Income Tax Return (ITR) is a form which a person is required to submit to the Income Tax Department of India. It contains information about the person’s income , source of income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1^st April and ending on 31^st March of the next year.

Taxpayers who is required to file ITR :

1. Individual
2. HUF
3. Company
4. Society
5. Association of Person
6. Firm
7. Body of Individual

Five Heads of Income :

1. Income under the Head Salary
2. Income under the head House Property
3. Income under the head business or profession
4. Income under the head capital gains
5. Income under the head other sources

Type of ITR (Income Tax Return)

ITR forms which are most commonly applicable:

2. ITR-2 – Applicable for Individual (Not eligible for ITR 1) and HUF

3. ITR-3- Applicable for Individual and HUF

4. ITR-4 (SUGAM) – Applicable for Individual, HUF and Firm (other than LLP)

What is nil return :

A Nil ITR (Income Tax Return) is an income tax return filed by an individual or entity whose total income is below the taxable limit, and hence no tax is payable. Even though there’s no tax liability, a person can voluntarily file the ITR for various  benefits.When the income of an individual taxpayer is below the basic exemption limit in a financial year and the tax liability is zero then, such individuals do not have to file any income tax return as per provision of Section 139(1) under the Income-tax Act, 1961. Such individuals do not have to file an income tax return as they do not fall in the tax bracket and get an exemption from filing the return. But if they file ITRs even when their income is below the basic exemption limit, it is termed ‘Nil Return’. Nil return can be filled on voluntary basis . it is totally based on assess’s interest.

The basic Exemption limit is as follows, depending on the tax regime :

Old Tax Regime basic exemption is as follows

1. Rs 2,50,000 for age less than 60 years
2. Rs 3,00,000 for ages between 60 – 80 years
3. Rs 5,00,000 for ages more than 80 years

*New Tax Regime – Rs 3,00,000 is the basic exemption limit.*

Budget Update Of 2025

As per the budget 2025, the income up to Rs. 12,00,000 will have zero tax liability for the FY 2025-26 (AY 2026-27) under the new tax regime. Here’s how:

The revised tax slabs under the new regime for FY 2025-26 (AY 2026-27) are as follows:

With the revised tax structure, individuals earning up to Rs. 12,00,000 will have no tax liability due to the increased rebate of Rs. 60,000. For salaried individuals, the tax liability will be zero for incomes up to Rs. 12,75,000, due to the Rs. 75,000 standard deduction.

Is nil return contain tax liability :

A Nil ITR (Income Tax Return) is filed when your total income is less than the exemption limit, soNo tax is calculated and no tax is payable hence tax liability is zero in case of nil return.

Benefits of filling nil return file :

Proof of Income

NIL ITR  acts as official income proof which is useful for:

• Visa applications
• Loan approvals
• Rental agreements
• Applying for government tenders or contracts

Claiming TDS Refund

If TDS (Tax Deducted at Source) is cut (e.g., on FD interest or part-time salary), you can only get a refund if you file ITR—even if your income is below the exemption limit. It is found many times that tax is deducted on fixed deposits interest. To claim the TDS refund, filling ITR is more useful.

Carry Forward Losses

If you made a loss (like capital loss on shares or business loss), you can carry it forward only if you file the return before the due date—even a Nil return.

Helps in Getting Credit Cards / Loans

Banks and financial institutions often ask for past ITRs to assess eligibility.
Filing Nil ITR builds a financial record and improves your credibility.

Conclusion :

Filing your Income Tax Return isn’t just about paying taxes—it’s about being financially aware, legally compliant, and future-ready. Whether you’re a salaried professional, a business owner, or someone below the exemption limit, ITR filing opens up a world of benefits.

Need help with ITR filing or choosing the right form?
Feel free to contact us—we’ll make your tax journey smooth and hassle-free.

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The two registrations issued by the Income Tax Department to NGOs are 12A and 80G, which allow organizations to be tax exempt and allow contributors to have deductions on their donations. A 12A and 80G registered non-profit is more likely to acquire lucrative financing and other tax breaks.

In the form of a Charitable Trust/Society/Section 8 Company, an NGO (Non-Governmental Organization) is established solely to serve non-profit humanitarian purposes, and once such entity is formally registered, it is approved of a slew of tax exemptions, benefits, and reliefs, as well as the provision of tax deductions for donors. Any revenue an NGO obtains, such as service/production/donation, shall be treated as regular taxable income without regard to the purpose of such income unless 12A and 80G registrations are obtained. NGOs with 12A and 80G certificates have a higher commercial worth than those without these certificates.

What is 12A certificate?

Trusts, NGOs, and other Section 8 businesses are excluded from paying income tax as a result of their 12A registration. NGOs are non-profit and philanthropic organizations. They do, however, have income and, if not registered under section 12A of the Income Tax Act, would be liable to pay tax at regular rates. There is no distinction between charitable and religious trusts under Section 12A of the IT Act, 1962. As a result, both types of organizations are eligible for 12A registration.

Process of Registration

• As per Rule 17A of the Income Tax Act of 1962, the application must be submitted using Form 10A. The application must be submitted to the Income Tax Jurisdictional Commissioner (Exemptions).
• The Commissioner confirms the validity of the organization’s activity after receiving the Form and documentation. He has the authority to request further papers and information as he sees suitable.
• He will issue a written order for the award of 12A Registration based on the satisfactory report. If the Commissioner is not satisfied, the application will be rejected, and the applicant will be given an opportunity to be heard.

12A Registration can be revoked at any time if proof is provided that the organization’s activities are contrary to the institution’s object, are not genuine, or benefit a particular religion or caste, or that the funds are being invested in prohibited ways, or that the institution’s income is being used for the benefit of specific individuals.

Once received, the certificate will be valid for lifetime.

Documents required

• Form 10A.
• Documental evidence of the creation of the Trust or NGO – Trust Deed of a Trust; Registration Certificate and Memorandum of Association of a society; section 8 companies to submit a certificate of incorporation and copies of MoA and AoA of the company.
• Three-year bank account statement of the Trust.
• PAN card of the organization.

Benefits of 12A certificate

The initial kind of registration for an applicant who wishes to start an NGO is the 12A registration. This is an exemption that applies to all NGOs that are required to apply for a tax exemption under the requirements of the Income Tax Act of 1961. The following are some of the advantages of registering for 12A:

Government aids:

An entity, such as an NGO or a Society, can take advantage of all of the government’s programmes and grants by obtaining an exemption certificate under 12A. If the NGO or society does not accept this kind of registration, this option will be unavailable.

Tax Immunity:

The NGO or Society would be exempt from paying taxes if they claimed this exemption. To claim such an exemption, the NGO would have to provide the 12A certificate.

Existence Proof:

Such a certificate would be a genuine and legible proof of existence for the government, demonstrating that this type of company is registered. Legal proof would be accessible to the entity in order for it to get a government grant or loan.

Applicable for Societies as well:

Another point to note is that this type of certificate would be applicable not just to NGOs, but also to societies that have been registered in accordance with the Societies Registration Act.

What is 80G Certificate?

The Income Tax Department issues an 80G Certificate to a non-profit organisation or non-governmental organisation (NGO), a charity trust, or a Section 8 Company. The goal of the 80G certificate is to inspire more people to give money to charities like these. The donor benefits from contributing to such an NGO in that he receives a tax exemption on 50% of his gift since the donor is able to deduct their donations from their Gross Total Income. To qualify for the tax exemption, the donor must attach a stamped receipt from the NGO to the gift – the document must specify the organization’s name, date, and PAN.

Process of registration

• The application for an 80G certificate must be filed to the Commissioner of Income Tax (Exemption) in the institution’s jurisdiction.
• The Income Tax agency conducts an on-the-premise examination when the form and accompanying documentation for 80G registration are filed.
• Officials may request extra records and proof that the institution is compelled to provide.
• The Commissioner awards the 80G certificate to the institution after acceptable verification and scrutiny of documents and the office of the NGO.

Once received, the certificate will be valid for lifetime.

Documents required

• Form 10G.
• Registration certificate and MoA in case of Section 8 companies and Societies; Trust Deed in case of a Trust.
• No objection certificate from the owner of the property where the registered office of the Institution is located.
• PAN card copy of the NGO.
• Copy of Utility Bills – Electricity bills, water bills or House Tax Receipt.
• Donor list along with their complete address and PAN.
• Book of Accounts & Income Tax Return documents, of last three years.
• List of welfare activities being carried out & the progress report for last three years.
• Detailed list of the board of trustees.
• Deed for Verification – Original RC, MoA or Trust Deed.

Benefits of 80G certificate

After an NGO or organization meets the conditions of section 12A, it can claim benefits under section 80G of the Income Tax Act of 1961. An entity that claims this type of exemption is eligible for the following benefits:

Increment in Reputation:

The presence of an 80G registration certificate enhances the public’s perception of the company. When it comes to giving to a certain NGO, this certificate allows contributors to obtain some type of tax exemption and pay less tax. As a result, the donor will benefit from this certificate.

More Contributors/Supporters:

Having this credential not only improves the NGO’s or society’s reputation, but it also increases the number of contributors. Under this system, more donors would be eligible for tax breaks.

Tax benefits for donors:

Donors can use the NGO’s certificate to save money on taxes while still paying a fixed amount to the appropriate government agencies.

Government aids:

NGO and organizations with these certificates are more likely to get various types of grants and related support from the government.

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What is the provision of waiver of late fee of GST?

• GST council by notification waived off the GST Late Fees Reduction on the filing of GSTR 3B for all the taxpayers following are the conditions which need to be fulfilled.

. If the return is required to be filed with tax and the turnover is more than Rs. 5 crore. The late fees are Rs. 500 per return.

. Even if the turnover is more than Rs. 5 crore and a nil return is required to be filed than nil late fees is applicable.

. If the turnover is less than Rs. 5 crore and a nil return is required to be filed than also nil late fees is applicable.

. If tax is payable than fees of Rs. 500 is required to be paid as late fees.

Is the waiver applicable to GSTR1 also?

• No as per the provisions of the GST law the waiver is applicable only in filing form GSTR 3b and not for GSTR 1

What is the Notification No. 57/2020 of Central Tax?

• Notification No. 57/2020 states waiving/reducing late fees on filing GSTR 3B for the months return for the period fromMay 20 to July 20 by 30^th September 20.

What is the maximum amount of late fees under Notification No. 57/2020.

• The maximum amount of late fee which can be charged under Notification No. 57/2020 is Rs.250 each under CGST and SGST per return period.

For which period late fees has been reduced under Notification No. 57/2020.

• After the introduction of this notification late fees has been waived and in some cases reduced for filing form GSTR 3b from July 2017 to July 2020.

What is the provision of waiver of late fee of GST?

• GST council by notification waived off the late fees on the filing of GSTR 3b for all the taxpayers following are the conditions which need to be fulfilled.

. If the return is required to be filed with tax and the turnover is more than Rs. 5 crore. The late fees are Rs. 500 per return.

. Even if the turnover is more than Rs. 5 crore and a nil return is required to be filed than nil late fees is applicable.

. If the turnover is less than Rs. 5 crore and a nil return is required to be filed than also nil late fees is applicable.

. If tax is payable than fees of Rs. 500 is required to be paid as late fees.

Is the waiver applicable to GSTR1 also?

• No as per the provisions of the GST law the waiver is applicable only in filing form GSTR 3b and not for GSTR 

What is the Notification No. 57/2020 of Central Tax?

• Notification No. 57/2020 states waiving/reducing late fees on filing GSTR 3B for the months return for the period fromMay 20 to July 20 by 30^th September 20.

What is the maximum amount of late fees under Notification No. 57/2020.

• The maximum amount of late fee which can be charged under Notification No. 57/2020 is Rs.250 each under CGST and SGST per return period.

For which period late fees has been reduced under Notification No. 57/2020.

• After the introduction of this notification late fees has been waived and in some cases reduced for filing form GSTR 3b from July 2017 to July 2020.

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Why one should not miss ITR filing Due Date

As per the provisions of the Income Tax law Income tax returns need to be filed within the due date. However if return is not filed within the due date mentioned than penalty is levied upon for not filing the return within the prescribed time limit. In case someone miss the ITR due date than also return can be filed by paying requisite amount of penalty in the form of BELATED RETURN.

1. Can an assess claim carry forward of losses under the head PGBP, Capital Gain and House Property.

• In order to claim the benefit of carry forward of losses under the head PGBP, Capital Gain and House Property the return has to filed within due date specified.

2. Is everyone required to pay late fee while filing Belated Return or a return to be filed after the due date.

• No not everyone is required to pay late fee. Persons having Gross Total Income less than the basic exemption limit are not required to pay late fee for filing a Belated Return.

3. What is the due date of filing Belated Return i.e. return filed after the due date.

• The due date of filing a Belated Return is 31/03/2022.

4. Following are the Persons who have to mandatory file Income Tax Return and will be mandatorily required to pay late fee even if the Gross Total Income is less than the basic exemption limit.

• Those who have deposited an amount or aggregate of amounts exceeding Rs.1 crore or more in one or more accounts maintained with a bank or co-operative bank.
• Those who incurred an expenditure of an amount or aggregate of amounts exceeding Rs.200000 for them or on any other person for any foreign travel.
• Those who have incurred expenditure towards electricity consumption an amount or aggregate of amounts exceeding Rs.100000.

5. Is a Taxpayer who own foreign assets required to file Income tax return and will be required to pay late fee for not filing the return within the due date.

• If a Taxpayer owns foreign assets such as stock, shares etc.it is mandatory required to file Income Tax return even if the Gross total Income is less than the basic exemption limit and late fee rules will also be applicable with penalty if return not filed within the due date.

6. What is the penalty for filing ITR after the due date beyond the normal deadline.

• In order to compensate for not filing the return within the due date,late fee in the form of penalty is required to be paid.

Particulars                                         Penalty

Taxable Income less than Rs.5 lakh –                  Rs.1000/-

Taxable Income more than Rs.5 lakh –                Rs.5000/-

7. Meaning of Basic exemption limit in order to calculate late fees in filing the return.

• Basic exemption limit in old tax regime for resident individuals below 60 years is Rs. 2.5 lacs for resident individuals below 80 years is Rs. 3 lacs and for citizens above the age of 80 years is Rs. 5 lakh. However in case of new tax regime it is Rs. 2.5 lacs irrespective of the age.

8. What is the due date of filing the return for A.Y. 21-22 for Individual Taxpayers.

• The due date of filing the return for A.Y. 21-22 is 31/12/2021 which was extended due to Covid situation.

9. What is the last date of filing the Income Tax return for Taxpayers whose accounts need to be audited.

• Last date of filing the Income Tax return for Taxpayers whose accounts needs to audited under section 139(1) has been further extended by a latest Circular No. 01/2022 to 15^th March 2022.This extension will not in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds one lakh rupees.

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Income tax is a type of tax charge by the government on the basic income earn by an individual or business during a financial year.  It is a source of revenue for the government. The funds collect from this are use for public services, pay government obligations and provide goods and services for citizens. Income Tax Return is a form which contains information about the individual’s income and the taxes to be paid on it in a year. 

Types of Tax ?

Two types of Tax is there :

1. Direct Tax
2. Indirect Tax

Types of Taxpayers ?

1. Individual
2. Firms
3. Company

However, individuals are divided into two categories. First one is Resident individuals who have to pay tax on the basis of global income .i.e, income earned in India as well as Abroad. Second one is Non-resident individuals who have to pay the tax on the income that they earned in India only.

What are the Important Factors to be considered before Filling Income Tax Return :

1. Choose the correct ITR form.
2. Choose a new tax regime or old tax regime according to your benefits.
3. Pre Filled ITR forms.
4. Verify the pre-paid taxes with Form 26AS.
5. Payment of balance taxes.
6. Consequences of non-filing of ITR by due date.
7. Change of employment during the year.
8. Reporting Exempt income.
9. Various disclosure requirements.

Income tax slabs

Firms and companies have a fixed rate of tax but individuals’ tax based on the income slab they come under.

Old tax regime :

New tax regime :

Documents required :

It is better to gather all the documents before Filing Income Tax Return form. 

• Bank and post office saving account passbook
• Salary slips
• Aadhar card
• PAN card
• PPF account passbook
• Form 16
• Form-16A
• Form-16B
• Form-16C
• Form-26AS
• Tax investment proofs.

How to File Income Tax Return?

Filling ITR is a longer procedure. There are so many steps to File ITR .

1 : Log on to the portal of the income tax department (https://www.incometax.gov.in/iec/foportal/) for filing returns online. Register through the PAN Card and it will serve as a user ID.

2 : Download the appropriate ITR Form.

3 : Enter the correct details in Form 16.

4 : Calculate all relevant tax details.

5 : Confirm the above details and then submit return it.

6 : Sign digitally. (If you don’t have a digital signature, you can skip this step).

7 : Confirmation message will pop on your screen.

8 : e-verify the return through any one of these modes :  Netbanking,  Aadhaar otp, Bank ATM, Bank Account Number,  Demat Account Number, Registered mobile number and email id.

The post Income Tax Filing in Dehradun – How to File ITR – Documents required appeared first on Devna Juyal and Asscociates.

If you want to register for a company or startup in India then you need to register or record it in Indian Official records i.e. Ministry of Corporate Affairs (MCA). This is the first mandatory step for this procedure. If you can’t visit the corporate office for any reason then you can register your company or startup online. To register for your company or startup firstly you should be clear about the name and type of your startup. Before confirming any business type , you should have a clear understanding of the business you are going to start, like the goals and objectives of the business.

Steps to register a Company or Startup in India :

There are four important steps to register a Startup in India :

1. Obtain DSC :

Digital Signature Certificate is nothing but the digital or electronic form of a physical certificate. Examples of physical certificates are Drivers’ license, membership card or passport. The purpose of these certificates is to behave as the identity of an individual. For example, a driving license is the proof of a driver that he/she can drive legally in a particular country. Similarly, a digital certificate behaves like the same. Here you can represent the certificate electronically to prove your identity, to retrieve information or services on the internet or to sign some documents digitally.

2. Obtain DIN :

Direct Identification Number is a 8 digit unique number which is required for any directory of a company. DIN has been introduced in India by Companies Amendment Act, 2006.

3.  Login to the MCA Portal.

4.  Then do your registration for your company.

Different types of business/Company in India :

1. One-person company :

Such companies are created when there is only 1 owner. Many startups & young entrepreneurs like to work as one person. But they can only have 1 shareholder, which is a disadvantage when compared with other private companies.

Benefits of One-person company :

• Can manage easily.
• A good control on the company.
• Not much compliances in comparison to private companies.
• Easy to get loans from banks.
• Legal recognition.

Details Required while Registration :

1. Proof of registered office.
2. Article of Association(AoA).
3. Memorandum of Association(MoA).
4. Affidavit and consent of the director.
5. Declaration about all the compliances.

2. Partnership Firms :

The word partnership means a person who shares or takes part in activities of another person.  It is a closely held form of a business. The want or why of this firm arises from limitation from sole proprietorship.

Benefits of Partnership Firms:

• Convenient to form.
• Flexible.
• More easy to wind up.
• Annual return is not necessary to submit in the MCA portal.
• Risk is shared between partners only.

Details Required while Registration :

• Name of all the partners and firm.
• Address of all the partners and firm.
• Date of starting of the firm.
• Rights of all partners in a firm.
• Salary of all the partners.
• Profit share ratio of the partners.
• Money that is invested in a firm.

3. Sole Proprietorship :

It is an individual entrepreneurship; aka sole trader ship or a proprietorship where a single individual manages, owns and controls the company. rights and there is no legal distinction between the business entity and the owner. It is a one person company where a single person is the owner of the company who pays personal income tax on the profits earned by the firm and also is single handedly responsible for the loss and the risks of the firm.

Benefits of Sole Proprietorship :

• Government registration is not required.
• Government paperwork is also not required.
• Not required double taxation.
• Pay income tax only on your income.
• The Profit that you earned is only yours.
• Not required to fill compliances.

Details Required while Registration :

• Aadhaar Card.
• PAN Card.
• Bank Account.
• Registered office proof.

4. Limited Liability Company :

A limited liability partnership (LLP)  is a partnership in which some or all firm partner’s liability is limited to the amount they put in the business. LLP means that if a partnership fails, then the creditors cannot go for a partner’s personal assets or income. It has a partnership structure where the liability is limited to the amount they put in a business.

Benefits of Limited Liability Company :

1. Paperwork is less as compared to other companies.
2. More flexible.
3. Profit sharing is much more flexible than other companies.
4. Flexible in terms of tax.
5. Does not need to follow business structure to run the organization.

Details Required while Registration :

• Name of all the partners and company.
• Address of all the partners and company.
• Date of starting.
• Rights of all partners.
• Salary of all the partners.
• Profit share ratio of the partners.
• Money that is invested in a company.

5. Private Limited Company :

This company has a minimum of two people who handle it. This isn’t under the government and is run by a small number of company members. This company is a closely held organization and is an unlisted company.

Benefits of Private Limited Company :

• Tax benefits.
• Shares are easily transferable.
• Can get funds from public platforms.

Details Required while Registration :

1. Proof of registered office.
2. Article of Association(AoA).
3. Memorandum of Association(MoA).
4. Aadhar Card.
5. PAN Card.
6. Electricity bill.
7. Bank statement.

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Income tax is a type of tax charged by the government on the basic income earned by an individual or business during a financial year.  Income tax is a source of revenue for the government. The funds collected from this are used for public services, pay government obligations and provide goods and services for citizens. Income Tax Return is mandatory to file for a taxpayer.

What is Income Tax Returns ?

Income Tax Return(ITR) is nothing but a form which is submitted by an individual to an income tax department. This form contains the information about the person’s income and the taxes to be paid.

Why is it mandatory to file ITR ?

Yes, it is very crucial to File ITR. If you are not Filing ITR then it will not only cause penalties but also be dangerous for you to get a loan or visa. A lot of individuals think that ITR Filing is not necessary but everyone should have to know the value of Filing ITR. Everyone must understand that Filing Income Tax Return is an annual activity as well as social duty. There are several reasons why you should File ITR :

1. A Taxpayer can claim tax deduction : A taxpayer can get a chance for deduction in a tax amount. The Income Tax Act permits a taxpayer to request multiple deductions under several sections to reduce tax. It is very much important for a taxpayer to File Income Tax Returns to claim this offer of IT Department.
2. A Taxpayer can claim tax refunds : In most of the cases, when TDS gets subtracted on your income, a taxpayer is allowed to get a refund from the IT Department if the tax amount deducted is higher than the total taxes. You can take advantage of this offer if you are Filing Income Tax Return within a due date. 
3. Help to avail a loan  :When it comes to apply for a loan banks will check your previous finances. If you have File IT Return on a regular basis then it will act as a proof for your income. If you are applying for a home loan, car loan or credit card then financial institutions ask to see your IT receipts for the previous years. Insurance companies also ask to show your IT receipts when you are buying term insurance of a huge amount.
4. Help to adjust capital gains and losses : According to the Income Tax Act, capital losses can be adjusted against capital gains. To avail this offer of IT Department you should have to File Income Tax Returns. Also if you are Filing your income tax returns regularly and if you have a capital loss, then you can forward it for 8 consecutive financial years.
5. Makes you a responsible citizen : According to the IT Act, an individual who earns a specific amount of money every year should have to file an income tax return. If you fail to do this then you will charge by the penalties. If you are filing IT Returns, then it is the sign that you are a responsible citizen. You are helping the government for the betterment of the country.

Important Factors to be considered before Filling ITR :

1. Choose the correct ITR form.
2. Choose a new tax regime or old tax regime according to your benefits.
3. Pre Filled ITR forms.
4. Verify the pre-paid taxes with Form 26AS.
5. Payment of balance taxes.
6. Consequences of non-filing of ITR by due date.
7. Change of employment during the year.
8. Reporting Exempt income.
9. Various disclosure requirements.

General FAQs regarding Income Tax Returns

1. What is Income Tax ?

Income tax is a type of tax charged by the government on the basic income earned by an individual or business during a financial year.  Income tax is a source of revenue for the government. The funds collected from this are used for public services, pay government obligations and provide goods and services for citizens. Income Tax Return is mandatory to file for a taxpayer.

2. How will I know how much Income Tax I have to pay ?

The rate of income tax is accessible in the Finance Act passed by the Parliament every year.

3. Who is supposed to pay Income Tax ?

Income Tax is to be paid by every person. Person can be an individual, Hindu Undivided Families(HUFs), Association of Person (AOPs), Body of Individuals(BOPs), Firms, Companies and any Local Authority. 

4. How does the Government collect Income Tax ?

There are three ways by which the Government collects tax from the taxpayer : a) Spontaneous payment by taxpayer in banks like Advance Tax and Self Assessment Tax. b) TDS from the income of the receiver. c) Taxes collected at source(TCS).

5. From where I can get help in the matters of Income Tax issues ?

A taxpayer can take the help of any tax professionals or Public Relations Officer(PRO) in the local office of the Income Tax Department. A taxpayer can also take the help of Tax Returns Preparers.

6. How to deposit Self Assessment Tax or Advance Tax to the credit of the Government ?

By using the Challan i.e., ITNS 208 Self Assessment Tax or Advance Tax can be deposited to the credit of the Government. This challan can be downloaded from the website of www.incometaxindia.gov.in.

7. Do I need to maintain any records or proof of earning ?

Yes, you have to maintain it.

8. Is my income taxable if I am an agriculturist ?

No.

The post Why Income Tax Return Filing is mandatory ? appeared first on Devna Juyal and Asscociates.

Devna Juyal and Associates are the largest service provider on the PAN India basis and now we have expanded our areas in registration and compliance services as other registration services. We are committed to provide solutions to various business entities of their problems related to compliance with various laws and regulations which are applicable to them. Some of the services are herein listed below:-

Registration Services provided by Devja Juyal and Associates

1. PAN Card Registration :

 A PAN Card is an important document for any citizen of India for proof of their identity and all the tax purposes. PAN Card is a Permanent Account Number. A PAN Card Number is a special 10 digits number that is assigned to all the taxpayers of India. Application process of PAN Card can be done by online as well as offline mode. Applicants can visit NSDL OR UTIITSL Website for online registration. For offline registration, an applicant has to download the application form and submit this form to the agency.

2. ROC Filing :

Each and every company incorporated in India is mandatory to file the annual accounts and annual return with the Registrar of the Company as per the company Act, 2013 within 30 days and 60 days respectively from the conclusion of the Annual General Meeting. If a company fails to file the ROC then it could result in penalties and fines. For filing the ROC you can download the forms from MCA Website.

3. DSC Registration :

Digital Signature Certificate is nothing but the digital or electronic form of a physical certificate. Examples of physical certificates are Drivers’ license, membership card or passport. The purpose of these certificates is to behave as the identity of an individual. For example, a driving license is the proof of a driver that he/she can drive legally in a particular country. Similarly, a digital certificate behaves like the same. Here you can represent the certificate electronically to prove your identity, to retrieve information or services on the internet or to sign some documents digitally.

Digital Signature Applicants can directly contact the Certifying Authorities(CAs) and they need to submit the original documents and self-attested copies. Applicants can also get the DSCs from the CA using Aadhaar eKYC based authentication. Then a letter issued by a bank containing all the information of a Digital Signature Applicants can be accepted but the letter should be certified by the bank manager.

4. ESIC Registration :

 Employee State Insurance Corporation(ESIC) is an autonomous body make by the law under the Ministry of Labour and Employment, Government of India. Basically this plan is began for Indian Workers. In this plan, the workers are offer a different variety of medical and other benefits related to money from the employer. Any unseasonal factory or company which has  more than  employees (20 employees in some states) who have a maximum monthly salary of 21,000 has to compulsory register itself with the ESIC.

According to this plan, the boss of the company needs to contribute an amount of  3.25% of the total monthly salary that is payable to the employee. However the boss of the company needs to contribute only 0.75% of his/her monthly salary. There is only relief in the contribution to those employees whose salary is less than 176 rupees per day. This application process is completely online process. Applicant can register through ESIC Portal.

5. ESIC Return Filing :

ESI registered organizations have to File ESI Return on the monthly basis. This scheme comes under the ESI Act 1948. Employees’ State Insurance Corporation(ESIC) gives benefits to the employee in case of medical issues, death etc. You can File ESIC Return by login in to the ESIC Portal. The ESI Return is filed on the half-yearly basis. For the period of April to September is due by 12 November and October to March is due by 12 May.

6. EPF Registration :

EPF full form is “Employee Provident Fund”. Employee Provident Fund is a retirement saving scheme for the salaried employees provided by the government in India. In this scheme a fixed interest is paid on the regular basis. This benefit given by the employers to their employees on the basis of their salary. EPF Registration is compulsory for the organization which has more than 20 employees. The government announced that an organization which has less than 20 employees should contribute towards EPF by giving them two months’ notice. The employer and employee both have to contribute 12% of the employee’s salary towards the EPF. If the organization has less than 20 employees, then the contribution of the employee is 10%.

7. EPF Return Filing :

EPF full form is “Employee Provident Fund”. Employee Provident Fund is a retirement saving scheme for the salaried employees provided by the government in India. In this scheme a fixed interest is paid on the regular basis. This benefit given by the employers to their employees on the basis of their salary. 

Due dates of Filing EPF Return : Due date for filing EPF Return is every year of 30th April for yearly return and for monthly returns the due date is the 15th of the subsequent month.

8. TDS on Sale of Property :

As per provision of section 194-IA of Income Tax Act, TDS is required to be deducted by the buyer when he buys any property having a value of Rs.50 Lakhs or more @ 1% of Sale Consideration. TDS is required to be deducted at the time of making the payment or credit whichever is earlier. There is no obligation to deduct TDS if the amount of consideration is less than Rs.50 Lakhs. TDS is required to be deducted each time the payment is made in installment. PAN is mandatory while deducting TDS if PAN is not furnished by the seller then TDS is required to be deducted @ 20%. There is also an obligation on the buyer to furnish PAN details.

9. TDS Returns :

TDS Return is a statement  which needs to be filed quarterly by the deductor stating the amount of TDS deducted and deposited with the government. It is required to be deducted by a  person making specified payments and is required to be deducted at the time of making such payments. If TDS return is not filed within the due date than a fine of Rs.200/- day is required to be paid from the due date of filing the return till the date payment has been made. However the maximum fine cannot exceed  Rs. 5000.

10. Bookkeeping and Accounting :

Bookkeeping is the process of recording financial transactions that are related to the business operation of an entity. It is nothing but the perpetual recording of financial transactions in a well manner in the account book of a system. Bookkeeping requires skills and experience of an accountant. It also explains the accounting information for both internal and external users for making business decisions. Bookkeeping is done by the junior employee of the organization.

Accounting includes recording, classifying and summarizing financial transactions in a well manner. Simply Accounting inspect the information that is prepare by the Bookkeepers to create statements, financial metrics and reports that give the understanding of the company’s operations.

11. GST Return :

Return is require to be file when a supplier starts business and becomes liable for registration and will need Quarterly file a return called GSTR 1 by a Taxable Person having a Turnover up to 1.5 Crore in the Quarter. Further there are certain regular returns which are require to be furnished GSTR 2 under section 38 i.e.by 20th Of the Month. In addition to the above mentioned returns Annual Return is also require to submit Reconciliation Statement under Form GSTR 9C. The return filing website is www.gst.gov.in.

12. GST Refund :

Whenever a Registered person called Taxpayer in case Of GST pays tax in excess of the amount which is actually due to the Government than the government will pay back the excess tax  over due amount to the Registered Person the amount  in excess of is called REFUND. There is a time limit for claiming refund under GST . The time limit specified in the Act is TWO years from the date of payment. If goods are not exported within time and Registered person fails to pay the amount within the stipulated  time period than the facility provided to Registered person to pay GST under Bond and LUT will be withdrawn  immediately and recovery proceedings will be initiated as soon as possible. 

13. Input Tax Credit :

Input Tax Credit is introduce under GST to avoid cascading effects of various taxes and to make GST on which tax can be collected based on the destination in which it is being consumed. Every Taxable person can avail credit of tax paid on Inputs, Input Services and Capital Goods used for purpose of Business. A registered person can take credit for tax paid on inward supply of goods and / or services used or intended to be used in the course or furtherance of business. If Goods receive in Lots then in that case ITC can only be availed upon receipt of last Installment. If value of Goods or services plus tax on goods and services is not receive within 180 days of Issuance of output tax liability. The Taxable person taking excess claim will have to pay interest of 24% on excess claim or claim wrongly availed.

14. Income Tax Return Filing :

Income tax is a type of tax charged by the government on the basic income earned by an individual or business during a financial year.  It is a source of revenue for the government. The Collections collected from this are use for public services, pay government obligations and provide goods and services for citizens. For filing ITR, Log in to the portal of income tax department.

Types of tax :

Direct Tax : Direct tax is a type of tax in which the government directly imposes tax on the income of an individual or an organization.

Indirect Tax : Indirect tax is a type of tax in which tax is collected when the customer purchases a product. The tax is already include in the product’s price.

15. Consultancy in Income Tax :

Consultation means taking guidance before taking any decision and  implementing in the business. It helps the business to run in a systematic way at the same time within the purview of law. Income Tax consultations include the following

• How to minimize Tax burden within boundaries of law.
• Tax Planning
• Tax Management

Generally the need arises for an Income Tax Consultant when the management and the person is not able to follow the rules of running their respective businesses and areas of work. Income Tax consultant not only reduces the burden of tax compliance but also increases the efficiency and effectiveness of business.

16. Promotion, Formation and Incorporation of a company :

• Private Company : This company has a minimum of two people who handle it. This company isn’t under the government and is run by a small number of company members. This company is a closely held organization and is an unlisted company.
• Limited Liability Partnership : Limited liability means that if a partnership fails, then the creditors cannot go for a partner’s personal assets or income. It has a partnership structure where the liability has limit to the amount they put in a business.
• One Person Company : Such companies are created when there is only 1 owner. Many startups & young entrepreneurs like to work as one person. But they can only have 1 shareholder, which is a disadvantage when compared with other private companies.
• Public Limited Company :  A public limited company is the legal designation of a limited liability company which offers their own shares to the general public and has limited liability.  
• Sole Partnership Firm :  It is an individual entrepreneurship; aka sole trader ship or a proprietorship where a single individual manages, owns and controls the company. rights and there is no legal distinction between the business entity and the owner.

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The buyer has to pay different types of taxes. Basically TDS on sale of property is applicable when someone buys a property such as land, building or a small part of a building. Section 194IA deals with the TDS deduction by the buyer at the time of purchase of a property.

What is Property Tax ?

Property Tax is a type of tax which is paid on property owned by an individual. Property Tax is based on the value of the owned property. The loan owner pays the tax which is calculated by the local government where the property is located. This tax is also called House Tax. This tax is used for the maintenance of the local public facilities of the rea such as roads, parks, lighting or any other services.

What is TDS on Sale of Property ?

Here, a tax must be deducted at the source by the buyer on the basis of value of the property. TDS on sale of property is charged @1% on the negotiation of all properties where the total transaction is more than Rs. 50 Lakhs.It must be deducted from all types of properties except the property of agricultural land. The buyer of immovable property (costs more than 50 lakhs) is required to deduct TDS while paying the seller.

What is the rate of TDS on Sale of Property ?

The rate of deduction on TDS of sale of property is 1 %.

Requirements of Section 194IA :

1. TDS is deducted by the buyer at the rate of 1%. TDS has to be deducted by the buyer not the seller.
2. No TDS is required if the transaction is less than 50 lakhs.
3. If the payment is made in instalments, then TDS will be deducted on each installment.
4. Pan Cards of both purchaser and seller are required on TDS on sale of property deduction.
5. TDS on property should be paid on the full amount of sale and not only the sum above 50 lakhs. For example, if the purchaser buys a property of value 80 lakhs, TDS will be calculated on Rs. 80 lakhs and not Rs. 20 lakhs.
6. From September 2019, charges such as club membership, car parking, electricity fee, maintenance fee etc. have also been included under “Consideration for immovable property”.
7. For making a payment of TDS, the buyer has to obtain the PAN Card of seller otherwise TDS is deducted at 20%.
8. The TDS on the immovable property should be paid using Form 26QB in 30 days from the end of the month when the TDS was deducted.
9. After submitting the TDS to the government, the buyer should have to present the TDS certificate in the Form 16B to the seller.

Penalties on Non-filling of TDS :

1. Under the Section 234E that is the late filing fee, buyers will have to pay INR 200 till TDS return filing is done.
2. Under Section 201, the buyer has to pay the interest of 1% per month (if the tax is not deducted).
3. In Section 271H, the buyer who fails to file to TDS has to pay a minimum penalty of INR 10,000.

How to claim TDS ?

1. From June 2013, whenever a buyer purchases an immovable property(more than 50 lakhs), he/she must deduct tax .
2. This act comes under the Section 194IA of the income tax act.
3. The buyer who buys the property obtains Form 16B and has to present it to the seller.
4. The retailer has to provide the PAN card to the buyer who will fill the form online and submit it to the Income Tax Department.
5. The property retailer has to verify that the buyer has deposited the taxes and reflecting in Form 26AS.

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