Everything you need to know before filing for income tax returns.
It is that time of the year when it becomes compulsory for salaried individuals and companies to file income tax returns. Different forms for return of income are prescribed for filing of IT returns for different status and nature of income. The income earned and taxes paid are communicated to the Income-tax Department.
The new Income Tax Return filing forms are available at www.incometaxindia.gov.in. One can download the form from the same website.
What is the difference between FY and AY?
Financial Year is the period/year during which you earned your income and for which you are required to pay taxes. Income earned between April 1, 2015 to March 31, 2016 falls in the financial year 2015-16 which is referred to as FY 2015-16.
Assessment year, on the other hand, is the year immediately following the financial year wherein the income of FY is assessed. On completion of financial year, you are required to file income tax return.
What is the Income tax slab and rate impact for FY 2015-16 or AY 2016-17?
1. Individual Tax Payers
| Tax Slab |
Rate Impact |
|
| Up to Rs 2,50,000 |
NIL |
NIL |
| Rs 2,50,001 to Rs 5,00,000 |
10% |
Rs 3,000 (Savings) |
| Rs 5,00,001 to Rs 10,00,000 |
20% |
NIL |
| Rs 10,00,001 to Rs 1 crore |
30% |
NIL |
| Above Rs 1 crore |
30% |
3% higher surcharge |
2. Senior Citizens 60 years but less than 80 years
| Tax Slab |
Rate Impact |
|
| Up to Rs 3,00,000 |
NIL |
NIL |
| Rs 3,00,001 to Rs 5,00,000 |
10% |
Rs 3,000 (Savings) |
| Rs 5,00,001 to Rs 10,00,000 |
20% |
NIL |
| Rs 10,00,001 to Rs 1 crore |
30% |
NIL |
| Above Rs 1 crore |
30% |
3% higher surcharge |
3. Senior Citizens 80 years and above
| Tax Slab |
Rate Impact |
|
| Up to Rs 5,00,000 |
NIL |
Rs 3,000 (Savings) |
| Rs 5,00,001 to Rs 10,00,000 |
20% |
NIL |
| Rs 10,00,001 to Rs 1 crore |
30% |
NIL |
| Above Rs 1 crore |
30% |
3% higher surcharge |
Additional 10 percent tax has been proposed in case dividend income received from a domestic company exceeds Rs 10 lakh.
When is the due date of income tax filing?
For all other persons like Individuals/HUF/BOP/AOI the due date of income tax filing is 31st July of relevant assessment year.
Income Tax Return filing forms for AY 2016-17
The forms of return prescribed under the Income-tax Law for filing of return of income for the assessment year (AY) 2016-17(i.e., financial year 2015-16) are as follows:
Return Form |
Brief Description |
| ITR - 1 |
Also known as SAHAJ is applicable to an individual having salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses).
|
| ITR 2A |
It is applicable to Individuals and Hindu Undivided Family not having income from business or profession and capital gains and resident who do not hold foreign assets do not have foreign income.
|
| ITR - 2 |
It is applicable to an individual or a Hindu Undivided Family having income from any source other than "Profits and gains of business or profession".
|
| ITR - 4S |
Also known as SUGAM is applicable to individuals and Hindu Undivided Family who have opted for the presumptive taxation scheme of section 44AD/44AE.
|
| ITR - 4 |
It is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietary business or profession.
|
Source: http://www.incometaxindia.gov.in
The return form can be downloaded from the site http://www.incometaxindia.gov.in or http://incometaxindiaefiling.gov.in.
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