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Filing Income Tax Return for FY 2020-21

Know about filing ITR

An Income Tax Return Filing is the tax form/s in which the taxpayer files information about his Income. The tax return can be filed through different kinds of Income Tax Returns forms, and the Income earned during a financial year is used to calculate the tax liability.

Tax is a basic need of the country, same as filing for a tax return is a fundamental and first need of people. We are not saying this, the fact is available to us. In the year 2013-14, the number of individual taxpayers was about 4.96 crore, and in the year 2018-19, this number increased to 8.05 crore. There has also been an increase in the number of people filing tax returns in the year 2018-19; before the year 2018-19 number of tax returns filers increased from 3.05 crores to 5.95 crores.

Who should file an ITR

As per Income Tax Act, 1961 and the Income Tax Rules 1962, every taxpayer must file returns for every financial year. Every taxpayer needs to file ITR on or before the due date. To file ITR for FY’ 20-21, the last is December 31st, 2021, according to the Central Board of Direct Taxes press release to file ITR due date extended to December 31st, 2021 rather previous deadline was July 31st, 2021.

The ITR form with which you will file the return depends on the income source, income earned, and category of taxpayers such as individuals, HUF, or companies.

Well, there is a slight difference between filing a tax return and getting a refund. Filing for a tax return is just a way of getting your money to yourself; you are filing the return for your refund. Getting a refund means “the difference between the tax paid by you and the actual tax you have to pay,” and the tax refund is calculated only on filing the income tax return. And because of this, everyone has to file a tax return because you would never want to pay more tax than your Income.

Income tax slab FY2020-21

You need to file an Income tax Return for the below-specified circumstances. If your gross income is more than,

Income Tax SlabNew Regime Income Tax Slab Rates FY 2020-21
(Applicable for all individual & HUF both)
2.5 Lakhs – 5 Lakhs5%
5 Lakhs – 7.5 Lakhs10%
7.5 Lakhs – 10 Lakhs15%
10 Lakhs – 12.50 Lakhs20%
12.5 Lakhs – 15 Lakhs25%
>15 Lakhs30%

Why Filing an ITR is Important

Factors to be kept in mind while, Income Tax Return Filing

There are a few key aspects that you must bear in mind while filing returns.

Choosing the correct ITR form is an important step and you can choose the right form, depending on the nature of income earned and total income threshold. Various tax filing platforms automatically choose the right form as per your income details.

There are seven different types of ITR forms:

ITR FormFor Whom
ITR-1 or Sahaj(सहज)For individuals earning <50 lakhs from salary/pension, one house property & other sources
ITR-2For individuals income or capital gains >50 lakhs, capital gains
ITR-3This type of ITR form describes those individual & HUF people who are earning from proprietary business or are carrying on profession. In simple language “Covers all heads of income, earning from business/profession”.
ITR-4 or Sugam(सुगम)This category is applicable to individual or HUF’s partnership firms (other than LLPs) which are individuals earning from any business or profession.
ITR-5Applicable to firms, LLPs(Limited Liability Partnership), AOPs(Association of Persons) & BOIs(Body of Individual), AJP( Artificial Judicial Person)
ITR-6Not claiming exemption under section 11
ITR-7Persons/companies under sec 139 (4A), 139 (4B), 139 (4C) & 139 (4D)

You need to disclose all the income earned during the financial year for which you are filing the return. You must include various sources of income like family pension, capital gains, interest income, etc to ensure every income (also exempt income) is included while calculating the income tax, so you can locate details from form 26AS.

If you are a salaried individual, Form 16 is a key document for filing tax returns. It contains details of your PAN, TAN, salary, address, and tax deducted. In ITR forms, you also need to provide the income details from previous employers and include them while filing the return.

Form 26AS contains details of tax deducted by deductors on your behalf like TDS on salary, on selling a property, interest income from deposits, etc. You can cross-check all details of TDS deductions given in Form 16/16 A by using Form 26AS. It is also an important document for filing tax returns.

You are required to put together all proofs of investments, payment receipts, deductions, or other tax benefit documents. In case of discrepancy, the IT department will ask you to provide the proofs as claimed by you.

How can one seek help in case of any trouble while Income Tax Return Filing

While filing a tax return, you observed that you have furnished incorrect details and want to rectify the mistake, in this scenario you are allowed to do so. Under section 139(5) of the IT Act, you can correct the mistake by filing a revised tax return.

This section specifies that if a taxpayer has filed the return with some incorrect details, he/she has the flexibility to file a revised return before the due date of ITR filing, i.e., 31st July 2019 for FY’ 2018-19.