Here are 7 last-minute points to remember before filing your tax return ITR 2018-19
August, 23rd 2018
ITR Filing 2018-19: The August 31 deadline for filing income tax for the year 2018-19 is around the corner and if individuals should make it a point to file their ITR as soon as possible if they have not yet done so. Having said that, there are several important steps involved in filing income tax returns and you should brush up on these points to correctly file your returns while ensuring maximum gain:
File your ITR before August 31: As you must be knowing, the CBDT had earlier extended the income tax return filing deadline to August 31, which is 9 days from now. You should pay it before the abovementioned due date to avoid a penalty. If your income is less than Rs 5 lakh, you could end up paying a fine of Rs 1,000. Those earning above Rs 5 lakh will have to pay their income tax returns before December 31 to avoid a fine. Other than that, there are many other reasons to file the ITR on time. (Read: ITR 2018.19: Here are six reasons why you should file your return before August 31)
Revising income tax returns: Since income tax returns filing is a complex process, there are high chances of people making small mistakes. Worth mentioning that a error in filing ITR can be rectified by filing a revised return till March 31, 2019. For more information on filing revised returns, check out this link.
E-verfying ITR: After filing income tax returns, an individual is required to verify the same. The process has become much simpler over the years with a provision for e-verification. You can use Aadhaar-based OTP or EVC generated through the e-filing portal or even an EVC generated through an ATM. (Read: ITR 2018-19: Here's how you can e-verify your returns)
Tax-free incomes: There are a lot of people who refrain from mentioning tax-free income when filing income tax returns. There are several tax-free incomes such as maturity proceeds from insurance policy, PPF, tax free bonds and many more that you are required to report even if these gains are exempt from income tax. Find out more information about the types of tax-free incomes here.
Beware of fake CAs: The income tax department has made the process of filing returns much stricter this year and individuals are required to ensure that none of their disclosed amounts are inflated to claim more tax returns. It has also come to light that many fraudulent CAs are trying to lure customers into filing illegal tax returns. You should ensure that your tax return is filed absolutely accurately. For more information on such conmen and their modus operandi, click on this link.
Save more while filing taxes: Many individuals are entitled to tax benefits with regards to their investments. It may be noted that many taxpayers miss out on the opportunity to save extra during ITR filing. There are many deductions that can be claimed under Section 80(C), 80(CCC) and 80(CCD). (ITR 2018-19: How to save more while filing income tax returns)
Tax evasion: As mentioned earlier, the tax department has made rules stricter for people filing income tax returns. From income generated from savings account to any interest earned from investments, an individual need to mention all such incomes to avoid getting a tax notice from the department. (ITR 2018-19: What can be considered as tax evasion by I-T department?)