Your filing of Income Tax Returns (ITR) will not be considered valid and get cancelled if you do not verify it. Everybody who has filed his ITR is required to verify his Income Tax Returns to complete the return filing process. Without verification within the stipulated time, an ITR is treated as invalid.
In this edition of Money Guru, Zee Business’ Swati Raina speaks to tax experts Sunil Garg and Kapil Mittal to understand more.
After filing ITR, verification is a must
Without verification, ITR stands invalid
How to e-verify ITR?
What will change in the new tax regime?
Agriculture income; where you can save and where you cannot?
Every tax related issue will be resolved here
Government has tightened rules around e-verification
After 1 August, filing your ITR will invite a fine
Tax payers get 30 days time to e-verify their ITR
Initially e-verification time limit was 120
Fine on filing rate IT returns
Late fees on filing late ITRs
The fine will be applicable under Section 234F of the Income Tax Act
Late fees could be up to Rs 5000
Late ITR returns could be filed on payment of a maximum fine of Rs 5000
Who will pay what fine?
Above Rs 5 lakh Rs 5000
Up to Rs 5 lakh Rs 1000
Up to Rs 2.5 lakh Nil
Here is how to verify ITR
– Through Aadhaar OTP
– In net banking e-filing account
– EVC through bank account number
– EVC through demat account
– EVC through bank ATM
– CPC, sending signed copy of ITR-V to Bengaluru
New tax regime – preparing for changes?
2021-22 Assessment year – Rs 5.89 cr returns filed
Less than 5% people filed taxes under the new regime
The new tax regime introduced in 2020 budget
No big tax exemptions under the new regime
No benefits on standard deductions
Low interest among tax payers for the new system
New Tax system – what is not there?
Standard Deductions – Rs 50,000
HRA- Rs 2 lakh
80C deductions – Rs 1.5 lakh
80D (Medical Insurance) – Rs 50,000
80EE (Interest on housing loan) – Rs 50,000
Income from agriculture
Under Section 10(1), income from agriculture is tax free
Exemptions after income from agriculture is added with income from other sources
If income from other sources is added to the income from agriculture, the tax liability goes up
For eg id agriculture income is Rs 5 lakh and other income is Rs 10 lakh
Then the tax liability on total income will be Rs 2.08 lakh
However, on income of Rs 10 lakh from other source, tax liability is Rs 1.17 lakh; on adding agriculture income an additional tax liability is of Rs 90000.
Which income is not termed as agriculture income?
Produce for home is not considered as agriculture income
Growing vegetables at home is not agriculture income
If income from agriculture is above Rs 5000, then Form 2 must be filled
All details must be filled in Form 2
If income is from agriculture income, one must keep income proof
Mandatory to reveal information if produce is sold in mandis or outsie
Source of income on selling agriculture produce and expenses of sowing must be revealed
Tax on selling agriculture land
No capital gains tax on selling agriculture land in rural areas
Tax will be applicable if the agriculture land is not in rural area
One must keep the distance in mind while selling agriculture land
If agriculture land is 8 kms away from municipality, then no tax applicable on selling it
In small cities, towns, the distance limit is 6 km
Tax and compensation on agriculture land
Tax rebate on buying agriculture land in lieu of agriculture land
Exemptions from capital gains tax under Section 54(B)
No capital gains tax if government acquires agriculture land
No tax on compensation if government buys agriculture land