The Article contains simplified and brief discussion of the following:-

1. Meaning of Income Tax Return

2. Who is required to file Income Tax Return

3. Due dates for Income Tax Return

4. Late Fees for belated filing of Income Tax Return

5. Consequences of non-filing of Income Tax Return

WHAT IS ITR?

  • ITR is a form required to be filed by certain taxpayers containing information about income earned, tax saving investments, tax refunds and tax payable and/or paid thereof during the financial year.
  • There are 7 types of ITR forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7, different taxpayer has to file different ITR forms depending on amount of income, type of income and nature of taxpayer.
  • ITR shall be filed on or before applicable due date.

CONSEQUENCES OF NON-FILING/FILING OF ITR

  • Filing of ITR legitimizes the income and investments, whereas non-filing means that taxpayer has not disclosed the taxable income required to be disclosed, which in layman’s language is termed as black money.
  • Further, if one has paid excess tax, ITR shall be filed in order to claim refund of tax paid in excess.
  • Further, ITR plays a crucial role in applying loan, credit card, visa approvals etc.
  • Protection from penalty and prosecution.

IS FILING ITR COMPULSORY?

ITR is not required to be filed by every person who earns income, only following persons are required to compulsory file ITR.

1) If one wants to claim refund of income tax paid in excess.

2) The gross annual income exceeds the basic exemption limit (i.e. Rs. 2,50,000 for taxpayers upto 60 years of age, 3,00,000 for taxpayers above 60 years upto 80 years of age, 5,00,000 for taxpayers more than 80 years of age.)

3) If person has more than one source of income like house property, capital gains etc.

4) If one has earned from or has invested in foreign assets.

5) If taxpayer is a company or a firm, irrespective of profit or loss.

6) If taxpayer wants to carry forward loss.

7) Income is derived from property under charitable trust, religious purposes, research or for a political party, medical institution, hospital or any other institution.

8) Taxpayer is a foreign company taking treaty benefit on a transaction in India.

9) Taxpayers is claiming relief of double taxation under section 90, 90A or 91

10) If one wish to apply for visa or a loan.

DUE DATES FOR FILING ITR

Type of Taxpayer/Assesssee Due Date
Taxpayer who is not subject to Tax Audit (including salaried employee) 31st July
Taxpayer who is subject to Tax Audit

Company

Working partner of a firm whose accounts are subject to tax

audit

30th September
Taxpayer who is required to furnish Report of Transfer Pricing under Section 92E of Income Tax Act, 1962 30th November

Note: If accounts are audited under any other law, taxpayer need not get his accounts audited again for income tax purposes.

LATE FEES FOR FILING OF ITR AFTER DUE DATE

TOTAL INCOME LATE FEES
Upto Rs. 5,00,000 Rs. 1000
Exceeding Rs. 5,00,000 Rs. 5000 – ITR furnished upto 31st December

Rs. 10,000 – ITR furnished after 31st December

♦ The author may be contacted at e-Mail: [email protected] and 9675899911.

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2 Comments

  1. Dongre Kirti Vijay says:

    i have filed the itr before july 2020 , yet not got the reply/refund. what is the last date for income tax dept. to close the itr status.

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