This year filing of income-tax return (ITR) is the biggest headache for the taxpayers due to substantial changes in the ITR forms and related provisions.
By Ansh Bhargava
This year filing of income tax return is the biggest headache for the taxpayers due to substantial changes in the income tax return (ITR) forms and related provisions. So, before filing your tax return for AY 2017-18, make sure to go through this checklist to verify all the compliance requirements.
1. Make sure to choose the correct ITR Form for AY 2017-18.
# Taxpayers earning income from salary, one house property and other sources can choose ITR-1. However, this time you cannot choose ITR-1 when your income exceeds Rs 50 lakh or you are earning unexplained income or dividend income above Rs 10 lakh.
# Taxpayers earning business income need to file ITR-3. Partner of a firm will also file ITR-3.
# Now old ITR-4S has been withdrawn. Thus, taxpayers opting for presumptive taxation need to file ITR-4 instead of ITR-4S.
2. You need to mention details of cash deposited during demonetization in the Income Tax Return forms. There is a separate column in ITRs wherein you need to mention details of cash deposited above Rs 2 lakh during November 9, 2016 till December 30, 2016.
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3. Last year government employees had received arrears of the 7th Pay Commission. Such employees need to file Form 10E on e-filing website before filing of tax return if they want to claim Section 89 relief.
4. Make sure to check 26AS before filing your tax return. You will get full TDS credit only when full amount of TDS is reflected in 26AS.
5. You can file return of income in paper-mode if you are earning income up to Rs 5 lakh and you are not claiming any tax refund. Super senior citizens (i.e., individual aged 80 years or above) will also have option to file return in paper-mode. However, this option is available only for filing ITR-1 and ITR-4.
6. You can declare presumptive income of business at reduced rate of 6% of turnover for digital receipts. The rate of presumptive income on other receipts would be 8% of turnover. You can also take benefit of such reduced rate of 6% for credit sales of previous year 2016-17. However, such credit sales should be received in digital mode before due date of filing of ITR.
7. You are not required to pay any interest or penalty for filing your tax return after the due date (i.e., July 31, 2017) when your tax liability is nil. In such a case you can file tax return till March 31, 2018.
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8. Now you can also revise your tax return even if it is filed after the due date, i.e., July 31, 2017. However, such option is available till the end of assessment year 2017-18.
9. There is misconception among taxpayers that income-tax deduction is available for interest on fixed deposit up to Rs 10,000. However, tax deduction is available only for interest on saving bank account.
10. Earlier only resident taxpayers were required to mention details of offshore bank accounts in ITR. Now there is a separate column in ITR wherein non-resident taxpayers are required to mention details of their bank accounts outside India.
(The author is a Senior Consultant, Taxmann)