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. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

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

ITR E-verification

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?

Income                                 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