Income Tax Return Filing - An Overview

LATEST UPDATE: 

As per the circular on 9th Sep 21, CBDT has extended the deadline for Income tax Filing for AY 2021-22.

Taxpayers	Extended Due date
	ITR filing	Audit Report
Non Audit Cases	31st Dec. 2021	NA
Audit Cases	15th Feb. 2022	15th Jan. 2022
Transfer pricing	28th Feb. 2022	31th Jan. 2022
Belated & Revised Returns	31st March. 2022	NA

An Income tax return filing in Mumbai (ITR) is a form used to file your income and tax information to the Income Tax Department. A taxpayer’s tax liability is determined by his or her income. If the return indicates that a person paid too much tax during the year, the individual may be eligible for an income tax refund from the Income Tax Department.

According to income tax laws, an individual or corporation that generates any income during a financial year is required to submit a return. The income may be received from a salary, business earnings, or rental property, or it may be earned from dividends, capital gains, interest, or other sources.

Every citizen must file an income tax return filing in Mumbai. The IT department validates these income declarations and returns any overpayments to the bank account. To avoid penalties, all enterprises must submit taxes on time.

For Business Income Tax Return Filing in Mumbai:

Income Tax Return Filing in Mumbai: The Indian IT Department requires all companies to submit annual income taxes. To guarantee compliance with IT laws and regulations, TDS returns may be submitted and advance taxes paid.

Proprietorship Income Tax Return Filing in Mumbai:

A sole proprietorship is managed by one individual. The proprietor (business owner) and the business are the same legal entity. As a result, proprietorship income tax return filing in Mumbai is the same as the proprietor.

Year after year, proprietors must submit IT returns. The process is similar to submitting an individual tax return.

Partnership Firm Income Tax Return Filing in Mumbai:

The Income Tax Act treats all partnership businesses as distinct legal entities, subject to the same tax rates as LLPs and Indian corporations.

Who should file Income Tax Return Filing in Mumbai?

If total income during the financial year exceeds the basic exemption limit, ITR must be filed by every single person defined as per the Income Tax Act 1961. There are seven-person defined u/s 2(31) of the Income Tax Act 1961 are as follows

• An Individual,
• A Hindu undivided family,
• A Company,
• A Firm,
• An association of persons or a body of individuals, whether incorporated or not,
• A local authority, and
• Any artificial juridical person that does not come under one of the previous sub-clauses.

Due to the fact that the majority of payments are taxed, recipients of income such as wages and interest on bank accounts believe they are not obliged to submit an income tax return filing in Mumbai (ITR). Tax payment and ITR filing are two different and independent legal responsibilities. One discharge does not necessitate the discharge of another. Due to the fact that the extended due date for submitting ITRs, 30th September, is rapidly approaching, I felt it would be prudent to dispel any confusion around this topic. If certain income and non-income conditions are met, you must file an ITR (Income Tax Return Filing in Mumbai) 

Head of Income for Income Tax Return Filing in Mumbai

An Income tax return filing in Mumbai (ITR) is a form used to file your income and tax information to the Income Tax Department. A taxpayer’s tax liability is determined by his or her income. If the return indicates that a person paid too much tax during the year, the individual may be eligible for an income tax refund from the Income Tax Department.

According to income tax laws, an individual or corporation that generates any income during a financial year is required to submit a return. The income may be received from a salary, business earnings, or rental property, or it may be earned from dividends, capital gains, interest, or other sources.

Every citizen must file an income tax return filing in Mumbai. The IT department validates these income declarations and returns any overpayments to the bank account. To avoid penalties, all enterprises must submit taxes on time.

For Business Income Tax Return Filing in Mumbai:

Income Tax Return Filing in Mumbai: The Indian IT Department requires all companies to submit annual income taxes. To guarantee compliance with IT laws and regulations, TDS returns may be submitted and advance taxes paid.

Proprietorship Income Tax Return Filing in Mumbai:

A sole proprietorship is managed by one individual. The proprietor (business owner) and the business are the same legal entity. As a result, proprietorship income tax return filing in Mumbai is the same as the proprietor.

Year after year, proprietors must submit IT returns. The process is similar to submitting an individual tax return.

Partnership Firm Income Tax Return Filing in Mumbai:

The Income Tax Act treats all partnership businesses as distinct legal entities, subject to the same tax rates as LLPs and Indian corporations.

Who should file Income Tax Return Filing in Mumbai?

If total income during the financial year exceeds the basic exemption limit, ITR must be filed by every single person defined as per the Income Tax Act 1961. There are seven-person defined u/s 2(31) of the Income Tax Act 1961 are as follows

• An Individual,
• A Hindu undivided family,
• A Company,
• A Firm,
• An association of persons or a body of individuals, whether incorporated or not,
• A local authority, and
• Any artificial juridical person that does not come under one of the previous sub-clauses.

Due to the fact that the majority of payments are taxed, recipients of income such as wages and interest on bank accounts believe they are not obliged to submit an income tax return filing in Mumbai (ITR). Tax payment and ITR filing are two different and independent legal responsibilities. One discharge does not necessitate the discharge of another. Due to the fact that the extended due date for submitting ITRs, 30th September, is rapidly approaching, I felt it would be prudent to dispel any confusion around this topic. If certain income and non-income conditions are met, you must file an ITR (Income Tax Return Filing in Mumbai) 

Head of Income for Income Tax Return Filing in Mumbai

Income from Salary

If the relationship between payer and payee is employer and Employee, that income falls under the head of the salary. Your company will deduct TDS according to your income range and pay it to the government. The total income is taxed under this heading once the entire amount of income is computed. TDS will be deducted from any payments, pensions, annuities, commissions, fees, leave encashment, and profits you get from your employer, in addition to your basic salary.

Income from House Property

The next section covers Income from House Property. Income from house property is likely the only kind of income that is taxed on a national basis. This tax does not just apply to income from the rental of residential property; it also applies to income from the rental of commercial and other kinds of property. Various deductions are also permitted under this item of income, including the Standard Deduction, the Deduction for Municipal Taxes Paid, and the Deduction for Interest on Home Loans. Rent income is subject to a 10% TDS deduction if it exceeds the stipulated limit.

Profits and Gains from Business or Profession

An income that arises from any kind of business like trade, manufacture, commerce, or profession is chargeable under Profit and Gains from business or profession. For an income to be charged under this head, there are some rules and conditions that must be fulfilled according to section 28 of the Income-tax act.

Capital Gains or Loss

Income from capital assets, whether movable or immovable, is taxed under the capital gains category. When you sell a capital asset for more than you bought for it, this is referred to as a capital gain. Capital assets include stocks, bonds, precious metals, jewellery, and real estate. It is divided into two sections. A capital gain or loss on a short-term basis and capital gain or loss on a long-term basis.

A short-term capital gain results from the sale of property like House property, building and land owned for one year or less while in the case of debt-oriented funds, the jewellery should be owned for less than 36 months . Short term capital gain is charged @ 15 %.

In case individuals own an asset for a duration of more than 36 or 24 months, the asset is a long term capital asset. Debt-oriented mutual funds, jewellery, etc., that are held for a duration of more than 36 months and for sale of property like House property, building and land owned for more than a year, will come under this category.

Income from Other Sources

Any income that is not taxable under one of the other four categories of income will be taxed under this head of income. This category includes income such as savings bank interest, interest on deposits, and interest on IT refunds, among others.

Penalty for Late Filing u/s 234F

Late fees for income tax return filling in Mumbai is of Rs 10000 u/s234F of Income Tax Act 1961. However, for small taxpayers whose total income is not more than 5 lakh, the maximum penalty will be Rs. 1000.

In other words, If the returns are not submitted by the due date, the taxpayer faces hefty fines. In addition to fines, non-filing of taxes may result in other difficulties and penalties. Late filing of income tax return filing in Mumbai fines ranges from Rs.1,000 to Rs.10,000.

Income tax return filling in Mumbai must be handled by a qualified professional who can provide effective advice in any condition and under any circumstance. Taxzona is a leading income tax return filing in Mumbai. Taxzona with the help of our team of experts efficiently takes care of Income Tax return filing in Mumbai very efficiently and professionally.

The prices quoted above for Income Tax return filling in Mumbai includes Preparation of financial statements, Income Computation and online filling of Income Tax return. These charges are applicable only for Income Tax returns and are subject to the nature of Income.

If the relationship between payer and payee is employer and Employee, that income falls under the head of the salary. Your company will deduct TDS according to your income range and pay it to the government. The total income is taxed under this heading once the entire amount of income is computed. TDS will be deducted from any payments, pensions, annuities, commissions, fees, leave encashment, and profits you get from your employer, in addition to your basic salary.

Income from House Property

The next section covers Income from House Property. Income from house property is likely the only kind of income that is taxed on a national basis. This tax does not just apply to income from the rental of residential property; it also applies to income from the rental of commercial and other kinds of property. Various deductions are also permitted under this item of income, including the Standard Deduction, the Deduction for Municipal Taxes Paid, and the Deduction for Interest on Home Loans. Rent income is subject to a 10% TDS deduction if it exceeds the stipulated limit.

Profits and Gains from Business or Profession

An income that arises from any kind of business like trade, manufacture, commerce, or profession is chargeable under Profit and Gains from business or profession. For an income to be charged under this head, there are some rules and conditions that must be fulfilled according to section 28 of the Income-tax act.

Capital Gains or Loss

Income from capital assets, whether movable or immovable, is taxed under the capital gains category. When you sell a capital asset for more than you bought for it, this is referred to as a capital gain. Capital assets include stocks, bonds, precious metals, jewellery, and real estate. It is divided into two sections. A capital gain or loss on a short-term basis and capital gain or loss on a long-term basis.

A short-term capital gain results from the sale of property like House property, building and land owned for one year or less while in the case of debt-oriented funds, the jewellery should be owned for less than 36 months. Short term capital gain is charged @ 15 %.

In case individuals own an asset for a duration of more than 36 or 24 months, the asset is a long term capital asset. Debt-oriented mutual funds, jewellery, etc., that are held for a duration of more than 36 months and for sale of property like House property, building and land owned for more than a year, will come under this category.

Income from Other Sources

Any income that is not taxable under one of the other four categories of income will be taxed under this head of income. This category includes income such as savings bank interest, interest on deposits, and interest on IT refunds, among others.

Penalty for Late Filing u/s 234F

Late fees for income tax return filling in Mumbai is of Rs 10000 u/s234F of Income Tax Act 1961. However, for small taxpayers whose total income is not more than 5 lakh, the maximum penalty will be Rs. 1000.

In other words, If the returns are not submitted by the due date, the taxpayer faces hefty fines. In addition to fines, non-filing of taxes may result in other difficulties and penalties. Late filing of income tax return filing in Mumbai fines ranges from Rs.1,000 to Rs.10,000.

Income tax return filling in Mumbai must be handled by a qualified professional who can provide effective advice in any condition and under any circumstance. Taxzona is a leading income tax return filing in Mumbai. Taxzona with the help of our team of experts efficiently takes care of Income Tax return filing in Mumbai very efficiently and professionally.

The prices quoted above for Income Tax return filling in Mumbai includes Preparation of financial statements, Income Computation and online filling of Income Tax return. These charges are applicable only for Income Tax returns and are subject to the nature of Income.

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