FAQs on ITR Filing: In view of the problems faced by the people during the Corona epidemic (COVID-19 Pandemic), the government has given a big relief to the people by increasing the deadline for filing income tax return (ITR). Now the deadline for filing ITR is 31 December and for taxpayers whose accounts have not yet been audited, this deadline is 31 January 2021. It is legally necessary to fill the ITR, so file it before the deadline. The answers to many important questions regarding tax returns are given below, which are important to know before filing ITR.
ITR Filling Medium
Income tax returns can be filed mainly through offline or online. It has three options to file ITR online.
- E-filing through Digital Signature (DSC)
- E-filing without digital signature
- E-filing under Electronic Verification Code (EVC)
If the ITR is filed under the use of DSC or EVC, it is not required to send the signed copy of ITR-5 (Acknowledgment of Return filed electronically) to Bangalore CPC. However, if the return is filed without DSC or EVC, the ASC will have to send the signed copy of ITR-5 to the Income Tax Department, Bangalore by ordinary post or speed post within 120 days of uploading the return.
When ITR filing mandatory for Individual or HUF
If the income of an individual or HUF (resident or non-resident) exceeds the maximum exemption limit before claiming the deductions or executions below, it is mandatory to file an ITR.
- Adjudication under section 10 (38) 6
- Deduction under section 10A, 10B, 10BA
- All deduction under Section 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB under section 80C to 80U
Even if the income of an individual (living in India) does not exceed the maximum exemption limit, he / she will have to file ITR under certain circumstances.
- If there is a beneficiary in any form of a property situated outside India.
- Signing authority in any account outside India.
It is mandatory for assessees falling under section 139 (1) to file ITR, irrespective of their gross income. The assessee falling under this provision will be required to fill the ITR under the circumstances given below, if in the preceding year,
- Have deposited more than 1 crore in one or more current account.
- Should have incurred more than two lakh rupees for foreign travel of himself or any other person.
- Should have paid more than 1 lakh as payment of electricity bill.
How important is it to give information about assets and liabilities?
If the taxable income of an individual or HUF exceeds 50 lakhs, then it is necessary to inform them about assets and liabilities at the end of the year. Under Schedule AL, this information can only be filled in ITR-2 and ITR-3, so individuals or HUFs, for whom it is mandatory to give their information, will have to file returns in ITR-2 and ITR-3.
Under this schedule, if you have an income of more than 50 lakhs, you have to give information about real estate, jewellery, price of vehicles, shares, bank and cash balance. Apart from this, the taxpayer will have to provide complete information about the address and movable property of the immovable property.
According to TaxmanDotcom’s DGM Naveen Wadhwa, if the taxpayer has inherited a gift or other item under section 49 (1), its value will be assessed on the basis of its market price.
Online returns mandatory for some taxpayers
It is mandatory for all taxpayers to file online returns for the assessment year 2020-21. However, the Super Senior Citizen is exempted from this. Senior citizens are people whose age in the previous year 2019-20 is 80 years or more. They have to file ITR-1 or ITR-4.