Income Tax Return: Don’t forget four ways of tax exemption in the hurry to fill ITR, know the complete calculation

The last date to file Income Tax Return (ITR) for the financial year 2020-21 was 31 December 2021. There are many people who have not been able to file their ITR within this time limit. If you have not filed your ITR yet, then there is no need to panic.

You can still file your ITR till 31st March 2022 with penalty. ITR filed after the due date is called belated ITR. Taxpayers who have not filed returns yet can commit many mistakes in a hurry. In the absence of caution, you will not be able to take full advantage of tax exemption. If you are also preparing to file the return in the remaining time, then know about the four measures that can give you tax exemption.

Interest: Income from other sources is earning on savings account

AK Nigam, Director, BPN Fincap, says that in the Income Tax Return, the income of the taxpayers is mainly divided into five parts. Income from salary, business, housing property, capital gains, loss and other sources. Whatever income does not fall under the first four, it is kept in the category of income from other sources.

The first number in this comes in the interest of savings accounts. Most of the taxpayers forget the interest coming from the bank in their savings accounts throughout the year while filing returns. Interest up to Rs 10,000 per annum on such accounts is considered outside the purview of income tax and can claim tax exemption. This income from other sources is part of your earnings. Therefore, it is taxed according to the slab. Keep in mind that this exemption limit is applicable on the total interest received from all the accounts.

Dividend: Tax exemption rules changed

Tax rules on dividend have been changed from assessment year 2021-22. Earlier the annual dividend of 10 lakhs was completely tax free as the companies used to pay dividend distribution tax on it.

Taxpayers had to pay tax at the rate of 10 percent on dividends exceeding 10 lakhs. Now the liability of tax on this has been shifted from the companies to the taxpayers. The limit of Rs 10 lakh has also ended. Any amount received by the taxpayer as dividend will have to be disclosed in the ITR and will be liable to slab as per the slab

Exemption on family pension up to 15000

The income earned by the legal heir in the form of family pension in the absence of a salaried person also comes under the purview of tax. However, under the Income Tax Act, some part of this amount also gets the benefit of tax exemption. The pensioner as an heir gets the benefit of tax exemption on the amount up to 33.33 percent of the total pension or Rs 15000 (whichever is less). The balance amount will be treated as income from other sources and will be taxed as per slab. It will be paid by the pensioner as an heir.

Gift: Relief up to 50,000

Gifts up to Rs 50000 in a financial year are considered tax free. Under section 56(2) of the Income Tax Act, gifts in excess of the limit are treated as income from other sources and taxed. The tax rate on this is applicable according to your slab. While filing the return, keep in mind that if the gift amount exceeds 50000, then you will have to pay tax on the full cost.

For example, if you get a gift of 70000 in a financial year, then instead of paying tax on 20000, you will have to pay the entire amount. Under the Income Tax Act, cash or goods received without any service will be treated as a gift.

Disclosure of the winning amount in the lottery

Tax consultant Girish Narang says that the income earned through gambling, lottery, horse racing, crossword puzzle betting and other types of card games also comes under the income of other sources and has to be taxed according to the slab. . Nowadays there are many gaming apps related to cricket and sports, through which people win prizes. This amount will also have to be disclosed while filing the return to avoid income tax notices or any other action.