Who is eligible to file which tax return for FY 2019-20?
All individuals having taxable income or those who satisfy other prescribed conditions are required to file annual income tax return (ITR) within the specified due date. For the financial year (FY) 2019-20, the specified due date for individuals (as extended by the government) is November 30, 2020 for filing tax returns.
Filing an ITR for FY2019-20 is mandatory if:
- The individual’s taxable income exceeds the maximum amount not chargeable to tax. The basic exemption limit for FY 2019-20 is Rs 3 lakh for senior citizens (aged 60 years or more but less than 80 years), Rs 5 lakh for super senior citizens (aged 80 years or more), and Rs 2.5 lakh for others;
- The individual needs to claim an income tax refund;
- The individual qualifies as an ordinarily resident during FY 2019-20 and holds foreign assets which need to be specifically report in the ITR. These assets include foreign bank accounts, foreign properties, financial assets, signing authority, etc.;
- The individual has undertaken specific transactions viz (a) payment of electricity bill in excess of Rs 1 lakh during the FY (b) deposited more than Rs 1 crore in one or more current accounts during the FY or (c) spent more than Rs 2 lakh on overseas travel for self or any other person during the FY.
Other than these mandatory reasons, it is a good practice to file ITR since tax return documentation is required for visa applications, availing bank loans etc.
Every year, the Central Board of Direct Taxes (CBDT) notifies the ITR forms for the previous completed financial year. For FY 2019-20, the updated ITR forms were notified vide Notification 31/ 2020 dated May 29, 2020 and Notification 01/2020 dated January 3, 2020 (subsequently overridden by Notification 31/2020).
The details of these ITR forms including who should use them and who should not use them are summarised as under:
|ITR||Who can file?||Who cannot file?|
qualifying as Ordinarily Resident;|
Having a total income of up to Rs 50 lakh;
Having income from following sources – salaries, one house property, income from other sources including agricultural income up to Rs 5,000;
This form also applies to similar income of a different person say spouse or child, clubbed in the hands of the taxpayer.
|Non-residents / Resident but Not Ordinarily Resident;Hindu Undivided Family (HUF);Ordinarily Residents having a total income of more than Rs 50 lakh;Director in a company;Holding investments in unlisted equity shares;Having brought forward losses under the head ‘income from house property’;Having income from any other source, eg. more than one house property, capital gains etc.; Having income from sources outside India and holding assets outside India|
/ Resident but Not Ordinarily Residents and Ordinarily Residents;|
Hindu Undivided Family (‘HUF’);
Having a total income of more than Rs 50 lakh;
Director in a company;
Holding investments in unlisted equity shares;
Having income from following sources – salaries, more than one house property, capital gains and income from other sources;
Having income from sources outside India and holding assets outside India
/ HUF having business income / income from profession|
/ HUF having business income / income from profession;|
Includes partner of a Firm
|Individuals / HUF who do not have business income / income from profession|
|4 (Sugam)||Resident Individuals / HUF / Firm (other than LLP) having business or professional income computed on ‘presumptive basis’||Individual who is a Director in a company or having an investment in unlisted equity shares|
|5||Any person other than individual, HUF or company filing an ITR 7 (eg. LLP)||Individual who is a Director in a company or having an investment in unlisted equity shares|
|6||All companies, unless specifically excluded||
claiming exemption for income from charitable or religious trust|
|7||Persons including companies which are a charitable or religious trust, political party, scientific research association, news agency, hospital, trade union, university, college or other institutions such as an NGO or similar organizations.||No other category of tax payer|
Penalty for not filing ITR on time
If the ITR is not filed within the due date, i.e., November 30, 2020, there is an automatic levy of a penalty ranging from Rs 1,000 up to Rs 10,000 which needs to be remitted before the ITR can be filed. This fee or penalty has to be paid in case of belated ITRs even if the tax liability is nil.
Other extended deadlines
The government has extended several timelines for tax compliances that fell due in the first quarter of 2020, including allowing taxpayers to make tax-saving investments/ payments for FY 2019-20 up to 31 July 2020, and extending deadline for issuing Form 16 and Form 16A to August 15, 2020. Given the extension of due date of filing ITR to 30 November 2020, taxpayers have sufficient time to file their ITR comfortably.
However, one needs to carefully ascertain the appropriate ITR form for filing, keeping in mind not only the details of income, but also the various disclosure requirements prescribed from time to time.
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