Tax returns submitting this yr: What has modified

Every yr, there are particular adjustments which are included within the kinds issued for submitting revenue tax returns (ITR) and the processes concerned, which the taxpayer ought to find out about. This yr, too, sure revisions have been made to the kinds and processes concerned. Here are a number of the adjustments you must find out about once you file your tax returns.

Change in tax kinds: ITR-1, often known as the SAHAJ kind, is without doubt one of the mostly used tax kinds. It might be stuffed by a resident particular person whose complete revenue from wage or pension just isn’t greater than ₹50 lakh, has one home property and agriculture revenue of as much as ₹5,000.

If an individual is the director of an organization, or holds investments in unlisted fairness shares, he/she just isn’t eligible to file returns utilizing the ITR-1 kind.

However, this yr, the eligibility standards for this manner has been revised. Section 194N of the Income Tax Act requires banks, put up workplaces and co-operative banks to deduct TDS (tax deducted at supply) of non-filers of ITR. As per the newly notified kinds, such taxpayers won’t be able to file returns utilizing ITR-1.

This yr, additionally, you will have to say within the tax kinds whether or not you might be choosing a brand new tax regime or the previous one.

Further, you’ll have to declare dividend revenue from shares and fairness devices this yr beneath the pinnacle ‘income from other sources’, as now the dividend revenue is taxable. Earlier, dividend revenue was proven beneath the pinnacle ‘exempt income’.

In Finance Act, 2020, workers receiving ESOPs (worker inventory choice plans) from eligible startups had been allowed to defer taxes.

TDS on the perquisite stands deferred to earlier of the next occasions, expiry of 5 years from the yr of allotment of ESOPs, date of sale of the ESOPs by the worker, or date of termination of employment. Such workers won’t be able to file ITR-1; they may as an alternative must file ITR-2. The respective ITRs have been amended accordingly.

Pre-filled info: The tax division can be offering sure revenue pre-filled to taxpayers from this yr. “Taxpayers are requested to verify the small print in every part. These particulars are pre-filled from numerous sources, however it’s advisable to recheck them with the precise info. If there may be any mismatch, the taxpayer shall edit the pre-filled particulars,” stated Tarun Kumar, a New Delhi-based chartered accountant.

JSON facility: Until final yr, the return may very well be filed via the taxpayer login or utilizing the Excel and Java utilities out there for e-filing. “This yr, the division has achieved away with the Java or Excel utility and launched the JSON (JavaScript Object Notation) utility for e-filing. There is a standard offline utility for submitting ITR-1, ITR-2, ITR-3 and ITR-4 for evaluation yr 2021-22. Although the return might be filed via the JSON utility, it’s advisable to make use of the e-filing platform as it’s the best method to file returns,” stated Kumar.

Extension of deadline, however no aid from penal curiosity: The extension of deadline doesn’t present any aid from penal curiosity {that a} taxpayer has to pay in case there may be an excellent tax legal responsibility both beneath self-assessment tax or advance tax. Interest beneath Section 234A is levied if the ITR submitting is delayed.

Say the deadline for submitting ITR is 31 July, and an individual recordsdata ITR on 5 August, curiosity can be levied on the fee of 1% per thirty days on the tax due. However, like final yr, the federal government has offered aid beneath Section 234A to taxpayers whose self-assessment tax is as much as ₹1 lakh.

Penal curiosity is levied upon delay in submitting ITR beneath Sections 234B and 234C. Under Section 234B, one is required to pay curiosity on the fee of 1% if the taxpayer has not paid advance tax or has paid lower than 90% of the tax legal responsibility. Under Section 234C, curiosity is levied in case the advance tax paid is lower than the prescribed instalments.

If there’s a shortfall upfront tax fee, curiosity on the fee of three% is charged for that specific quarter.

Therefore, it’s higher for taxpayers to file their ITR and pay due tax in time to keep away from curiosity penalties.

Subscribe to Mint Newsletters * Enter a legitimate e mail * Thank you for subscribing to our e-newsletter.

Never miss a narrative! Stay related and knowledgeable with Mint.
Download
our App Now!!

Topics