itr e filing If your income is more than rs 250000 then definitely fill ITR or else you may have to bear the loss – Business News India

If your total annual income is more than 2.5 lakhs, then you must file income tax return by 31st December 2021, otherwise you may have to face many problems. CA Ajay Bagdia explains that not filing ITR by the stipulated date may not only result in penalty, you may have to bear many other losses.

  • You may have to pay a hefty fine of up to Rs 5000 for not filing ITR by the stipulated date.
  • If you do not file ITR on time, the Income Tax Department can send you a notice.
  • If a taxpayer has not paid advance tax or has paid less than 90% of his liability, he will have to pay an interest penalty of 1% per month under section 234A.

There is no password to file ITR, even then you can file return like this

  • Due to late filing of ITR, the taxpayer will also not get the benefit of deduction under section 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB of the Income Tax Act.
  • If you file your return on time, you can save interest on income tax payable.
  • You will not be able to carry forward the loss to the subsequent financial years. That is, in the next financial years, you will not be able to reduce the tax liability on your earnings.

Tax advice: In case of not taking health insurance for elderly parents, you will get the benefit of tax exemption

  • This does not give exemption under Section-10A and Section-10B of the Income Tax Act.
  • You will also not get the exemption under Section-80IA, 80IAB, 80IC, 80ID and 80IE.

More than one crore people have not filed ITR yet

The number of ITR filers for the financial year 2020-21 has exceeded 4.51 crore till December 26. The Income Tax Department gave this information on Monday. According to this, 2.44 crore returns are in ITR-1 Form (Sahaj), while 1.12 crore returns are in ITR-4 Form (Sugam).

31st December is the last date

The last date for submission of income tax returns for the financial year 2020-21 was earlier July 31, but was later extended to December 31. A total of 4,51,95,418 returns have been submitted till December 26, with the last date for submission of returns approaching. These include 8,77,721 returns filed on December 26. A total of 5.95 crore returns were submitted for the financial year 2019-20.

Which form for whom?

  • Sahaj and Sugam forms are used for returns of small and medium taxpayers.
  • The Sahaj form can be used by individual taxpayers with an annual income of up to Rs 50 lakh.
  • Taxpayers earning salary and residential property are required to fill up the Sahaj form.
  • Income tax returns can be submitted through the Sugam form by individual taxpayers, Hindu undivided families and those with business income up to Rs 50 lakh.

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