The deadline for your income tax return filing is here.
One of the important aspects to bear in mind is for the taxpayer to opt for the appropriate tax return form. For individual taxpayers, there are four forms: ITR-1 to ITR-4.
Choosing the correct ITR form is important, the wrong selection of the ITR form is considered as defective filing and that has to be rectified in a specified time. After filing the ITR, the form required to be e-verified at the same time or within 120 days by sending the signed copy of ITR-V. The e-verification can be done using the mobile number linked with the bank account provided in the ITR.
The Income Tax department tweeted, “More than 4.15 crore Income Tax Returns for AY 2020-21 have already been filed till 26th of December, 2020. Hope you have filed yours too!” The number includes over 2.34 crore taxpayers filing ITR-1, 30.35 lakh taxpayers filing ITR-2, 49.72 lakh filing ITR-3 and 89.89 lakh filing ITR-4.
The due date to file ITR by an individual taxpayer for FY 2019-20 is Jan 10, 2021. Jan 31, 2021, is the date for the same taxpayers’ accounts to be audited.
What happens if you forget to file ITR?
1. In case of a refund on TDS deduction, you can lose interest, which is around 6% per annum.
2. If you already have an existing tax liability, the late filing would impose an additional interest of 1%.
3. Even if you do not have to pay any taxes to the government and missed filing the ITR by the due date, under Sec 271F, the individual can attract a penalty of Rs 5000 if unable to provide a proper reason for late filing.
The non-taxpayers are required to submit a computation proving that the tax payable is nil and everything was deducted at the source.
Individual taxpayers can either hire a Chartered Accountant to file ITR or can utilize the online facility provided by the Income Tax department.
GKM provides ITR filing services for individual taxpayers and businesses. If you are in search of ITR filing services or filing-related queries reach out to us.