7 things to keep in mind while filing Income Tax Returns ITR filing
July, 17th 2019
ITR filing: Individual taxpayers are now required to file income tax returns electronically with an exception of super senior citizens who can file it in paper form
The deadline to file Income Tax Returns for 2018-19 is just round the corner. Filing income tax returns could be a cumbersome affair, especially if you are a first-timer. However, with a little mindfulness, the process could become less burdening. If you are one of the newly-added 1.10 crore tax filers this year then you have to keep a few things in mind.
1. Filing ITR is mandatory for all Indians as well as NRIs. If you have a total income of over Rs 2.5 lakh before permissible deductions under Sections 80C to 80U, you must file your income tax returns. Even if you do not fall in the tax net you must consider filing a 'Nil Return' just for the record.
2. Individual taxpayers are now required to file income tax returns electronically with an exception of super senior citizens who can file it in paper form.
3. Employees will have to give a detailed break-up of all components, including remuneration from former employer as well as every tax-related deductions availed.
4. Details of capital gains from selling equity shares, equity mutual funds or property must also be shared. If you have sold property then you must provide complete details of the buyer. Taxpayers with overseas earnings and foreign assets must declare the same too.
5. The Income Tax Department will now provide pre-filled ITR-1 forms. The pre-filled forms will have your salary FD interest income and TDS details. While filing, you must closely scrutinise the form. If there are any discrepancies then you'll have the option of editing and submitting the details.
6. Keep in mind that to file the income tax returns, you must choose the correct form first. For eg. salaried persons with earnings less than Rs 50 lakh can file ITR-1. However, you cannot be the director of a company and hold shares of an unlisted company or own any foreign assets to do so. Self-employed individual will have to file ITR using the ITR-3 or ITR-4 form, depending on the type of income for the year.
7. If ITR is not filed by the July 31 deadline then the penalty for ITRs filed on or before December 31 will be Rs 5,000. It will go up to double that amount for later filings. However, if your taxable income is below Rs 5 lakh, the maximum penalty will be Rs 1,000. If the tax evaded is more than Rs 25 lakh then the punishment could be 6 months to 7 years, as mentioned by the I-T department.