What is the Income Tax?

There are two types of tax levy one is direct tax and second one is an indirect tax. Income tax is a direct tax which is directly attributable to the income of the assessee. Income which is generated from the various head of income viz.Salary, House Property, Business, Capital Gain and Income from other sources. The assessee has to pay Income tax if his total Income after allowing Chapter VI-A Deduction is more than the taxable income limit.

New Update – Income Tax Changes Due to Covid19

• “Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates”
• “Among other measures, Due date of all income-tax return for FY 2019-20 will be extended from 31st July 2020 & 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020”
• “The Period of ‘Vivad se Vishwas Scheme’ for making payment without an additional amount will be extended to 31st December 2020”
• “Extend last date for income tax returns for (FY 18-19) from 31st March, 2020 to 30th June, 2020.”
• “Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th June, 2020.”
• “Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020.”
• “Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.”
• “For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.”
• “Necessary legal circulars and legislative amendments for giving effect to the aforesaid relief shall be issued in due course.”

Filing Income Tax Return Due Dates for FY 2019-20 (AY 2020-21)

There is a different category of taxpayer viz. Individual, HUF, Firm, LLP, Company, Trust and AOP/BOI. Due Date is different according to audit or non-audit case of such categories as defined in section 139(1)

Last Date of Income Tax Return Filing for AY 2020-21 (Non-Audit Cases)

The common due date of filing the Income Tax Return by Assesse whose Books of Account are not required to be audited is 31st July 2020. Note: “Among other measures, Due date of all income-tax return for FY 2019-20 will be extended from 31st July 2020 & 31st October 2020 to 30th November 2020.”

Filing Income Tax Return Due Date for AY 2020-21 (Audit Cases)

The general due date for filing the Income Tax Return by Assesse is 30th September 2020 but finance ministry has extended till 31st October 2020.

Note:

Due date for filing of ITRs/ Tax Audit Reports for all the categories of aseesees in UTs of J&K and Ladakh who were required to file ITRs and whose accounts are not required to be audited is 31st July 2020 and for assessee’s whose accounts are required to be audited is 30th September 2020.

File Tax Returns for A.Y. 2020-21 before 31st March with INR 10,000 Penalty

The income tax department notified the taxpayers for late filing of tax returns for A.Y. 2020-21, along with a penalty of INR 5000 (on filing the return after the due date but on or before 31st December) and INR 10000 (on the filing of return after 31st December to 31st March). The taxpayer has to file the late filing of tax returns for A.Y. 2020-21 before 31st March anyhow. Also to note that the penalty is applicable even if the taxpayer files the returns before 31st March while there is no option to file the returns after 31st March 2020. However, if taxpayer’s total income does not exceed Rs 5 lakh, then the maximum penalty levied for delay will not exceed Rs 1000.

Last Date of Income Tax Return Filing for AY 2020-21

(Assessee who are required to furnish report under sec 92E)

Due date of filing the Income Tax Return by Assesse who are required to furnish report under sec 92E is 30th November 2020.

Advance Income Taxes Filing Due Dates FY 2019-20

If the tax liability is more than Rs 10,000 in a financial year then advance tax needs to be paid by the assessee.

15th June (15%) | 15th Sept. (45%) | 15th Dec. (75%) | 15th March (100%)

The assessee who are covered under section 44AD and 44ADA (i.e. Presumtive Income), are also required to pay the advance tax on or before the 15th march of the previous year. However any tax paid till 31st March will be treated as Advance Tax