Income Tax Filing in India

What is Income Tax?

Income tax filing in India is a direct tax which is levied on the income and profit of individual or organization. It covers all income like salary, pension, PPF, rental income, the capital gain on sale of immovable property/movable property/shares/mutual funds, interest, royalty, technical fee, profit from business/profession, etc.

What is income tax filing?

Every individual (resident or non-resident) who earns income whose either source is in India or that income is received in India is liable to pay tax in India. That person shall file an annual income tax return to report that income and pay his tax liability (if any) in India.

Filing income tax return in India becomes mandatory when income exceeds the exemption limit.

What are the benefit of Income Tax filing?

Nonresidents shall opt to income tax e-filing India:

  • To claim a refund of extra withholding tax,
  • To report his income even if it is exempt especially when the purpose is to remit funds out of India
  • To claim to carry forward of loss.
  • To maintain clean and clear records with the Indian Income Tax Department.
  • To validate credit worthiness before financial institutions to access bank loans/credits.

How to file Income Tax return?

The Income tax return can be filed by creating an account on the income tax e filing portal. To create it, a person shall have a pan number. An easy income tax filing India can be done either filing an ITR online or by uploading xml generated through utilities available on the income tax e filing portal.

In the case of individuals’ tax is levied based on income slabs. For non-residents slab rate applicable for A.Y 2020-21 is as follows:

How is Income tax applicable?

Taxable Income Tax
Up to Rs. 2,50,000 NIL
Rs. 2,50,000 to Rs 5,00,000 5% of (Total income – Rs. 2,50,000)
Rs. 5,00,000 to Rs. 10,00,000 Rs. 12,500+ 20% of (Total income – Rs. 5,00,000)
Above Rs. 10,00,000 Rs. 1,12,500 + 30% (Total income – Rs. 10,00,000)

Apart from this, if total income exceeds a specified limit, surcharge on such tax…

Total Income  Surcharge
Up to Rs. 50 Lakh NIL
Rs. 50 Lakh to Rs. 1 crore 10% of Tax
Rs. 1 crore to Rs. 2 crore 15% of Tax
Rs. 2 crore to Rs. 5 crore 25% of Tax
Above RS. 5 crore 37% of Tax

In addition, Edu cess of 4% on tax calculated as above will be applicable in all cases.

In the case of Residents, there are three categories: individuals (Age < 60 Years), Senior citizen (Age: 60-80 Years) and Super Senior Citizen (Age > 80 years) and for all three categories, there are three different slabs.

When is the Income Tax return filed?

The income Tax return is filed after the end of the financial year in which income is earned. It means for income earned in the financial year starting from 1st Apr 2019 to 31st Mar 2020; the tax return can be filed after 1st Apr 2020. In other words, to report income earned in F.Y 2019-20, we can file a tax return in the Year 2020-21, which is also called assessment year (A.Y). The last date of filing tax return without any late filing penalty is 31st July of the relevant assessment year in the case of individuals. The last date of filing a tax return with a late filing penalty depending on case to case is 31st Mar of next year.

Extension due to the current Covid-19 crisis, the due date with the penalty for F.Y 2018-19, i.e., A.Y 2019-20, is extended from 31st Mar to 30th June. And the due date for filing tax return of F.Y 2019-20, i.e., A.Y 2020-21, is extended to 30th Nov 2020.

How can NRI CA services in India assist you?

Indian Income Tax Act deals with various provisions such as Residential status; chargeability of Indian income and global income; income under various heads; exempt income; available deductions; applicable tax rates and slab rates; exemption limits; withholding tax rates and returns; eligibility and timeline to file the returns in India; penalties and consequences of late filing or non-filing; ITR Forms to be filed; filling tax challans and paying tax, etc. For efficient tax planning, a person shall have a thorough knowledge and understanding of the above provisions. Being a team of chartered accountants in India, we can provide you with reliable CA services for NRI along with professional consultancy/assistance to complete your tax-related process in an efficient and legitimate way.

You can contact us by writing your questions to us at email id or by leaving a message on WhatsApp at +91 9910075924. We will try to revert you at the earliest with the answers. We aim to make the whole process of Income tax filing in India as simple and as quick as possible.

× How can I help you?