Income Tax

WHY SHOULD YOU FILE INCOME TAX RETURNS?

1. Tax compliance. If your income is above Taxable Income then it is mandatory to file Income Tax returns and pay taxes.
2. Claim TDS deducted. TDS is deducted on services and employment, which can be claimed back on filing Income Tax returns.
3. Create a strong financial profile, which will assist in loan applications or credit card applications.
4. Claim TCS collected. In transactions such as vehicle purchase, TCS is collected by the seller which can be claimed on filing of Income Tax returns.
5. Claim losses on your past years’ returns by filing Income Tax returns.

INCOME TAX SLABS FOR INDIVIDUALS BELOW 60 YEARS OF AGE UNDER NEW TAX REGIME –APPLICABLE FOR F.Y. 2020-21 (A.Y. 2021-22)

Income Tax Slab	Tax Rate
Up to Rs 2.5 lakh	NIL
Rs 2.5 lakh to Rs 5 lakh	5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh	10%
Rs 7.5 lakh to Rs 10 lakh	15%
Rs 10 lakh to Rs 12.5 lakh	20%
Rs 12.5 lakh to Rs 15 lakh	25%
Rs 15 lakh and above	30%

TYPES OF ITR FORMS

Form	Description
ITR 1	For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5 thousand(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR 2	For Individuals and HUFs not having income from profits and gains of business or profession
ITR 3	For individuals and HUFs having income from profits and gains of business or profession
ITR 4	For Individuals, HUFs and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE (Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR 5	For persons other than :- (i) Individual (ii) HUF (iii) Company and (iv) Person filing Form ITR-7
ITR 6	For Companies other than companies claiming exemption under section 11
ITR 7	For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D)

INCOME OF MINORS

Minor’s income is added to parent’s income and taxed in the parent’s file. Parent can claim deduction of upto Rs.1,500/- in minor’s income.

1. If both the mother and father are earning, the income of the minor is added to the income of that parent whose income is greater.
2.  If the parents are divorced, the minor’s income is added to the parent’s income who has the custody of the child.
3.  If both the parents are not alive, the income of the minor is not clubbed with the guardian, but instead a separate income tax return is filed.
4. When a child earns an income by way of any work or from an activity for which he uses special talent or knowledge, the minor is required to file an income tax return separately.
5. Income of a child suffering from any disability specified under Section 80U will not be clubbed with the income of the parent. A person is considered differently-abled when he is suffering from more than 40% of any of these – blindness, poor vision, hearing impairment, loco motor disability and mental illness.

DOCUMENTS REQUIRE FOR AN EMPLOYEE

1. PAN
2. Aadhar
3. Bank Account Details
4. Form 16 (if issued by employer)
5. Income Tax log-in password (if available)
6. Details of investments if any (inc. those eligible for tax benefits)

FOR PROFESSIONALS/ BUSINESSES

1. PAN
2. Aadhar
3. Bank Account Details
4. Income Tax log-in password (if available)
5. Details of investments if any (inc. those eligible for tax benefits)
6. Income details (our representative will get in touch with you)
7. Complete books of accounts (if required, our representative will get in touch with you)

Contact Infinity Services for details and live stress free with your compliance needs.