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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
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
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 .
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.
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 .
VARIOUS MODES OF SUBMISSION OF IT RETURNS
In case you are not confident filing IT Returns on-line yourself , you can also utilise the service of Tax Return Preparers ( TRPS ) authorised by Income Tax Department . .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 .
In case you are not confident filing IT Returns on-line yourself , you can also utilise the service of Tax Return Preparers ( TRPS ) authorised by Income Tax Department . .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 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 31st , July 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 31st , July 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 ON INCOME TAX E-FILING WEBSITE ?
The website is not yet optimized for FY 2020-21 (AY 2021-22 ) . As soon as it is ready for on-line submission , we will intimate our readers here . However we have given general procedure to be followed for filing online .
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 2021- 22
5 . Then select ITR2 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 2021-22 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 2021-22
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
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
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
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
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 .
your 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 .
your returns .
SOME USEFUL RESOURCES WE FOUND ON YOUTUBE
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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
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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 2020-21 is 31.07.2021 . 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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HAVE CAKE AND EAT IT TOO
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