Tax Updates for 2021-2022: Everything You Need to Know

Tax Updates for 2021-2022: Everything You Need to Know

With recent reforms in income tax, read on to know what you have missed.

To avoid any fines or penalties, you should file your income tax return for the years 2021-22. The government has released a notification that can be found in Notification No. 37/2022 dated 21st April 2022 that specifies additional conditions for filing income tax returns with various ITR forms. if you have an income below the basic exemption limit and want to file your taxes quickly without having any complications with paperwork or payment plans!

The specific requirements are as follows:
  • The business has a turnover of exceeding Rs 60 lakh during the financial year.

  • The company’s revenue for the financial year exceeded 10 lakh rupees.

  • The aggregate TDS and TCS limit for the financial year 2016-17 is 25,000 or more (in the case of senior citizens). An increased amount up to 50k will be applicable to them.

The Act contains certain conditions for filing an income tax return, even if the total annual earnings are below threshold limits. The requirements are:

  • For those with accounts worth over a crore, it is important to consult an expert who can understand the intricate laws that apply in this field.

  • If you have spent more than Rs.2 lakh on yourself or someone else traveling to a foreign country, you will need to declare it to the government.

  • If you have spent more than Rs.1 lakh on your electric bill, you need to tell the government.
Is it mandatory to file ITR?
  • You must file an Income Tax Return in India if you meet any of the following criteria:

  • The limit for claiming deductions under section 80C and U in FY 2020-21 is Rs 3 lakhs, which can be increased to 5 Lakhs if you are a senior citizen (aged above 60 but less than 80) or even more so for super seniors aged over eighty.

  • You are a company or a firm, whether you had income or loss during the financial year.

  • You wish to claim your tax refund

  • You want to use a loss to reduce your income tax.

  • Residents of India who have assets or financial interests outside the country must file returns. This includes individuals, NRIs (non-resident Indians), and RNORs(Resident Naturalized immigrants).

  • If you are a Resident and signing authority in your foreign account. Not applicable to NRIs or RNORs

  • You are required to file an income tax return if you receive income from certain types of trusts. This includes trusts for charitable or religious purposes, political parties, research associations, news agencies, educational or medical institutions, trade unions, not-for-profit universities or educational institutions, hospitals, infrastructure debt funds, and other government authorities.

  • If you are a company that is not from India and you are doing business in India, you can get tax benefits.

  • If you want to get a loan or a visa, you might need to show proof that you have filed your taxes.
Significance of Income Tax Filing for NRIs

The government has announced that all individuals whose income exceeds $2.5 lakh (for FY 2020-21) must file an IRS return in India, regardless of their status as a Non-profit or Not-For profit organization internationally recognized by another country’s laws/customs. There is no higher threshold limit for senior citizens; thus if you are over the age of 60

The basic exemption limit for non-resident Indians (NRI) is different from that of resident Indian citizens. Unlike the latter, if there’s a long-term or short-term capital gain over Rs 2.5 lakhs then they must file an income tax return in order to benefit from it!

Necessity to file Income Tax Return

The income tax department is gradually hoping to bring all returns online. It’s mandatory for those who are registered and filing taxes that their taxable incomes must be submitted in an e-filing system based on the scope of total income, but there has been some relief given if you’re over 80 years old or don’t work with regular business/professional sources of revenue; then paper filings can still happen too!

Late filing can have serious legal consequences, so be sure to file on time! For whom think this is trivial, look at the retribution below.

Retribution for non-income tax filing

If you fail to file your taxes within the due date, then there can be a fine of Rs 5 thousand imposed on top.

Retribution for late filing of the income tax return from 2017-18

Here are the penalties for not filing an income tax return from the Fiscal Year 2017-2018 onwards:

  • If you file your tax return for FY 2018-19 after the due date but by 31 December, you will have to pay a penalty of Rs 5,000.

  • If you file your return for FY 2018-19 after 31 December 2019 but before 31 March 2020, you will have to pay a penalty of Rs 10,000.
Retribution for late filing of the income tax return from 2020-21
  • Starting in 2020-21, the maximum amount that you have to pay for being late on your tax return is Rs 5,000.

  • If you file your income tax return after the due date, you will have to pay a penalty of up to Rs 5,000. However, the penalty amount for taxpayers with income below Rs 5 lakhs remains the same, which is Rs 1,000.
Latest Update on Income tax dates

Category

Date

Individual/ HUF/AOP/ BOI

July 31st, 2022

Businesses expecting audit

October 31st, 2022

Businesses needing TP Report

November 30th,2022

Conclusion

Are you looking for a tax expert who can help guide your way through paying taxes on time without worrying about penalties? We have experts who can help you pay taxes and people who can help you run your business and we have everything covered for you! Learn more about how our services can add value for you by checking out the following link! 

 https://smartaccountants.in/ 

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