INTRODUCTION

Being the citizen of a Country, it is the duty of every person living therein to contribute towards the growth of the nation. Hence, every person who is citizen of India and earning income from India is required to contribute towards the development of the Country by declaring his/ her actual income and paying tax to the Government accordingly as per the applicable limit. This amount so collected in the form of tax is later used by the government for building up a developed nation.

Let us analyse the tax structure in India.  

WHO CAN FILE INCOME TAX RETURN

The following people are required to file Income Tax Return:

1. Individual
2. Association of Person
3. Body of Individual
4. Firm
5. Company
6. HUFs
7. LLP
8. Trust
9. Society,
10. Any other Artificial Judicial Person and
11. The following person who:

• – earns income exceeding the amount not chargeable to tax (limit are specified below)
• – incurs an expenditure of fifty thousand rupees or more towards consumption of electricity
• – occupied an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise
• – owns or is the lessee of a motor vehicle other than a two- wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not
• – incurred expenditure for himself or any other person on travel to any foreign country;
• – holder of a credit card, not being an “add-on” card, issued by any bank or institution
• – member of a club where entrance fee charged is twenty-five thousand rupees or more
• – is a beneficial owner or a beneficiary of any assets located outside India, or has signing authority in any account located outside India

 

BASIC REQUIREMENTS OF FILING TAX RETURN

• – PAN of the person
• – A valid Bank Account Number
• – Valid Mobile Number
• – Valid Email ID
• – Proper proof of income earned
• – Proper proof of deduction claimed
• – Disclosure of all income earned

 

TAX RATE

Different slab rate has been allocated for different class of people:

For Natural Person:

Nature of Person	Income uptoRs. 2.5 lakh	Income between Rs. 2,50,001-5,00,000	Income between Rs. 5,00,001-10,00,000	Income above 10,00,000
0-60	Nil	5%	20%	30%
60-80	Nil	5% (3,00,001-50,00,000)	20%	30%
80 and above	Nil	Nil	20%	30%
HUF	Nil	5%	20%	30%

*Surcharge and Education and Health Cess as applicable  

For person other than Natural Person:

Nature of Person	Tax Rate	Surcharge	Health and Education Cess
Partnership Firm	30%	12%	4%
Local Authority	30%	12%	4%
Domestic Company, if turnover is uptoRs. 250 Crore in Previous Year 2016-17	25%	If total income is: Rs. 1Cr to Rs. 10 Cr: 7%; Above Rs. 1 Cr: 12%	4%
Domestic Company, if turnover is above Rs. 250 Crore in Previous Year 2016-17	30%	If total income is: Rs. 1Cr to Rs. 10 Cr: 7%; Above Rs. 1 Cr: 12%	4%
Foreign Company with Royalty Income	40%	If total income is: Rs. 1Cr to Rs. 10 Cr: 2%; Above Rs. 1 Cr: 5%	4%
Foreign Company with Other Income	50%	If total income is: Rs. 1Cr to Rs. 10 Cr: 2%; Above Rs. 1 Cr: 5%	4%
Co-operative Society income –          uptoRs. 10,000 –          Rs. 10,001 to Rs. 20,000 –          above Rs. 20,000	10% 20% 30%	12%	4%

*Surcharge shall be subject to the Marginal Relief.

BENEFITS OF FILING ITR

Filing of Income Tax Return has its own advantage. A few of them are listed below:

1. Helps to identify the right source of Income

Filing of Income Tax Return helps to identify the right source of Income. These data helps to identify the area where more people are employed as well as the areas where new opportunities lies to create new employment.

2. ITR is must for Visa Application

For processing the Visa Application, it is must to submit the latest Income Tax Return. Non submission may become the reason of rejection of Visa Application

3. Easy access to Loan Facility

For availing any loan facility, along with KYC documents latest ITR is also must. Depending on the income, credit limit is issued to an individual.

4. Easy access to Credit Cards

The credit card application process gets smoothen if the latest ITR  is submitted. Many times, credit cards are not allotted to individuals who fails to submit their IT Return on time.

5. Source of Income for person other than salaried

Individual who are not salaried do not have their income earned proof. Hence, income mentioned in their Income tax return act as their certificate of income.

6. Help in building nation

Timely filing and Deposit of Tax helps the nation to grow. The tax deposited is distributed between the Centre and the State for the development of the nation.

DUE DATES

  The Due dates for filing of Income Tax Return for the Assessment Year 2019-20 is:

• – For person other than Company and Firms whose books are not liable for Audit: 31^st August, 2019
• – For person whose books are liable for Audit, Company and Firms: 30^th September, 2019
• – For Assessee who is required to furnish report under section 92E: 30^th November, 2019

 

DELAY IN FILING

To ensure timely filing, the concept of imposing penalty has been introduced by the Government. Following Penalties has been imposed:

• For assessee having income upto Rs. 5 lakh
•         – Return filed during 1st September to 31st December: Rs. 1,000/-
•          – Return filed during 1st January to 31st March: Rs. 1,000/-

 

• For assessee having income above Rs. 5 lakh
•          – Return filed during 1st September to 31st December: Rs. 5,000/-
•          – Return filed during 1st January to 31st March: Rs. 10,000/-

Further note that no return is allowed to be filed beyond 31st March of the relevant Assessment Year.  

So after reading the entire Article, hope you got the clear idea about the filing of Income Tax Return, still in case of any confusion, please do contact us today for filing of your ITR without any hassle with Complianceship at complianceship@gmail.com or contact at +91-8010233173