this or calculating the taxable income wrongly as it is a new law.

Hiding information on unlisted shares

Always declare details of all unlisted, private limited company stocks you own, sale and purchase transactions, and the cost of acquisition of the same in the FY. Even details of ESOPs received and shares of foreign companies you own need to be declared. These details determine your tax liability. Failing to do so, you may end up filing wrong IT returns and attract penalties.

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Planning to file Income Tax Return Keep These 9 Documents Ready

Tue, 28 Sep 2021 04:16:20 +0000

The Buyt Desk

You have to file your Income Tax Return for the financial year (FY)2020-21 by 31st December 2021. Usually, the deadline is in the month of July but this year taxpayers are getting extra time due to two reasons. At first, the government extended the deadline from 31st July 2021 to 30th September 2021 in the wake of Coronavirus. Then a second extension until 31st December was given as the government’s new portal for return filing didn’t function smoothly and needed rectification.

If you are gearing up to file Income Tax Return (ITR) then you will be required to keep a few documents handy. Though when you file an online ITR you never have to attach any documents but you will have to refer to a few proofs of investment and transactions. Keeping these documents ready will help you in minimising mistakes.

There are nine documents in total that you must carry with you when you are filling your Income Tax Return.

1, Form -16 – If you are filing ITR for the first time, you must know about form 16. It is a TDS certificate that the employer issues to an employee. The certificate carries details of the salary that an employer had paid to an employee after the tax deduction and tax exemption, which he is eligible for. It is a mandatory document that an employer issues to an employee if he comes in the tax deduction category.

In case of no TDS deduction, an employee has to request the employer to provide form 16.

2, TDS Certificate and Interest Income – Form 16 comprises two parts: Part A and B. Part A have the details such as your pan number, PAN and TAN of the employer, tax deducted in a year. Part B of Form 16 asks for interest income received from different sources. If you have invested money, you must collect certificates from the respective bodies to gauge the total interest amount you have received in a financial year. Make sure to get certificates from each source even if tax is not deducted. In case of tax deduction, you need to collect your Form 16 or TDS certificate.

3, TDS Certificate From Other Incomes – In the property sell case, the buyer issues Form 16B, providing details of TDS deduction on the amount.

If the landlord is earning via rent, the tenant has to provide landlord Form 16C, having details of TDS deduction. The current law says an individual has to deduct TDS, provided that his monthly rent is above Rs 50,000. You can also check Form 26AS for more details on TDS.

For contractors, there is Form 16D. It is a TDS certificate issued to contractors or professionals when payment is made to them by an individual or HUF exceeding Rs 50 Lakh in the FY 2020-21.

The tax deduction, in this case, takes place while paying the commission, contractual payment, brokerage or professional fee.

For dividends received from companies or equity mutual funds exceeding Rs 5,000, the tax will be deducted. TDS certificate for that should also be with you.

4, Form 26S – Form 26AS is the consolidated annual tax settlement. The form is like your tax passbook having information of all taxes you have deposited against your PAN. It comprises

TDS deducted by the employer
TDS deducted by other organizations from the payment made to you.
The advance tax which you have deposited in FY 2020-21.
Self-assessment taxes.
Tax deducted by banks.

Make sure your Form 26S has all the tax deductions done in FY 2020-21 against your PAN.

5, Expenditure Proofs, Tax-Saving Investment – If you are going with the old tax regime at the time of file income tax return , you must carry documents related to eligible expenditure and investments made during FY 20-21.

The health insurance premium paid for family, spouse or self in FY 2020-21 is also eligible for deduction under section 80D. You need to keep the receipt of the premium paid with you.

The loan statement for FY 2020-21. It includes all types of loans.

6, Captial Gains – Capital gains from the property sale, mutual funds, equity shares require reporting in ITR. Capital gain on house, land or building requires a sale deed or purchase deed.

Capital gain from property sale requires reporting in ITR-2. Here, the seller has to present the full details of the buyer.

Capital gain incurred by mutual funds, shares sale reporting requires a statement from concerning departments or brokers.

Capital gain accrued through the sale of bitcoin also requires reporting in ITR.

7, Aadhar Number – Section 139AA in the income-tax act makes it mandatory for the individual to present his/her Aadhar number while filing the ITR.

8, Investment Details For Unlisted Share – Unlisted shares holding also requires disclosure in ITR. In this case, you need to fill ITR-2 even if your source of income is salary or interest earned on bank accounts and provide the following details

Company name
Company PAN number
Opening balance as on April 1 2020, and acquisition cost.
Unlisted shares acquired in the year with its purchase date, shares face value, per share issue price, per share.
Unlisted shares sold in FY 2020-21 and received amount.
Closing balance on March 31, 2021, and acquisition cost.

9, Bank Account Details – It is a must for the individual filing ITR to provide the account details. It includes bank name, account type, account number and IFSC code.

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How to File Income Tax Return for a Deceased Person?

Thu, 24 Jun 2021 06:12:15 +0000

The Buyt Desk

The Income Tax Act dictates timely and accurate filing of ITR. Every now and then, the Government takes initiatives to encourage citizens to file ITR. For instance, section 139AA of IT Act mandates you to link the PAN card with the Aadhaar card, a measure for efficacious and mandatory ITR filing.

As per IT Department, the ITR for a departed person until his last day is also mandatory. The legal heir of the departed person becomes the tax assessee. He files an ITR and pays tax on the behalf of the dead person. In case the legal heir does not file the ITR, the IT Department proceeds in the same manner as when a living person fails to file his ITR. This means as the legal heir, if you do not file the ITR calculating the tax until his last day, you will be liable to pay penalty, interest, and late fee along with the impending tax.

What are the requirements to register as a legal heir for a deceased person?

Before registration as a legal heir, you should have the following information at hand:

Login details of your account on the IT Department e-filing website
Demographic and personal details of the departed person
His PAN card number and the bank account details

Steps to register as the legal heir for a deceased person

Before you can assess tax, file ITR, and pay tax for the deceased person, register as their legal heir online.

Login https://www.incometax.gov.in/iec/foportal/ with your credentials.
Go to “My Account”.
Then go to “New Request”. Here, you can register as the legal heir for the deceased person. Click on “Register on behalf of the deceased” and proceed.
Fill the personal information, PAN card and bank account details of the departed person.
Once the request is approved, you will receive a SMS on the registered mobile phone.

The Process of filing the ITR for a deceased person

After registration, you have to submit the ITR just as you do it for yourself. Download the suitable ITR form from the IT e-filing website. Fill the form with personal, income, bank, interest, tax assessment and other information of the deceased person. Generate the XML file for the form and upload on the website. Digitally sign the form and submit it.

How to calculate Income Tax for a deceased person?

The process of calculating the income of the deceased person is the same as any other person. The differentiating factor is the period for which the tax is calculated. For a person who is no more, the tax is calculated only until the date he was alive, instead of the complete year.

In most cases, the legal heir is unaware of the responsibility to file ITR for a deceased person. Moreover, earlier the process for such a ITR was unclear. Filing a tax return in the name of a person, who has passed away, is not correct. Above described process is the right way to fill Income Tax Return for a deceased person.

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Income Tax Return Deadline Reduced by 3 Months

Sun, 07 Mar 2021 14:31:23 +0000

The BuyT Desk

From Financial Year 2020-21 the last date for filing your belated and revised income tax return will be 31st December. Till now, a full financial year was available for filing returns and one could file the late return till the end of the next financial year i.e by 31st March. Usually, returns have to be filed by 31st July of every year. After this, the taxpayer had time until 31 March of the next financial year to file late and revised returns with a penalty. But Budget 2021-22 changed this. Finance Minister Nirmala Sitharaman reduced the deadline by three months. Now, a taxpayer must file his/her late and revised return by December 31.

What are belated and revised returns?

When the last date for filing the IT Return is missed, you file a belated return with a penalty. If there is a mistake from the taxpayer in filing the return, such as wrong calculation, forgetting any income or investment, giving wrong bank account details – to rectify them, the taxpayer files the revised return.

Why was the deadline shortened?

The government has taken several steps to make the process of filing IT Return easy. With the upgrade of technology, a large number of taxpayers are getting pre-filled return forms. Soon the pre-filled return forms will have the details about the capital gain as well. There is more ease in filing return as taxpayers will have much information in their hands now thus making return filing easy.

What if I miss the deadline?

If you do not file your income tax return by the date prescribed by the IT department, then you can get a notice and you will have to pay tax with a penalty if there is outstanding tax. However, if you are unable to file the return due to an unforeseen situation that could not be avoided, then you can file the Condonation of Delay under Section 119 (2) (b) of the Income Tax and request the IT department to allow you to file delayed return. You must have a valid reason for not filing your IT return on time or else you may just lose the chance of filing your return.

Why is it important to file your return?

An income Tax return is an important official document that is required in many important places. Like at the time of visa application, passport and loan application. So it’s important to file it on time and keep a record of the same. Now since you will have less time to file your IT return you must adhere to the new deadline and finish it timely

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3 Steps to File Income Tax Return for a Salaried Employee

Wed, 16 Sep 2020 09:05:31 +0000

By CA Gauri Chadha

Do you find filing of income tax returns more taxing than the tax itself? To ease this tension the government has made e-filing of income tax returns quick and simple. Pre-filled forms is a step towards that. Based on your salary and TDS deduction the income tax form has all the information which you need to verify whether the data is correct or not. For salaried people the main source of income is salary and interest from savings and fd’s , now if a person is having income from only these sources and is having one house property he can file the simplest ITR form i.e ITR 1 “Sahaj” provided the total of all such incomes does not exceed 50 lakhs. We are here with the in depth details of steps required to file income tax return by following basic three rules

3 SIMPLE STEPS TO FILE INCOME TAX RETURN

STEP 1 – REGISTER/LOGIN TO INCOME TAX PORTAL

First and foremost step is to register on www.incometaxindiaefiling.gov.in by clicking on register yourself or login if you are already registered. There is a forgot password option as well in case you have forgotten your password. Once you are logged in click on e-file – income tax return – enter the assessment year, choose ‘ITR 1’, select filing type ‘original/revised’, select submission mode prepare and submit online, select bank account for refund and then click continue.

STEP 2 – START FILING YOUR INCOME TAX RETURN

Your return form will have all your details but you need to cross-check and modify if required. There would be 6 schedules in the form. You must go through all the schedules.. The 1st schedule will include your personal information like your name, PAN, address, aadhaar number, nature of employment and the section in which you are filing the return. If you are filling it within the due date you will have to choose sec 139(1). 2nd schedule would be the computation which will be a mirror image of your form 16. Third schedule would be the details of your tax deducted and paid which would be picked up from your form 26AS. Fourth schedule would be taxes paid and verification in which you would see the amount of tax payable or refundable along with your bank account details and verification. There are 2 other schedules which would require to fill up only when you have given any donations.

STEP 3 – E-VERIFY THE RETURN

Last but not the least . You must verify your return because until you verify the return, the filling process is not considered complete. The department will not take up your return for processing unless you have completed the verification procedure. If you delay the verification your refund will also be delayed. There are many ways by which you can e-verify your return, the most common being the aadhaar based OTP followed by net banking, ATM and demat account. If you do not wish to verify it using the above mentioned ways you can send a physical signed copy to CPC Bengaluru.

DOCUMENTS THAT YOU MUST KEEP HANDY WHILE FILING YOUR INCOME TAX RETURN:-

1) Form 16 : One of the key documents which shows your salary break up along with TDS details is your form 16. It is a document which is issued by employers to their employees to validate the fact that TDS has been deducted and deposited against their PAN. You must have both parts, part A and part B handy with you.

2) Bank Statement : The other important document which should be with you at the time of filing your return is your bank statements. Now the bank statement is to be scrutinized firstly to calculate all the interest incomes like savings interest and secondly to check if any other income has been received or any high value transaction has been done. Although all this can be verified using the other significant document which is your 26AS.

3) Form 26AS: It is also known as a tax credit certificate, where all the TDS which has been deducted by various deductors like employer, banks, tenant etc is reflected. It is basically a consolidated statement of all the deductions.

COMMON MISTAKES THAT CAN GET YOU A NOTICE

NOT REPORTING ALL INCOMES – There are few incomes which are not reflected in form 16. So that’s why it’s important to check your 26 AS too. Like interest earned on FD will reflect in 26AS and not in Form 16 .

IGNORING CAPITAL GAINS – Many a times we forget reporting the capital gains or losses which we may have made due to sale purchase of shares or mutual funds. Do remember switching from one fund to another like from liquid fund to equity is considered redemption and then reinvestment. If you have capital gains you cannot file ITR 1 and hence you tend to use the wrong form.

QUOTING WRONG TAN OF EMPLOYER – Even if a single digit out of 10 digit alphanumeric number is wrong, notice will knock your door, due to mismatch between the taxes paid.

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