New rules and changes in filing income tax returns | Fusion - WeRIndia

Finance Ministry introduced many changes this year for the taxpayers while filing their returns. All taxpayers must know about them. Here are some of them.

Majority of them consider that they need not file returns if they had paid all taxes already or if they do not have any tax liability. According to the CEO of ClearTax.in, if your annual income exceeds Rs.2.5 lakh, you need to file returns even if you paid advance tax or TDS was paid by the employer and bank.

As per the law, all individuals should file returns if their gross taxable income exceeds the basic exemption limit of Rs.2.5 lakh annually. Gross taxable income means the income after claiming all exemptions like HRA, LT etc.

The filing deadline has been extended to 31 August from July 31. Now e-fling is easier. New ITR forms are easy and user-friendly. Users can check identity returns easily with an electronic verification code (EVC) that generated electronically. EVC can be generated using Aadhar number, net banking, and registered email and phone number.

The foreign trips and dormant bank accounts have to be disclosed. A new ITR 2A that consists of three pages has been brought together for individuals and Hindu Undivided Families (HUFs) who have possessed more than one property, but do not have taxable income from business or profession, capital gains or foreign assets.

ITR-1 can now be used by all individuals except those who have agricultural income exceeding Rs.5,000. The taxpayers should file e-returns to claim a refund even if their income does not exceed Rs.5 lakh. Yet, super senior citizens who are aged above 80 years are excluded from this rule.

Image by Gerd Altmann from Pixabay (Free for commercial use)

Image Reference: https://pixabay.com/fr/illustrations/changement-main-doigt-donjon-948008/