Income Tax Returns 2018 ALERT! File ITR by August 31 else pay penalty; Here's step-by-step guide

Income Tax Returns (ITR): The government last month announced that the returns could now be filed till August 31.

ITR filing: The government on Thursday announced that the returns could now be filed till August 31. (PTI)

Income Tax Returns (ITR): The last date for filing income tax returns (ITR) for the assessment year 2018-19 is August 31, 2018. The date was extended by a month as previously, assessees were required to file their income tax return by July 31. The government last month announced that the returns could now be filed till August 31. Now with the due date for filing ITR, the taxpayers do not have any time left with them. To ensure a hassle-free tax filing, you may go through the points to learn when and how to file income tax return, else they have to incur a penalty of up to Rs 10,000.  

When to file ITR?

- A person needs to file ITR when his/her income from all sources is above the minimum tax exemption limit - For a citizen below 60 years, the tax exemption limit is Rs 2.5 Lakhs a year - While for the citizens who are between 60-80 years, the limit is Rs 3 Lakhs and Rs 5 Lakhs for a citizen above 80 years

ITR Form

ITR-1 (Sahaj): For those who have income less than Rs 50 Lakhs a year ITR-2: For those who have an income of more than Rs 50 Lakhs a year ITR-3: For those who have income from business or profession ITR-4 (Sugam): If you have income from a business or profession and opted for the presumptive income scheme Also Read| ITR filing deadline extended till August 31

Documents required

- Form 16 • Form 16 is a certificate which gives details of the salary paid to you by your employer. • Besides, it also has information about TDS deduction on the salary and the amount deposited on your behalf with the tax authorities. - Form 26AS • The taxpayer needs to check and verify Form 26AS. • It is an annual consolidated tax statement, which can be assessed from the Income Tax Website by using PAN (Permanent Account Number). • It is important to note that the TDS details in the Form 26AS must match with the details of the tax paid as shown in Form 16. • In case of any discrepancy, contact your employer and tax authorities. • You can download Form 26AS from the TRACES website. - Bank account details • With the bank account statement, one can easily declare interest income from SB accounts. • It is advisable to keep details of bank account numbers and the IFSC codes handy when filing ITR. - Documentation of tax saving investments and expense The taxpayer must keep the tax saving investment and expenses documents ready to ensure accuracy in the filing. Some common Tax saving proofs could include- tax saving investments like; EPF; NPS; PPF etc, receipts of tuition fees paid for up to 2 children, rent receipts, medical bills and others

How to file ITR

Step 1) Log on to the incometaxindiaefiling.gov.in Step 2) Register on the website Step 3) Fill the registration form with details like name and DOB, PAN, and choose a password. PAN is your user ID. Step 4) Click on the relevant ITR Form Step 5) Choose the Financial Year Step 6) Download the applicable ITR Form Step 7) Open Excel Utility and fill up the Form by entering details using Form 16 Step 8) Click on ‘calculate tax’ tab and check the tax payable Step 9) Confirm data by validating the ‘validate’ tab Step 10) Generate XML File and save it on your desktop Step 11) Upload the saved XML File on ‘upload return’ on the portal’s panel Step 12) A pop-up will be displayed asking you to digitally sign the file

Verify ITR

- It is equally important to verify ITR after E-Filing through ITR-V. - ITR-V is the Income Tax Return – ‘Verification’ Form. - This can be done through Aadhaar Card, Net Banking, or the Electronic Verification Code process on your mobile number and email.

Penalty

• If a person fails to file income tax returns by tomorrow, he/she would have to pay a fee of up to Rs 10,000 for filing ITR after the due dates • A penalty of Rs 5000 will be levied if the return is furnished before December 31 • The late fee will be Rs 10,000 if it (ITR) is filed after December 31

Exemption for people of Kerala

The due date for filing income tax return for assessees in Kerala has been extended by 15 days to September 15 following devastating floods which have affected life in the state, the CBDT said. The Central Board of Direct Taxes (CBDT) had earlier extended the 'Due Date' for filing of Income Tax Returns from July 31 to August 31, this year for salaried employees. "In view of the disruption caused due to severe floods in Kerala, the CBDT hereby further extends the 'Due Date' for furnishing Income Tax Returns from August 31, 2018 to September 15, 2018 for all Income Tax assessees in the State of Kerala, who were liable to file their Income Tax Returns by August 31, 2018," the CBDT said. Important note: • Keep your PAN handy before filing ITR • Get an Aadhaar if you don’t have one as quoting Aadhaar is compulsory when filing ITR