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Filing Income Tax Return for FY 2018-19

An Income Tax Return (ITR) is the tax form/s in which taxpayer files information about his Income. The tax return can be filed through different ITR forms and the income earned during a financial year is used to calculate the tax liability.

Who should file an ITR

As per Income Tax Act 1961 and the Income Tax Rules 1962, it is mandatory for every taxpayer to file returns for every financial year. Every taxpayer needs to file ITR on or before the due date. To file ITR for FY’ 18-19, the last is July 31st 2019. The ITR form with which you will file the return depending on the income source, income earned and category of taxpayer such as Individual, HUF or company.

You need to file Income tax Return for below specified circumstances.
If your gross income is more than,

Particulars Amount (annually)
Individuals below 60 years Rs 2.5 lacs
Individuals 60 years & below 80 years Rs 3 lacs
Individuals above 80 years Rs 5 lacs
  • If you have more than one source of income like income from house property, capital gains etc.
  • If you have invested or earned from foreign assets.
  • If you claim for an income tax refund.
  • If the taxpayer is a company, co-operative society, or partnership firm, regardless of profit or loss.

Why Filing an ITR is Important

  • has made mandatory for filing income tax returns for those who earn a specified amount of annual income. The tax computed needs to be paid by the taxpayer within the specified due date.
  • If your income level does not require filing of returns, even then you may file returns voluntarily.
  • In case you apply for a home loan, the home loan company will ask you for providing proof of ITR filing of the last 3 to 4 years. So, it’s wise to keep filing tax returns for every financial year.
  • You may file tax return to claim adjustment against past losses incurred by an individual or a business.
  • Delay in filing of returns attract a penalty of Rs 5,000 when filed after 31st July, but before 31st You will have to pay Rs 10,000 as penalty, on filing return after 31st December, but before 31st March. To avoid this penalty, you must file ITR within the due date.

Factors to be kept in mind while filing an ITR

There are a few key aspects that you must bear in mind while filing returns.

  • Choose the right form

Choosing the correct ITR form is an important step and you can choose the right form, depending on the nature of income earned and total income threshold. Various tax filing platforms automatically choose the right form as per your income details.

There are seven different types of ITR forms:

ITR Form For Whom
ITR-1 For individuals earning <50 lakhs from salary/pension, one house property & other sources
ITR-2 For individuals income or capital gains >50 lakhs, capital gains
ITR-3 Covers all heads of income, earning from business/profession
ITR-4 Income from presumptive taxation
ITR-5 Applicable to firms, LLPs, AOPs & BOIs
ITR-6 Not claiming exemption under section 11
ITR-7 Persons/companies under sec 139 (4A), 139 (4B), 139 (4C) & 139 (4D)
  • Report the Income Earned

You need to disclose all the income earned during the financial year for which you are filing return. You must include various sources of income like family pension, capital gains, interest income, etc to ensure every income (also exempt income) is included while calculating the income tax, so you can locate details from form 26AS.

  • Form 16 & 26AS

If you are a salaried individual, Form 16 is a key document for filing tax return. It contains details of your PAN, TAN, salary, address and tax deducted. In ITR forms, you also need to provide the income details from previous employers and include it while filing return.

Form 26AS contains details of tax deducted by deductors on your behalf like TDS on salary, on selling a property, interest income from deposits, etc. You can cross check all details of TDS deductions given in Form 16/16 A by using Form 26AS. It is also an important document for filing tax return.

  • Keep Investment Proofs

You are required to put together all proofs of investments, payment receipts, deductions or other tax benefit documents. In case of discrepancy, IT department will ask you to provide the proofs as claimed by you.

How can one seek help in case of any trouble while filing an ITR

While filing a tax return, you observed that you have furnished incorrect details and want to rectify the mistake, in this scenario you are allowed to do so. Under section 139(5) of the IT Act, you can correct the mistake by filing a revised tax return.

This section specifies that if a taxpayer has filed the return with some incorrect details, he/she has the flexibility to file a revised return before the due date of ITR filing, i.e., 31st July 2019 for FY’ 2018-19.

The post Filing Income Tax Return for FY 2018-19 appeared first on Comparepolicy.com.

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