Income Tax Filing

  • Salary Income Tax Filing
  • House Property Income Tax Filing
  • Presumptive Income Tax Filing for Business and Profession, Freelancers 
  • Normal Business Income Tax Filing after Preparation of Balance sheet and Profit and loss account
  • Capital Gain Tax Filing
  • Other Income Sources Tax Filing
  • Advance Tax Payment Assistance
  • Non Resident Individual Taxation Filings
  • Addressing Income Tax Notices Electronically
  • Representation by a Qualified Person on behalf of Client to Assessing Officer
  • Income Tax Refund Assistance
  • Lower Tax Certificate on Sale of Properties by NRI
  • Repatriation of Funds
  • TDS filing on Property Sales
  •  ETDS filing

Income Tax Filing Basics

Tax Slabs

Income Slab

FY 2019-20

FY 2020 -21

Old Regime

FY 2020-21

New Regime

Upto Rs 250,000

No Tax

No Tax

No Tax

Rs 250,000 –  Rs 500,000

5%

5%

5%

Rs 500,000 –  Rs 750,000

20%

20%

10%

Rs 750,000 –  Rs 10,00,000

20%

20%

15%

Rs 10,00,000 –  Rs 12,50,000

30%

30%

20%

Rs 12,50,000 –  Rs 15,00,000

30%

30%

25%

Above Rs 15,00,000

30%

30%

30%

 

The following source of Income is Taxable

Income from SalarySalary, Allowances, Leave encashment basically all the money you receive while rendering your job as a result of your employment agreement
Income from House PropertyIncome from house or building, this may be owned and self-occupied or may be rented
Income from Capital GainIncome from gain or loss when you sell a capital asset
Income from Business or ProfessionIncome/loss that arises as a result of carrying on a business or profession
Income from Other SourcesThis is the residual head – includes your income from savings bank accounts,fixed deposits,family pension or gifts received

Deductions

PPF

One of the most popular deductions under 80C is deposits to Public Provident Fund or PPF. When you open a PPF account, you need to deposit a minimum of INR 500 and a maximum of INR 1,50,000 in a year. Money deposited in a PPF account compounds, as you deposit more money in the subsequent financial years to claim deductions. PPF is a traditional and safe saving avenue to park your hard earned money. A PPF account can be easily opened with a bank.

Tax Saving FD

Fixed deposits assure capital protection as well as a sizable interest income for investors. To get tax benefits under 80C, you need to stay invested for at least 5 years. It is safe, but the Interest Income from it is taxable.

ELSS Mutual Fund

One of the only mutual fund scheme allowed under 80C, ELSS (Equity Linked Savings Scheme) is gaining popularity among people for its historically higher performance in the recent years. Another perk of ELSS is that it has the lowest lock-in period of 3 years.

 

To Know more about Deductions applicable for FY 2020-21 , please follow our blog 

Salary Income Tax Filing

Understand your Payslip ! 

The major components of your payslip are as follows, 

  • Basic Salary 
  • House Rent allowance 
  • Leave Travel allowance 
  • Bonus 
  • Employee contribution to Provident Fund 
  • Standard Deduction 
  • Professional Tax 
  • Chapter VI Deductions or 80C Deductions 

Apart from the above, when it comes to personal taxes the following are the terms which one often hears, 

  • Tax Deducted at source 
  • Form 16 
  • Form 26As 

Do you want to learn more about all this ? Read our Know your Fundamentals blog on Decoding your payslip

House Property Income 

To know more about taxes on house property income, refer our blog

Presumptive Income Tax Filing for Business 

Are you a business person or professional ? 

Confused about, what are the tax rates ? Have questions on maintaining books of accounts and audit ? 

Presumptive taxation is something you should know about ! 

Read our blog about Presumptive Income in Know your Fundamentals series ! 

Business Income Tax Filing

For businesses having gross receipts of more than Rs 1 crore in a financial year are liable for tax audit.The due date of filing the tax audit report is 30th September of the assessment year. The tax audit report must be filed electronically via Form 3CD. For taxpayers subject to tax audit, the due date for filing of return of income is also 30 September of the assessment year.

Capital gains on Sale of Immovable Property , Shares, and Other Assets

Tax Type

Condition

Tax applicable

Long-term capital gains tax

Except on sale of equity shares/ units of equity oriented fund

20%

Long-term capital gains tax

On sale of Equity shares/ units of equity oriented fund

10% over and above Rs 1 lakh

Short-term capital gains tax

When securities transaction tax is not applicable

The short-term capital gain is added to your income tax return and the taxpayer is taxed according to his income tax slab.

Short-term capital gains tax

When securities transaction tax is applicable

15%.

Other Income Sources Tax Filing

Interest that gets accumulated in your savings bank account must be declared in your tax return under income from other sources.Interest from both fixed deposit and recurring deposits is taxable.

Deduction on Interest Income under Sec 80TTA

For a residential individual (age of 60 years or less) or HUF, interest earned upto Rs 10,000 in a financial year is exempt from tax. The deduction is allowed on interest income earned from:

  • savings account with a bank;
  • savings account with a co-operative society carrying on the business of banking; or
  • savings account with a post office

Senior citizens are not entitled to benefits under section 80TTA.

Family Pension Income Taxable 

There is a deduction of Rs 15,000 or one-third of the family pension received whichever is lower from the Family Pension Income.

Exempt Income

The PPF and EPF amount you withdraw after maturity is exempt from tax and must be declared as exempt income from income from other sources.

The EPF is only tax exempt after five years of continuous service.

Advance Tax


If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older but do not run a business, are exempt from paying advance tax

FY 2019-20 For both individual and corporate taxpayers

Due DateAdvance Tax Payable
On or before 15th June15% of advance tax less advance tax already paid
On or before 15th September45% of advance tax less advance tax already paid
On or before 15th December75% of advance tax less advance tax already paid
On or before 15th March100% of advance tax less advance tax already paid

For taxpayers who have opted for Presumptive Taxation Scheme – Business Income  

Due DateAdvance Tax Payable
by 15th March100% of advance tax
  

Lower Tax Certificate on Sale of Properties by NRI

As per Section 195 of the Income Tax Act, payment to a Non resident, be it sale consideration towards the sale of property, Rent, Interest, Professional fees, commission, royalty, etc., is subject to Tax Deduction at Source (TDS).

Suppose, an NRI sells a flat in Bangalore for Rs.90 lakhs, the buyer of the property has to deduct TDS at 22.88% (FY 2018-19).

In order to reduce the TDS burden, the seller of the property can apply to the department to issue a certificate for deduction of lower rates or no deduction of tax.

Repatriation of Funds

Remittance of income like rent, dividend, pension, interest, sale proceeds on sale of the property, etc. of NRIs/PIO is freely allowed, on the basis of appropriate certification that the amount proposed to be remitted is eligible for remittance.