It is that time of the year when you have to file your income-tax returns with the Central Board of Direct Taxes. The income-tax department has extended the deadline for ITR filings for the financial year 2018-19 from July 31 to August 31, citing the hurdles faced by taxpayers in the issuance of Form 16, changes in the forms, tax-filing utilities and technical glitches with return forms.
By filing your returns on time, you are eligible for certain benefits such as carry forward losses and avoiding late filing fees, which is up to Rs 10,000.
Since the deadline has been extended, you have a month in your hand to get all the documents in place and understand how and where you will file your returns with the tax department. You can also clarify the tax slab you belong to with your financial planner as well.
Here's everything you need to know before you file your income tax returns for the financial year 2018-19 (AY19-20): Documents required:
Collect the required documents such as Form 16, salary slips and interest certificates that will be required to file the ITR. Tax deducted at source (TDS) certificates such as Form 16 is provided by your employer if tax is deducted from your salary income. Similarly, your bank will issue you a Form 16A for TDS deducted on interest paid to you on fixed deposit.
Also Read: Income Tax Return 2019: Keep these documents ready ahead of ITR filing
The TDS certificate has to be digitally signed. It will bear a checkmark if the signature is valid or a question mark if the signature is non-verified.
One must cross-check their TDS certificate with Form 26AS to make sure all the tax deducted in the said financial year from incomes such as salary and interests is deposited with the government against the PAN. One can log in to the e-filing website and click on 'My Account' tab to select 'View Form 26AS.' The website then redirects to TRACES website where the form can be viewed, as well as, downloaded.
From this year, individuals also have to pay 10 percent tax on long-term capital gains from equity shares and equity mutual funds if the gains exceed Rs 1 lakh. If you have redeemed any mutual fund units, you can ask the mutual fund to provide the transaction statement and capital gains for the same.
Registering to e-file ITR
The Income Tax Department’s e-filing website
www.incometaxindiaefiling.gov.in can be used by all taxpayers in India to e-file their tax returns. E-filing registration is a process that is mandatory for anyone who wants to file their tax returns. However, super senior citizens (i.e. aged 80 years and above) are allowed to file their ITR in paper format. Also Read: ITR filing: How do you register yourself to e-file your Income Tax?
Once registered, the taxpayer can use the e-filing website to file income tax return, view the status of returns, check e-filed returns of previous years, respond to Income Tax notices and also know the status of a tax refund.
For the assessment year 2019-20, there are currently seven kinds of forms available for filing your tax return. ITR 1-3 can be used by individuals, while ITR 4-7 are used by corporates, businesses or associations. In case you are unsure as to which form to use, take help from your tax adviser or financial adviser.
You can electronically
file your income tax return (ITR) by visiting the e-filing website of the income tax department. It is important for an individual or businesses and corporates to choose the correct form and file their returns accordingly, else the IT department may charge a fine in case any discrepancies are found. Also Read: Income Tax Returns: Here are the details of forms used for ITR filing
Post the interim budget in February this year, the income tax department has made up to nine significant changes to the ITR 1 and ITR 2 forms for the year FY18-19.
ITR forms have to be filled electronically for all individuals, taking exception to super senior citizens whose age is 80 years or above. These senior citizens can file ITR-1 or ITR-4 in the paper format. Earlier, the IT department allowed individuals with income of less than Rs 5 lakh per annum with no refund and super senior citizens could file their returns in the paper format. However, this rule was changed for FY18-19.
Also Read: Income Tax Returns: Here are the main changes to this year's ITR-1, ITR-2 forms
Individuals now have to disclose all the relevant information pertaining to any kind of property sale. If you have sold a property in FY18-19, then you have to mention all the required details of the buyer while filing ITR-2. This has to be done irrespective of whether the capital gains received are short-term or long-term in nature.
ITR slabs: Income Tax Act, the basic exemption limit for an individual depends on his/her age as well as the residential status, and are divided into three categories: Resident individuals below the age of 60 years. Resident senior citizens of age between 60 years and above but below 80 years. Resident super senior citizens of above 80 years of age. Below are the latest tax slabs for the three sections: How To file ITR
Once you are done paying all the taxes that were due, and you think you are eligible for any refund from the income tax department, you can start filing your ITR form. The form can be downloaded from the e-filing website in Excel or Java utility. In case you are eligible for ITR-1 and ITR-4, then the form can be filed online by choosing the option 'prepare and submit online,' without downloading any software.
Also Read: Pay your tax on time: A step-by-step guide to file your income tax returns
Once you file the returns, the verification process starts. There are six ways to do the verification, which include five electronic methods and one physical verification. The tax department allows you 120 days to verify it. In case you miss out on verifying the ITR, it will be deemed as
NOT to have filed an ITR. If you miss the 120-day deadline, then you can file a request to your assessing officer.
If you are opting for the electronic verification, you are not required to send any physical documents by post to the IT department. However, if you wish to do it physically, you have to send a duly signed copy of
ITR-V/Acknowledgement to: 'CPC, Post Box no. 1, Electronic City Post Office, Bangalore - 560100, Karnataka, India.'
Once you are done verifying your ITR form via electronic ways, you will immediately receive the confirmation from the tax department regarding the same. If you have sent the verification document via post, the tax department will send you an email confirming that the ITR-V has been received to your registered email address.Once the return verification is approved, the income tax department will start the process of verifying the returns filed by you as per the Income Tax Act and also crosscheck the other details filled by you. Once the process is complete, the IT department sends a confirmation email to you communicating the same. In case any discrepancies are observed, the tax department might ask you to explain or correct the mistakes.