The Indian common people who are bound to file the ITR (Income Tax Return) in the Assessment Year 2021-22 are curious to know about how income tax collection is going on in the post-pandemic period in India. 

As per the data and records, the situation has worsened in the post-pandemic period as common people’s income has been affected by the COVID-19 situation. Data says overall individual person, business groups’ ITR filing has decreased by 6.5% in the Financial Year 2020-21.  

Statistics on ITR Returned  

It is time to have a look at how the ITR filing has gone on in FY 2020-21. Data says in ITR-1 offline filing the percentage is 9.8% for FY 2020-21. The research regarding ITR-1 online filing says the percentage is 4.5%. 

ITR-1 Sahaj Filing on FY 2020-21 

The ITR-1 Sahaj form is dedicated to salaried individuals (salary/pension/interest income). You may know that the ITR-1 Sahaj form is bound to be filled if the earning of an individual person is not more than 50 lakh. The earning from HUF (Hindu Undivided Family) is not required to be filed under the ITR-1 Sahaj form.  

Persons Making ITR-1 Sahaj Filing

The income taxable under section 115BBDA says the income from salary, pension, house rent, bank interest is included under the defined section. Section 115BBDA income does not include the income from lottery or any other form of gambling.

Section 115BBE refers to the agricultural income where the income level is up to Rs. 5000.

High-Networth Individuals ITR Filing on FY 2020-21

The ITR filing record of high-net-worth individuals has also declined in the FY 2020-21. Data says the ITR-2 filing has also declined at the rate of 3.5%. Here the point should be mentioned that ITR-2 filing is attached with individuals and HUF (Hindu Undivided Family) whose income is more than 50 lakh.

Persons Making ITR-2 Filing

The first point should be mentioned that income from business profit cannot be included in the ITR-2 filing. The ITR-2 filing includes earning from salary, the income of more than one house property or inheritance tax, and capital gains. The income of an individual person whose source is outside India and income from outside India-assets is also included in the ITR-2 filing process.  

ITR-3 Filing on FY 2020-21  

Just like the ITR-1 Sahaj form, and ITR-2 filing; the ITR-3 filing has also been reduced by 18.3%. So, overall the collection from income tax returns has been reduced all over India.

Persons Making ITR-3 Filing   

Individual persons and HUF (Hindu Undivided Family) who are in business are eligible for filing the ITR-3 form. Persons who are a partner in the partnership firm are also eligible to file the ITR-3 form. 

Till now, what you have read is about profitable companies filling up ITR-3 forms. The ITR-7 form is filled up by firms who deal in non-charity. You may consult an expert for opening a non-profit organisation under Section 8 Company Incorporation. 

The Tax Experts’ Opinion on Shrinking ITR Filing

According to tax experts, the reason behind the delay in collecting IT return filing in India is the Government of India has introduced many extensions to the taxpayers due to the corona pandemic. The individual’s ITR filing date was 10th January in FY20. Persons whose income was due with an audit were obliged to file the ITR on 15th February in FY20.

The tax experts are also expressing their doubt that the situation may not improve much even in AY 2021-22.  

How Online Legal India™ Can Help You ?

The COVID has made income tax filing difficult in both ways. Number one is, the number of ITR filings has shrunk. Point number two is ITR filing in the offline mode is not a healthy option anymore in the corona situation. 

So, it would be better for you if you e-file the ITR for AY 2021-22. The experts from Online Legal India™ can help you if you wish to file the ITR in online mode and that too with a minimal fee.