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The income earned between 1 Apr 2020 to 31 Mar 2021, called FY 2020-21, will be assessed for tax in the AY 2021-22. The last date for filing returns for individuals is 31 Dec 2021.  This article lists all the articles for understanding Income Tax Return or ITR, filling Income Tax Returns. The following image shows how to calculate Income Tax

Calculation of income tax

Calculation of income tax

What is the Income Tax?

 If you have income there is a tax. To understand Income Tax we need to understand what is Income, Income Tax slabs, Types of Income, the tax on different types of Income when it is taxed, dates and year related to Income Tax, tax cut i.e TDS, how to see TDS, how and when to pay advance tax, how to pay tax due. Our article Understand Income Tax: What is Income Tax, TDS, Form 16, Challan 280,  lists all the articles for understanding basics of Income Tax. 

Last Date to File ITR

The income earned between 1 Apr 2020 to 31 Mar 2021, called FY 2020-21, will be assessed for tax in the AY 2021-22.   Details in our article How to File ITR for FY 2020-2021 or AY 2021-2022

How to File ITR

Income tax filing and processing comprises of following stages.  Our article explains rules applicable on How to File ITR for FY 2020-2021 or AY 2021-2022

    • Compute income (5 types: Income from Salary, Income from owning a house, Income from selling capital (Mutual Funds Stocks, Property/House, Gold), Income from Business/Profession, Income from other sources(Interest on Saving bank account, Interest on FD)
    • Check Exempt Income if any (PPF interest, EPF withdrawal after 5 years, Life Insurance payment)
    • Deduct valid deductions (under Chapter VI-A) 80C,80D etc.
    • Claim TDS already deducted(Check Form 26AS)
    • Determine tax payable. Your net tax due should be 0.
    • Pay the Self Assessment tax using Challan 280 if any and update ITR.
    • Submit ITR.
    • E-verify ITR / Sending ITR-V
    • Wait for ITR to be Processed: Either ITR will be Processed / or you would get Notice

Video on How to File ITR

The 8 min video from Income Tax Department provides guidance to taxpayers on How to e-file ITR-1 (Sahaj) for AY 2020-21

Before Filing ITR

Why should one file ITR? Is it mandatory to file ITR? : It is our constitutional obligation to file tax returns

What is Financial Year and Assessment Year,Difference, ITR,Fiscal Year of World

Income Tax Slabs for FY 2019-20 (AY 2020-21)

Tax MEN and WOMEN SENIOR CITIZEN(Between 60 yrs to 80 yrs) For Very Senior Citizens(Above 80 years)
Basic Exemption 250000 300000 500000
5% tax 250001 to 500000 300001 to 500000
20% tax 500001 to 1000000 500001 to 1000000 500001 to 1000000
30% tax above 1000000 above 1000000 above 1000000
Surcharge 10% of tax where total income exceeds Rs. 50 lakh 

15% of tax where total income exceeds Rs. 1 crore

Education Cess Health & Education cess: 4% of tax plus surcharge
Tax Rebate Rs 12,500 for income up to 5 lakh u/s 87A

Filling Income Tax Return

You can file your income tax returns using the following Options.

  • Do it yourself, file through Income Tax Department website https://incometaxindiaefiling.gov.in/
  • Filing through a professional (Chartered Accountant/Tax Return Preparer (TRP)/Certified Financial Planner)
  • Using an online e filing Service provider like Cleartax.in, MyITreturn.com, Taxspanner.com,Taxsmile.com

Filing on Income Tax Website

Filling ITR1 Form & ITR2

ITR: Income from Other Sources, Exempt Income

House Property and Income Tax Return

Capital Gains and Income Tax Return

Any profit or gain that arises from the sale of a ‘capital asset’ such as House, Gold, Mutual Funds, Stocks is a capital gain. This gain or profit is charged to tax in the year in which the capital asset is sold.

Capital gains are not applicable when an asset is inherited because there is no sale, only a transfer.However, if this asset is sold by the person who inherits it, capital gains tax will be applicable but purchase date would be of original buyer not date of Transfer. The Income Tax Act has specifically exempted assets received as gifts by way of an inheritance or will.

Capital Gain Tax rules differ based on asset and holding period. Capital gains are classified as short and long term capital gains .

Capital Gain Tax : Long and Short Term

Capital Gain Tax : Long and Short Term

Basics:

Challan 280, Self Assessment Tax and Advance Tax

Before filing the ITR one has to make sure that one owes no tax . If after calculating the income, taking care of deductions and deducting the tax already paid (TDS) one realises that one has paid less tax than due then one has to pay the balance tax. This tax is called Self Assessment Tax. One has to calculate the self assessment tax, pay the Self Assessment tax using Challan 280,update the ITR and then submit it.

After Filing Income Tax Return

Income Tax Return Notice

Videos on Income Tax

TDS, Advance Tax, Self Assessment Tax and Form 26AS

Basics of  Income Tax Return

For Employee Understanding Form 16,

Senior Citizen and Tax

NRI and Income Tax

The income that NRI earns abroad is not taxable in India. But if an NRI earns income in India, in the form of interest from deposits, property rent, etc then it is taxable. This income, earned in India, has a basic limit of exemption.

Income Tax for earlier years

Saving Taxes

Understand Income Tax: What is Income Tax, TDS, Form 16, Challan 280,

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