Who is liable to pay income tax?
Every person (resident in India as well as non-resident in India) who has derived income chargeable to tax in India is liable to pay tax in India, in accordance with the provisions of the Income Tax Act, 1961.
Not only individuals, business and social entities like company / corporation, partnership firm, Hindu undivided family (HUF), association of persons, body of individuals, local authorities as well as every artificial juridical person are liable to pay tax in India.
Legally speaking, Trusts have not been recognised as person liable to pay income tax under the Income-tax Act, 1961. However, the Trustees are liable to pay tax on income arising in the Trust on behalf of the beneficiaries. Accordingly, the Trustees are also liable to file income tax return with respect to such income derived by a Trust, irrespective of whether it is a Private or Public Trust or Charitable or Non-charitable Trust.
In fact, even Minor (i.e. below 18 years of age) is liable to pay tax on the income earned by him on account his knowledge, experience, talent or skill as well as manual work. Other income arising in the name of the Minor, say for example interest, dividend, etc., are to be clubbed with the income of his parents and accordingly, charged to tax.
Who has to file Income Tax Return?
General Requirement
The following persons have to file their income tax return of their total income chargeable to tax in India exceeds the amount mentioned against them below:
| Category of Person | Gross Total Income |
|---|---|
|
Every Company |
Nil or Negative or Positive |
|
Every Partnership Firm |
|
|
Every LLP |
|
|
Co-operative Society |
> Rs. 1 |
|
Local Authority |
|
|
Resident Individuals > 60 years age |
> Rs. 5,00,000* |
|
Resident Individuals > 80 years age |
> Rs. 3,00,000* |
|
Other Individuals |
> Rs. 2,50,000* |
|
Hindu Undivided Family (HUF) |
|
|
Association of Person |
|
|
Body of Individuals |
* for Financial Year 2019-2020 & 2020-2021 i.e. assessment year 2020-21 & 2021-22
Trustee will file income tax return as representative assessee with respect to Income derived by the Trust, either in the status of an Individual or Association of Person.
Charitable Trusts are required to file return of income if their income exceeds the maximum amount not chargeable to tax without considering the benefits (exemption) of section 11 and 12 of the Act.
Specific Requirement
In order to curb circulation and generation of black money, specific provision have been introduced mandating a person (who is otherwise not required to file income tax return as per the abovementioned General requirement) to file return in following circumstances:
Any resident person, who at any time during the previous year, —
- holds, as a beneficial owner or otherwise, any foreign asset (including any financial interest in any entity) or has signing authority in any account located outside India; or
- is a beneficiary of any foreign asset (including any financial interest in any entity)
- has made bank deposits in total exceeding Rs. 1 crore in one or more current accounts; or
- has incurred foreign travel expenditure exceeding Rs. 2,00,000 for himself or any other person; or
- has incurred electricity expenditure exceeding Rs. 1,00,000
Tax Vyapar will help you file your income tax return as well as guide and support you in all income tax proceedings.
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Our Pricing
Individual
Salary & Other Source-
Income from Salary
-
Income from Other Sources
-
Does not include Capital Gains*
-
Without Accounting Services
Individual
having House Property-
Income from Salary
-
Income from Other Sources
-
Income from House Property
-
Does not include Capital Gains*
-
Without Accounting Services
Individual
having Business Income-
Income from Business or Profession
-
Income from Other Sources
-
Income from House Property
-
Capital Gains
-
Without Accounting Services
Business Entities
-
Income from Business or Profession
-
Income from Other Sources
-
Income from House Property
-
Capital Gains
-
Without Accounting Services
Non Resident
+ Global Resident-
Income from Business or Profession
-
Income from Other Sources
-
Income from House Property
-
Capital Gains
-
Without Accounting Services
* For Capital Gains, additional Rs. 500/- (for 50 entries) and Rs. 1000/- (for 100 entries).
Due dates for filing Income Tax Return
| Category of Person | Due Date |
|---|---|
|
Company |
31st October |
|
Person to whom Tax Audit is applicable |
31st October |
|
All partners of Partnership Firm & LLP, which are subject to Tax Audit |
31st October |
|
Person to whom Transfer Pricing audit is applicable |
30th November |
|
Individual and every other person |
31st July |
Tax Audit Report to be filed one month before return filing due date i.e. 30th December
Transfer Pricing Report to be filed one month before return filing due date i.e. 31st October
| Category of Person | Revised Due Date | Revised Due Date | Final Due Date |
|---|---|---|---|
|
|
(After extended on 24th June, 2020) |
(After extended on 29th October, 2020) |
(Now extended on 30th December, 2020) |
|
Company |
30th November |
31st January |
15th February 2021 |
|
Person to whom Tax Audit is applicable |
30th November |
31st January |
15th February 2021 |
|
All partners of Partnership Firm & LLP, which are subject to Tax Audit |
30th November |
31st January |
15th February 2021 |
|
Person to whom Transfer Pricing is applicable |
30th November |
31st January |
15th February 2021 |
|
Individual and every other person |
30th November |
31st December |
10th January 2021 |
Tax Audit Report & Transfer Pricing Report to be filed one month before return filing due date i.e. 15th January 2021
Benefits of filing Income Tax Return
Apart from the fact that it is a legal requirement in most cases, the following are some of the benefits of filing income tax return in time
Easy Loan Processing
Getting a loan from bank either for purchasing a house or vehicle or even for business purpose becomes easy and quick for a person who regularly files his income tax return
Carry forward of losses
Losses exceeding the income of that year can be carried forward and set off against the income of next, only if the return is filed within the due dates.
Avoid Penalty
If the income tax return is not filed in time, i.e. within the due dates, penalty will be levied for late filing of return, which can be upto Rs. 10,000/-.
Visa Processing
Furnishing copies of income tax return filed is considered mandatory by most embassies before granting you the permission to visit their country.
Tax Refund
Even if a person has not paid any income tax himself, most of the income received by him would have been subjected to TDS and thus for claiming the refund of excess tax, it is necessary to file return.
Avoid Penal Interest
If income tax is payable, penal interest @ 1% per month or part thereof will be charged from end of the relevant previous year till the date of payment of taxes.
Consequences of not filing of Income Tax Return
Time Frame
File Income Tax Return
After we receive all the required documents and information
Documents Required
Illustrative list of documents categorized on the sources of income is useful for preparing income tax returns in India
Income from Salary
- All Salary Certificate(s) or Form 16 received from your employer
- If you are a pensioner your pension certificate from the bank or the bank statement where your pension is received
Income from House Property
- Housing Loan repayment certificate
- Municipal Corporation tax receipt
- TDS certificate of rent OR the bank Statement where you have deposited all the rent you have received
Capital Gains
- Details with respect to purchase and sale of asset, for example - Demat statement (in case of securities); Purchase & Sale Deeds/ Agreements (in case of other than securities)
- Bank Statement in which sale consideration is received or deposited
Income from Other Sources
- Individual details of all income from other sources (e.g. interest, dividend, income from sources not included above) and TDS certificates relating to it
- Bank statement indicating the amounts earned from agricultural sources
Deductions
- Amount contributed to Public Provident Fund
- Amount of donations made during the current year
- Amount of NSC purchased
- Amount paid for premium towards life insurance policies for your self or your dependents.
- Contribution to recognized pension plan under section 80CCC
- Medical insurance premium paid
- Tution Fees
Deliverables
What will you get after your income tax return has been filed by us !
- Acknowledgement of Income-tax Return filed (ITR-V)
- Computation of Total Income
- Entire ITR Form filed
Experience the Ease in Tax Compliance with Tax Vyapar
Process After Return filing
Generally, you will receive an intimation under section 143(1) of the Act within 3-4 months of filing income tax return (in very cases it also take 1-2 years) . If the intimation order accepts the return filed as it is, then you should receive Refund (if any) directly in your bank account, generally within a month.
However, if any deduction, allowance, exemption or loss claimed in the income tax return is rejected/ disallowed or tax payable amount computed in the intimation is higher as compared to the amount appearing in the return filed (for any reason), an application for rectification has to be filed under section 154 of the Act.
Tax Vyapar can help you filing the rectification application with the income tax department.
It is also possible that after filing the income tax return and after the same has been accepted through the intimation under section 143(1), you may receive a notice under section 143(2) of the Act requiring you to submit certain information, document, etc. to support the details filed in the income tax return. In response, you may have to file a letter or submission containing the required explanations. Here too, Tax Vyapar can help you draft and file such response, letter, submission, etc.
Accordingly, we can help you in the following services related to post return filing procedure:
- Assistance for responding to Income tax notice
- Filing letter with income tax department for granting refund
- Filing rectification application
- Drafting submission to be filed before the Assessing Officer
- Filing Income-tax Appeal
- Drafting submission to be filed before the appellate authorities i.e. Commission of Income-tax (Appeals) as well as Income-tax Appellate Authority
- Advice on any issue, query, etc. arising in the course of Income tax proceedings
At Tax Vyapar, additionally, we also facilitate:
- Application for PAN
- Application for TAN
- Filing Tax deducted at source (TDS) Returns
- Tax Planning
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