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PERSONAL FINANCE FINANCIAL PLANNING TAX PLANNING BANK ACCOUNTS CREDIT CARDS INSURANCE DEPOSITS STOCKS MUTUAL FUNDS
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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
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
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
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 .
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
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
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.
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 .
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 .
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
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
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.
-
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
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
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
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
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
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.
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.
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
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
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.
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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