ITR 2019-20: A simple step-by-step guide to filing your income-tax return

Good news is that the income-tax department has extended the last date for filing ITR from July 31 to August 31, 2019

Filing Income Tax Returns (ITR) can be a tedious task. Before filing ITR, you will need to create an e-filing account on the Income Tax website, incometaxindiaefiling.gov.in and register yourself. Registration will be completed after you click the activation link sent via e-mail and enter the provided one-time password (OTP) received on your mobile. Click on ‘Registered User’ if you have already registered yourself on the website.

Important note: The income-tax department has extended last date of filing ITR, which is now August 31.

Here’s a step-by-step guide to filing Income Tax Returns (ITR):

A. Keep essential documents with you

Collect documents such as Form 16, salary slips, and interest certificates and Form 26AS. Keeping them handy will help you compute your gross taxable income and will provide you with the details of tax deducted at source (TDS) from your income in 2018-19.

B. Get Form 26AS: You can download Form 26AS from the TRACES website. To download it, login to your account on the e-filing website, click on ‘My Account’ tab and select ‘View Form 26AS…

12 documents you need to file your income tax return this year

From Form 16 to tax saving investment proofs, a list of documents you need to have by your side while filing ITR

Annual expense form (ITR) recording season has started for FY 2018-19. Try not to trust that the last date will record your ITR i.e 31 July 2019, it is smarter to keep all the required reports cutting-edge and helpful. This will guarantee a smooth sail when you record your profits.

Documents’ Checklist for  ITR filing

Given underneath is a rundown of the considerable number of reports that might be required while recording ITR for the monetary year (FY) 2018-19. Citizens can investigate every one of these pointers and keep them prepared in the event that they are material.

Structure 16

Structure 16 is a TDS declaration given by a business. It gives the point by point separation of the compensation and the expense deducted on it. On the off chance that the business has deducted charge from the compensation, it is compulsory to give Form 16.

The new configuration of structure 16 is in a state of harmony with the ITR-1 and ITR-2 structures endorsed for the money related year 2018-19. Structure 16 incorporates 2 sections—Part An and Part B. Section A has the subtleties, for example, the assessment deducted from the compensation by the business, Permanent Account Number (PAN) of the representative, and PAN and TAN of the business. Correspondingly, Part B comprises of the data in regards to compensation separation, for example, exclusion stipends and perquisites.

The citizens can utilize the subtleties from the Form 16 while documenting their profits physically. Or disaster will be imminent, they can simply transfer Form 16 on an online stage and do away the documenting right.

Before you file your tax return, note the key changes in Form 16

Part B of Form 16 has been amended seeking more details about the allowances exempt under section 10 such as HRA, LTA, etc and deductions allowed under Chapter VI-A of the Income Tax Act, 1961.

Form 16 is the annual salary TDS certificate issued by an employer to an employee. The Central Board of Direct Taxes (CBDT) has notified amendments in Form 16. The new Form 16 is made effective from 12 May 2019. Employers issuing Form 16 for the financial year 2018-19 will have to issue them in the new format.

Part B of Form 16 has been amended seeking more details about the allowances exempt under section 10 such as HRA, LTA, gratuity etc and deductions allowed under Chapter VI-A of the Income Tax Act, 1961 i.e. section 80 deductions. The important changes are discussed below:

Exemptions under section 10:

Presently, an employer has the option to mention the nature of the allowances exempt under section 10 with the respective amounts. While some employers provided complete disclosure, others aggregated the allowances and disclosed the net amount exempt under section 10. ..(Read More)

Deductions under Chapter VI-A:

Presently, employers have the option to present the details of deductions under section 80C to section 80U of the Act. Similar to the disclosure of exempt allowances, some employers provided complete disclosure of the deductions, and others aggregated the allowances and disclosed the total amount of deductions allowed as a single line item in Form 16..(Read More)

Income Tax return processing time to reduce from 63 days to just 1 day

Under the new system, Infosys will handle end-to-end solution – from e-filing to return assessment to refund processing

Economy News: The Union Cabinet on Wednesday approved an integrated income-tax e-filing and centralised processing centre (CPC) portal, which will reduce the return processing time from 63 days to just one day. The new portal is also expected to process the refunds within one day of filing of tax returns, in huge relief for taxpayers. However, one will have to wait for 18 months to see its launch.

“Earlier, taxpayers would face troubles because of delay in refund processing and the CBDT used to spend a lot of money every year as interest on pending refunds, which will be history now,” Union minister Piyush Goyal told reporters after the Cabinet meeting here.

Last month, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra had said a simplified return form and process would be put in place soon in which the department would process the self-declaration made by the taxpayer. The new Rs 4,241-crore project will incorporate these changes.

Contain By: Business Standard

File your income tax returns and keep these dos and don'ts in mind

File on time and keep your documents safe even after filing in case your ITR is scrutinised later on

 

 

The deadline for filing your income tax returns for the FY 2016-17 is the 31st July, 2018. It is, therefore, necessary that all taxpayers be aware of the essential dos and don’ts of tax filing so that they can avoid last-minute errors. Take a look at our list below:

DOs

1. Organize

It is important to keep your documents ready at the go. For filing, you will need all your old tax receipts, receipts of income and investments, Form 26AS, Form 16 etc. Keep these documents handy when filing for a quicker process; and also remember to keep them safe after you are done filling out the form online. You might need them in case your return is called out for scrutiny later.

2. Check your calculation

Go over your tax documents and do your calculations. Then, go over your math once again to ensure that all your calculations are correct. If you want help, you can always turn to an expert who will help you check your calculations and ensure accuracy. Besides, e-filing is highly recommended since that itself eliminates the chance of error. Those with income in excess of Rs 500,000 or those seeking a refund, must mandatorily e-file.

DON’Ts

1. Make mistakes in details

During filing, you will be asked to fill in many details such as your bank details (account number, IFSC code, name as per bank records etc.), PAN number, postal address, and email id. Incorrect information can cause problems in your return being processed. You may also not be able to receive important communications from the tax department like refund cheque, error notices etc.

2. Forget to claim Section 80 deductions

The best way to reduce your tax liability is to use the deductions offered under Section 80 to their fullest. Even if you were not able to submit proof of investment to your employer earlier, you can still claim the deductions while filing the ITR, however keeping all proofs safely is very important, should the assessing officer ask for them later...READ MORE

Aadhaar-PAN linking: Only 1 day left How to do it in easy steps

It's mandatory to link Aadhaar with PAN. Here's why

Individuals having PAN will have to link it to their existing 12-digit biometric Aadhaar number from July 1

economy news |Come July 1, the Modi-government's measures to track tax evasion through multiple PAN cards will come into effect. It is now mandatory for you to link your existing Aadhaar numbers with PAN to be able to file your income-tax (I-T) returns.

Finance Minister Arun Jaitley, through an amendment to tax proposals in the Finance Bill for 2017-18, had made linking Aadhaar mandatory for filing I-T returns.

The revenue department has said "every person who has been allotted PAN as on July 1, 2017, and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the principal director-general of income tax (systems), or DGIT (systems)".

It's mandatory to link Aadhaar with PAN. Here's why.

1. Individuals with PAN will have to link it to their existing 12-digit biometric Aadhaar numbers from July 1 | economy policy

2. While applying for permanent account number (PAN), Aadhaar number or Aadhaar enrolment ID will have to be mandatorily quoted.

3. Linking of Aadhaar and PAN must for filing of income-tax returns (ITR)

Linking of your Aadhaar with your PAN is no longer a cumbersome exercise. You can do it by just an SMS. Your mobile number and e-mail id will help you receive alerts related to your Aadhaar and to access Aadhaar services easily. The Income Tax Department earlier this month issued advertisements and described how both the unique identity numbers of an individual can be linked by sending an SMS to either 567678 or 56161.

Here is how you can use the SMS facility to link Aadhaar with PAN
Send SMS to 567678 or 56161 in following format:
UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN>
Example:
UIDPAN 111133333321 AAAAAEEEEE

People can also visit the official e-filing website of the department to link the two identities, in both the cases-- identical names in the two databases or in case where there is a minor mismatch. (Read full story)

Top 5 common mistakes to avoid while filing your income tax returns

Here is a list of things to help you sail through

economy news | With the due date of July 31 fast approaching, it is that time of the year again when the taxpayers need to file their I-T returns. After all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit. The basic exemption limit for individuals is Rs 2.5 lakhs and for senior citizens, it is Rs 3 lakhs. So, if your income exceeds this limit, you need to file the tax return by the due date. Filing of tax return requires caution to avoid mistakes. Keeping in mind few things can make your tax filing a breeze.

Here is a list of things to help you sail through:

 

1. Choose the right ITR Form applicable

There are total 7 ITR forms available for e-filing.This year a lot of changes has been made in these forms. Make sure that you choose the right ITR form applicable to you. For example, there are two I-T return forms - ITR-1 and ITR-2 available for salaried individuals at the moment, and your sources of income will decide which form to use. ITR 3 is applicable for the person having income from business whereas last year ITR 4 was applicable for business income. So pick the correct ITR form. The Tax Department will refuse to accept your form in case you have chosen the wrong one.

2. Claim all the Deductions

Ensure that you have claimed all the deductions allowed under various sections of I-T Act that you are eligible for. For example under Sec 80C- PPF, PF, school tuition fees of children etc, under Sec 80D- Health insurance premium and so on.In case of Salaried individuals, they can claim such deductions even if it is missed in Form 16, provided that such investments are done before 31st March 2017.| economy policy

3. List all sources of income including Interest Income

Firstly, you need to identify your sources of income under different heads. Under the I-T Act, all incomes earned by persons are classified into five different heads, such as income from salary, income from house property, income from business or profession, income from capital gains, and income from other sources. Thus, you should identify all your incomes from different sources, just to ensure that you haven't missed out something while filing your return. Many taxpayers do not report interest income in returns thinking that since the tax has already been deducted by the bank. But even though TDS has been deducted on any of your income, it has to be disclosed in your return.