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Tax Season 2020 – Due Dates, Forms, Investments, and Deductions





The year 2020 has been a rollercoaster. There has been a lot of confusion around the recent due date extensions, ITR form schemas, list of documents, slab rates, and tax-saving deductions.

Here’s what taxpayers like you have asked. Ask us anything in our TAX QnA thread.

Taxes Are Simple

We’re trying to make tax filing seamless. How you ask? Salaried individuals can directly upload their statements like Form 16 (tax certificate from employer). Investors and traders can directly import their trades by logging into their brokerage account. Along with this & much more, users can choose from over 50 different deductions and maximize their tax refund!

Let’s Talk Due Dates

As a COVID-19 relief, the Income Tax Department, CBDT, and the Finance Ministry of India extended the Income Tax, GST, and TDS due dates.

A glance on important upcoming due dates:

  1. As per the Income Tax Notification on 29th July, the due date for belated / revised ITR for FY 2018-19, has been extended to 30th September 2020. (Update: Further extended to 30th Novemeber 2020)
  • Revised return can be filed to rectify the details such as incomes, losses, balance sheet, etc reported while filing the original Income Tax Return.
  • Investors and traders can also carry forward losses by filing a revised return, provided they have filed the initial ITR before the due date.
  • Taxpayers having capital gains from the sale of house property, land, etc in FY 2019-20 can continue to make specific investments to claim the rollover benefit and reducing their tax liability.
  • Also, taxpayers have additional time to make specific investments and claim the rollover benefit for capital gains from 30th June to 30th September 2020.
  1. Availment of Vivad se Vishwas Scheme – This is an initiative by the Government to put an end to pending direct tax disputes of Taxpayers. The Scheme aims to cater to all the taxpayers having income tax disputes in India. Taxpayers having an extension of an additional 6 months to avail benefits of Vivad Se Vishwas for settlement of Tax disputes. The due date for the same is extended from 30th June 2020 to 31st December 2020.
  1. Income Tax compliance due dates for FY 2019-20 (AY 2020-21) – 31st October to file Tax Audit Report and 30th November to file ITR.

    Update: The date was further extended on account of COVID-19, for taxpayers, under tax audit, the due date to submit the tax audit report is 31st December 2020, and the due date to file ITR is 31st January 2021. For taxpayers, when a tax audit is not applicable the ITR due date is 31st December 2020.

Note: Interest on belated Tax Payment was reduced from 12% to 9% as announced on 31st March 2020. This relief has been rolled back, and the interest penalty for belated tax payment continues to be 12% from 30th June 2020.

Note: Reduced Rates for TDS/TCS by 25% on certain non-salary payments to residents for FY 2020-21 remains unchanged.

Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
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Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
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Income Tax Slab Rates

The tax rates applicable for A.Y. 2020-21 are as follows:

Total Income Tax Rate
Up to INR 2,50,000 NIL
INR 2,50,000 to 5,00,000 5%
INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%

(for resident or non-resident below the age of 60 years)

Total Income Tax Rate
Up to INR 3,00,000 NIL
INR 3,00,000 to INR 5,00,000 5%
INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%

(for individuals who are of the age of 60 years or more but less than the age of 80 years): 

Total Income Tax Rate
Up to INR 5,00,000 NIL
INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%

(for individuals of the age of 80 years and above)

An additional 4% Health and Educational Cess will be applicable to the tax amount calculated in the above 3 categories.

10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.

An individual (resident) is entitled to rebate under section 87A if his total income does not exceed INR 5,00,000. The amount of rebate shall be 100% of income-tax or INR 12,500, whichever is less. 

Read about the detailed slab rates for companies, HUF/AOP/BOI, Co-operative Societies, and Local Authorities.

Finance Minister, in her Budget Speech 2020 had introduced a New Tax Regime. Individuals and HUFs can choose between the two regimes. Taxpayers can inform their deductor about the choice of the regime. This lets the deductor deduct the accurate TDS. Here is a table showing the Old Tax regime vs New tax Regime.

Income Range  Current Income Tax Rates New Income Tax Rates
Up to INR 2,50,000 Nil Nil
INR 2,50,001 to INR 5,00,000 5% 5%
INR 5,00,001 to INR 7,50,000 20% 10%
INR 7,50,001 to INR 10,00,000 20% 15%
INR 10,00,001 to INR 12,50,000 30% 20%
INR 12,50,001 to INR 15,00,000 30% 25%
Above INR 15,00,000 30% 30%

Under the New Tax Regime, a major chunk of deductions becomes ineligible. taxpayers can no longer claim deductions under Chapter VI-A. This is the entire list of deductions that stay and deductions that go in the New Tax Regime. 

Note: Individuals opting for the New Tax Regime and having net taxable income up to INR 5 lakh will be eligible for a rebate up to INR 12,500 under both the tax regimes.

File Your Tax Return

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File Your Tax Return

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2. Form 26AS – Form 26AS is a consolidated Tax Credit Statement which provides the following details to a taxpayer:

  • Details of Tax Deducted at Source (TDS) from the taxpayer’s income
  • Details of Tax Collected at Source (TCS) from taxpayer’s payments
  • Advance taxes, Self-Assessment taxes, and Regular Assessment taxes paid by the taxpayers
  • Details of the Income Tax Refunds received during the year
  • Details of any high-value transactions (for eg. Shares, Mutual Funds, etc.).

It is a very important document to have while filing ITR. However, you would not want to miss out on tax credits while filing ITR. You can download Form 26AS from the Income-tax e-filing website. The file that the user’s download is password protected. Form 26AS password is the D.o.B (Date of Birth) of the deductee. Read all about it over here.

3. Form 12BBForm 12BB (Investment Declaration) is an essential document for a salaried person. It is basically a disclosure of all their tax-saving investments in that particular Financial Year. Form 12BB is required by the employer for an accurate calculation and deduction of TDS on salary income. It needs to be submitted at the beginning of every financial year.

4. Link PAN and Aadhar Link – The government has made it mandatory to link PAN and Aadhar. Also, according to Section 139AA of Income Tax Act, Aadhaar details is mandatory to successfully file ITR.

Steps to Link Aadhaar with PAN.

5. Home Loan Statements from Bank/NBFC – This statement will provide the break-up details of how much principal and interest you’ve paid. The interest paid on the home loan can be claimed under Section 24. The maximum amount one can claim under section 24 is INR 2 lakh.

6. Capital Gains – If you have gained from the sale of property/mutual funds or if you are a trader, then you will have to report such gains. On the sale of the property, you need to have the purchase and sale deed of that property. In the case of capital gains, statements from mutual fund houses/brokers can prove to be important.

Consolidated Capital Gains statement from CAMS and KARVY.

Import Your Trades
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Import Your Trades

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India’s fastest growing Tax Filing Platform

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7. Tax Saving Investments – If you have claimed tax deductions under any section of the Income Tax Act, it is important to have the statements for the same. Although it is not mandatory, it might come in handy.

The most common available tax breaks under section 80C are as follows:
a) Employees Provident Fund (EPF)
b) Public Provident Fund (PPF)
c) Investments in ELSS schemes of mutual funds
d) Life insurance premium paid
e) National Pension System (NPS) etc.

Tax Saving Investments

Individuals and HUFs (Hindu Undivided Family) can claim income tax deductions on certain investments and expenses undertaken during the financial year. These include ELSS (Equity Linked Savings Scheme), EPF (Employee Provident Fund), PPF (Public Provident Fund), NPS (National Pension Scheme), NSC (National Savings Certificate), LIC (Lic Insurance Premium), and many more. Take a look at the list of investments and expenditures that are eligible for tax breaks.

After you have claimed these deductions, you can move ahead to the more obscure ones. Here is a list of some of the lesser-known investments and expenditures eligible for tax exemption.

Note: You cannot claim a major chunk of these investments under the new Tax Regime.

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore

What is Transparent Taxation

Prime Minister Narendra Modi launched the platform for ‘Transparent Taxation – Honoring the Honest’. The aim is to ease compliance by making the tax system, “People-Centric & Public Friendly” & issue refunds faster to benefit honest taxpayers.

The Tax reforms are promised to change how we pay taxes by making the process:

The number of taxpayers in the country is quite low at a mere 1.5 cr. As a way to celebrate honest taxpayers, from 2016 the Income Tax department is also issuing a certificate of appreciation.

But, seems like that wasn’t enough. Therefore, to increase tax compliance, it was needed to ease the process. And as a step closer to that ‘Transparent Taxation’ is launched.

So, what is this Faceless Tax Assessment?

File Your Tax Return

On Time , Online on Quicko.com

Open Your Account Today

File Your Tax Return

On Time , Online on Quicko.com

Open Your Account Today

That will be all folks. The tax season is around the corner. And we are here to simplify compliances for you. If you have any questions regarding taxes, drop your query in the comments section below or ask us anything on Tax QnA thread here.

Have a great day!



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