As per the Income Tax Act, 1961, the Government of India levies income tax on eligible individuals explained by Edge Legal. Technically speaking, income tax rules apply to any person, even an NRI, earning an income in India. This form of direct tax is calculated based on the income tax slab you fall under, which in turn is dependent on your total income, be it from your salary, savings account, or even a lottery. If you earn more than the exemption limit in one financial year, submitting information pertaining to your earnings to the income tax department is mandatory through an income tax return form. With the last date to file revised/belated ITR for FY 19-20 extended to 31st August 2020, you have time in your hands to understand the nuances of income tax in India.
Income Tax in India
Income tax, by definition, is a tax that a country levies on income generated by businesses and individuals. The concept of income tax first surfaced in the country in the year 1860. At the time income tax served as a means to overcome financial deficits incurred due to the freedom movement.
At present, citizens pay taxes to the Income Tax Department of India in accordance with the rules and regulations written down in the Income Tax Act, 1961. Today, income tax, meaning a portion of your income that goes to the government, is a preeminent source of income for the government. Money earned via income tax goes towards maintaining government bodies and infrastructural development.
Income Tax Calendar for the Year 2020
| Months | Important Dates | Details of Events and Tasks to Complete | |
| January | 15th Jan-2020 | .Filing of quarterly statement for Tax Collected at Source (TCS)quarter-ending 31st December 2019 |
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| 30th Jan-2020 | Quarterly TCS certificate issue towards tax collections made for quarter-ending 31st December 2019. |
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| 31st Jan-2020 | Quarterly Tax Deducted at Source (TDS) statement filing for quarter-ending 31st December 2019. |
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| February | 15th Feb-2020 | Quarterly issue of TDS certificate towards payments (other than TDS on salary) made quarter-ending 31st December 2019. |
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| March | 15th Mar-2020 | Advance tax payment for Financial Year 2019-20 (fourth installment). | |
| 31st Mar-2020 | Last date for income tax return filing as per revised ITR for Financial Year 2018-19 | ||
| April | – | – | |
| May | 15th May-2020 | TCS statement quarterly filing tax deposited quarter ending 31st March 2020. | |
| 31st May-2020 | Quarterly TDS return filing towards deductions made quarter-ending 31st March 2020. | ||
June |
15th Jun-2020 | Advance tax payment for Financial Year 2020-21 (First installment) | |
| 15th Jun-2020 | Form 16 issue date from employers to employees. Quarterly TDS certificate issue for deduction made from income other than salary quarter-ending 31st March 2020 (Form 16A). |
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| July | 30th Jul-2020 | Quarter-ending 30th June 2020 TCS statement filing date. | |
| 31st Jul-2020 | Quarterly TDS statement filing for deductions made quarter-ending 30th June 2020. | ||
| 31st Jul-2020 | Deadline for Income Tax Return filing for assesses falling under categories individuals, HUFs and others not requiring an audit. |
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| August | 15th Aug-2020 | Quarterly issue of TDS certificate for deductions towards income other than salary quarter-ending 30th June 2020. |
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| September | 15th Sep-2020 | Advance tax payment for Financial Year 2020-21 (second installment). | |
| 30th Sep-2020 | Income Tax Return filing date for assesses requiring an audit of account books. | ||
| October | 15th Oct-2020 | Quarterly TCS deposit statement filing quarter-ending 30th September 2020. | |
| 30th Oct-2020 | Quarterly issue of TCS certificate for tax payments made quarter-ending 30th September 2020. | ||
| 31st Oct-2020 | Quarterly TDS statement filing for deductions made quarter-ending 30th September 2020. | ||
| November | 15th Nov-2020 | Quarterly issue of TDS certificate for income other than salary quarter-ending 30th September 2020. |
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| 30th Nov-2020 | The last date of Income Tax Return filing for assesses requiring account books audit and undertaking international transactions. |
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| December | 15th Dec-2020 | Last date for advance tax payment for Financial Year 2020-21 (the third installment). |
Keeping the important dates of this Income Tax calendar 2020 in mind also helps in planning investments carefully to avail deductions during tax liability calculation and payment.
ITR Forms
| ITR form | Details |
| ITR-1 (Sahaj) | Applicable to resident individuals with a total income not exceeding Rs.50 lakh, and possessing Income from Salary, Income from One House Property, Income from Other Sources, and Agricultural Income not exceeding Rs.5,000 |
| ITR-2 | Applicable to Individuals and Hindu Undivided Families not possessing income from profits and gains of profession or business |
| ITR-3 | Applicable to individuals and HUFs who have income from profits and gains of profession or business |
| ITR-4 (Sugam) | Applicable to Individuals, HUFs, and Firms (apart from LLP), being a resident having total income not exceeding Rs.50 lakh and possessing income from profession and business, computed under Sections 44AD/ 44ADA/ 44AE |
| ITR-5 | Applicable to persons not classified as individuals/ HUF/ company. Not applicable to those using ITR-7 |
| ITR-6 | Applicable to Companies barring those claiming an exemption through Section 11 |
| ITR-7 | Applicable to persons and companies who must furnish return under sections 139(4A)/ 139(4B)/ 139(4C)/ 139(4D) only |
