Individual taxpayers who file ITR-1 or ITR 4 for the previous financial year (2020-21) ended March 31, have to do so by July 31. For companies and firms whose accounts are required to be audited, this deadline is October 31. But keeping in mind the facilities of the taxpayers, these dates have now been extended.
The Income Tax Department has extended the deadline for filing IT returns for the financial year 2020-21 due to the Corona epidemic. This will not only provide great relief to the individual taxpayers, but will also reduce the burden of compliance on the businessmen facing difficulties in the current environment.
According to the Income Tax Rules, individual taxpayers who file ITR-1 or ITR 4 for the previous financial year (2020-21) ended March 31, have to do so by July 31. For companies and firms whose accounts are required to be audited, this deadline is October 31. But keeping in mind the facilities of the taxpayers, these dates have now been extended.
New deadline for Income Tax Return
Individuals can now file tax returns for income earned in the financial year 2020-21 till September 30 instead of July 31. The CBDT has extended the deadline for filing returns for companies from October 31 to November 30, 2021.
New deadline for revised returns
A taxpayer who has not filed his return even after the deadline can file Belated Income Tax Return, but for this he will have to pay a penalty. The last date for filing Belated Income Tax Return or Revised ITR is now 31st January, 2022.
Form-16 issuance deadline
According to a circular, the CBDT has also extended the deadline for submission of Form 16 to be given by the employer to the employee till July 15, 2021. Earlier its last date was 15 June.
New Tax System
The government has started a new tax system for taxpayers from 1 April 2020. It is important to understand what will change under this new tax system, for which taxpayer it is beneficial and who should not opt for it. First understand what is in the new slab.
- No tax to be paid on income up to Rs 2.5 lakh per annum
- Annual income of Rs 2.5 lakh to Rs 5 lakh will attract 5% tax
- Annual income of Rs 5-7.5 lakh will attract 10% tax
- 10 percent tax will be levied on annual income of Rs 7.5-10 lakh
- Annual income of Rs 10-12.5 lakh will be taxed at 20%
- Annual income of Rs 12.5-15 lakh will attract 25% tax
- Annual income above 15 lakh will have to pay 30% tax
Switch to new tax slab or not
Taxpayers can move from the old tax slab to the new slab and they can come back from the new slab to the old slab. However, this exemption is only for certain categories of taxpayers. Employed can come back by going to the new slab. Employed can switch tax slabs every financial year. Those who have income from salary, rent or other sources, they can change the tax slab every time. If you have income from business then you can shift only once. Businessmen once switched cannot come back.
If you are a doctor, lawyer, engineer or chartered accountant then you can come under the new scheme. The special thing is that you can choose between new or old scheme every year.
