Income Tax Returns (ITR) filing for AY 2021-22 – Forms, Slabs, Due Date, Details

CBDT (Central Board of Direct Taxes) has notified all the ITR Forms from 1 to 7 for the AY 2021 – 2022 vide notification no. 2/2021 in G.S.R.242(E) dated 31/03/2021. No major changes have been made this year as compared to the last year’s Forms, taking in account the crisis generated during the pandemic. This is primarily done for the convenience of the taxpayers. Only the changes necessary due to the amendments made in the Income-Tax Act 1961 have been incorporated.

Sahaj (ITR Form 1) and Sugam (ITR Form 2) are far more-simpler because they deal with a large mob of taxpayers. ITR Form 1 is used by the individuals whose income does not exceeds INR 50 lakh and whose income arises by way of income from house property/other sources (interest) and income from salary. Further ITR Form 2 is used by individuals, HUF’s (Hindu Undivided Families) and firms other than LLP’s (Limited Liability Partnerships) whose income is not more than INR 50 Lakh and income by way of business and profession is calculated under the presumptive taxation provisions.

Individuals and HUF’s who do not fulfil eligibility criteria to fill ITR on Sahaj and whose income is not generated by way of business or profession can file their return by filling ITR on Form Sugam, while assesse having income by way of business or profession can file return in ITR Form 3. Persons other than individuals, HUf’s and companies i.e. LLP’s, partnership firms can file their return in ITR Form 5. Companies can use ITR Form 6 however, Political Parties, Trusts, Charitable Institutions etc who claim exemption in income can file their return in ITR Form 7.

ITR Forms 1 to 7 are available on:

http://egezette.nic.in/WriteReadData/2021/2263

Major changes:

CBDT has notified ITR Form 1 and ITR Form 4 for the assessment year 2021-22. These were notified on 3^rd January 2021 and this time the department has released these forms well in time to ease the taxpayers fill requisite information and file their income tax returns timely. Few changes incorporated in Form 1 and Form 4 are elaborated as follows –

Form ITR 1

# ITR Form 1 can no longer be used to file income tax return by an individual with brought forward/carry forward loss under the head Income from House Property.

# PAN/Aadhaar Card details of the tenant has to be provided by the taxpayer with the ITR Form 3, in case house property is rented out.

# A new disclosure has been added to the Part A – General Information of ITR – 1, where a taxpayer has to compulsorily disclose whether he/she owns a valid Indian passport and in case he/she owns then he/she has to provide the number of the same on the Form.

# Clause “Nature of Employment” has been moved from Part – A General Information to Part – B Salary Schedule of ITR Form 1.

# A discrete column has been presented under the head “Income from other sources” for deduction under section 57(iv) – in case of interest received on compensation/enhanced compensation under section 56(2)(viii).

Form ITR 4

# ITR Form 4 cannot be used to file income tax by a taxpayer who has a brought forward/carry forward loss from “Income from House Property” from Financial Year 2019-2020 onwards.

# PAN or Aadhaar card details of the tenant has to be disclosed on ITR Form 4, in case the house id rented out.

# A new disclosure has been added to the Part A – General Information of ITR – 1, where a taxpayer has to compulsorily disclose whether he/she owns a valid Indian passport and in case he/she owns then he/she has to provide the number of the same on the Form.

# Some additional disclosures are required by the Income Tax Department on the ITR Form 4 w.e.f. financial year 2019-2020:

• In case the taxpayer has deposited a sum of 1 Crore or an aggregate amount of 1 Crore or more in his/her current account.
• A sum of INR 2 lakh or an aggregate of the same or more spend on himself/herself or any other person for a travel to a foreign country to be reported promptly and appropriately.
• If he amount spend by the taxpayer against electricity bill is INR 1 lakh or more the same has to be disclosed.

# – Aadhaar Card details of the representative has to be duly filled if the ITR Form 4 from FY 2019-20, if it is being filled by any representative of the taxpayer.

# Some additional disclosures are required by the Income Tax Department on the ITR Form 4 in Part –A General information w.e.f. financial year 2019-2020:

• If the taxpayer is the partner of any firm then the Name and PAN Card details of the firm has to be furnished.
• Requisite details of all the partners of such firm like name, address, percentage of share in the firm, PAN/Aadhaar details along with the rate of interest on capital and remuneration paid/payable etc.

# The “Nature of Employment” has been shifted from Part –A General Information to B1 of Part B – Salary Schedule of ITR -4.

# The “Financial Particulars” Column has been renamed as “Particulars of Cash and Bank Transactions relating to presumptive business” and the taxpayer is required to furnish the Opening and the Closing Balance of cash and bank receipts during the financial year along with the payments or withdrawals made in that year (aggregate of all the bank accounts to be taken and not individually of each bank).

# A discrete column has been presented under the head “Income from other sources” for deduction under section 57(iv) – in case of interest received on compensation/enhanced compensation under section 56(2)(viii).

Some pointers applicable to all the Forms:

• All the registered taxpayers are required to file an online income tax return except individuals above 80 years of age with no income generated by way of business or profession.
• INR 10,000 is levied if return is not filed within the due date as per section 234F and this is an effective rule since 1^st April 2017. There is another column filed for the disclosure of details about the fee payable u/s 234F on the Income Tax Return.

Due Date for filing ITR

CBDT has issued a circular dated May 20, 2021 extending the timelines for certain direct tax compliances for AY 2021-22.

ITR Filing for Audit and Non Audit cases: The due date for filing ITR by taxpayers not covered under audit is extended from 31st July 21 to 30th Sep 21, for Tax audit cases it is extended to 30th Nov 2021 and for transfer Pricing cases, the due date is extended to 31st December. The due date to file a Belated or Revised Return is extended from 31st Dec 2021 to 31st Jan 2022.

Furnishing Audit Report: The due date to furnish the audit report is extended to 31st Oct 2021, the audit report for transfer pricing cases is extended to 30th Nov 2021.

Union Budget 2021 Update:
Exemption from ITR filing to senior citizens aged 75 years and above, earning only pension and interest income.

INCOME SLAB AND TAX RATES FOR FY 2020-21 /AY 2021-22

Income Tax Rate and Slab for Individuals and HUF:

1. Individual (Resident or Non-Resident or Resident but not Ordinary Resident) who is less than 60 years of age on the last day of the concerned year and for HUF.

1. Individual (Resident or Non-Resident or Resident but not Ordinary Resident) who is 60 years or more but less than 80 years at any time during the previous year.

iii)     Individual (Resident or Non-Resident or Resident but not Ordinary Resident) who is 80 years or more at any time during the previous year.

Below rates of Surcharge are applicable where total income exceeds:

1. 10% of Income Tax if above INR 50 lac
2. 15% of Income Tax if above INR 1 crore

• 25% of Income Tax if above INR 2 crore

1. 37% of Income Tax if above INR 5 crore

Note: In case of incomes accruing from Short Term Capital Gains u/s 111A, Long Term Capital Gains u/s 112A & Short Term & Long Term Capital Gains u/s 115AD (1) (b), no enhanced surcharge 25% – 37% is applicable.

Education Cess is 4% of Income Tax plus Surcharge.

Note: A resident or Resident but not Ordinarily Resident individual is entitled to rebate under section 87A if his total income does not exceed Rs. 5, 00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less. rebate under section 87A is available in both scheme I.e. existing scheme as well as new scheme.

Tax Rate For Partnership Firm:

A partnership firm (including LLP) is taxable at 30%.

Surcharge: 12% of Income tax where total income exceeds Rs. 1 crore

Education cess: 4% of Income tax plus surcharge

Tax Slab Rate for Domestic Company:

A domestic company is taxable at 30%. However, the tax rate is 25% if turnover or gross receipt of the company does not exceed Rs. 400 crore in the previous year.

Tax Rates for Foreign Company:

A foreign company is taxable at 40%

Surcharge:

1. a) 2% of Income tax where total income exceeds Rs. 1 crore
2. b) 5% of Income tax where total income exceeds Rs. 10 crore