The due date of filing ITR varies depending on the type of taxpayers viz. Individual, HUF, Firm, LLP, Company, Trust and AOP/BOI and the applicability of audit.
2. The last date for filing the income tax return is generally on 31 July of the assessment year (AY). The ITR must be filed for income earned from 1 April 2020 to 31 March 2021, latest by 31 July 2021 unless extended by the government.
3. In my view, the right time to file an Income Tax Return for the financial year 2020-21 is not before 15th June 2021.
4. In this article, an attempt has been made to explain the followings: –
(a) what are the/documents details required for filing Income Tax Return.
(b) The source from where details are picked up in pre-filled ITR Form / Form 26AS/ Form 16 / Form 16A.
(c) Why the return for the financial year should not be filed before 15th June 2021.
5. The prescribed ITR Forms and procedure of filing an Income Tax Return varies as per the income earned per year and income source like salary, business profit, investment profit, and so on. Certain documents are a must before preparing and submitting an Income Tax return.
6. FORM 26AS: Form 26AS is the most important document required before filing ITR. This Form is also known as the annual consolidated statement, which contains all tax-related information of the taxpayer i.e. details of tax deducted at source , advance tax etc.
6.1. Form 26AS also reflects details of Annual Information Return (AIR), which is filed by different entities based on what an individual has invested or spent, mostly high-value transactions
6.2 All these are required to be reported by 31 May 2021. This implies that till mid-June, pre-filled returns & Form 26AS would not be updated on the tax department’s website, and the taxpayer may not be able to file a tax return with correct information.
7. Form 26AS picks up the TDS details on the taxpayer’s income based on what is uploaded by the deductor.
7.1 A deductor is the person/entity who deducts the tax at the source on a specified payment made. The tax deducted by the deductor using such a TDS mechanism has to be deposited with the Income Tax Department within a prescribed time limit.
7.2 The TDS deductor is also required to report the details of tax deducted in a statement. Form 24Q, 26Q, 27Q, and 27EQ are the TDS return forms required to be presented by the deductor to Income Tax Department.
8. FORM 16: Form 16 is the basis for filing the income tax returns for a salaried employee. This is also known as the TDS (Tax Deducted at Source) certificate, provided by the employer after furnishing the information related to the taxes paid on behalf of the employee.
8.1 Form 16A is issued if tax is deducted under any provision except section 192.
9 TDS FORM 24Q: The employer deducts tax under Section 192 of the Income Tax Act, 1961, at the time of paying salary to the employee. Details of the salary paid and the TDS deducted from it are reported in Form 24Q. This form is submitted to the Income Tax Department on a quarterly basis.
9.1 Form 24Q is made up of two annexures – Annexure I and Annexure II. Annexure I of Form 24Q consists of details about the deductor, challans, and deductees. Details of deductee(s) to be mentioned include employee reference number (if available), name of the employee, PAN of the employee, date of payment/ credit, TDS Section code, TDS amount, the amount paid or credited, and education cess.
9.2 Annexure-II consists of salary details like the total breakup of the salary and deductions to be claimed by the employee. Annexure I is required to be filed on all four quarters of a financial year whereas Annexure II has to be submitted only on the fourth quarter of every financial year.
10. TDS Form 26Q: Form 26Q is used for the TDS on all the payments made other than the salary. It has to be submitted by the deductor every quarter and is applicable for TDS u/s 193 and 194 of the Income Tax Act of 1961. Form 26Q is used for TDS on income such as dividend securities, interest on securities, directors’ remuneration, professional fees, etc.
11. TDS Form 27Q: TDS Form 27Q is relevant for payments made except the salary to non-resident Indians and foreigners. It is used for the declaration of TDS for the NRIs and Foreigners. Form 27Q is submitted by the deductor every quarter and is relevant for TDS u/s 200(3) of the Income Tax Act of 1961. Form 26Q is used for TDS on additional income such as interest, bonus, or any other sum owed to NRI or foreigners.
12. TCS Form 27EQ Form 27EQ refers to the quarterly statement of TCS that reflects the details of the TDS u/s 206C of the Income Tax Act of 1961. It can also be called the statement that furnishes the Tax Collected at Source (TCS). The form 27EQ is submitted by the corporate deductors & collectors every quarter and it is mandatory to furnish TAN in this form.
13. Form 16/16A will be issued by the deductor after filing the TDS returns.
14. PRE-FILLED ITR FORM: Presently, the ITR Forms come pre-filled with details of salary income, tax deducted at source, tax payments, etc to ease the compliance burden of taxpayers.
The Finance Minister, in her Budget speech for Finance Bill, 2021, announced that from FY 2021-22, the details of capital gains from listed securities, dividend income, and interest from banks, post office, etc, will be pre-filled in ITR Forms.
The information is pre filled Form is also reflected in Form 26AS available in taxpayer’s account at www.incometaxindiaefiling.gov.in.
15. The last date of filing TDS returns for the 4th quarter of the financial year 2020-21 is 31st May 2021 and for TCS return, it is 15th May 2021.
16. Thus, it is advisable that tax payers should file their Income Tax Return only after 15th June 2021 as by then, the Pre-filled IT Return /Form 26AS / Form 16 will reflect updated details of taxable income and tax deducted thereon.
Disclaimer: The article is for education purposes only.
The author can be approached at [email protected]