Good News for the TaxPayers !! Income Tax Department decided to refund the excess amount and late fee for filing ITR for 20-2021

ITR is a form which a person has to submit to the Income Tax Department of India during the year. This contains the information about the income he has earned during the year and the tax due on that income for that year.

There is good news for the tax payers. Income Tax Department decided to refund the excess amount and late fee for filing ITR for 20-2021 due to the software error. The department had earlier extended the last date for filing returns till September 30, 2021 from July 31, 2021 because of the pandemic.

“Taxpayers have been advised to use the latest version of the ITR preparation software or file online. If, by any chance, someone has already submitted the ITR with such incorrect interest or late fee, the same will be correctly calculated while processing at CPC-ITR and the excess amount paid, if any, will be refunded in the normal course,” the I-T department tweeted.

Following are the due dates for filing ITR:

Particulars31st July
Person (other than company) not covered under tax audits30th September
Person covered under tax auditsDue Date
Person who has undertaken international transactions and is liable to report under 92E30th November

Following are the documents that are required for Income Tax Return Filing in India:

•        Pan Card

•        AADHAAR Card

•        Form-16

•        Form -26AS

•        Tax Challans

•        Bank Statements

•        Investment Proofs

•        Capital Gains Statements

•        Trading Statements

  1. PANCARD

PAN is stand for permanent account number, it’s a physical card which is issued by the income tax department for the taxpayers in India. It’s a 10-digits alphanumeric numbers.

This help the individual to records all the transactions and information which is related to the tax activities with his unique and permanent account number. The PAN card includes information, such as name, numbers, signature, photographs, and the date of birth of the individual card holder.

How PAN card works in tax and mandatory of this?

PAN helps the individual to return of income on all tax- related transaction.  PAN primarily acts as a database for all individual transactions, such as the Tax Collected At Source /Tax Deducted At Source (TCS/TDS) credits, income tax payments, return on gift/investments/wealth, etc.in another words, the PAN enables the tax department to identify an individual’s activities and tax-related transaction.

  •         AADHAAR CARD

It is issued by the Unique Identification Authority of India (UIDAI), government of India. It is a verifiable 12-digits identification number which help to know the residence of India free of cost.

AADHAAR is not a citizenship documents-UIDAI. AADHAAR card is significant as a PAN card. Most organizations, including mutual fund houses, accept it as a part of the documentation for investments.

The validity of AADHAAR card is lifetime for every individual. The inception of AADHAAR card from ‘September 2010’.

The eligibility of an AADHAR card?

  1. Any resident of India eligible for an AADHAAR card.
  2. NRI and foreigners staying in india for more than 12 months are eligible for the AADHAAR card.

Documents required for AADHAAR card?

There are in needed for two documents in AADHAAR card:-

  1. Proof of address (POA).
  2. PAN card
  3. Certificate of birth.
  4. Proof of identity (POI).
  5. Passport.
  6. PDS/ ration card.
  7. Voter identification card
  8. Driving license  
  •         FORM-16

Form- 16 is essential a certificate employers to their employees It gives a detailed summary of the salary paid to the employee and the TDS deducted.

It contains the information you need to prepare and file for your income tax returned at the end of the year. Employers must issue it every year or before June 15 of the next year, or immediately after the financial year in which the tax is deducted for the employees.

In case if you lose your form 16, you can request for a duplicate from your employer.

Form-16 has two components:-

  1. Part A
  2. Part B
  3. Components of Part-A
  4. Name and address of the employer
  5. TAN and PAN of employer
  6. PAN of the employee
  7. Summary of tax deducted and deposited quarterly, which is certified by the employer.
  8. Components of Part-B
  9. Detailed breakup of salary
  10. Detailed breakup of exempted allowances under Section 10
  • FORM-26AS

Form 26AS is a consolidated annual tax statement that shows the details of tax deducted at source, tax collected at source, advance tax paid by the assesse along with self-assessment tax. This information is specific to a Permanent Account Number (PAN).

The form also shows details of sale/purchase of immovable property, mutual funds, cash deposits or withdrawal from savings account etc. An assessed can claim the tax deducted reflecting in their form 26AS while filing their income tax return for a financial year.

What are the components of Form 26AS?

Before you file your income tax return, the assesse must make sure that data related to tax deducted at source as reflected as per Income Tax Department is correct and accurate. This can be done by referring to Form 26AS. This form can be downloaded from the income tax website. Below are the contents of form 26AS:

  • Tax deducted at source (TDS)
  • Tax collected at source (TCS)
  • Details of advance tax, self-assessment tax paid
  • Information about income tax refund
  • Details of tax deducted on the sale of immovable property
  • Details of AIR transactions

E.         BANK STATEMENT

A bank statement is a document (also known as an account statement) that is typically sent by the bank to the account holder every month, summarizing all the transactions of an account during the month. Bank statements contain bank account information, such as account numbers and a detailed list of deposits and withdrawals.

Here are some of the steps to access the bank statement online:

  • Step 1: Login to the account through the bank’s net banking portal or mobile banking app.
  • Step 2: Look for the heading “bank statement” or “e-statements”.
  • Step 3: Select the statement period.
  • Step 4: The bank will send the account statement for the selected period on the registered email ID of the account holder. Alternatively, some banks also provide the option of downloading the bank statement as a PDF through the net banking portal or mobile banking app itself.

F.       INVESTMENT PROOFS

Investment poof is made for the salaried professional/employees. Employers in India have required deducting TDS every year. They might deduct more or less tax than necessary if correct investment proof are not given They have to submit investment proofs so their employers deducts the correct amount of Tax Deducted at Source (TDS).

Time to submit Investment Proof?

If you don’t submit the investment proofs, your employer would deduct the higher tax from your remaining salaries.

You need to submit monthly rent receipts. If you have a leave and license agreement with your landlord, you can submit receipts showing payment of license fee. If you are claiming a deduction of less than Rs.1 lakh, the landlord’s PAN number does not have to be submitted. However if it is more than Rs.1 lakh, the landlord’s PAN number has to be submitted.

G. CAPITAL GAIN STATEMENT

When an investment is sold, the profit part of the sale value is called Capital Gains. In such a situation, capital gains are taxable in the year they are realized or in the financial year when you made the sale.

Therefore, in order to assess the tax liability and file the tax returns correctly, the taxpayer needs to know about their earnings from the capital gains during the financial year.

This information is generally contained in a Capital Gains statement for their investments. If you are investing in Mutual Funds in a non-Demit form there are multiple ways to get your Capital Gains statement for the financial year. In this case, we will discuss the method to get the consolidated capital gains report from CAMS.

H.      Trading Statement

Trading Statement is a report issued by a company every 3-6 months that shows details of its sales for the period:

1.      Their shares rose yesterday after an upbeat trading statement from the chairman.

2.      Last month’s trading statement showed flat sales

  1.    Tax Challan

•        Income tax challan is a simple form used to pay tax to the government.

•        Tax is not deposited to the Income Tax Department directly but deposited in the authorized banks.

•        It can be paid –

  1. Direct online: through net banking,
  2. Manually: by going to the bank physically.        
  3. Prescribed challan form is Challan 280.            

While paying tax challan, it is to be mentioned what type of Income Tax it is.

Types of Income Tax:

•   Self-Assessment Tax –It is the tax paid at the time of filing ITR (after 31 March).

•   Advance Tax- It is the tax paid in advance during financial year (from 1st April to 31st March).

•   Tax on regular Assessment – It is tax paid when some notice is received by Income Tax

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