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.

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

Missed the ITR deadline? Here's what you need to do next

Filing returns after the due date can have repercussions even if there are no pending liabilities

Filing income tax (I-T) returns on time is every taxpayer’s responsibility and there are several benefits extended to the individual for the same. On the other hand, filing returns after the due date can have repercussions for the taxpayer even if there are no pending tax liabilities. However, if you have missed the deadline, you can file a belated return.

What is a belated return?

A belated I-T return can be filed after the due date but before the end of the assessment year. Belated returns have to be filed within one year from the end of the relevant financial year. Hence, if you need to file your return for financial year 2015-16, the assessment year will be 2016-17 and the belated return can be filed by March 31, 2017. Similarly, if you must file your return for financial year 2016-17, you must do so by March 31, 2018 — the end of assessment year 2017-18.
The procedure to file a belated return is the same as filing the return within the due date. Log into your e-filing account on the I-T department’s website, select the applicable ITR form and assessment year, and proceed. For example, if you are filing the return for financial year 2015-16, select assessment year 2016-17.

Economy news 

Consequences of filing late returns

Missing the deadline or delay in payment of dues against past tax liabilities can lead to:

• Penalties and interests: In the case of an unpaid tax amount, the assessee is charged a penal interest under Section 234A and 234B per month till the liability is paid off. After the deadline, a further interest of one per cent per month will have to be paid under Section 234C as well.

• Interest on refunds: Under a provision in the Income Tax Act, an individual is eligible to receive an interest on the excess tax they have paid from April 1 of the assessment year till the date the amount is refunded to the taxpayer. However, after the due date, the assessee will be paid interest on TDS after August 1. This means that you will lose out the interest accrued from April to July.

• No carrying forward of losses: Individuals can carry forward capital losses up to eight subsequent assessment years to be set off against future capital gains arising in the following years. However, if the income tax return is not filed by the due date, taxpayers will not be allowed to carry forward any losses.

Filing I-T returns: Single-page form for income up to Rs 50 lakh

Only for salaried; Jaitley's earlier promise was for annual income up to Rs 5 lakh

 

#LATEST | To encourage more individuals to file returns and widen the tax net, the government is set to introduce a single-page income tax (I-T) return form from April 1.

This will be for those with annual salaried income up to Rs 50 lakh, much higher than Rs 5-lakh limit proposed in the Union Budget, Revenue Secretary Hasmukh Adhia told Business Standard.

He added this would only be for those with salaried and one house rent income.

There are 290 million PAN card holders (the I-T dept identification) but only 60 mn return filers.

Currently, the I-T form is three pages. It was simplified two years ago, when a controversial provision for mandatory disclosure of foreign trips and dormant bank accounts was removed.

“To expand the tax net, I also plan to have a simple one-page form to be filed as I-T Return for the category of individuals having taxable income up to Rs 5 lakh, other than business income,” Finance Minister Arun Jaitley had announced in the 2017-18 Budget.

Of the 7.6 million individual assessees who declare annual income above Rs 5 lakh, 5.6 mn are in the salaried class.

For those with annual income of over Rs 50 lakh and up to Rs 1 crore, a surcharge of 10 per cent will be imposed; 15 per cent for those over Rs 1 crore. The surcharge is estimated to generate additional revenue of Rs 2,500 crore.

Taxing Matters

• 10% surcharge for those with income above Rs 50 lakh and up to Rs 1 crore
  
• 15% surcharge for those with income above Rs 1 crore
  
• Rs 2,500 crore additional revenue from the surcharge
  
• Rs 10,000 fine for those who do not file their Income Tax Returns (ITRs) on time, from 2018-19 assessment year| (READ MORE)