This is the season of taxes. You are almost halfway through the month and have 19 more days to file income tax returns. If your total income for the financial year 2017-18 is more than Rs 250,000 (this is for citizens less than 60 years), you are liable to file income tax return by July 31st 2018. If you are between 60-80 years, the tax exemption limits are Rs 3 Lakhs and its Rs 5 Lakhs if you are over 80 years.
Filing income tax returns are a complex process. Start filing your income tax returns now, to avoid any last minute hassles. If there are mismatches, you may end up getting an income tax notice. If you file IT returns late, you will be charged a penalty.
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The Income Tax Department has made e-filing mandatory. If you are a taxpayer with an income of more than Rs 5,00,000 a year, e-filing is compulsory.
Follow these steps to file Income Tax Returns on time:
Keep your basic details like PAN, email id, mobile number, Aadhaar number or Aadhaar enrolment ID handy, before you start with the e-filing process. These are important details without which you cannot file IT returns.
See Also: Is Aadhaar Mandatory When Filing ITR
If you are a salaried employee, then your employer deducts tax at source. Make sure you get Form 16 or Form 16A, whichever applies to you. These forms serve as proof of deduction of taxes at source. Form 16 is a certificate issued by an employer showing TDS which is deducted from your salary and deposited with the authorities. It contains the information you need to prepare and file your income tax returns. This makes it simpler for you to fill out various details in the ITR.
Make sure you download Form 26AS from the income-tax e-filing portal. Keep it handy before you start with the e-filing. Form 26AS is a consolidated tax statement which summarizes all the taxes paid against your PAN.
You can cross-check details like income and TDS as per Form 16 or Form 16A. If you find any discrepancies between Form 26AS and Form 16 or Form 16A, address these issues before going ahead with the filing. Make sure you include the incomes received corresponding to TDS appearing on the Form 26AS. You need to include such income even if the deductors don’t provide you the Form 16A. You will be allowed to claim TDS credit only if the related incomes are included in your tax return.
Whether or not you have a refund to claim, it is good to provide all your bank account details and the IFSC code in your ITR. You need not give details of your accounts that have become dormant. Dormant bank accounts are those that have not been operational for more than three years.
All your tax-saving investments must be backed by documents and proof. This could be life/health insurance premium receipts or receipts of certain specific donations made by you which enjoy tax benefits.
All such dealings allow you to claim deductions under Sections 80C, 80D and 80G. But, all such investments in tax saving instruments are a waste if you cannot prove them. Therefore, be sure to keep all your documents handy.
Not submitting such tax proofs to your employer in time, results in deduction of higher tax at source. In such cases, you still have a chance to claim Chapter V1 A deductions directly in your return. So, keep them handy and claim your deductions.
Filing income tax returns is like sailing in a storm. You never know when you miss something. Even minor details given wrongly may land you in trouble. You may end up receiving a notice from the income tax department. You may also have to pay hefty fines and penalties. Why face such difficulties when you have enough time to file your returns peacefully? Take care of all these points given above and file your returns in time. This will help you sail through the IT filing process.
If you do not file your income tax returns in time, you will be charged a late filing fee under Section 234F of the Income Tax Act, 1961. You will be charged up to Rs 5,000 between August 1 and December 31 and up to Rs 10,000 after that. You will not be allowed to carry-forward losses during the year.
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