We all are updated now that Income tax return filing date has been extended from July 31 to August 2019 for Financial Year 2018-19, which is a big relief for the taxpayers as well as for Chartered Accountants.
Now, All individuals whose total income exceed Rs 2.5 lakh (Rs 3 lakh for senior citizens) are mandatory required to file an income tax return on or before the aforementioned extended due date i.e. August 31.
Here are certain key aspects that could be missed due to hassle as all must be busy in collecting documents, information from sources like banks, employers etc:
- Residential status : It is necessary to determine the correct residential status of the previous year as many factors depends upon this like relevant ITR Form, treatment of overseas income and its taxability and other discourse requirements .
(Refer a glance of ITR Forms at the end of this article)
- Pre-filled details: As the government has enabled pre filled ITR form from this Financial year which will help the taxpayer in filing return.
Although details are pre-filled, still one has to take care of the correctness and accuracy of the information by keeping ready the supporting documents like Form 26AS, Form 16, Form 16A etc.
Inaccurate or wrong information may lead to non-reporting or misreporting of income, which may lead to penalty.
- Don’t forget to claim Exempt income: if you have any exempt income like dividends, interest from Public Provident Fund, National Savings Certificates, etc., fill the proper details in ITR.
- Pre-validate your bank account : In order to proceed for refund, you are required to link your PAN with bank account in which you want to claim refund and then pre-validate that particular bank on the portal of E-filing.
Read more “How to pre-validate your bank account” https://capage.in/want-to-claim-income-tax-refund-pre-validate-your-bank-account/
- Additional disclosure requirements: The additional disclosure requirements introduced in the tax forms such as salary and perquisite break up, details of directorships, details of holding of unlisted shares, place of tax residency in the previous year, details of foreign assets held by a resident, etc should be filled properly.
Taxpayers should keep in mind the above-mentioned tips to avoid penalties and to ensure a smooth return filing process.
The various forms and their relevance are as under:
- ITR 1 – For resident individuals having salary / pension income, one house property and income from other sources
- ITR 2 – For individuals and Hindu Undivided Families(HUF) having income more than Rs 50 lakh, income from more than one house property, capital gains, director of a company, holding investment in unlisted shares and / or having foreign income / assets
- ITR 3 – For individuals and HUFs having income from business or profession or partner in a firm
- ITR 4 – For HUFs, partnership firms (other than Limited Liability Partnership), and individuals who are Indian residents having income up to Rs 50 lakh, from a profession or business, and includes presumptive income.