ITR Filing 2019: As the last date (August 31) for filing income-tax returns (ITR) draws near, an assessee must take note of all income earned during the year including the interest earned from various investments (period April 2018 to March 2019), capital gains or loss, list out the assets and liabilities (including foreign assets and liabilities). A salaried person with income less than Rs 50 lakh, one house property, other sources and/or agricultural income up to Rs 5,000 can file ITR-1 or SAHAJ form.
If an individual files returns within the due date, any loss is allowed to be carried forward for eight years for set-off against incomes of the future years. This set-off can help reduce tax liability for the future years.
Make a list of income, deductions
Before filing the returns, make a list of all the details to be filed and do cross-check every detail for correct information. Any mismatch between the information that you file and the one which is in Form 16 or Form 26AS will lead to the defective filing of ITR. The ultimate responsibility of true and correct information/ reporting remains with a concerned taxpayer only. It is therefore very important for a taxpayer to verify the information filled in his tax return himself, and ask questions from the chartered accountant/ advisor, in case of any discrepancy.
Disclose all bank accounts, interest earned from all savings accounts, fixed deposits in banks and post office. While tax deduction is available for up to Rs 10,000 on interest earned from savings bank accounts, interest earned from time deposits is taxable at one’s slab rate. As taxpayers are required to file their tax returns, their employers or any firm they receive payment are also required to file TDS return. Do check the details in Form 26AS to see if they are correct. If there is any mismatch, do report to the employer.
Match TDS certificates, Form 26AS
If the amount of salary income reported by a taxpayer does not match with TDS certificate/ Form 16 issued by its employer, then the assessee may receive a notice from the income tax department seeking an explanation of the difference. Or, in case of any property sale/ purchase transaction, the income tax department may issue a notice to concerned seller/ purchasers seeking details of the transaction, in case the same does not match with the information provided in a tax return.
CS Sudheer, CEO, and founder of IndianMoney.com says the assessee must keep documents such as PAN, Form 16, salary slips, Aadhaar, bank statements and investment proofs such as bank and post office certificates handy while filing ITR. “Check tax regulations and amendments of the assessment year to compute correct tax liability. Make sure amounts mentioned in TDS certificates match that in Form 26AS. Form 26AS is your tax passbook which shows information on taxes deposited against PAN. Make sure you have availed all applicable tax deductions under Section 80C to 80U. Identify the right ITR Form before filing ITR,” he says.
Rectification of error
In case the assessee finds any un-intended error or omission in the returns, then he can revise the tax return before March 31 of the relevant assessment year. A revised return will enable an assessee to rectify the error or omission of facts made at the time of filing the original return. In the revised return, the assessee will have to mention the details of the original return and give a reason for the revision in the return.
While filing a revised return, the assessee will have to file it under section 139(5) of the Income-tax Act. The Finance Act of 2017 reduced the time limit for filing such revised return to one year from the end of the relevant fiscal year or before the completion of the assessment by tax authorities, whichever is earlier.
The late filing fee for ITRs after the due date but on or before December 31 is Rs 5,000 and Rs 10,000 after that. Apart from the fees, if there is any unpaid tax, then the interest on the amount will be 1% per month on the tax payable till the date of payment. An assessee who has filed late returns can also revise and rectify the return in case of any error or omission.
Courtesy: Financial Express