New ITR filing date for A.Y 2019-20

New ITR filing date for A.Y 2019-20

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It was demanded to extend the due date of filing ITR because of last minute rush and also main factor was  TDS  statement issue was also delayed for A.Y 2019-20. On 23rd July, 2019 CBDT extended the due date of filing Income Tax Return of taxpayers whose due date fall on 31st July, 2019. Now the new due date shall be 31st August, 2019

Who is required to file ITR by 31st July, 2019 (now extended to 31st August)?

Individuals including salaried taxpayers and entities who do not need to get their accounts audited. 

Click here to Read About : who needs to get their account audited here.

What are the document checklist to file ITR?

-Form 16 received from your employer

-Bank statement during the relevant year if you have income other than salary and also to check interest from your saving bank account, as it is taxable too however you get tax deduction upto a limit for your saving bank account interest.

-If you have income from house property than again details of rent received during the relevant year, along with municipal taxes paid receipts

-Details of your tax aving investments like LIC, ELSS, Basic tuition fees paid for your children, any tax saving FD made during the year, donations eligible for tax benefits, medical insurance paid for yourself or parents and spouse.

-House loan email and interest paid details if any.

-If you are a proprietor and not required to get your account audited make sure your tax computation is calculated correctly so ensure you get the right tax consultant for the same. 

Income TAx Return Filing | ITR Due Date

Why should one approach a tax consultant to file ITR?

There is no doubt that you can login to the income tax and do the basic filing yourself. If you have income only from salary then you can file it yourself. If a salaried taxpayer do not have time they may approach a tax consultant who is not charging you hefty sum to file salary income tax return. However for those having income from capital gain, income from other sources, income from business- it is always recommended that they should approach a tax consultant. Because relying on not so efficient person to file your tax return will only put you in trouble. Income tax department is very strict and serves you with notice in few months if anything submitted is incorrect or you may even have to face late fees or interest if there is by any chance mistake in your tax computation.

Therefore why get served with notice and take hassle when you can now go to a tax consultant nearby you or approach a CA online through a reliable source. Choice is yours file return on time with help of consultant or get served with notice and face interest penalty by doing delay or making mistake by getting your itr filed through not reliable source.

Related Article- 7 Ways Salaried Individuals Can Save Tax

Know how to file ITR online and don’t wait till the last date.

File your ITR on time and live with peace!!

Jail for non-filing of ITR

You may land up in Jail for non-filing of ITR

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The central Board of Direct Taxes (CBDT) has extended the ‘Due Date’ for filing of Income Tax Return from 31st July, 2019 to 31stAugust, 2019!

Interest and Penalty for failing to file ITR within due date

Those category of individuals with income below the exemption limit are not required to file the ITR irrespective of what they have earned income during the financial year. The basic exemption limit varies as per age. 

What will happen if you fail to file ITR within due date of 2019-20? Last date of ITR filing for A.Y 2019-20 is 31st July, 2019. Unlike in past missing to file ITR has strict consequences.  If one fails to file ITR by 31st July, 2019 then one still get the chance to file it by 31st March 2020, however with a late fees.  Return filed after due date is called Belated return. So you get a chance to file belated return by 31st December, 2020 with late filing fees.

As per section 234F of income tax Act, if a person fails to file income tax return within due date and files it before 31st December late fees of 5000 is to be paid, if return is not filed even after 31st December late fees goes upto 10000 in that case.If there is tax payable then for late filing you would have to pay interest u/s 234A at 1% per month or part thereof on unpaid taxes along with interest u/s 234B and 234C as applicable.

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When the provision of imprisonment will comes into effect?

276CC of income tax Act highlights that if intentionally you fail to file ITR that is you are doing the fault knowingly in that case a person could get imprisonment terms of at least 6 months. And this may extend upto 7 years if he is evading tax greater than 25 Lakhs. If tax he is trying to evade is greater than 3000 but is upto 25 Lakh then there could be imprisonment for a term of at least 3 months and it could go upto 2 years based on the amount of tax he was trying to avoid.

Therefore, one has to comply with the provision of ITR filing within the due date to avoid such mishappenings or reputation harm like interest, penalty fine or even jail.

Please note that for certain categories of tax payers due date of ITR filing is 30th September, 2019. You may consult caonweb experts for free to check your due date.

Jail for not filing your ITR will harm your business reputation. Are you filing your ITR before 31st july,2019

Basics of income tax for beginners

All about ITR filing for BEGINNERS!

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Novice to Income tax! Don’t know how to file an Income Tax Return form. Does Income Tax stress you to such an extent? Try not to stress. It is not an advanced science to get it. You should simply to soak in a couple of essentials of Income Tax to get things clear. Let’s get a deep dive into it.

Before starting, let’s get a brief idea about the Income tax. Income tax is basically imposed by government of India on people who are earning income. This assessment is imposed based on an Act called Income duty Act (IT Act) which was passed by the Parliament of India in 1961. Finance minister also make changes in the rates of income tax every year so we should keep our eye on budget or at least on the income tax rates which are going to help us while online income tax return filing.

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When you are Eligible for Online Income Tax Return filing:

For filing income tax return, there are some taxable slabs are set by the government. From those set of instructions you can easily get the idea for filing an income tax return.As per the financial year 2019-20, Income tax slabs and rates are as mentioned below

Income Tax SlabTax needs to pay
Up to 2,50,000Nil
2,50,001 to 5,00,0005%
5,00,001 to 10,00,00012,500 + 20% of total income exceeding 5,00,000
Above 10,00,0001,12,500 + 30% of total income exceeding 10,00,000

Rates mentioned above does not include Surcharge and Cess.

o    10% surcharge is applicable on income tax in case income exceeds  50 lacs but upto  1 crore

o    15% surcharge is applicable on income tax in case income exceeds  1 crore

o    4% Health & Education Cess is applicable on the income tax and applicable surcharge.

Tax rates and slabs are same for Male and Female

According to the latest budget plan 2019, Individual citizens having assessable yearly salary up to Rs.5 lakh will get full duty rebate u/s 87A and along these lines won’t be required to pay a single penny from our pockets. Anyway Income charge Slabs and Rates will stay unaltered for the FY2019-20.

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What is the assessment year for online Income Tax Return Filing?

As indicated by Indian norms, the financial year (charge year) begins on the 1st of April consistently and closes on the 31st March of the next year. It doesn’t make a difference when you’d begin your employment /job, the budgetary year or the assessment year would close on the 31st of March, each year.

For more clarification, let’s suppose

Working months – 1st January, 2017 to 31st March, 2017

Tax Year – 2016-2017

Assessment Year – 2017-2018.

Please note that ITR Due Date is going to be remain same i.e. 31st of July every year (for the assessment year).

Tax exemptions while applying for Income tax return form

Expense exceptions are capital deductions that can diminish your taxability. These reductions make sure that expense is related just on specific parts of your pay. On the off chance that you pay the lease of your home, you can benefit of an exception on your House Rent Allowance that is determined according to your compensation.

In monetary exclusions, try to use section 80C to 80U. These will help out to reduce taxable income and increase your savings. Under section 80, we have PPF, LIC, Fixed deposits, and Mutual funds while applying Online Income Tax Return Filing

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How to file an Income tax return form

❏  Open the link https://www.incometaxindiaefiling.gov.in/home, register yourself here. 

❏  Fill all the details as per the given form.

❏  Collect your form 16 from HR/ finance dept. Form 16 is basically a TDS document. Where all the income details has been mentioned.

❏  Documents like salary slips, or account details, and other documents for tax exemptions should be with you.

❏  Download form 26A from the portal. .

❏  Compute your total income and recheck if there is any error.

❏  Check your tax liability and calculate your actual taxable payment.

❏  Last step is e-verification of ITR filing. That can be done either by sending a hard copy to the income tax office or uploading online to the portal with digital signatures.

FAQ related to income tax return.

What is ITR?

ITR represents Income Tax Return. It is a recommended structure through which the points of interest of salary earned by an individual in a monetary year and duties paid on such pay are conveyed to the Income-charge Department. It likewise permits convey – forward of misfortune and guarantee discount from personal expense department.Different types of income of salary are recommended for recording of profits for various Status and Nature of pay. These structures can be downloaded from www.incometaxindia.gov.in. For more information you can also visit our blog Basics of Income Tax Return Filing for Beginners

What are the ways to file an income tax return?

You can file an income tax return in any form like mentioned below

1.  You can submit hardcopy to the income tax office

2.  Online method with digital signatures

3.  Either can use online method with the EVC method (electronic verification code)

4.  Or can fill the form online and then submit the verification of return in ITR-V

Note:

When you are applying with the 4th method where you are not applying digital signature, you should take two printed copies of ITR-V form. One of them should be signed by who is paying the tax (taxpayer), sent it to through either normal post or speed post within 120 days to the income tax office address. 

If you don’t want to commit mistakes while filing an income tax return, please visit below mentioned link https://blog.caonweb.com/mistakes-to-avoid-while-filing-income-tax-return/

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How can I pay the tax according to my income?

Tax amount will be calculated on the basis of income earned in the previous year. Procedure of accumulation of duties, Income -charge Act arrangements for instalment of assessments ahead or can say before the culmination of earlier years. It is otherwise called Pay as your gain concept. 

Duties are gathered by the government through the accompanying methods like instalment by the citizens into different assigned banks, for example, Advance duty, Self-Assessment charge, and so on.

For more information related to Income tax slabs, you can also visit to https://blog.caonweb.com/know-about-your-income-tax-return-and-income-tax-slabs-income-tax-rates-for-fy-2018-19/

Income Tax Return

Basics of Income Tax Return Filing for Beginners

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As you all know that the due date for online income tax return filing for FY 2018-19 is approaching soon. The ITR due date is 31st July 2019 for those whose books of accounts are not required to be audited. And, the ITR due date is 31st September 2019 for others.

You should file your income tax return carefully because improper ITR filing can bring troubles in the form of penalty & notices from the income tax department. You should always take help of professionals for accurate and timely ITR filing before the ITR due date to avoid any penalty & notices from the income tax department. You can find the best professionals through our online platform of CAONWEB for services of Online Income Tax Return Filing.

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To make ITR filing easy for you, we are here explaining the basics of income tax return filing for beginners:

1. Select the correct income tax return form:

A taxpayer must file ITR using the correct income tax return form as if he do ITR filing using the incorrect income tax return form, the return will be considered as defective and he has to file a revised ITR using the correct income tax return form. If the defect is not rectified within the time limit, then it is considered the same as not filing a return at all.

2. Reconcile your Income with Form 26AS:

A taxpayer must check the details of all the income, TDS deducted, advance tax paid, self-assessment tax paid, etc. in Form 26AS and also verify it with Form 16 and Form 16A to avoid any discrepancy in ITR Filing.

3. Disclose the losses which have to carry forward:

A taxpayer must file the income tax return on or before the due date in order to carry forward certain losses incurred during the year for offset against income in future years. If income tax return claiming carry forward of certain current year’s losses is filed after the due date, such losses will not be allowed to carry forward and the same shall lapse.

4. Furnish correct personal details:

A taxpayer must furnish correct personal details and also make sure that in case of any refund bank particulars like account number, IFSC code, etc. are accurately mentioned in order to receive the refund on time and without hassles.

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5. Report all bank accounts:

A taxpayer is required to report all the bank accounts held by him in the income tax return. However, dormant accounts are excluded from the requirement of reporting in the income tax return.

6. Report interest incomes:

A taxpayer must report all the interest incomes received by him or accrued due to him in the previous financial year while filing his income tax return as they generally forget to report interest earned from the savings bank account, fixed deposits (FDs), recurring deposits (RDs), etc.

7. Report income from the last job:

If a salaried taxpayer switched his job in a financial year, then the income from his previous job must be reported while filing an income tax return with income from the current job.

8. Report tax-free incomes or exempt income:

A taxpayer must report all his incomes even the incomes which are tax-free. These exempt incomes are to be reported in the ‘Exempt Income’ schedule of the income tax return.

9. Pay Advance Tax/ Self-Assessment Tax timely:

A taxpayer must ensure that the tax dues are cleared on or before 31st March of the financial year because failure to do so within due dates will attract interest and penalty.

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10. Verify ITR V on time:

After online income tax return filing, a taxpayer must e-verify his return via Net banking, Aadhaar Card or through the EVC process. If due to any reason he is unable to e-verify your return, then he can sign and send the ITR-V to the CPC via ordinary or speed post only within 120 days from e-filing of return. So, the above mentioned are the basics of income tax return filing for beginners. To understand in detail about online income tax return filing you can also consult top Chartered accountants in India by using our online ITR filing services through CAONWEB.

Are you a salaried Taxpayer? You need to be alert with recent changes in Form 16!!

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Do you know that Form 16 has undergone some changes? Yes, there are changes in Form 16 which are a TDS certificate you receive from your employer. The revised  format for Form 16 was notified by the Central Board of Direct Taxes (CBDT) via a notification dated 12th April 2019. The format specified will come into effect from 12th May 2019 So employers would have to follow the revised format after this date.

You need to be alert with recent changes in Form 16

Changes:

Nature of tax-exempt allowance should be separately disclosed:

The Old Form 16 contains the aggregate amount of salary and deduction. It will become more specific now where New Form 16 will have a list of specific detail of allowances on which employee is not required to pay any taxes. This is in line with ITR 1 which needs more disclosure now.

Additional income disclosure in New form 16:

In the old form 16, there used to be a row for any other income other than salary which employer could adjust and deduct TDS accordingly. The new one has a change where an employee can now specify any other income other than salary for house property or for other sources only. Other than these two (house property and other sources), now employee needs to deduct tax if any directly and cannot submit it to the employer so that he deducts the TDS adjusting those sources.

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Additional row for standard deduction has been separately provided

These changes have been introduced in form 16 to keep it on the same line with the changes that came in Income Tax return Forms as notified by CBDT for AY 2019-20. The incorrect refund claimed by a large number of taxpayers in the last years was also one of the reasons which pushed the Government to bring more disclosures from taxpayers. The changes bought in Form 16 will make it easier for the Indian Tax department to spot discrepancies if any between revised form 16 issued by the employer and the details filled up by the employee.

Is this a positive change?

Yes it is definitely a positive change as it will reduce the false claim of refund by salaried taxpayers, which was a big loss for Government as ultimately it was a burden to actual taxpayers’ pocket. Now the department will find it smooth to cross-check the discrepancies in taxpayers claim and form 16 thereby helping reduce false cases.

Click here to watch Video on recent changes in ITR Forms

MISTAKES TO AVOID WHILE FILING INCOME TAX RETURN (1) (1)

Mistakes to avoid while filing Income Tax Return

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Income Tax India e-filing:

Income Tax is a tax that the government imposes on income generated by businesses and individuals. And, an ITR is a form in which a taxpayer furnishes information about his total income and tax payable on that income to the IT Department.

In India, the ITR is filed online and the process of submitting your income tax return online is known as e-filing or electronic filing. For income tax return filing in India following steps to be followed:

Step 1: Register yourself on the IT Department’s online tax filing site (incometaxindiaefiling.gov.in).

Step 2: Choose how you want to e-file as there are two ways of e-filing your ITR. One is to go to the download section and select the required income tax return form, download it and fill all the details offline and then upload it back on the site. And, second is to fill the income tax return form online by selecting the quick e-file option.

Step 3: Select the required income tax return form.

Step 4: Keep all the documents ready: Keep your PAN, Form 16, interest statement, TDS certificates, details of investments, insurance and home loans handy. 

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Step 5:  Fill the income tax return form and upload: If you choose to fill the form offline, then after you have downloaded the form and fill all the details, click on generate XML. Then go to the IT website and click on the upload XML button. You will have to first log in to upload the XML file and click on submit. 

Step 6: Verify ITR V: The tax filing process is incomplete and ITR is invalid unless your ITR V is verified. For verification of ITR-V, you can electronically verify or mail the signed ITR V to the processing center in Bengaluru within 120 days of filing the return.


Mistakes to avoid while filing ITR:

         You should file your income tax return carefully because improper income tax return filing can bring troubles in the form of penalty & notices from the IT department. You can also, take help of top Chartered accountants in India for online income tax return filing by using online CA services to avoid any penalty & notices from the income tax department.

To make things easy for you, we are here explaining common mistakes to avoid while online income tax returns filing:

1) Selecting the incorrect form:

A taxpayer must file ITR using the correct form as if he file ITR using the incorrect form, the return will be considered as defective and he has to file a revised ITR using the correct form. If the defect is not rectified within the time limit, then it is considered the same as not filing a return at all.

2) Furnishing incorrect personal details:

A taxpayer must furnish correct personal details and make sure that in case of any refund bank particulars like account number, IFSC code, etc. are accurately mentioned in order to receive the refund on time and without hassles.

3) Not reporting all bank accounts:

A taxpayer is required to report all the bank accounts held by him in the income tax return. However, dormant accounts are excluded from the requirement of reporting in the ITR.

4) Not reporting interest incomes:

A taxpayer must report all the interest incomes received or accrued due to him in the previous financial year while filing his income tax return as they generally forget to report interest earned from the savings bank account, fixed deposits (FDs), recurring deposits (RDs), etc.

5) Not reporting income from the last job:

If a salaried taxpayer switched his job in a financial year, then the income from his previous job must be reported while filing an ITR with income from the current job.

6) Not reporting tax free incomes or exempt income:

A taxpayer must report all his incomes even if some is tax-free. These exempt incomes are to be reported in the ‘Exempt Income’ schedule of the ITR.

7) Not clubbing incomes:

A taxpayer must club income of specified persons to his own income and tax payable by him is calculated on the total of these two incomes. The income of the minor child is added to the income of his/her parent and parent can claim exemption of Rs.1500 or income of minor so clubbed, whichever is less.

8) Not Reconciling TDS with Form 26AS:

A taxpayer must check the details of all the income details, TDS deducted, advance tax paid, self-assessment tax paid, etc. in Form 26AS and also verify it with Form 16 and Form 16A to avoid any discrepancy.

9) Not Paying Advance Tax/ Self-Assessment Tax:

A taxpayer must ensure that the tax dues are cleared on or before 31st March of the financial year because failure to do so within due dates will attract interest and penalty.

10) Not Verifying ITR V on time:

After e-filing your ITR, a taxpayer must e-verify his return via Net banking, Aadhaar Card or through the EVC process. If due to any reason he is unable to e-verify your return, then he can sign and send the ITR-V to the CPC via ordinary or speed post only within 120 days from e-filing of return.

So, the above mentioned are the common mistakes to avoid while online income tax return filing. To understand in detail you can also consult top tax consultant in India and top Chartered accountants in India by using our online CA services through CAONWEB.

File Income Tax Return Form

FAQS:

1)    For whom Income Tax Return filing is compulsory?

In the following cases income tax return filing is compulsory:

Ø Any private, public, domestic or foreign company located and/or doing business in India whether having profit or loss or nil income.

Ø Any firm including LLP or Unlimited Liability Partnership.

Ø Any resident having any asset located outside of India (might include any financial interest in any entity as well) OR any resident who retains signing authority for an account which is based outside India whether or not having income chargeable to tax.

Ø Individuals, HUF, AOP or BOI and artificial juridical persons having total income (or the total income of any other person in respect of which he is assessable under income tax act) during the previous year exceeds the basic exemption limit before giving effect to the provisions of Chapter VI-A.

2)    What is the due date of online income tax return filing for FY 2018-19?

The ITR due date is 30th September 2019 forCompany, a person other than a company whose accounts are required to be audited and a working partner of a firm whose accounts are required to be audited. And, the ITR due the date is 31st July 2019 forany another assessee.

3)    What if a person furnishes the return of income after the ITR due date or does not furnish the return of income?

Where a person furnishes the return of income after the ITR due date or does not furnish the return of income than the simple interest of 1% per month or part of the month is payable. However, if he/she has paid taxes in full on or before the ITR due date interest is not levied.

Also, where a person fails to furnish a return of income within the prescribed time limit he shall pay, by way of fee, a sum of-

a)    Rs.5000, if the return is furnished on or before the 31st December of the A.Y.

b)    Rs.10000 in any other case

However, if the total income of the person does not exceed Rs.5 lakhs, the fees payable shall not exceed Rs.1000.

4)    How I can file income tax return online?

You can do online income tax return filing either directly or you can also take help of professionals by visiting our website of CAONWEB. You have to follow these simple steps:

Ø Step 1: Go to CAONWEB site and choose professionals and required service and submit your details.

Ø Step 2: Our team will contact you and guide you about online income tax return filing and documents required for it. 

Ø Step 3: Then you are required to submit the required information and documents.

Ø Step 4: We will process your documents and complete the filing process.

Ø Step 5: And your income tax return will be easily filed online.          

5)    What are the different types of Income Tax Return Forms available for Income Tax India e filing?

Income Tax Return Forms for Income Tax India e filing:

Ø ITR 1‐ Applicable to individuals being a resident (other than not ordinarily resident) having total income up to ₹ 50 lakh, having income from salaries, one house property, other sources ( interest, etc.), and agricultural income up to ₹ 5,000. [Not for an individual who is either director in a company or has invested in unlisted equity shares]

Ø ITR 2‐ Applicable for Individuals and HUFs not having income from profits and gains of business or profession

Ø ITR 3‐ Applicable for individuals and HUFs having income from profits and gains of business or profession

Ø ITR 4‐ Applicable for individuals, HUFs and firms (other than LLP) being a resident having total income up to ₹ 50 lakh and having presumptive income from business and profession. [Not for an individual who is either director in a company or has invested in unlisted equity shares]

Ø ITR 5‐ Applicable for persons other than Individual, HUF, Company and, Person filing Form ITR‐7

Ø ITR 6‐ Applicable for companies other than companies claiming an exemption under section 11

Ø  ITR 7‐ Applicable for those persons including companies who are required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)

How Should You Pay Income Tax

How Should You Pay Income Tax?

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The Government of India levies income tax on all income as per the provisions of the Income Tax Act, 1961. The Government of India has several mechanisms through which it collects income tax from taxpayers like Advance Tax, Self-assessment tax, Tax deducted at source (TDS) and Tax collected at source (TCS).

Advance tax:

  • Income tax is to be paid in advance instead of a lump sum payment at year end if you have a total tax liability of Rs.10000 or more in a financial year.
  • If there is any default in the payment of advance tax, it will attract interest under section 234B and any deferment of advance tax will attract interest under section 234C.

Self-Assessment tax:

  • You are required to calculate your final income tax liability at the time of online income tax return filing after deducting TDS and advance tax paid during the year.
  • This final liability is known as self-assessment tax and has to be deposited with the Government, before online income tax return filing.
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Tax deducted at source:

  • Tax Deducted at Source (TDS) is an indirect way of tax collection by the government.
  • As per this concept, a person who is liable for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment to any other person and remit the same into the account of the Central Government.
  • The deductee from whose tax has been deducted at source would be entitled to get the credit by online income tax return filing on the basis of Form 26AS or TDS certificate issued to him by the deductor.

Tax collected at source:

  • Tax collected at source (TCS) is similar to TDS, except that it is levied on the sale of specific items as listed in Sec 206C of the Income Tax Act, 1961.
  • The seller collects tax from the buyer, at the specified rates and has to deposit the amount to the credit of Central Government.
  • The buyer from whom the Tax has been collected will get the credit of the amount on the basis of certificate issued by the tax collector.
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How to pay income tax?

Income Tax can be paid both through the internet (online or e-payment) and at designated branches of banks empaneled with the Income Tax Department (offline). 

Following steps are to be followed to pay tax online:

Step-1

To pay taxes online, log in to http://www.tin-nsdl.com > Services > e-payment: Pay Taxes Online or click here on the tab “e-pay taxes” provided on the said website. Provide a proper link of e-payment.

Step-2

Select the relevant challan i.e. ITNS 280.

Step-3

Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, the address of the taxpayer and the bank through which payment is to be made, etc.

Step-4

If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name as per the master will be displayed on the confirmation screen.

Step-5

On confirmation of the data, you will be directed to the net-banking site of the bank.

Step-6

You have to log in to the net-banking site with the user id/password provided by the bank for net-banking purpose and enter payment details at the bank site.

Step-7

On successful payment of the tax, a challan will be generated containing CIN, payment details and bank name through which e-payment has been made.

You can either do online income tax return filing yourself or take help of professionals through our online platform CAONWEB. And, if you have any queries relating online income tax payment, online income tax return filing, income tax return form and ITR due date then you can also contact professionals through CAONWEB.

Understanding the New 2019 Federal Income Tax Brackets/ Slabs and rates?

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Income Tax Brackets/Slabs & Rates applicable for FY 2019-20 are:

Income Tax Slabs for FY 2019-20 for Individual, Hindu undivided family (HUF), Association of persons (AOP), Body of individuals (BOI), Artificial juridical person*:

  • Income Up to ₹250000- NIL
  • Income from ₹250000-₹500000- 5%
  • Income from ₹500000-₹1000000- 20%
  • Income more than ₹1000000- 30%

Income Tax Slabs for FY 2019-20 for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)*:

  • Income Up to ₹300000- NIL
  • Income from ₹300000-₹500000- 5%
  • Income from ₹500000-₹1000000- 20%
  • Income more than ₹1000000- 30%
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Income Tax Slabs for FY 2019-20 for Super Senior Citizens (80 Years Old or more)*:

  • Income Up to ₹500000- NIL
  • Income from ₹500000-₹1000000- 20%
  • Income more than ₹1000000- 30%

*Note: In addition, cess and surcharge are levied as follows:

  • Health & Education Cess- 4% of the income tax amount
  • Surcharge- 10% of the income tax amount, where the total income exceeds ₹50 lakh up to ₹1crore.
  • Surcharge- 15% of the income tax amount, where the total income exceeds ₹1crore.

Income Tax Slabs for FY 2019-20 for Domestic Companies:

  • Gross turnover up to 250 Cr. in the previous year- 25%
  • Gross turnover exceeding 250 Cr. in the previous year- 30%

Note: In addition, cess and surcharge are levied as follows:

  • Health & Education Cess- 4% of Corporate Tax
  • Surcharge- 7%, where taxable income is more than 1Cr. but less than 10Cr.
  • Surcharge- 12%, where taxable income is more than 10Cr.

Read more: Are you a salaried Taxpayer? You need to be alert with recent changes in Form 16!!

Online Income Tax Return filing for FY 2019-20:

If you have gross total income exceeding the basic exemption limit during the previous year, then you must do online ITR filing in applicable income tax return form on or before the due date of ITR filing.

ITR due date of Online Income Tax Return filing for FY 2019-20 is 30th September 2020 for Company, a person other than a company whose accounts are required to be audited and a working partner of a firm whose accounts are required to be audited. And, ITR due date of Online Income Tax Return filing is 31st July 2020 for any other person.

Where a person furnishes the return of income after the due date of ITR filing or does not furnish the return of income than the simple interest of 1% per month or part of the month is payable. However, if he has paid taxes in full on or before the ITR due date interest is not levied.

Know this: Mistakes to avoid while filing Income Tax Return

Where a person fails to furnish a return of income within the due date of ITR filing he shall pay, by way of fee, a sum of ₹ 5000, if the return is furnished on or before the 31st December of the A.Y. and ₹ 10000 in any other case. However, if the total income of the person does not exceed ₹ 5 lakhs, the fees payable shall not exceed ₹ 1000. You can do online income tax return filing either yourself or take help of professionals. For any queries and services relating online income tax return filing, you can contact professionals providing services of ITR Filing through CAONWEB.

How to Check If Your PAN Card is Active or Not?

How to Check If Your PAN Card is Active or Not?

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To take a dig over false issuance of PAN cards for illegal purposes, the government of India has recently deactivated 11 Lakh PAN Cards following duplication. These de-activated PAN Cards were either allotted to a non-existent person or in the name of people with fake identities. It is worth mentioning that it is mandatory to link PAN with Aadhaar. Those who are skeptical about their PAN card status can follow the below-mentioned steps to check whether their PAN is active or it has been deactivated:-

Step 1: Visit the official income tax department website https://www.incometaxindiaefiling.gov.in/home

Step 2: Click on “Verify Your PAN Details” option under the ‘Quick Links”’ menu on the homepage by inputting some essential details such as your PAN Number, Full Name, DoB, Status and Captcha Code.

Step 3: Upon entering the details, click on ‘Submit’ after which you will receive an OTP on your registered mobile number.
Step 4: Enter the One Time Password, after which you will be directed to the page that will show you

Step 5: The status of your PAN card under ‘remarks’ option – active or deactivated.

Step 6: The status of your PAN will be displayed on the screen.

Here’s a Sneak-Peek into the Details of PAN:-

A PAN card is made up of a ten-digit alphanumeric number that can be used to track financial transactions of an individual. Every tax paying citizen of India must possess a PAN card for smooth financial transactions both in India and abroad. As a general rule, one person should possess just one PAN card which can be helpful in following ways:-

  1. Tax deductions
  2. Starting a business
  3. Claiming funds
  4. Making investment
  5. Opening a bank account
  6. Buying and selling an immovable asset
  7. Buying RBI bonds and insurance
  8. Bank drafts and cash deposits

Why you should have a PAN card?

A PAN card is essential for every transaction made over and above Rs. 50,000/-. It also keeps a track of all financial transaction of an individual and companies that bring down the possibility of tax evasion. The pan card has your name, DOB, and photograph; it also serves as a nationally accepted identity proof for the cardholder.

The PAN card is useful when you purchase any vehicle, buy or sell immovable property, invest in shares or debentures over and above 1 lakh, and wish to open a new bank or demat account or while applying for a new credit card and several other transaction types.

How to Apply for a PAN Card?

A PAN Card can be applied both online and offline (which-so-ever is convenient). But before initiating any process, it is wise to keep all the documents handy. Also, note that the documents you provide in the PAN card application process must be valid at that time. The list of Documents required for Indian citizens for PAN card include:-

  1. Voter ID
  2. Aadhaar Card
  3. Passport copy
  4. ID card issued by the central or the state government authority
  5. Bank statement/credit card statement
  6. Water/electricity/gas bill

Note: All these can be used as a valid proof of address, identity, and Photo ID proof

The PAN Card Application Process

A PAN Card can be applied online and offline. To apply for it online, you can visit the NSDL portal or the UTIITSL website. The charges applied for a PAN card application is Rs 110/- for Indian citizens however for applicants residing outside India the payment of Rs. 1,020/- has to be made via credit/debit card, net banking, demand draft, etc.

To further ease the PAN application process and to make India digitalized, the income tax department has recently launched a mobile app called ‘Aaykar Setu’. It will allow customers to issue their PAN card using the Aadhaar e-KYC facility which will automatically verify the details of the customer. In addition to this, this app will also allow entities to pay taxes online, file refund and track income tax returns, TDS (tax deducted at source) with few simple clicks.

Below is the list of advantages that Aaykar Setu is sure to provide:

  1. It will save you a lot of time and make the PAN card application process less intrusive.
  2. Using this app from will help you resolve all your income tax issues with mere few simple clicks online.
  3. You can even personalize the Aaykar Setu’ app through a unique login ID and can file an income tax return using this app.
  4. With Aaykar Setu you can link your permanent account number with it and track all activities associated with your PAN card in few seconds.
  5. Using this app, you can make the process of getting PAN more hassle-free. It will also eliminate the role of private agents who charge hugely for issuing the PAN card and often delay the process as well due to their negligence. You can even use this new IT Dept’s mobile app to pay taxes online, apply for PAN online, ask queries from tax expert about tax payment on live chats, get quick tax calculation tool, etc.

These are quite significant details that would help you get your PAN Card with ease. Also if you have already applied for a PAN but your card has some minor spelling errors or if you need to make any corrections in your PAN, you can do the same online. Thanks to the government of India, the process of PAN is made simpler and effective with time. This has certainly made the lives of people a lot easier.

3-Lesser-Known-Ways-to-Save-Tax

Plan Income Tax Return: 3 Lesser Known Ways to Save Income Tax

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Tax Saving is a continuous process but not everyone plans it well through the year. It often ends up being a last-minute rush whereas online income tax return filing is annual process. This financial year is nearing its end and if you haven’t been planning your taxes all through the year, you must be busy looking for last-minute options to save your hard-earned money this time around.

If you have already reached out to the more popular investment options, let’s look at some of the lesser-known investment options that can help you reduce your tax burden except the basic exemption limits mentioned in income tax slab by online income tax return filing on or before the ITR due date.

3 lesser known ways to save tax for online income tax return filing other than specified deductions and the basic exemption limits mentioned in income tax slab are as follows:

Company Registration India

Withdraw And Reinvest Old Tax-Saving Investments:

Sometimes, there’s no need for you to invest more money. You can use money received from old tax saving investments which have completed the lock-in period and re-invest them further for tax benefits.

Pre-School Fee Deduction Under Section 80C:

Tuition fees for pre-school (pre-nursery and nursery) are eligible for deduction under Section 80C. However the benefits are restricted to two children and each parent can claim for deduction on the fees for two children.

Saving Tax With The Help Of Parents:

Gift Money To Parents And Then Invest:

If you gift money to your parents or in laws, any income earned from investment of such money would be taxed as per the parents’ applicable tax slabs.

Pay Rent To Parents:

-You can claim exemption for HRA under Section 10(13A) and your parents will be eligible for standard deduction and deduction on municipal taxes paid, resulting in savings for the entire family. But you do need to have a proper rent agreement and rent slips from your parents.

-You can also claim deduction under Section 80GG for rent even if you are not eligible for HRA.

Pay Interest To Parents:

You can claim deduction under section 24B for interest on loan taken from parents to finance house purchase. But take proper interest certificate from your parents as proof of interest payment.

Premium Payment For Senior Citizen Parents:

 You can claim deduction under Section 80 (D) of up to ₹ 25,000 for premium payment for yourself in a financial year. And you can claim an additional deduction of ₹ 50,000 on premium payment for your senior citizen parents. If a senior citizen pays for the premium of his very senior parents, he/she can claim for an additional deduction of ₹ 50,000.

Also, if you are paying for the expenses on medicines for your senior citizen parents, you can avail deduction up to ₹ 50,000 under Section 80 (D). However, do keep a record of all the bills and prescriptions safely for submitting proof.

So, the above mentioned ways are lesser known to save tax, you can avail the benefits and can save your tax while online income tax return filing on or before the ITR due date in accordance to the applicable income tax slab. To understand in detail you can also consult professionals like CA, CS, tax consultant etc. as they have complete information about the the exemption limits, deductions, income tax slab, ITR due date, balance sheet, etc. To find authentic & verified professionals for online income tax return filing you can take help of CAONWEB online CA directory.