Income tax (ITR efiling) Summary:

Different types of income tax return an individual need to file and their eligibility are listed below accordingly

- ITR-1: For individuals with less than Rs.50 lakhs of annual income earned from salary or pension and one house property only.

- ITR-2: For NRIs, directors of companies, shareholders of private companies, or individuals with capital gains income, income from foreign sources, two or more house properties, and income of more than Rs.50 lakhs.

- ITR-3: For professionals or individuals operating a proprietorship business in India.

- ITR-4: For taxpayers enrolled under the presumptive taxation scheme with less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income.

-ITR-5: for partnership firms, Limited Liability Partnerships (LLPs), associations, and bodies of individuals.

-ITR-6: For Companies registered in India  

-ITR-7: entities claiming exemption as charitable/religious trusts, political parties, scientific research institutions, and colleges/universities are required to use the ITR-7 form.

CONSEQUENCES FOR LATE FILING OF INCOME TAX RETURN

Failure to file income tax return on time will result in penalties and interest charges. Recently, the penalty for late filing has increased. The following are new penalty rates:

·         Late filing between 1st august and 31st december - rs.5000

·         Late filing after 31st december - rs.10,000

·         If taxable income is less than rs.5 lakhs, penalty is rs.1000. Failure to file tax returns on time will be costly.

Important Reminders on Income Tax Return Filing:

•    The due date for income tax return filing is July 31st for individuals and September 30th for companies and taxpayers requiring tax audit
•    Tax audit for businesses is required if total sales turnover or gross receipts exceed Rs.1 crore in any previous year
•    Tax audit for professionals is required if gross receipts in the profession exceed Rs.50 lakhs in any previous year
•    Tax audit is required for individuals enrolled in the presumptive taxation scheme under section 44AD if total sales or turnover is more than Rs. 2 crores
•    Penalties for late filing have gone up! Missing the deadline will now cost you Rs. 5000 for returns filed between August 1st and December 31st.

2019's Must-Know Top Income Tax Deductions

 Did you know that there are certain deductions that you can claim for income tax? Check out these benefits that you can take advantage of:

- Section 80C offers an income tax deduction of Rs. 1.5 lakhs for payments or deposits made in various schemes such as PF, PPF, LIC premium, National Savings Certificate, ULIP, and more. You can also claim this deduction for the principal part of repayment of housing loans and tuition fees paid for your children.

- With Section 80D, you can claim an income tax deduction for payments made towards medical insurance under the GI scheme. Moreover, you can also claim preventive health checkup fees of up to Rs. 5000 as a deduction under this section.

- Section 80EE deduction is applicable for interest paid on housing loans through EMI with a maximum deduction of Rs.1 lakh. This deduction is only applicable for the first home loan, provided the loan amount does not exceed Rs.35 lakhs and the property value does not exceed Rs.50 lakhs.

- Section 80E deduction is applicable for repayment of interest on loans taken for higher education. This deduction can be claimed for a maximum period of 8 years, starting from the repayment of the loan or until the entire loan is repaid, whichever is earlier.

- Section 80G deduction can be claimed on donations to certain funds and charitable institutes. Deduction can be within the ceiling amount of 10% of the Gross Taxable Income. Amount of deduction depends on exemption enjoyed by the fund. Cash deductions of more than Rs.2000 cannot be claimed for Section 80G deduction.

 Ø  NOTE: MAXIMIZE YOUR SAVINGS by taking advantage of numerous income tax deductions! Don't miss out on potential savings - run your numbers through our income tax calculator or dive into the comprehensive article below to learn more about available deductions.