RTI filing for fiscal year 2021-22 | Tax return for fiscal year 22: don’t forget these key elements
Tax return for fiscal year 22: don’t forget these key elements
New Delhi: It is essential that you file your tax return on or before the due date with complete and accurate income information and other information requested to complete the ITR form. An incomplete RTI or inaccurate information may lead to your RTI being considered invalid or even the imposition of a penalty on the person assessed.
So, if this is your first time filing an RTI, here are 9 key things you need to keep in mind:
1. Selection of the ITR form: It is important to select the applicable ITR form based on the taxpayer’s residency status and income from various sources for a specific filing. If the taxpayer uses the wrong tax return form, their return will not be processed and they may receive a defective return notice from the tax department. The tax department has already notified the amended RTI forms. This year, ITR Form 1 will not be applicable for a person who had paid TDS for a cash withdrawal under Section 194N. Employees who have a tax deferred employee stock option (ESOP) also cannot use form ITR 1. So choose the correct form before filing the return.
2. Choice between new tax regime or old tax regime: Two tax regimes: From the current financial year, a new concessional tax regime has been introduced. From now on, taxpayers will be able to choose between the old and the new tax regime when filing the tax return. Under the new tax regime, a person will have to pay taxes at preferential rates if they waive all tax exemptions, deductions and rebates. If you are an individual employee and want to change the option communicated to the employer, this can be done at the tax declaration stage.
Choosing a tax regime is of greater importance to business owners as they can only do it once. Once they have chosen their tax regime, it cannot be changed each year. However, salaried people with income from salary, real estate and other income can change it every year.
3. Prefilled RTI Forms: The tax department has introduced a new utility named JSON for pre-filling tax return forms for fiscal year 21. Currently only ITR tax return forms 1, 2 and 4 have been released. These forms can import and pre-populate data from the e-filing portal. The pre-populated data includes personal data, salary income, dividend income, interest income, capital gains and all the information available in the 26AS form. This would help taxpayers easily complete the ITR, as most of the essential details would already be entered there.
You need to check the information pre-filled in the form and make the necessary additions of unreported income in the tax return. However, if the information is incorrect, contact the bank / income payer, etc. to correct data in TDS / other quarterly returns so that accurate information is reflected in your Form # 26AS.
4. Planning and assembly: Before you sit down to file your return, you should gather all the relevant information and documents required for the ITR filing process to avoid any misrepresentation or misrepresentation of income. Make sure that all sources of income, including exempt income such as PPF, are duly declared on the tax return. Before filing the ITRs, reconcile all sources of income with the data reported in Form 16, Form 26AS.
Be sure to verify prepaid taxes including withholding tax (TDS), withholding tax, and self-assessment tax with Form 26AS. Any discrepancies must be notified either to the employer (in case of salary income) or to other payers (in case of other income) or to the banks (for advance payments of tax / self-assessment tax ) for the necessary rectification which is essential for a flawless processing of the tax return by the tax service.
5. Payment of the balance of taxes: To avoid mistakes, estimate your tax liability in advance and make the necessary tax payments on time. This will help you avoid charging applicable interest on delayed tax payments. Once you have determined your total taxable income, including income under all headings and claiming the necessary deductions available under Chapter VI-A of the Act, the applicable tax rates should be applied to calculate the total amount. tax payable.
All taxes due on the tax return after claiming the prepaid tax credit must be paid, including applicable interest, if any, before filing the ITR. If this self-assessment tax exceeds Rs 1 lakh, it must be paid before July 31, 2021 to avoid additional interest, even if the deadline for filing the tax return is extended until September 30, 2021.
6. Disclosure of the various assets and financial investment forms required for an ITR:
- Specified details of all Indian bank accounts
- Precise details of unlisted shares
- Details of mandates exercised in Indian or foreign companies.
- Plan Assets and Liabilities: Details of Specified Assets [(such as land, building, movable assets, etc.), financial assets (bank deposits, shares & securities, cash in hand, etc.)] and the corresponding liabilities must be disclosed in case the total income of an individual exceeds Rs 50 lakh.
- Foreign Assets Schedule: Ordinarily Resident Persons are required to provide details of their assets held outside India (both as owner and as beneficiary) in accordance with specified disclosure guidelines.
7. Mandatory filing of an RTI even if income below the tax bracket: The 2019 Finance Law (No.2) made the filing of an RTI mandatory for certain people who meet certain specified criteria during the financial year concerned, even if the income of these people is not in the bracket. taxation. They would be required to provide the same if they entered into high value transactions during the relevant financial year in the event of:
- Payment of electricity bills totaling more than Rs 1 lakh;
- Deposit of more than Rs 1 crore in total in one or more current bank accounts;
- Spent over Rs 2 lakh in total on overseas travel for yourself or anyone else.
8. Change of employment: In the event that a taxpayer has provided the required salary, details of income earned by previous employers to the current employer, a Consolidated Form 16 and 12BA can be issued by the current employer on the basis of which an ITR can be filed. . Otherwise, this can lead to a shortfall in TDS due to the duplication of benefits per slab, deductions, exemptions provided by all employers. In this case, the additional taxes due on the return as well as the applicable interest must be paid before filing the income tax return.
9. Deadline for filing the RTI missing: If a taxpayer is unable to provide the ITR by the due date due to several reasons such as non-availability of relevant documents / information, lack of time, personal requirements, etc. late filing tax, payment of interest on the outstanding tax balance, ineligibility for carry-over of certain losses, etc. Make sure you file your return before the deadline.
It should be added that a resident under the age of 60 earning up to Rs 2.5 lakh per year is exempt from income tax. A person must file an income tax return (ITR) if they have total gross income in excess of the tax exemption limit.
For people over 60 but under 80 (elderly), this exemption limit is Rs 3 lakh and for people over 80 (super seniors), the exemption limit is Rs 5 lakh. Even if the law does not require you to file an ITR if your income is below the tax exemption limit, it is advisable to always file your tax return because it has several advantages.