Crucial Information for Filing Income Tax Return of FY 2020-21

The due date for filing Income Tax Return (ITR) changes based on the category of taxpayer i.e. whether a taxpayer is an Individual or HUF or Firm or other entity. Although the last due date for filing the Income Tax Return Get all due dates of income tax return and payment of advance taxes for FY 2020-21 (AY 2021-22). We update the last date as per the IT department’s notifications. is in most cases July 31 of the assessment year. The Income Tax Return ought to be filed for income that is earned from April 1 2020 to March 31 2021 and latest by July 31, 2021 until and unless extended by the notification of the government

• The due date for filing Income Tax Return (ITR) changes based on the category of taxpayer i.e. whether a taxpayer is an Individual or  HUF or Firm or other entity.

• Although the last due date for filing the ITR is in most cases July 31 of the assessment year. The Income Tax Return ought to be filed for income that is earned from April 1 2020 to March 31 2021 and latest by July 31, 2021  until and unless extended by the notification of the government.
  • Note: “The Income-tax department has released the press release regarding the extension of due dates for filing ITR forms, Tax Audit Reports, etc under the Income-tax Act, 1961.” Read Press Release

• As per think tanks of tax, the apt time to file the ITR for the financial year 20-21 is before June 15, 2021.

• So here in this article below mentioned points have been explained
  • What document details are necessary for filing ITR
  • The sources are mentioned from where details are taken as input to pre-fill ITR form/Form 16/ Form 16 A/ Form 26AS
  • Why the ITR for any financial year ought not to be filed before June 15, 2021.

• The prescribed Income Tax Return Forms The CBDT stands for The Central Board of Direct Taxes, and it is a statutory authority functioning under the Central Board of Revenue Act, 1963. Recently, the board notified some new Income Tax Return Forms for the assessment year 2021-22. It also notified the Income Tax (7th Amendment) Rules, 2021. and the basic procedures of filing an ITR return varies that is determined on the basis of the estimation of income earned per in addition to the source of income (business profit, salary, investment profit, and so forth. Moreover, certain documents are necessary prior to preparing and submitting an ITR.

• Form 26 AS: It is one of the crucial document that is must before filing Income Tax Return. This form is also called annual consolidated statement that contains all the tax-related information of the taxpayer i.e. advance tax, amount of TDS and so on

• Moreover, Form 26AS Steps to view and download the annual information statement new form 26AS. Also, we mention the difference between actual TDS & reflected TDS in Form 26AS. also mirrors the figure of Annual Information Return (AIR) that is filed by different entities that depends on what an individual has spent or invested, mostly high-value transactions.
• All the aforesaid formalities are out to be reported by May 31, 2021. This also connotes that till mid-June, Form 26AS and pre-filled returns would not be updated on the website of the tax department, and the taxpayer might  not be able to file a tax return with apt information.
• The Form 26 AS selects the TDS details of the taxpayer’s income that is based on what information has been uploaded by the deductor.

• Starting with deductor, the deductor is the entity or person who calculates and deducts “tax at the sources” on a specified payment that has been made. The tax that is deducted by the deductor by utilizing the aforesaid TDS mechanism has to be submitted to the Income Tax Department within a time limit that has been prescribed.
• The TDS deductor ought to report the information related to tax deducted in a statement. Form 24Q, 26Q, 27Q, and 27EQ are the TDS return forms that are required to be submitted by the deductor to the Income Tax Department.

• FORM 16: Form 16 forms the parameter for filing the income tax return for a salaried employee. The other popular name of form 16 is Tax Deducted at Source (TDS) certificate A new format for Form 16 has been notified by the CBDT (Central Board of Direct Taxes) which is the ‘salary TDS certificate’. This new format will break the tax-exempt allowances in details which are paid to the employee and apart from this, the entire tax brakes which are claimed by the taxpayers. that is submitted by the employer after giving the information related to the payment of tax on behalf of the employee.
• Coming to FORM 16 A, it is issued if tax is deducted at source as per any provision excepting section 192.

• TDS FORM 24 Q: The employer deducts tax as per section 192 of the Income Tax Act , 1961, at the time when salary is paid to the employee. The details of the salary that is paid and the consequent TDS deducted are reported in Form 24Q. The aforesaid form is submitted to the Income Tax Department on a quarterly basis.

• Form 24 Q contains 2 Annexures — Annexure | and Annexure||. Annexure | contains details about the deductor, challans, and deductees. The Details of deductee(s) to be shown include employee reference number (if available), name of the employee, date of payment/ credit, PAN of the employee, TDS amount,  TDS Section code, the amount that has been paid or credited, and lastly the education cess.
• Annexure-II contains other salary details, for instance,  the split of the salary and deductions to be claimed by the employee. Annexure I is necessary to be filed on all the four quarters of a financial year while Annexure II has to be submitted only on the fourth quarter of every financial year.

• TDS Form 26Q: Form 26 Q is used in the case of TDS on all the payments other than salary. It has to be deposited by the deductor once every quarter and is also applicable for TDS u/s 193 and 194 of the Income Tax Act of 1961. Form 26Q is used for Tax Deducted at Source on income such as dividend on securities, directors’ remuneration, interest on securities, professional fees, and so on.

• TDS Form 27Q: TDS Form 27Q is pertinent for payments made excepting the salary to foreigners and non-resident Indians. In other words, It is used for the declaration of TDS for the Foreigners and NRIs. It is deposited by the deductor every quarter and is relevant for Tax Deducted at Source u/s 200(3) of the Income Tax Act of 1961.

• TCS Form 27 EQ: It is the quarterly statement of TCS that mirrors the information of the TDS u/s 206C of the Income Tax Act of 1961. The form 27EQ has to be submitted by the corporate deductors & collectors every quarter and it is essential to furnish TAN in this form.

• Form 16/16A: Form 16/16A is issued by the deductor after filing of the TDS returns.

• Pre-Filled ITR Form: At Present, the ITR Forms come with pre-filled details of salary income, tax payments, tax deducted at source and so on to simplify and ease the compliance burden that is shouldered by the taxpayers.

This year, Finance Minister Nirmala Sitharaman, in her Budget speech made an announcement that from FY 2021-22 onwards, dividend income, the information of capital gains from listed securities, and interest from post office, banks  etc, shall be pre-filled in ITR Forms.

• .The last date for the filing of the TDS returns for the 4th quarter of this financial year 2020-21 is 31st May 2021 and for the TCS return, it is 15th May 2021.
• Thus, it is recommended that the taxpayers should file their ITR  only after 15th June 2021 as after that the Pre-filled IT Return /Form 16 /Form 26AS shall mirror updated details of the taxable income and consequently tax deducted thereon.