Income Tax Return

Filing income tax returns can seem like a tough and confusing process. Still, it is an essential task that every responsible citizen should undertake for the progress and development of their country. This article is written to introduce and elaborate on the changes and recent amendments in the filing of Income Tax Return for all those out there who have just qualified as taxpayers of our country. Every country had its own rules and regulations behind the amount of tax every man or woman should pay according to a plethora of criteria. 

The first thing that we’ll talk about in this article is the not mandatory mentioning of an individual’s Adhaar Card while filling an Income Tax Return. After a lengthy legal battle surrounding the act of mentioning an Adhaar Card number while filling an Income Tax Return, section 139AA(1) of the Income Tax Act was introduced in 2017. This act that was organised and put into play from 1st April 2019 mandates quoting an Adhaar Card Number or Enrolment ID of the Adhaar application for filing an Income Tax Return. This act states that an Adhaar card is required to not only file an Income Tax Return but should also be mentioned in the application for allotment of a PAN Card. The Income Tax Department can fine or imprison any individual who is found to have submitted false information on their Income Tax Return for under Section 277 of the Income Tax Act.

The scope of filling an Income Tax Return has now been expanded to include taxpayers who are part of partnership firms and Hindu Undivided Family (HUF). These groups can file for Income Tax Returns if they meet any of the following criteria: 

1. If the total deposit is of an aggregate amount of more than Rs. 1 Crore all current bank accounts along with co-operative bank accounts. 
2. If the individual has incurred an expense of more than Rs 2 Lakh on either themselves or anyone else for foreign travel. 
3. If there is a payment of more than Rs 1 Lakh for electricity charges. 

The next thing that every citizen should know is that every individual must pay taxes even if they fall below the exemption limit. This is due to the changes proposed by Ms Nirmala Sitharaman, Finance Minister of India, for the financial year of 2019-20. She introduced Section 139 in the Income Tax Act that states that it is mandatory for everyone, even those who are below the exemption limit. 

Due date is always important when it comes to filing Income Tax Returns, and so we need to talk about the 2020 amendment to the Financial Act which deals with the due date for filing all Income Tax Returns. Here are the amendments under Section 139 of the Income Tax Act:

1. The date for filing Audit Reports has been delinked from the date for filing Income Tax Returns. 
2. The new due date for Audit Reports is now 31st October of every year. 

In the past five years, there have been quite a few significant changes in the way Indian taxpayers have to file Income Tax Returns.