Income Tax Return for Individuals

Income Tax Return has to be mandatorily filed by an individual in the following cases: -

  • Where the total income before deductions exceeds Rs. 2,50,000
  • Where the individual has incurred electricity expenditure exceeding Rs. 1,00,000 in aggregate
  • Where the individual has deposited an amount or aggregate of amounts exceeding Rs. 1 crore in one or more current accounts maintained with a bank
  • Where the individual has not filed a return of income and receives a Notice u/s 142(1) from the Assessing Officer requiring him to file a return
  • Where the individual has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 2,00,000 for himself or any other person for travel to a foreign country
  • Where the individual is a resident and a beneficial owner of any asset (including financial interest in any entity) located outside India or has signing authority in any account located outside India
  • Where the individual is a resident and a beneficiary of any asset (including financial interest in any entity) located outside India, provided income arising from such asset is not assessable in the hands of the beneficial owner

Types Of Returns

Presently all income tax return are to be compulsorily filed electronically unless the individual is above the age of 80 years who furnishes the return in ITR 1 or ITR 2.

Income Tax returns may be filed by an individual in Form- ITR-1, ITR-2, ITR-3 and ITR-4 depending on the nature of income and the types of transactions carried out during the year.


The criteria of each of these forms are as follows:-


ITR-1: Individuals being a Resident who have total income up to 50 lakhs; income from Salaries, income from one house property, income from other sources (interest etc.). The individuals should not be a Director or should not be holding equity shares in an unlisted company.

ITR-2: Individuals and HUFs not having income from profits and gains of business or profession

ITR-3: Individuals and HUFs having income from profits and gains of business or profession

ITR-4: Individuals, HUFs and Firms (not being an LLP) being a Resident having Total Income upto Rs 50 Lakhs and having from Business and Profession which is computed under sections 44AD, 44ADA or 44AE. The individuals should not be a Director or should not be holding equity shares in an unlisted company.

Video on Income Tax Return for Individuals FY 2019-20

  • Income Tax Returns applicable to an individual
  • ITR-1 Explanation
  • ITR-2 Explanation
  • ITR-3 Explanation
  • ITR-4 Explanation

In general the due date for filing return for an individual for the Assessment Year 2020-21 will be 31st July, 2020. However, the due date will be 30th September, 2020 in the following cases: -
• Where the books of accounts of the individual are required to be audited under the Income Tax Act or under any other law
• Where the individual is a working partner of a firm whose accounts are required to be audited under the Income Tax Act or under any other law

You may still file your return on or before the end of the Assessment Year. Belated Return is however subjected to interest and penalty.

You may still file your return on or before the end of the Assessment Year. Belated Return is however subjected to interest and penalty.

 

Where total income does not exceed Rs. 5,00,000 Rs. 1,000
Where total income exceeds Rs. 5,00,000 and return is filed on or before 31st December of the Assessment Year Rs. 5,000
Where total income exceeds Rs. 5,00,000 and return is filed between 1st January to 31st March of the Assessment Year Rs.10,000

 

Apart from the above, interest shall also be charged on the outstanding tax amount (if any) at the rate of 1% per month or part of the month (simple interest) from the relevant due date till the date of actual filing.

Income Tax Return must be filed latest by 31st March, 2021 along with payment of applicable late fee. Return cannot be filed after 31st March of the Assessment Year unless the delay is condoned by the Assessing Officer / Commissioned of Income Tax / Chief CIT / CBDT depending on the circumstances.

If an individual who is mandatorily required to file return fails to file return, the consequences may be severe. Apart from interest and penalty mentioned above, the assessee may be subjected to Best Judgement Assessment. Further, penalty for concealment of income may be levied and prosecution may be initiated. Several kinds of losses are not allowed to be carried forward where return is not filed on or before due date.

Yes. Any person who is not mandatorily required to file return of income may file such return voluntarily.

Capital Gains or capital loss arise on sale of units of mutual funds (except in the case where units are held as stock in trade or sale is in the nature of speculative transaction). Tax will depend upon the period of holding of the unit sold and the residential status of the assessee. Usually where long term capital gain arises on equity oriented mutual fund, capital gain up to Rs. 1,00,000 is exempt and the balance is taxed at the rate of 10%.

Employee Stock Option Plan empowers an employee to own equity shares of the employer company. On exercise of the option by the employee, the difference between the Fair Market Value and the Exercise Price of the share shall be considered as a perquisite, i.e. a part of salary. Hence the employee can file ITR-1.

However ITR-1 is not applicable where the individual is holding shares in an unlisted company. If the employee exercised the option of purchasing shares and the employer company is unlisted, in such a case ITR-1 cannot be filed and ITR-2 will be applicable.

Selling of House Property, held as a capital asset, gives rise to capital gain / loss. The individual who has sold a house property should file ITR-2.

Yes. The original return can be revised on or before the end of the Assessment Year. Therefore, Original Return relating to FY 2019-20 can be revised any time on or before 31st March, 2021.

Yes. There is no limit in the number of times a return can be revised. However, no revision shall be allowed after 31st March of the Assessment Year.

Yes. Since your total income is less than Rs. 2,50,000, the law of mandatory return filing is not applicable to you. However, if you do not file your return, the loss will not be carried forward to future years. On the contrary, if you file a loss return, you will be able to carry forward and set off the capital loss in future assessment years. Hence it is always advisable to file your return.

Return is to be filed if total income (including exempt income) exceeds minimum amount not chargeable to tax. Such total income shall be calculated before deductions under Chapter VIA or deductions under Capital Gain.

Yes. All exempt income should be appropriately disclosed in the Income Tax Return.

You have to file return only if you have income exceeding the minimum amount not chargeable to tax i.e. Rs. 2,50,000 accruing / arising in India. The slabs available to senior citizens and super senior citizens are not available to non-residents.

As soon as a return is uploaded, an acknowledgement is generated. Where the return is digitally signed / e-verifed, no further verification is necessary. The assessee is advised to keep a copy of the acknowledgement for future reference. The soft copy of the acknowledgement and the Income Tax Return can always be downloaded from the Income Tax Portal.

Where the return is digitally signed, no verification is necessary. Return may be e-verified through Aadhaar / EVC. Where e-verification could not be done, the assessee needs to take a print out of the acknowledgement, duly sign it and send to Centralized Processing Centre, Income Tax Department, Bengaluru-560500 by Ordinary Post or Speed Post within 120 days from the date of submission of return.

Where verification is not done, the return shall be declared as void on expiry of 120 days from the date of filing.

There are a number of deductions that an individual can claim from the total income. Some of them are:-

  1. Life Insurance Premium
  2. Tuition fees of children paid to school
  3. Repayment of Housing Loan
  4. Repayment of Education Loan
  5. Contribution to Provident Fund
  6. Donation to various Government Schemes
  7. Donation to Charitable Trusts
  8. Investment in Tax Savings Deposits, etc.
  9. Mediclaim premium

 

The above deductions are however subject to certain conditions.

What's included

  • Salary Income
  • House Property Income
  • Savings Bank Interest
  • Fixed Deposit Interest
  • Interest from Provident Fund

Documents Required

  • PAN Card
  • E-Filing password (if any)
  • Form 16 (for salaried persons)
  • Form 16A (for persons receiving income other than salary)
  • Bank Statements (for saving account interest)
  • Interest Certificate from Bank (for Fixed Deposit Interest)
  • Life Insurance / Mediclaim receipts (if any)
  • Share / Mutual Funds Annual Statement (if any)
  • Any Other document / information as may be required

Income Tax for Individuals


e-Filling of Returns/Forms is mandatory for salaried Individual or self-employed individuals and HUFs who have income earned from a business entity. Complete your ITR Filing through Filecrat at a reasonable fee.

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