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ITR Verification: This is a very important job. But even in this, if you have filed ITR but did not verify it, then it can also be rejected.
Any taxpayer has to file Income Tax Return (ITR) every financial year. This is a very important job. But even in this, if you have filed ITR (Income Tax Return) but have not verified it, then it can also be rejected. Apart from this, it is important to show your income correctly in the return. If you are also facing such a situation, then you can understand from Tax Expert Sunil Garg and Kapil Mittal here.
ITR E-Verification
- E-verification required after filing return
- If ITR is not verified, then the agreement will be invalid.
- Government has tightened the rules of e-verification (ITR e-verification)
- After August 1, there will be a penalty for filing returns
- 30 days to e-verify returns
- Earlier the limit for e-verification was 120 days
- Rules on those who file returns on or after August 1
Late return penalty
- Late fee is levied on non-filing of Income Tax Return
- Late fee will be levied under section 234F
- May have to pay late fee up to ₹5000
- Return (ITR) can be filed with a maximum penalty of ₹5000
Whose fine?
Income               Penalty
Above ₹5 Lakh Up to  –   ₹5000
Up to ₹5 Lakh      –    ₹1000
Up to ₹2.5 Lakh       –  ₹1000
How to do ITR e-Verify
- Through Aadhaar OTP
- e-filing account in net banking
- EVC through bank account number
- EVC through Demat Account Number
- EVC through Bank ATM
- By sending the signed copy of ITR-V of CPC, Bengaluru
New Tax Regime – Preparing for Change?
- 2021-22 assessment year-5.89 crore returns filed
- Less than 5% taxpayers filed returns in the new tax regime
- New tax slab came in the general budget of the year 2020
- Not many big tax exemptions in the new tax regime
- No standard deduction benefit with savings on principal, interest
- Less inclination of taxpayers towards the new tax regime
New tax system – What not?
- Standard Deduction – ₹50,000
- HRA- ₹2 lakh
- 80C Deduction- ₹1.5 Lakh
- 80D(Medical Insurance)- ₹50,000
- 80EE(Housing Loan Interest) – ₹50,000
Income from Agriculture
- Agricultural income tax free as per section 10(1)
- Income from agriculture is exempted by adding it to the rest of the income
- Tax increases by adding agricultural income to the second income
- E.g. Agriculture Income – ₹ 5 Lakh, Other Income ₹ 10 Lakh
- A total tax of ₹ 2.08 lakh will be made on the total income.
- Whereas only Rs 1.17 lakh tax on other income of 10 lakhs
- Additional ₹ 90 thousand tax on addition of agricultural income
Which income is not agricultural income?
- Home produce, not farm income
- Growing vegetables at home will not be considered as agricultural income
- If income from agriculture is more than 5 thousand, then Form 2 will have to be filled
- It is necessary to give all the information of agricultural land in Form 2
- If income from agriculture then keep proof of selling the crop
- Crop sold in the market or outside, it is necessary to give information
- How did I get the money for selling the crop and also pay the cost of growing the crop?
Tax on sale of agricultural land
- No capital gains tax on sale of land in rural area
- If agricultural land is not in rural area then tax will be levied
- It is necessary to keep in mind the distance for selling agricultural land
- Agricultural land is 8 km away from Municipal Corporation then tax free
- 6 km distance from municipal corporation is valid in small town
Agricultural land-tax and compensation
- Tax exemption on purchase of agricultural land in lieu of agricultural land
- Exemption from capital gains tax under section 54(B)
- No capital gains tax on government acquisition of agricultural land
- No tax on compensation if the government acquires agricultural land
Question Answer
- An investor from Bulandshahar
- Buy and sell crops from farmers
- Income on crops purchased from farmers will be considered as agricultural income?
Reply to investor
- Income from crops purchased from farmers, not agricultural income
- Income from crops purchased from farmers is income from business
- Income from business to be taxed
An investor from Noida
- Near Noida airport, land is sold
- 10 acres of land sold to a builder
- Builder is building hotel project on the land
- Is the amount received on sale of land tax free?
Reply to investor
- Land to private builder for hotel, so no tax exemption
- Can buy agricultural land instead of agricultural land
- By buying flat or house, 54(F) can be availed
An investor from Kanpur
- My father and elder sister passed away
- Sister’s children can ask for share in my father’s property?
Reply to investor
- After sister’s death, children can claim share in maternal grandfather’s property
- Sister’s children can ask for their mother’s share
- Mention of rules in Hindu Succession Act
- After September 1, 2005, daughters are equally entitled to the property of the father.
An investor from Kolkata
- Run social organization for poor children
- Do the accounts of the organization have to be given to the IT department?
- CBDT issued circular on 10 August 2022
- It is necessary for every social organization to keep books of accounts for 10 years
An investor from New Delhi
- Income in Form 16 is 22 lakhs instead of 14 lakhs
- In AIS also only 22 lakh income is showing
- 14 lakh showing income in Form 26AS
- There is a mismatch in Form 16 and AIS, how to file the return?
Reply to investor
- Report the mismatch in Form 16 and AIS to your office
- Fill ITR as per salary slip
- Ask your office to give you the correct income in AIS
- Now a penalty will have to be paid for late return filing.
