Every year, by the 31st of July, we see taxpayers running from pillar to post in order to file their tax returns and they often get caught in the complex web of tax laws which are actually meant for the convenience of taxpayers.
As 31st July is approaching real fast, it’s high time that we comply with tax formalities for the financial year 2018-19.
To make things simpler, we are delving into the nitty-gritty of filing Income Tax returns.
Listed below is the detailed information about the tax-filing procedure:
When your gross total income exceeds the threshold limit
For deciding if the gross total income of the taxpayer exceeds the threshold limit or not, the taxpayers have been divided into three categories:
a) Citizens under the age of 60: The limit is Rs 2,50,000
b) Senior citizens (60 years of age or above but below the age of 80): Limit is Rs 3,00,000
c) Very senior citizens (80 years of age or above): Limit is Rs 5,00,000
To file Income Tax Returns. You need to register yourself with the income tax website.
Every taxpayer should collate all income tax related documents for filing returns. So, here is a list of the documents required:
- Abstract of bank statements
- Proof of investments and Form 16 (Salary certificate issued by the employer)
- Form 16A / TDS certificate
- Challan of tax payment made like advance tax or self assessment tax
- Proof of investments in property
- Documents on purchase and sale of investments/assets
- Collect the TDS certificate
- Collect home loan certificate
- Select the IT return form
As per your source of income select the right type of income tax return form as it is the most important part in filing your returns. Income tax department has prescribed different ITR forms to file the returns like ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4, ITR-4S (Sugam). Assessees should choose the right form as required by them to file returns correctly.
ITR 1 (SAHAJ)
Individuals with income from salary and interest
Individuals and Hindu Undivided Families (HUF) not having income from business or profession
Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
Individuals and HUFs having income from a proprietary business or profession
ITR 4S (SUGAM)
Individuals/HUF having income from presumptive business
Firms, AOPs,BOIs and LLP
Companies other than companies claiming exemption under section 11
Persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)
This should help you choose the right ITR form. The final form should, however, be selected after reading all the instructions related to that specific ITR form. These detailed instructions are available on–(http://incometaxindia.gov.in/)– along with each form type.
ITR-V, what’s that?
Once you file your ITR online, you automatically get your Return Form i.e. ITR-V which is a receipt or acknowledgement of your ITR. And once e-filing is done (without a digital signature), your ITR- V (or Income Tax Return Verification Form) needs to be sent to CPC (that’s the Central Processing Centre of the Tax Department) by post within 120 days of filing the ITR. You should print two copies of your ITR-V, one of which should be sent to CPC and the other one should be retained with you for your records. The signed return form should be sent by ordinary post or speed post (and not courier) to the following address:
You can, of course, avoid sending the ITR-V Form by post if you do an e-verification. You can choose to e-verify your returns using your bank account even without a digital signature. This also needs to be done within 120 days of filing your return.
Avoid paying penalty
As per the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date but before December 31 of that year and Rs 10,000 post-December 31. However, as relief to small taxpayers with income not more than Rs 5 lakh, the maximum penalty levied will be Rs 1,000.