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