Income Tax Dept issues guidelines for filing tax returns
Published By : Sourabha Parida | October 24, 2020 1:29 PM
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New Delhi, Oct 24: The Income Tax Department has issued a lengthy instruction manual running into hundreds of pages for filling up the tax returns for assessment year 2020-21. The Income Tax Department has issued a detailed step by step reckoner for filing tax returns to be submitted under different heads. These instructions are guidelines to help the taxpayers for filling the particulars in Income-tax Return Form-1 for the Assessment Year 2020-21 relating to the Financial Year 2019-2020. This Return Form is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the Assessment Year 2020-21 does not exceed Rs 50 lakh and who has income under the following heads: (a) Income from Salary/ Pension; or (b) Income from One House Property; or (c) Interest income and/ or family pension taxable under other sources. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories. This Return Form should not be used by an individual who -- (a) is a Director in a company; (b) has held any unlisted equity shares at any time during the previous year; (c) has any asset (including financial interest in any entity) located outside India; (d) has signing authority in any account located outside India; or (e) has income from any source outside India. This return form also cannot be used by an individual who has any income of the following nature during the previous year:- (a) Profits and gains from business and professions; (b) Capital gains; (c) Income from more than one house property. In addition, this form should not be used if Income under the head other sources which is of following nature: (i) winnings from lottery; (ii) activity of owning and maintaining race horses; (iii) income taxable at special rates under section 115BBDA or section 115BBE; Income to be apportioned in accordance with provisions of section 5A; or (f) Agricultural income in excess of ?5,000. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit, etc. of the following nature: (a) any brought forward loss or loss to be carried forward under the head 'Income from house property'; (b) loss under the head 'Income from other sources'; (c) any claim of relief under section 90 and/or section 91; (d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or (e) any claim of credit of tax deducted at source in the hands of any other person. This will be an annexure-less Return Form No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return. The tax filers have to mandatorily report deposit of amount or aggregates of amount exceeding Rs one crore in one or more current accounts; b) Incurred expenditure of an amount or aggregate of amount exceeding Rs 2 lakh for travel to a foreign country for yourself or any other person; c) Incurred expenditure of amount or aggregate of amount exceeding Rs 1 lakh on consumption of electricity. As per the instructions for filling out Form ITR-2, this Return Form is to be used by an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR-1 (Sahaj) and who is not having any income under the head "Profits or gains of business or profession". This Return Form should not be used by an individual whose total income for the Assessment Year 2020-21 includes Income under the head "Profits or Gains of Business or Profession". Capital gains arising from sale/transfer of different types of capital assets have been segregated. In case of Long Term/Short Term Capital Gain arising on sale of Immovable property, i.e, A1 and B1 where capital gains are required to be computed separately for each property, and Schedule CG - Capital Gains Capital gains arising from sale/transfer of different types of capital assets have been segregated. In case of long term capital gains (LTCG) arising on sale of equity shares in a company or unit of equity oriented fund or unit of business trust on which STT is paid, computation of capital gains should be made as per item No. B4 or item No. B7. Separate computation of capital gains should be made for each scrip or units of mutual fund sold during the year as per Schedule 112A and 115AD(1)(b)(iii) proviso. The net capital gains arising on sale of individual scrips should be aggregated and will be auto populated. Thereafter, tax shall be charged at a flat rate of 10 per cent in Schedule SI on the aggregate LTCG, as reduced by Rs 1 lakh, for the purpose of tax computation. (IANS)
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