• Meaning of Belated Return

    Meaning of Belated Return, Filing Income Tax Return After Due Date :

    As per section 139(1), it is compulsory for every assessee to file a return of income or loss for every previous year on or before the due date in the prescribed form if comes under the income tax slab rates. If person and company fails to file ITR on timely basis then following following consequences occurred.

    Any person who has not


    In accordance with the Sec. 159 of  the Income Tax Law, if an assessee  unfortunately dies before filing the income tax return of any year in which a filing  requirement exists, it becomes the liability of the spouse/legal  representative/executor to file the income tax return and pay-off any remaining  tax dues of the deceased assessee. A deceased person is

  • Important Sections covered in Income Tax Returns Filing

    Sec 139(1):-  As per Sec 139(1) of Income Tax Act  Every Company or Firm and other than Company or Firm if their gross total Income basic exemption limit have file Their income Tax Return before due.

    Due Dates:- Due Date is 30th September of assessment year whose  accounts required to get audited including partners of firm whose accounts are required to get audited and due date is 31st July

  • Defective Return in Income Tax Reasons and Solutions

    Sec 139(9):-  Income Tax Return is treated defective return under section 139(9) of income tax act if Income Tax Return is filed without complete information or documents.

     Defective return should be rectified within 15 days of Receipt of Notice under section 139(9) otherwise return become void ab initio. 

    Reasons for Defective Returns: -

    1. Assessee fails to file his/her return in correct format or correct form

  • Deduction Under Chapter VIA of Income Tax  Act for Financial Year 2017 -18 (Assessment Year 2018-19)

    Deduction under Chapter VIA of Income Tax Act will be allowed either based on Investment or based on expense done as per specified in Income Tax Act. All subsections of sec 80 are covered under Chapter VIA. Deduction under Chapter VI A of Income Tax Act is restricted to Gross Total Income (other than Income from Capital Gain and Wining from Lottery or horse race etc) and No

  • Common Mistakes Done by Assessee while Filing Income Tax Return

    Wrong Calculation of Exemption of House Rent Allowance (HRA)

    So, Many times claim exemption of whole amount House Rent Allowance (HRA) Received even if Some portion of HRA is Taxable. Asseessee must take exemption of minimum of - 

    Actual HRA Received

    40% Of Salary or Incase of Metro Cities 50% of Salary

    Excess of Rent Paid over 10% Salary

    Note: - Here Salary means Basic plus Dearness Allowance (DA) if

  • Income Tax Slab Rates for Financial Year 2017-18

    Individual Tax Payers - Male Less Than 60 Years Old 

    Income up To Rs. 250000 - Nil Rate

    Income More then Rs. 250000 upto Rs. 500000 - 5%

    Income More then Rs. 500000 upto Rs. 1000000. - 20%

    Income Exceeding Rs. 1000000 - 30%

    In Addition to Tax Surcharge and Education Cess is Applicable

    Surcharge at the Rate of 10% on Tax Amount if Total Income excced Rs. 50 Lakh upto Rs. 1

  • Explanation to Different Income Tax Return Forms  


    ITR -1

    ITR -1 is simple Return for Resident Individual

  • Statement of Financial Transaction (STF) in Income Tax – Form 61A

    As per the Sec 285A of the Income Tax Act 1961 certain specified reporting persons required to furnish Statements of Financial Transactions in Form 61A.


  • Residential Status and Equalisation Levy in Income Tax Act

    Equalisation Levy in Income Tax Act

    As per sec 165 of Finance Act 2016 any Resident Person carrying Business or Profession or Non - Resident having Permanent Establishment in India have to deduct 6 % of Payment made for Online Advertisement or any provision of digital Advertisement space or any other facility or services for Online Advertisement purpose. Deduction of

  • Penalties under Income Tax Act

    Sec 140A(3): - When assessee fails to pay wholly or partially of Self Assessment Tax or Interest or penalty or less than, in such a case Assessing Officer may impose any amount of fine subject to Maximum of Tax in arrears.

    Sec 158BFA(2): - Minimum 100% of Tax leviable subject maximum of 300% of Tax liable on determination of Undisclosed Income.

    Sec 221 (1): - Any amount may be imposed by Assessing Officer as penalty on

  • Different Assessment Under Income Tax Act

    Assessment: -Assessment means Assessing Taxable Income of Assessee and Tax Liability their on by Assessee himself/herself or by Assessing Officer. Assessment includes reassessment.

  • Income Tax and Goods and Service Tax Compliance Applicable to Company

    Income Tax Compliance Applicable to Company 

    TDS Return for Q1: - Every Deductor who Deducted TDS in Q1 shall require to

  • Amendments or Changes in Income Tax for Financial Year 2018-19 (Assessment Year 2019-20)

    Standard Allowance to Salaried Employees in Place of Medical Allowance or Reimbursement, and Transportation Allowances


    Treatment up to Financial Year 2017-18 ( Assessment Year 2018 - 19 ): -


    Medical Allowance: - Any Fixed amount of Money Received by Employee from Employer every Month i.e. Medical Allowance is Fully Taxable in Hands of Employee irrespective of amount

  • Guide Book On ITR Filling 2019-20

    Income tax return filing is a scheduled process of every taxpayer and has to be filed every year. The income tax return filing is also a mandatory process to be followed for multiple reasons including financial and record maintenance while beneficial for the future loan perspective. It is to be noted that due date for filing the Income Tax Return by Assesse is 30th September 2020 for all the Audit cases and for the Non Audit cases the due

  • Set Off and Carry Forward of Losses

    Intra Head Set off of Losses (Set Off of Loss against Income of Same Head)

    Any losses arises under any Head of Income can be set off from any Income from any other Source under same head for that assessment year or any subsequent year, except few cases where losses can not set off to any other Income under same head for that assessment year or any subsequent year.


    Cases or

  • A Full Guide On Filling ITR-2 Online AY 2020-21

    Read Full Details on ITR-2

    What is the ITR 2 Form?
    The ITR-2 is filed by the individuals or HUFs not having income from profit or gains of business or profession and to whom ITR-1 is not applicable. It includes income from capital gains, foreign income or any agricultural income more than Rs 5,000.

    What is ITR 2 Form
    Changes in ITR 2 for AY 2020-21

  • All you need to know about tax-saving under Section 80D

    Due to the arise of Covid-19, many people are purchasing Health Insurance policies. Premiums paid on such policies are eligible for deduction u/s.80D of Income Tax Act, which is discussed in detail below:-

    Medical Insurance Premium

    What can you claim as deduction under Section 80D?
    Medical insurance is one way to absorb the

  • Documents or Information Required for Income Tax Return Filing

    Classification of Income : - Income of Asseessee first needs to be Classified into following Five heads or Source of Income : -

    Income from Salary : - Any Amount Received by Employee from Employer in form of Cash (Basic, Dearness Allowance, House Rent Allowance or any Other Allowances, Commission on Sale and Bonus etc.) or any Non Cash Facility shall be treated as Income from Salary of Asseessee. Primary Condition of Income from

  • TDS Liability on Rent Payment 

    Sec 194I:- TDS on Payment made for Rent to Resident Person for use of Land, Building, Plant and Machinery and Furniture 

    Any person other than Individual or Hindu Undivided Family (HUF) and Individual or Hindu Undivided Family (HUF) whose Gross Receipts or Sales or Turnover exceeding the Monetary Limit prescribed under sec 44AB of Income Tax Act shall required to deduct TDS on Payment made to