The federal government has prolonged the final date for filing an income tax return (ITR) for the financial year 2019-20 from July 31, 2020, to November 30, 2020. The due date for all income-tax return for the financial year 2019-20 is prolonged from July 31 and October 31 to November 30, 2020. The date for a tax audit is prolonged from September 30, 2020, to October 31, 2020. Further, TDS and TCS rates have also been decreased on non-salaried specified payments to residents by 25% of the present rates.
“The penalty for ITRs furnished on or before December 31 is Rs 5,000, however doubles that quantity for later filings. Nonetheless, in case your taxable revenue is under Rs 5 lakh, the utmost penalty might be Rs 1,000. However, if the tax evaded exceeds Rs 25 lakh the punishment might be 6 months to 7 years”, as per the website of the Income Tax Department.
Which Tax Return to file:
The Income Tax department has notified seven varied kinds, i.e., ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 so far. All people having taxable earnings or those that fulfill other prescribed situations are required to file an annual income tax return (ITR) inside the specified due date.
The applicability of ITR kinds varies relying on the sources of revenue of the taxpayer, the amount of the revenue earned, and the category the taxpayer belongs to like individuals, HUF, firm, and so on. One must rigorously verify the appropriate ITR form for filing, keeping in mind not solely the details of revenue but also the various disclosure necessities prescribed sometimes.
Direct tax measures:
The federal government has additionally decreased the TDS rates applicable for non-salaried payments. As per the announcement, to offer extra funds to taxpayers, TDS for non-salaried specified payments made to residents and rates of TCS for specified receipts shall be decreased by 25%. The decreased TDS and TCS rates will stay legitimate till March 31, 2021.
Along with that, the date of making payments with out interest and penalty below Vivad se Vishwas scheme has been prolonged to December 31, 2020. That is the second extension of the scheme.