Income Tax Return filing Keep in mind while filing returns : This time there have been some major changes in ITR forms such as reporting requirements, tax deductions and some such changes which were mentioned in the budget presented last year.
Income Tax Return: The last date for filing ITR (Income Tax Return) for assessment year 2020-21 has been extended till 31 December 2020 and for those whose accounts have not been audited, it is 31 January 2021. This time there have been some major changes in ITR forms such as reporting requirements, tax deductions and some such changes which were mentioned in the budget presented last year. Taxpayers must pay attention to these changes while filing ITR for assessment year 2020-21 (financial year 2019-20).
- In the budget of 2019, PAN and Aadhaar were considered almost equal (interchangeability). This means that people who do not have a PAN card, can also fill the Aadhaar number in the ITR, wherever the PAN number is to be filled. For example, in cases such as buyer of a real estate, income from house property, Aadhaar number has also been accepted.
- Apart from this, another important change has been made in ITR filing that now filing has been made mandatory for those whose gross total income is less than the basic exemption limit. Some criterias are given below and it is mandatory to file ITR even if their gross total income is less than the basic exemption limit.
– A total amount of 1 crore or more has been deposited in one or more current accounts in the financial year 2019-20.
– Has spent more than 2 lakhs for himself or any other person on a foreign trip.
– Should have spent more than 1 lakh rupees on electricity consumption in the financial year 2019-20.
- The fiscal year 2019-20 was given by the Central Government till 31 July 2020 for tax saving investments. The ITR has to give details of all these investments and claim deduction under a schedule DI. Similarly, under Section 54 to 54 B in ITR, capital gains examinations on investment are to be given by September 30.
- It is also to disclose the name of the company in which the individual is a director or shareholder of unlisted equity.
- There are many categories related to employment in ITR, such as whether you are an employee of the Central Government or the State Government. Similarly, there is another category of ‘not applicable’, it will mean family pension.
- For income up to 5 lakhs, the income tax rebate limit under section 87A has been increased to 12,500. Similarly, the tax rebate of 12,500 will also be given to those Radigants whose total income after all deductions and executions is not more than 5 lakhs. Earlier this rebate was Rs 2,500 for income up to Rs 3.5 lakh. It is mandatory to file ITR on income above Rs 2.5 lakh. It has to be filed even if the tax liability becomes zero after getting rebate.
- For the assessment year 2020-21, the standard deduction on salary income has been increased from Rs 40 thousand to Rs 50 thousand.
- Individuals can show two properties used by themselves while declaring income from house property in assessment year 2020-21. In the last assessment year 2019-20, if an individual had another house, he had to pay tax on the notional rent for that house.
- In the budget presented in 2019, there has also been a change in capitene gain examinations under section 54. Now deduction can be claimed for the construction or purchase of two residential properties instead of one. However, its condition is also attached that the benefit of this can be taken only once in life and the long term capital gain should be less than 2 crores.
- Under section 80 EEA, the first time a house can be claimed for additional interest deduction. However, the maximum limit for stamp value has been fixed at Rs 45 lakh. Under this, deduction of up to 1.5 lakh can be claimed on loan taken from any financial institution. Similarly, a provision for interest deduction claim has also been made on the loan taken for the purchase of electric vehicles.