Income Tax
The Income Tax Return is an annual statement of the income and tax paid on the basis of self-assessment by the taxpayers detailing the expenses and gross receipts. It is generally filed by the assessee, which is accepted by the income tax department. For error-free assessment, the tax system gets automatically processed after matching with the tax credit. The department goes through a detailed verification of all the expenses and incomes of a person as reported in the Income Tax Return. Conducting the assessment process is an art, which requires sound knowledge and experience in the field for concluding it successfully in favour of the assessee.
It is important to file the income tax returns within its due date to avail benefit available under various provisions of the income tax. The year in which the return is to be filed is generally termed as the assessment year and the period of which the tax return is filed is termed as the previous year. For instance; if the income is earned within 2018-19, then the period will be the previous year and the assessment will be 2019-20.
Thus, it is important to hire a professional! Here at JOMSH Consultancy, we take tax representation assignments at our tax offices abiding by the rules and regulations. Our research driven team works with the clients and prepares the replies of the assessing officers’ questions. Our expert tax lawyers and CA are always there for you.
Importance of Tax Planning
Tax is indeed a tricky business and you need to ensure that you do understand it to the best of your abilities. There are various types of taxes you pay all throughout your life like consumption tax, property tax, GST, and many others. Thinking you will not have to get involved in planning taxes? Well, think again! More precisely, tax planning is a method of finding out the amount of money you are spending on paying taxes. Not only it helps in minimizing tax liability with the use of deductions, exemption, and allowances, but also it is used in several ways for businesses, properties, and retirement.
For both small and large businesses, tax planning is important as it helps them achieve their business goals. If you have your tax planned, you can gain more control over the payment, reduce the tax rates, and also lower the taxable income amount. Suppose, you have a business overseas, you can easily manage the tax bill timings and avoid double taxation.
So, if you want to know about how you can manage your taxes efficiently, speak to us today!
Income Tax Return Filing Due Dates for Assessment Year 2020-21
| SL. | Type of Tax Payers (Assessee) | Due Dates Non Audit Assessee | Due Dates Stat/Tax Audit Assessee |
|---|---|---|---|
| 1 | Company | 30th Sep 2020 | 30th Sep 2019 |
| 2 | Limited Liability Partnership | 31st July 2020 | 30th Sep 2019 |
| 3 | Partnership | 31st July 2020 | 30th Sep 2019 |
| 4 | Proprietorship | 31st July 2020 | 30th Sep 2019 |
| 5 | Individual (includes HUF, Trust, Society, AOP) | 31st July 2020 | 30th Sep 2019 |
Income Tax Slabs & Rates for Individual Tax Payers & HUF for AY 2020-21
| Income Tax Slab | Tax Rate for Individual & HUF Below the Age Of 60 Years |
|---|---|
| Up to ₹2,50,000* | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% of total income exceeding ₹2,50,000 |
| ₹5,00,001 to ₹10,00,000 | ₹12,500 + 20% of total income exceeding ₹5,00,000 |
| Above ₹10,00,000 | ₹1,12,500 + 30% of total income exceeding ₹10,00,000 |
* Senior Citizen, 60 years old or more but less than 80 years old – Nil tax rate on their income upto ₹3,00,000 will be applicable, after that same tax rate slab will apply. Similarly, Super Senior Citizen (aged 80 years & above) will have no tax till the income of ₹5,00,000 after that same tax rate slab will be applicable.
A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of: ₹ 12,500 for total income up to ₹ 5 lakh for FY 2019-20
Investments upto ₹ 1.5 lacs under Sec 80C can save ₹ 46,800 in taxes.
Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.