A new tax regime, a person can move to a new tax slab structure which has 5 tax slabs however he cannot take any tax exemptions. The new tax slab structure has lower marginal tax rates for income up to Rs 15 lakh, when compared to the tax slab structure under the old tax regime.
Taxable income slabs
Up to Rs 5 lakh
Rs 5 Lakh to Rs 7.5 Lakh
Rs 7.5 lakh to Rs 10 lakh
Rs 10 lakh to Rs 12.5 lakh
Rs 12.5 lakh to Rs 15 lakh
Rs 15 lakh and above
Which option to choose? Old tax or new tax regime?
Budget 2020 has come up with the option of new income tax slab, under new slab you have an option of paying tax with lower tax rates but you cannot claim any exemptions/deductions or you can continue to pay tax under the existing income tax laws by claiming the exemptions and deductions. Which tax regime to choose depends on case to case basis. If an individual was claiming higher exemptions he is less likely to get benefit under the new regime.
For Financial Year 2020-21, taxpayers can opt any of these two options.
Dividend Distribution Tax has been withdrawn and dividend income shall be taxable in the hands of the recipient at applicable rates.
B. The tax effect for Corporate
The corporate tax for newly set up manufacturing and power generation companies have been reduced to 15%.
Co-operative societies have been given the option to pay tax @ 22% without any deductions.
Dividend Distribution Tax has been withdrawn and dividend income shall be taxable in the hands of the recipient
Currently, businesses having a turnover of more than ₹1 crore are required to get their books of accounts audited by an accountant. For Medium, Small and Micro Enterprise (MSME) sector, Turnover limit for audit of MSMEs to be increased from Rs 1 crore to Rs 5 crore, to those businesses which carry out less than 5% of their business in cash.
Section (208) of the Income tax act, 1961 defines “Advance Tax” which means any tax that is paid before the end of the financial year. An assessee earning an income of more than Rs. 10,000 and above in a financial year is liable to pay advance income tax. Rather than receiving all the direct tax revenue at the end of the year, advance tax payment helps the government to meet its obligation on time.
DUE DATES FOR ADVANCE TAX PAYMENT
2019-20 for both Individual/corporate taxpayers
the taxpayers earning income from any source (Salary, rent, business
profession, capital gain etc.)
PERCENTAGE OF ADVANCE TAX
On or before 15th June
On or before 15th
On or before 15th
On or before 15th March
For the taxpayers filing ITR under presumptive scheme (U/S 44AD or 44ADA)
PERCENTAGE OF ADVANCE TAX
On or before 15th March
OF ADVANCE TAX
Advance tax is applicable on all tax payers whether you are a salaried professional or a freelancer or businessman.
If your employer had already deducted TDS from
your salary then you don’t have to worry for advance tax payment.
However, if such assessee has any other source
of income viz. capital gains, house property & interest on investment, then
he/she has to fulfil the advance tax liability condition.
ASKED QUESTIONS (FAQ’s)
What if advance tax paid is more or less than
actual tax obligation?
If the advance tax paid is more than actual obligation then the excess amount will be refunded to your registered bank within the stipulated time by the Income tax department.
If the advance tax paid is less than the actual tax obligation then then assessee have to pay the remaining amount and the penal interest @1% per month may also apply on the outstanding amount.
What if I
miss the deadline of advance tax payment?
If you fail to pay your advance tax or the amount you pay is less than the mandated 30% of the total liability by the first deadline (September 25), you will be liable to pay interest on the amount, viz. 1% simple interest per month on the outstanding amount for three months.
The same would apply if you fail to pay the amount by the second deadline (December 15). Failing to pay the third and last instalment (March 25) would attract a penalty of 1% simple interest on the defaulted amount for every month until the tax is fully paid.
How should I
file advance tax for the current financial year?
Advance tax is paid just like any other tax payment by filing challan 280. Please follow the following steps to know more how the advance tax is filed:
Login to NSDL – click on “services”
Then go to “e-payment”
Select the relevant challan [In case of Advance tax select Challan 280]
Enter other mandatory details such as PAN/TAN, address of the taxpayer and the bank through which the payment is to be made etc.
On confirmation of the information so entered, you will be directed to the payments page.
On successful payment a challan, a box will be displayed containing CIN, payment details and bank name through which online payment was made.
deposit advance tax with the government?
Advance Tax is to be deposited with the Government of India by using the challan prescribed in this behalf. The Challan can be downloaded from www.incometaxindia.gov.in & Tax can be paid in the designated banks by either of 2 modes viz. physical mode (cash/cheque) or online mode by using debit card or net banking. In case anyone is not able to download challan even after the payment, then challan details will be updated in their form 26AS after a few days.
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.
-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.
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.
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.
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
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
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.
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 Slab
Tax needs to pay
Up to 2,50,000
2,50,001 to 5,00,000
5,00,001 to 10,00,000
12,500 + 20% of total income exceeding 5,00,000
1,12,500 + 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
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.
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 Dateis 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
❏ 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
❏ 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
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
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
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
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.
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
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.
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
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.
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
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.
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),
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.
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.
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.
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.
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?
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
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
Step 4: Keep all the documents ready: Keep your PAN, Form 16, interest statement, TDS certificates, details of investments, insurance and home loans handy.
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
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
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
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
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/
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
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.
1)For whom Income Tax Return filing is
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
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
Also, where a person fails to furnish a
return of income within the prescribed time limit he shall pay, by way of fee, a
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
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
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)
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).
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.
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.
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.
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:
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.
Select the relevant challan i.e. ITNS 280.
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.
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
On confirmation of the data, you will be directed to
the net-banking site of the bank.
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.
On successful payment of the tax, a challan will be generated
containing CIN, payment details and bank name through which e-payment has been
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.
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.
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.