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ITR1 SAHAJ FOR FY 2019-20(AY2020-21)BUDGET PROPOSALS FOR FY 2020-21 BY FM Ms NIRMALASITHARAMAN ON 02.02.2020
TO VIEW/HEAR THE SPEECH ,CLICK HERE Do you know ? There are 11 Tax rebates you can claim while submitting IT Returns , when when you have not even made any fresh investments .
DO YOU KNOW ? : Senior citizens can claim Tax Rebate under section 80D even without having paid health insurance premium . For details of such rebates , CLICK HERE WHO HAS TO FILE IT RETURNS ?Every individual or Hindu Undivided Family ( HUF ) is obliged to submit Income Tax returns if they meet following criterion .
1. Income exceeding Rs 2,50,000 in case of individuals below 60 years 2. Income exceeding Rs 3,00,000 in case of individuals above 60 years and below 80 years 3. Income exceeding Rs 5,00,000 in case of individuals above 80 years Note : Income means total income in the financial year 2019-20 before allowing deductions under chapter VI -A of Income tax act . Further you have to submit your IT Return if you have 1. expended more than Rs. 2 lakh on foreign travel or 2. paid more than Rs. 1 lakh on electricity consumption in a year 3. deposited more than Rs. 1 crore in a current account in a year, even if your income is less than the threshold limit . WHO CAN FILE ITR1 FOR AY 2020-21 ? ITR1 SAHAJ Form is to be used by an individual
a. who is a resident other than not ordinarily resident, b. whose total income for the Assessment Year 2020-21 does not exceed Rs. 50 lakh and c. who has income under the following heads:- (a) Income from Salary/ Pension; or (b) Income from One House Property; or (c) Interest income and/ or family pension taxable under Other Sources. NOTE: Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories. WHO IS NOT ELIGIBLE TO SUBMIT ITR1 ?A. This Return Form should not be used by an individual who –
(a) is a Director in a company; (b) has held any unlisted equity shares at any time during the previous year; (c) has any asset (including financial interest in any entity) located outside India; (d) has signing authority in any account located outside India; or (e) has income from any source outside India. B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:- (a) Profits and gains from business and professions; (b) Capital gains; (c) Income from more than one house property; (d) Income under the head other sources which is of following nature:- (i) winnings from lottery; (ii) activity of owning and maintaining race horses; (iii) income taxable at special rates under section 115BBDA or section 115BBE; (e) Income to be apportioned in accordance with provisions of section 5A; or (f) Agricultural income in excess of ₹5,000. C. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:- (a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’; (b) loss under the head ‘Income from other sources’; (c) any claim of relief under section 90 and/or section 91; (d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or (e) any claim of credit of tax deducted at source in the hands of any other person. If you are not eligible to file ITR1 , CLICK HERE to find which ITR FORM YOU CAN SUBMIT FREE PORTALS FOR FILING IT RETURNS There are various portals services of which you can use and file IT Returns without paying any fees .
1. https://portal.incometaxindiaefiling.gov.in/ : The first and foremost website of income tax department of government of India . The website is authentic , official and absolutely free of charge . We have below explained how to submit IT Retirns ITR1, ITR2, ITR3 & ITR4 on-line . Website also supplies pre-filled forms which can be used for filing the returns 2. https://cleartax.in/ : The website facilitates submission of ITRs without any charges for its basic usage . Here you can upload Form 16 and Form 26AS and submit ITR1 only . The website has both free and paid services and you may have to use their paid services if you have other sources of Income other than salary or pension 3. https://www.taxsmile.com/ : Basic submission / DIY is free and assisted services are available on payment of a fee . Fee starts with Rs 499 + tax . 4. https://myitreturn.com/ : The assisted services for Income tax return filing starts with of fee rs 175 + tax onward . The portal also has mobile app which can be downloaded free and used for submitting IT Returns . 5. https://eztax.in/ : Self service on the website is free and assisted services start from Rs 599 + tax 6 . https://www.taxspanner.com/ : The fee starts from Rs 99 onward . 7. https://tax2win.in/ : Self filing on the website is free and assisted filing starts with a price of Rs 549 + tax We have not independently verified the quality , efficiency and data security of such private websites . VARIOUS MODES OF SUBMISSION OF IT RETURNS
Tax payers can also utilise the service of Tax Return Preparers ( TRPS ) authorised by Income Tax Department ., if they are not confident of using the on -line services themselves .TRPS are trained to help Income Tax payers and certified by the department. The service is available now at around 400 cities across India. .Home visit request can also be made to get the preparation done at home .To locate the nearest TRP ,one can call Toll free Telephone number 1800-10-23738 between Monday to Saturday from 9.00 am to 6.00 pm . Details of the scheme including the nearest TRP can be got on their website www.trpscheme.com TRPs will receive 3 % of the tax paid on the returns prepared & filed for every assessee in the first year ( subject to a maximum of Rs 1,000 ) , 2 % in the second year and 1 % in the third year and Rs 250 for the returns prepared & filed for the old assessees . DOCUMENTS REQUIRED TO FILE ITR1 SAHAJ FOR SALARIED PERSONS / PENSIONERSNECESSARY DOCUMENTS TO BE OBTAINED BEFORE FILING IT RETURNS
Due Date for filing IT Returns for individuals for FY 2019-20 is now extended up to 31st , December 2020 . a. You require following documents before starting to fill up IT Returns . As some time is required to collect from the relevant issuers , you may contact them at the earliest if you have not obtained so far . If you don't have AADHAR , APPLY NOW AND OBTAIN ENROLLMENT ID OF AADHAR APPLICATION 1. Your AADHAR NUMBER / CARD 2.Salary certificate / Form 16 issued by employer in the new format , 3.Interest certificates issued by your banks for the deposits / education loans and housing loans etc 4. Life Insurance premium certificates , health Insurance premium paid certificates , 5. Bank account statements for housing loans and savings bank accounts etc 6. TDS Certificates from employers / Deposit holders 7. Form 26 AS which shows the tax amount already credited to your account 8. Copy of last year return submitted . 9. . Your bank name , account number and IFSC code of the bank branch 11 . Any other relevant documents if you have any other income b. Link your Aadhar number to income tax e-filing website C. Verify Taxes paid already in Form 26AS and confirm that all tax deducted for you by your employer / bank as given in Form 16 or Salary receipt is credited to your account with income tax department . You can view 26 AS ( Tax Credit ) in the income tax department's website by logging in . d. Tax returns are made simple now . If you are eligible to file IT Returns ITR 1 (SAHAJ ) , you can now prepare and submit on line itself on the income tax e-filing website You may yourself file on line or use or utilise the service of Tax Return Preparers ( TRPS ) authorised by Income Tax Department , if you are not confident of using the on -line services . Otherwise you may use your chartered accounts for the job . You should keep following details handy for yourself / your employer and your tenant Your Details 1. Aadhara Number 2. Mobile Number 3. E-mail address 4. Residential Address 5. Passport Number ( If you have passport ) Other Details : A. Have you deposited more than Rs 1.00 crore in bank accounts ? B. Have you incurred more than Rs 2.00 lakhs for Foreign Travel ? C. Have you spent more than Rs 1.00 lakh on electricity consumption (All the limits of outgo for the entire year ) For persons with salary income : 6. Details of your Employer a. TAN Number of the Employer b. Name of the Employer c. Nature of Employer d. Address of the Employer 7. Details of all bank accounts held any time during the year a. IFSC Code of the bank b.Name of the bank c. Account number 7. If you have let out a property a. Address of the property b Details of the tenant 1. Name of the Tenant 2. Tenant's Aadhaar Number 3. Tenant's PAN Number The benefits of filing tax returns early is 1. You will have sufficient time to collect relevant documents , prepare , cross check and then submit . You can reduce errors . 2. As the income tax servers would be relatively free , last minute slowdown of computers due to heavy rush for submissions . 3. Processing of your returns by IT department would be faster and you will get refunds faster . 4. You will be avoiding penalties , interest etc levied on belated submission . So take steps now to have advantages of filing IT Returns early HOW TO FILE ITR1 SAHAJ ON INCOME TAX EFILING SITE ?HOW TO FILE ON LINE ON INCOME TAX E-FILING WEBSITE ? 1. GO TO INCOME TAX E-FILING WEBSITE 2. LOGIN USING YOUR PAN NUMBER AND PASSWORD AND ALSO ENTER CAPTCHA 3. GO TO DASH BOARD AND CLICK ON " FILING OF INCOME TAX RETURN ' 4. In the next screen , select assessment year in the dropdown menu 2020- 21 5 . Then select ITR1 if it is appropriate for you . 6 . You can submit either by preparing on on-line or upload XML file . Then enter submission mode . Presently only " UPLOAD XML " Option is only available for ITR2 & ITR 3 . You can either download pre-filled XML file from the menu of your logged in account or prepare afresh XML file using Income tax Return Utilities . After filling all the details , you may upload XML File Now to download Prefilled XML File Go to MY ACCOUNT and click on Download Prefilled XML In the new screen , choose the Assessment year as 2020-21 and choose appropriate form . You will get the pre-filled XML file which you can download . The screen will also show the details in the pre-filled forms are collected from which sources and what are the additional details you have to fill up . You can alter the pre-filled forms with correct figures before uploading again For preparing XML FORMS afresh , Go to INCOMETAX RETURN UTILITIES A. Select the Assessment Year 2020-21 B. Download either excel or Java utility. The utility by default will get downloaded in your system 'download' folder in a compressed mode (ZIP file) C. Extract (un-compress) the zip file containing the utilities. The folder will be extracted in the same location where the compressed utility was downloaded. Open the utility and start filling. D. System Requirements Excel Utilities: Macro enabled MS-Office Excel version 2010/2013/2016 on Microsoft Windows 7 / 8 /10 with .Net Framework (3.5 & above) Java Utilities : Microsoft Windows 7/8/10, Linux and Mac OS 10.x with JRE (Java Runtime Environment) Version 8 with latest updates. JRE can be downloaded from https://java.com/en/download/ After downloading and filling the form , you may upload XML File to continue . NO ANNEXURE PLEASE : No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return SOME IMPORTANT POINTS TO BE NOTED WHILE FILLING ITR1
1. Name should be as per PAN card 2. NATURE OF EMPLOYMENT : Please tick the applicable check box- (a) If you are a Central Government Employee, tick 'Central Govt' (b) If you are a State Government Employee, tick 'State Govt' (c) If you are an employee of Public Sector Enterprise (whether Central or State Government), tick 'Public Sector Undertaking' (d) If you are drawing pension, tick 'Pensioners' (e) If you are an employee of Private Sector concern, tick 'Others' (f) If you have income from Family Pension, etc., tick ‘Not applicable’ SALARY DETAILS : List of types of salary payment :- 1. Basic Salary 2. Dearness Allowance (DA) 3. Conveyance Allowance 4. House Rent Allowance (HRA) 5. Leave Travel Allowance (LTA) 6. Children Education Allowance (CEA) 7. 7. Other Allowance 8. The Contribution made by the employer towards pension scheme as referred under section 80CCD 9. Amount deemed to be income under rule 6 of Part-A of Fourth Schedule 10. Amount deemed to be income under rule 11(4) of Part-A of Fourth Schedule 11. Annuity or pension 12. Commuted Pension 13. Gratuity 14. Fees/ commission 15. Advance of salary 16. Leave Encashment 17. Others (please enter the details in the text box) In case of doubt in filling any column , you may take the help of clarifications given by the IT Department , by CLICKING HERE MATCHING OF FORM 26AS WITH YOUR IT RETURNS
15.06.2020 : It is important to match the information in Form 26AS with the information you provide in the Income tax returns as any mismatch may attract lengthy / unwanted correspondence with the income Tax department later . In this context , some of our readers are pointed out the the 26AS for FY 2019-20 is not reflecting all the transactions in their accounts like salary payment / pensions / interest payments especially done in the last quarter of the year . Hence they are unable to match the returns like ITR1 with their 26AS . As the employers / bankers have time to file the returns to be submitted by them till 30.06.2020 , many would have not yet filed them . Hence 26AS may not yet reflect all your transactions at present . So one may wait till the employers / bankers file their returns till 30th, June 2020 , verify and match and then file their returns .As Last date for filing ITR Returns is 30.11 2020 , you will have plenty of time to file your returns . HOW TO E-PAY INCOME TAX ?
Procedure for e-payment of Income Tax : Step-1 To pay taxes online, login to NSDL WEBSITE : Step-2 Select the relevant challan i.e. ITNS 280 and proceed Step-3 Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address of the tax payer and the bank through which payment is to be made etc. Step-4 On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen. Step-5 On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of the bank. Step-6 The taxpayer has to login to the net-banking site with the user id / password provided by the bank for net-banking purpose and enter payment details at the bank site. Step-7 On successful payment a challange counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made. DUE DATE FOR FILING RETURNS FOR FY 2019-20 ( AY 2020-21 ) IS EXTENDED TO 31.12.2020
FOR TAX PLANNING FOR FY 2018-19 , CLICK HERE
Submission of IT Return is not complete without verifying the same .For various ways of verification ,CLICK HERE
INCOME TAX DEPARTMENT WARNS SALARIED PERSONS AGAINST WRONG DECLARATIONS WHILE FILING OF IT RETURNS :
As per amended section 270A of Income Tax act , mis-reporting of income may be fined 50 % of tax payable and it can go up to 200% if it is judged as concealment of income . For 270A section of IT Act , CLICK HERE and fill 270A in section column TO GET UPDATES THROUGH OUR NEWSLETTERS , FILL YOUR E-MAIL AND SUBMIT JOIN OUR NEWSLETTER
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FOR READING ARTICLE TAX ON RETIREMENT BENEFITS , CLICK HERE
PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HERE
FINANCIAL PLANNING FOR YOUNG , CLICK HERE HOW TO LINK AADHAR WITH PAN ? CLICK HERE
PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HERE
FINANCIAL PLANNING FOR YOUNG , CLICK HERE HOW TO LINK AADHAR WITH PAN ? CLICK HERE
IMPORTANCE OF FILING RETURNS WITHIN DUE DATE
The Due date for submission of above returns fixed for the Financial Year 2019-20 is now 31.12.2020 . However ,it is advisable to file as early as possible to avoid last moment scramble to get relevant papers / details for filing the same .
Delay in filing the return of income may attract certain adverse consequences. Following are the consequences of delay in filing the return of income:
1 . Loss (other than loss under the head “Income from house property”) cannot be carried forward.
2. Levy of interest under section 234A.
3 . Levy of fee under section 234F*
4. Exemptions/deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available.
W.e.f. assessment year 2018-19, if assessee failed to furnish return of income within due date as prescribed in section 139(1) then he is required to pay:-
a) Rs. 5000 if return is furnished on or before 31 December of assessment year.( It is not applicable for THIS YEAR AS DUE DATE IS EXTENDED )
b) Rs. 10,000 in any other case.
However, if total income of the person does not exceeds Rs. 5 lakh then fee payable shall be Rs. 1000.
Delay in filing the return of income may attract certain adverse consequences. Following are the consequences of delay in filing the return of income:
1 . Loss (other than loss under the head “Income from house property”) cannot be carried forward.
2. Levy of interest under section 234A.
3 . Levy of fee under section 234F*
4. Exemptions/deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available.
W.e.f. assessment year 2018-19, if assessee failed to furnish return of income within due date as prescribed in section 139(1) then he is required to pay:-
a) Rs. 5000 if return is furnished on or before 31 December of assessment year.( It is not applicable for THIS YEAR AS DUE DATE IS EXTENDED )
b) Rs. 10,000 in any other case.
However, if total income of the person does not exceeds Rs. 5 lakh then fee payable shall be Rs. 1000.
E-VERIFICATION OF RETURNS FILED THROUGH E -FILING
Submission of IT Return is not complete without verifying the same . For various ways of verification , CLICK HERE
FOR READING ARTICLE TAX ON RETIREMENT BENEFITS , CLICK HERE
PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HERE
FINANCIAL PLANNING FOR YOUNG, CLICK HERE
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THIS ARTICLE CARRIES INFORMATION ON VARIOUS TAX PROVISIONS WHICH ARE GENERALLY USEFUL .YET IT DOES NOT CARRY ALL THE PROVISIONS AND HENCE YOU ARE ADVISED TO GO THROUGH INCOME TAX DEPARTMENT WEBSITES FOR AUTHENTIC COMPLETE INFORMATION . ESPECIALLY THOSE WHO HAVE GOT MULTIPLE STREAMS OF INCOME OR COMPLEX INVESTMENTS MAY CONSULT A QUALIFIED TAX CONSULTANT / CHARTERED ACCOUNTANT FOR ANY CLARIFICATION. READERS ARE ALSO WELCOME TO SEND FEEDBACK . YOU CAN DOWNLOAD THE FORM HERE . WE ARE OPEN FOR CORRECTION IF NEEDED
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