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ITR2 FOR FY 2020-21(AY2021-22)

​BUDGET PROPOSALS FOR FY 2020-21 BY FM Ms NIRMALASITHARAMAN ON 02.02.2020   
TO VIEW/HEAR THE SPEECH  ,​CLICK HERE 

                                                             OUR ARTICLE
                                TAX PLANNING FOR FY 2020-21 
                                    HAS ALREADY  BECOME POPULAR 
​                                           HAVE YOU READ ?    

New  Updated Article : 
​
TAX PLANNING FOR FY 2021-22 ( AY 2022-23 ) 
Comprehensive   Article on Income tax changes in Rules, Rates , Slabs , Rebates  and Estimation 

CLICK HERE TO READ 

Do you know ?  There are  12 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 

NEW  E-FILING WEBPORTAL HAS  MANY GLITCHES  . YOU MAY NOT BE ABLE TO SMOOTHLY  NAVIGATE THROUGH  THE WEBSITE PRESENTLY 
FM has asked  the developers of the website to make  it perfect before 15.09.2021 . Hence you may have to wait    till portal is made   perfect and fully usable satisfactorily . ​

​NEW E-FILING PORTAL OF INCOME TAX DEPARTMENT   IS  NOW OPEN   

Dated  07.06.2021 :    Today  late  in the evening ,  new  e-filing website of income tax department e-filing 2.0 was    thrown open for public    . 
You may now visit the website https://www.incometax.gov.in/iec/foportal   .   

​  To login to the site  , CLICK HERE      Use   your PAN Number as  your user ID .   The old password you were using in the earlier   site will continue to be your password .   
​
  Income tax payers will  be able  to effectively submit   their income tax returns for FY 2020-21   ( AY 2021-22   )    duly matched with form 26As      only   on or after 1st , July 2021  . However tax payers have time up to 30th , September 2021  to file their IT Returns . 

​08.06.2021 :   Presently the new portal is having    glitches   and we understand that the vendor of the software M/S Infosys   is attending to the   same  . 

​We will come out with further details    in due course .

If you have  received salary / pension gratuity arrears   during FY 2020-21  , YOU HAVE TO FILE FORM 10E  before filing IT Returns to claim  tax relief under section 89 of income Tax Act .  For details of  how to file FORM 10E , click here ​

UPDATED   E-FILING WEBSITE WILL HAVE  NEW   WEB ADDRESS , TO ACCEPT CREDIT CARDS 

Dated 27.05.2021 :   Income tax   department is updating the existing   https://www.incometaxindiaefiling.gov.in/home   and  it will be   temporarily closed between 1st, June 2021 to 6th, June 2021  .  The  new  updated  website will  start functioning  from 7th , June 2021  with  a  new web address :     https://www.incometax.gov.in/  

For  further  details  ,  CLICK HERE ​

​YOU CAN STILL  SUBMIT   ITR2   FORM   : 
Dated 03.01.2022 : The last date  for submission of   Income tax  returns for the  Financial Year 2020-21 , without auditing is over  now   ( Last date    was 31.12.2021  ( For the audit  cases , the last date is 15.02.2022  )  .  If you have not been able to submit   your IT RETURNS  so far ,  you can still submit the  belated returns ,    of course along with a  penalty . 

Belated submission of  IT Returns    will attract penalty   ,&  Interest   for any tax due     .    Following are the some  of the   adverse effects 

1 PENALTY  : 

Levy of fee under section 234F*   as detailed  below: 

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.  (  In the current year , there is no penalty  for submission of IT Returns up to 31.12.2021 ) 
b) Maximum of Rs 10,000  beyond 31st , December  ( However  Rs 5,000  is fixed penalty for FY 2020-21   ) . Further ,  if total income of the person does not exceeds Rs. 5 lakh then fee payable shall   be Rs. 1000. only 

2. INTEREST :   Interest  of  1 %  of  tax due every month  under section 234A.  

3. CARRY FORWARD  OF LOSSES  :   Loss (other than loss under the head “Income from house property”) cannot be  carried forward.

4.  Exemptions/deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available. 

​

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 ITR2 FOR AY 2021-22 ?

•   ITR2  is to be used by an individual or a Hindu Undivided Family (HUF) who is not
  eligible to file Form ITR-1 (Sahaj) and who is not having any income under the head “Profits or gains of
  business or profession”. 


• Who is  not eligible to file ITR1 ?    ITR1  cannot  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.

ITR1  form also cannot be used by an individual  ,   Who is having annual income of more than Rs 50 lakhs   and / or 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  ITR1  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.                         

 FOR  READING  GUIDE TO SUBMIT ITR-1 SAHAJ FOR FY 2020-21  , CLICK HERE 

WHO IS NOT ELIGIBLE TO SUBMIT ITR2?

This Return Form should not be used by an individual whose total income for the Assessment Year
2020-21includes Income under the head “Profits or Gains of Business or Profession”.

​If you are not eligible to file ITR1  and ITR2  , CLICK HERE to find  which ITR FORM YOU CAN SUBMIT 

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  . 
​

DOCUMENTS REQUIRED TO FILE ITR2 FOR SALARIED PERSONS / PENSIONERS

NECESSARY DOCUMENTS TO BE OBTAINED BEFORE FILING IT RETURNS 

Due  Date for filing IT Returns for individuals for FY 2020-21 is    30th, September 2021 .
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 
10. Capital gain certificates / statements from your stock brokers  . 
11. Quarter wise dividends received .​
12 . 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 2  , 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. Aadhaar  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  

NO SCRIP-WISE REPORTING OF SHARES FOR SHORT TERM GAINS :  

  If you are  submitting ITR2   , you may have  capital gains   on account of trading in shares  .   Income Tax Department  has given clarification  that  One need not give  details of    share-wise   purchase , sale and  profits earned in Income tax returns by  the tax payers  . It will be sufficient to furnish total  short term capital gain earned   in the returns  . 

However  for the long term capital gains made in the investments in shares  where grandfathering is required to assess the taxable  gain or loss , one has to provide scrip-wise  details of such transactions .  

 With the above clarification ,  returns filing will be easier for those who have earned  income by trading in stocks during the FY 2019-20  . 

SHORT TERM CAPITAL GAIN :   In respect of  assets like shares (equity or preference) which are listed in a recognised stock exchange in India (listing of shares is not mandatory if transfer of such shares took place on or before July 10, 2014), units of equity oriented mutual funds, listed securities like debentures and Government securities, Units of UTI and Zero Coupon Bonds, the period of holding to be considered is 12 months for short term capital gain  . 

LONG TERM CAPITAL GAIN :    In respect of above transactions , assets held for more than  12 months is considered for  Long term Capital Gain .     

What  is Grandfathering ? 

The concept of grandfathering was  introduced in the budget of 2018-19    . 

Long Term Capital Gain Tax on sale of equity shares and equity oriented mutual funds was introduced at 10 % , in the budget , for gains more than Rs 100,000 in the financial year . Further no indexation was allowed for calculating the gain  . However  gains earned up to January 31, 2018  was  allowed to grandfathered . Grandfathering is allowing of existing benefits  for the previous period .   Hence  Long Term Profits earned after February 1,  2018  will only be  taxed    if profits are booked in the financial  year 2018-19  i.e from 01.04.2018 to 31.03.2019 .  The higher of the  purchase price of share or mutual fund   or the  price as on 31st Jan , 2018  for equity  and NAV  as on 31st  , Jan 2018  will be taken as investment cost  for arriving the long term gain .  The concept has continued in the budget of Fy 2019-20 & Fy 2020-21 also .   

WHY SCRIP-WISE  REPORTING IS REQUIRED  FOR LONG TERM CAPITAL GAINS ? 

Without this reporting requirement, there may be situations where taxpayer may not claim or wrongly claim the benefit of grandfathering due to lack of understanding of the provisions. Also, if the  calculation is not made scrip wise and taxpayer is allowed to enter the total figures only, there will be no way for the income tax authorities to check the correctness of the claim and therefore many returns will require to be audited, which may lead to unnecessary grievances/rectifications at a later stage. If scrip wise long-term gain is available, it can be cross verified by the Department electronically with stock exchange, brokerage companies, etc and there will be no need to subject these income tax returns to further audits or scrutiny

 To read the Press Release dated 26.09.2020 , CLICK HERE 

HOW TO FILE ITR2 ON INCOME TAX EFILING SITE ?

HOW TO FILE  ON LINE  IN   THE   NEW INCOME TAX E-FILING WEBSITE ?   
​
 The  general procedure for submitting on-line    in   the new website  is explained below : 

HOW TO FILE  ON LINE  ON INCOME TAX E-FILING WEBSITE ?   

1. GO  TO NEW  INCOME TAX E-FILING WEBSITE   

2.  IF REGISTERED ALREADY  ,  LOGIN  USING YOUR PAN NUMBER AND PASSWORD  (    OLD PASSWORD USED  IN THE EARLIER SITE IS VALID HERE ALSO   ) .   OTHERWISE    REGISTER     WITH YOUR PAN NUMBER 

  3. Link PAN and Aadhaar  , if  not already linked 

4. Pre-validate at least one bank account and nominate it for refund (recommended)   

5.   Link your mobile number with Aadhaar / e-Filing portal / your bank / NSDL / CDSL (for e-Verification)   

6.    Income Tax  forms would be prefilled by the   Income Tax Department  from the fy 2020-21   onwards . All  you have  to do is to verify the correctness    of data   before submitting  . The form has 25 sections  and you have to verify the data in each sections .    

7. You can file and submit your ITR through the following methods:

• Online Mode – through e-Filing portal 
• Offline Mode – through Offline Utility 

How to submit   the IT returns on the e-filing website   ?   
a  .  Log in to the e-Filing portal using your user ID  ( PAN Number )  and password. 

b. On your Dashboard, click e-File > Income Tax Returns > File Income Tax Return.    

c.  In the next screen ,  Select Assessment Year as 2021 – 22 and click Continue.  

d. In the next screen ,  Select Mode of Filing as Online and click Proceed.  

e. :   You may  may select    ITR2   FORM , IF IT IS APPROPRIATE TO YOU   . 

f.  Once you have selected the ITR applicable to you, note the list of documents needed and click Let’s Get Started.    

g. In the next screen , Select the checkboxes applicable to you and click Continue.  

h. : Review your pre-filled data and edit it if necessary. Enter the remaining / additional data (if required). Click Confirm at the end of each section.  There are  25 sections in the form ITR2  and details you may view in the next  section . 

i. Enter your income and deduction details in the different section. After completing and confirming all the sections of the form, click Proceed.

j.  In case there is a tax liability   , You will be shown a summary of your tax computation based on the details provided by you. If there is tax liability payable based on the computation, you get the Pay Now and Pay Later options at the bottom of the page.    

​k. 

• It is recommended to use the Pay Now option. Carefully note the BSR Code and Challan Serial Number and enter them in the details of payment.
• If you opt to Pay Later, you can make the payment after filing your Income Tax Return, but there is a risk of being considered as an assessee in default, and liability to pay interest on tax payable may arise.

l.  Go and pay tax  

m. After paying tax, click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page.  

​n. On the Preview and Submit Your Return page, enter Place, select the declaration checkbox and click Proceed to Validation.  

o. On the Complete your Verification page, select your preferred option   of verifying immediately or later and click Continue.   

p. 

• Refer to How to e-Verify user manual to learn more.
• If you select Verify via ITR-V, you need to send a signed physical copy of your ITR-V to Centralized Processing Center, Income Tax Department, Bengaluru 560500 by normal / speed post within 120 days.
• Please make sure you have pre-validated your bank account so that any refunds due maybe credited to your bank account.     







• ​

q. Once you e-Verify your return,  a success message is displayed along with the Transaction ID and Acknowledgment Number. You will also receive a confirmation message on your mobile number and email ID registered on the e-Filing portal.  

IMPORTANT NOTES : 

1.  Employers   , banks ,   demat companies , mutual funds  etc    have    time  up to 30th  , June 2021  for submitting their data / information   . 

2. Hence  form 26AS  and pre-filled IT Return forms   can undergo changes  till 30th , June    2021  . Further   if income tax department  extends the deadline  , till the deadline   is reached  .  Hence  as of now ,     one can file the  matched return only   after 1st, July 2021  . 

3 .  Presently the new portal is having   some glitches    . Many are unable to proceed    further than  updating profiles  . We understand that the vendor of the software M/S Infosys   is attending to the   same  .    Once   the portal  starts running smoothly ,   we will update the position to you  . 
 ​

DETAILS THAT ARE TO BE FILLED IN ITR2 FORMS

 The  new  ITR2  form for Fy 2020-21 ( ay 2021-22 )  has  25 sections in it   . They are

​3.1     Part A General 
3.2    Schedule Salary 
3.3    Schedule House Property
3.4    Schedule Capital Gains 
3.5    Schedule 112A and Schedule-115AD(1)(iii) proviso
3.6    Schedule Other Sources
3.7    Schedule CYLA
3.8    Schedule BFLA
3.9    Schedule CFL
3.10    Schedule VI-A
3.11    Schedule 80G and Schedule 80GGA
3.12    Schedule AMT
3.13    Schedule AMTC
3.14    Schedule SPI
3.15    Schedule SI
3.16    Schedule EI
3.17    Schedule PTI
3.18    Schedule FSI
3.19    Schedule TR
3.20    Schedule FA
3.21    Schedule 5A
3.22    Schedule AL
3.23    Part B – Total Income (TI)
3.24    Tax Paid
3.25    Part B-TTI   

You may not need  to fill all the schedules  . Verify the schedules relevant to you . 

 1. VERIFY PERSONAL INFORMATION   IN PART A GENERAL:     This section will  have following sub-sections : 


 1 Profile 
 2 Filing section 
 3.  Are you opting for New  or Old  Regime ?   (   Read   below section carefully   to note  the implications of your answer  ) 
 4.  Additional information 
 4. Bank Details 

You need to verify the pre-filled data which is auto-filled from your e-Filing profile. You will not be able to edit some of your personal data directly in the form. However, you can make the necessary changes by going to your e-Filing profile. You can edit your contact details, filing type details and bank details in the form. 

  2.  VERIFY YOUR SALARY DETAILS : 
 
The details of your income like  Gross salary , Perquisites  . Profit in lieu of  salary   , standard deduction  already reported by your employers ,would be  pre-filled here  from Form 26AS. You have to verify  the  correctness  of  the data  . If there are errors , take up with  your employer . 

3. DETAILS OF HOUSE PROPERTIES  : 

 It will have data  on Rent received , housing tax paid  ,   depreciation , interest payable on   housing loan    and it will show net housing income .

 4. VERIFY  CAPITAL GAINS : 

 It will have schedule  112A  in which details of shares purchased and sold  and schedule  115AD ( 1 ) ( III )  PROVISO  for non-resident Indians 

5.  OTHER INCOME : 

The schedule will have details of  other income like interest received on savings bank account , Fixed deposits , income tax  refund  . income from other sources , income from horse races etc . 

6. SCHEDULE CYLA : 

 It will have details of current year losses set off against  current year income  . For example salary received set off against  loss from house property 
 

7. SCHEDULE  BFLA  :  

It will have details of  Earlier  year losses set off against  current year income  . For example   Long  term capital gain of the year   set off against brought forward LTCAPITAL LOSSES . 


8. SCHEDULE  CFL: 

It details the current year losses   to be carried over to future years .  For example  long term losses incurred in share trading this year  . 

9. SCHEDULE VI-A 

Part A   you may  add the deductions you are eligible  under section 80    and Part b contains   your eligible deductions under section 80D. Part C contains other eligible deductions like  interest on savings bank account sec 80TTA  and  interest on bank deposuts  exempted for senior citizens under  sec 80TTB . Part D contains eligible amount SEC 80G   .

 10 . OTHER SCHEDULES  : 

 Other schedules include Schedule AMT , AMTC , SPI , EI, PTI, FSI , TR , TA , AL   and they all relate various details with  regard to your various assets    , additional information in special cases etc 

  11. VERIFY TAX  COMPUTATION  - PART B -TI   : 

The section will contain your  total income tax liability  as computed   from the information available from earlier section .  Verify each item  , check for correctness  . If found correct , confirm it 
 
 12. VERIFY TAX PAID   : 

Details of   tax deducted at source    , as reported in Form 26AS    , would be shown here  . Check all the taxes  deducted by your employer or bank is properly credited   to your account . if not take up with the concerned  . 

 13. . VERIFY TAX PAYABLE : 

 In this part  B -  TT1  , DETAILS OF THE NET TAX PAYABLE BY YOU WILL  BE SHOWN . AFTER TAKING IN TO ACCOUNT ALL DEDUCTIONS YOU ARE ELIGIBLE   . 
 


  Once you confirm , you may   submit the form   by   going to income tax returns >   file income tax returns  . Choose ay as 1921-22 and select filing type as on-line   , select IT Form as  ITR-2 .     You will also get option to pay  now or later  for the net tax payable by you .   

Then you may pre-view again before submitting the return . Once you submit , you may verify the return in the next screen . 


 

CHOSE BETWEEN OLD AND NEW TAX REGIMES

While filing IT Returns   , there is  a  question   :  Are you opting for new tax regime u/s 115BAC ?  Yes  No   

 Before filling just check which is beneficial for you  old tax regime with   rebates or new simplified system  with lower  tax rates  and without any rebates    .  Before answering , check which is   beneficial for you  by going to our webpage   and finding the answer yourself ​

 SOME IMPORTANT POINTS TO BE NOTED WHILE FILLING ITR2  

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’     

​3. 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. 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  

LONG TERM CAPITAL GAIN REPORTING IN ITR 2

​Capital gains arising from sale/transfer of different types of capital assets have been segregated in the form ITR2  .  Important points to be noted : 

1. In a case where capital gains arises from sale or transfer of more than one capital asset, which are of same type, please make a consolidated computation of capital gains in respect of all such capital assets of same type except for following:

 In case of long term capital gains (LTCG) arising on sale of equity shares in a company or unit of equity oriented fund or unit of business trust on which STT is paid, computation of capital gains should be made as per item No. B4 or item No. B7. Please note that separate computation of capital gains should be made for each scrip or units of mutual fund sold during the year as per Schedule 112A and 115AD(1)(b)(iii) proviso. The net capital gains arising on sale of individual scrips should be aggregated and will be auto populated to B4a and B7a of Schedule CG. Thereafter, tax shall be charged at a flat rate of 10% in Schedule SI on the aggregate LTCG, as reduced by Rupees One lakh, for the purpose of tax computation.      

 COST INDEXATION FOR LTCG  : 
For computing long-term capital gain, cost of acquisition and cost of improvement may be
indexed, if required, on the basis of following cost inflation index notified by the Central Government
for this purpose.
S. No.             Financial Year    Cost Inflation Index
1.                         2001-02                       100
2.                         2002-03                       105
3.                         2003-04                       109
4.                         2004-05                       113
5.                         2005-06                       117
6.                         2006-07                       122
7.                        2007-08                        129
8.                        2008-09                        137
9.                         2009-10                       148
10.                      2010-11                        167
11.                      2011-12                        184
12.                      2012-13                        200
13.                      2013-14                        220
14.                      2014-15                        240
15.                     2015-16                         254
16.                     2016-17                         264
17.                     2017-18                         272
18.                    2018-19                          280
19.                    2019-20                          289
20                     2020-21                          301
​21                     2021-22                          317

For detailed instructions on computing Capital gains  ,  go to page no 11 of the instructions  by clicking here 

HOW TO E-VERIFY YOUR IT RETURN - CLICK HERE 

MATCHING OF FORM 26AS  WITH YOUR IT RETURNS 
​
  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 .    Now   Income Tax department will assist you with pre-filled forms for  FY 2020-21   in their new e-filing    portal   . This will  be backed with the information   hey receive which   will also reflect   in Form 26as  . Hence  it becomes  easier for you to match the    information in your IT returns with that  of Form 26as  . 

In this context ,  26AS  for  FY  2020 -21  may  not be  reflecting all the transactions   in your accounts  like salary payment / pensions  / interest payments especially done in the last quarter  of the year  as     bankers / mutual funds  / demat   holders / employers   have time up to 30th , June   for submitting   their information on you  .   Hence wait till  30th , june 2021      to download   form 26AS  and verify  the  returns  . 

To know how to download Form 26AS  in the new website  , CLICK HERE ​

 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.

To know how to  link your Aadhar with PAN ,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 

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 

IMPORTANCE OF FILING RETURNS  WITHIN DUE  DATE 

The Due date for submission of above returns  fixed  for the  Financial Year 2021-22  is   31.07.2022 . 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  Rs. 5000 if return is furnished on or before 31 December of assessment year.  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 

We  value your opinions , comments  and  suggestions. We shall be happy to your feedback on the contents of the   Article . For  Feedback form , CLICK HERE

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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