Income Tax Return and Types of RTI Forms

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For natural persons not subject to control, the deadline for filing the income tax return for the 2020-2021 fiscal year has been extended by three months from September 30 to December 31. the new income tax portal developed by Infosys. Taxpayers also have the option of choosing between the old and the new income tax regimes when filing the return. Those who choose the new regime will not be able to claim certain deductions such as the standard deduction, housing allowance and those of articles 80C and 80D. It is also important to select the correct RTI form based on your income sources and residency status. For example, ITR-1 can only be used by a resident individual with income of up to Rs 50 lakh from salary or pension, income from home ownership and income from other sources. Those with capital gains income, regardless of the amount, must file an ITR-2. Taxpayers who have income from multiple real estate as well as foreign income will also complete this form. ITR 3 and 4 are intended for taxpayers with business or professional income, or who have opted for flat-rate taxation. To make the task of filing easier and faster for taxpayers, the government this year introduced the Annual Information Statement, which provides people with comprehensive information about their financial transactions.

The AIS contains more information than the existing 26AS form. The taxpayer can import the information contained in the AIS directly into his RTI form via the pre-filled function. Registrants should see if the information in Form 26AS matches the information in the Annual Information Statement (AIS) and in Form 16 issued by employers. Form 26AS includes details of withholding tax (TDS), withholding tax (TCS), withholding tax paid, self-assessment tax paid and financial transactions in excess of certain prescribed thresholds. This time, the form will also include remittances received from abroad, interest on income tax refund, dividends from mutual funds, purchase of FM, among others. The withdrawal of an excess tax credit when filing the return could result in a notice from the income tax service. In addition, if a person files the RTI after December 31, they will face a penalty of 5,000 rupees. For taxpayers whose total income does not exceed Rs 5 lakh, the maximum late filing fee will be Rs 1,000. If a taxpayer also misses the March 31, 2022 deadline for filing a late ITR, they can only file the return in response to a notice from the income tax department.

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