Income Tax Return e-Filing for AY 2019-20:
Taxpayers are required to file Income tax return by latest 31st August, 2019. However, the income tax department have made ITR forms simple for every taxpayer, but somehow it is little complicated for non-salaried persons to file return as compared to salaried persons.
In case of salaried persons, it’s easier to compute the tax liability of salaried people who usually get a fixed amount every month from their employer(s) that reflects in their Forms 16.
And in case of non- salaried persons, self-employed professionals or small businesspersons as they have unpredictable and irregular stream of income, it is quite tricky to compute the tax liability and remember all the provisions.
Here are some important points that the non-salaried, self-employed professionals or small businesspersons should keep in mind while filing their ITRs.
1. Take benefit of Presumptive taxation method
If you are an eligible person (businessperson or someone with professional income) to opt for presumptive taxation and your gross receipt (turnover) doesn’t exceed Rs 2 crore and Rs 50 lakh respectively in the relevant financial year, you can file your ITR under the presumptive taxation scheme.
As per presumptive taxation method, eligible taxpayers have the benefit to calculate income as 6% to 8% of the gross receipt whereas for professionals the income is computed as 50% of the gross receipt.
Also, you can get the benefit of not maintaining the books of account.
The taxpayer can voluntarily calculate the income of more than 6%/8% (for those with business income) and 50% (for those with professional income) of their gross receipt.
2. Consider GST
The GST Network and the I-T Department are now enabled to access data from each other’s platforms to verify the correctness of the information provided by the taxpayers.
Hence, before filing the return of income, make sure to reconcile the details provided in the GSTN and if there is a mismatch, recognize the reason for the same.
There could be mismatch as per Form 26AS and the detail filed in the GST Returns as taxpayers receive the outstanding payment from the past financial year in the next financial year. So, it is necessary to match the both.
Also, business and professional taxpayers who are registered under the Goods and Services Tax are required to furnish their GST registration number in the ITR. The Income Tax Department now allows them to provide multiple GST registration numbers in the ITR.
3. Keep important documents handy
It is important for all taxpayers to always keep ready your all documents related to income, investments made, deductions to be claimed etc.
While filing the ITR, the non-salaried taxpayers should keep a number of relevant documents handy.
Some key documents that you may need at the time of filing the returns include details of GST registration, PAN card, account statements of all the banks, investment-related papers, Form 26AS, Loan documents etc.
Also Read: Documents required to file ITR 2019
4. Carry forward loss from business or profession
One should be clear about the provisions of setting off and carry forward of losses i.e. setting off a loss under business or profession from intra and inter head, the remaining loss can be transferred for up to 8 consecutive financial years.
However, it is important to file the ITR without a break in the following years to carry forward such losses and to adjust them in the future.
Such carried-forwarded losses can be adjusted in the future from the income received from business and profession.
You’ll be advised to file your returns as early as possible to avoid last-minute hustle. While a late filing can result in a penalty, an erroneous filing may invite a notice from the I-T Department.