Things You Should Know Before Filing the ITR in 2020

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This year, due to the Pandemic situation, the last date of ITR filing has extended to December 2020. The Income Tax Return filing always seems a complicated thing to many. Whether you are a salaried person or a businessman; you need the help of the CA In Delhi to execute the job without any hassle. Before filing the ITR for the AY 2019-20, here are some facts that you should know to get a better idea. 

Income Tax Return: 

Income tax Return or popularly known as ITR is a way to submit all the information regarding their income and tax payment through a form to the Income Tax Department of India. Every taxpayer must file the ITR before the specified due date. Whether the taxpayer is an individual or a company, you need to select the right category of the ITR filing based on the income. Before the payment, they must calculate payable tax and make the payment before filing the tax. 

During the process of ITR filing, you need to check the form 26AS to get the details of TDS and other income related to the interest of FD. You must want Form 16 as well to get all the details of your tax deduction and claim. 

What is Form 16?

It is the most basic yet important Income Tax Form. To get the information about their deducted salary, every employer provides the form to their employees as their TDS certificate. In case, your annual salary is more than the basic tax exemption, then the employer can direct subtract the tax and deposit to the Government of India. 

The employees can ask the Form 16 from their employers as proof of filing the ITR to them. In case, your salary is lower than the basic tax exemption, then there will be no tax exemption. 

What are the details of Form 16 you need to file the ITR?

The following information must be included in Form 16:

  • Taxable salary
  • 80C deduction breakup
  • TDS
  • Aggregation of Section 80C Deduction (Gross and Deductable)
  • TDS deducted by the employer
  • PAN card number
  • Employer’s PAN card number
  • Present assessment year
  • TAN number of employer
  • Name and address of the employer
  • Tax payer’s complete name and address

How many types of ITR filing can be done?

The CA In Delhi will help you to file seven types of ITR depending on the type and income of the taxpayers.

  1. ITR-1: It is for the individual who resides in India with a total income of up to 50 lakh. The income will include salary, property, and many other sources. 
  2. ITR-2: It is for the individual and HUF for the income that comes from other than business or profession
  3. ITR-3: It is for the individual to report their income from the business or profession.
  4. ITR-4: It is for the individual, HUF, and partnership firms to show their income under the presumptive scheme of the taxation system.
  5. ITR-5: It is for partnership firm, AOP, LLP, and BOI.
  6. ITR-6: It is for the company to file the income from the business or any other source of income.
  7. ITR-7: It is for the companies, associations, and trusts who want to claim tax exemption. 
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