Income Tax Return e-Filing for AY 2019-20: Individuals and entities, having annual income of over Rs 2.5 lakh or any income on which there was any TDS, are required to file their Income Tax Return.
Individuals and entities, having annual income of over Rs 2.5 lakh or any income on which there was any TDS, are required to file their Income Tax Return. Even NRIs who have received or are deemed to receive any income in India, are required to file their ITR.
For individuals, including salaried taxpayers and entities – who do not need to get their accounts audited – the due date of e-filing of Income Tax Return 2019-20 was July 31, 2019, which has been extended by a month to August 31, 2019 as many salaried taxpayers received their Form 16 late after its format was changed to match with the format of ITR-1.
With the extended due date also drawing closer, Prashant Sharma, Chief Investment Officer, Aviva Life Insurance, shares five important tips to keep in mind while filing the income tax return:
Know your tax slab
The income tax slab in India has been divided in categories, basis age and income. The first category of taxpayers is those who are below 60 years of your age and their total annual gross income exceeds Rs 2,50,000. The second category being the senior citizen i.e. 60 years and above but below 80 years and total annual gross income exceeds Rs 3,00,000. And the third being those above 80 years with a total income exceeding Rs 5,00,000.
Select the right form
It is important to select the right ITR form. The Income Tax Department of India has made changes in the ITR forms and hence, it is advised to read the guidelines and then fill the correct form. There are primarily two important criteria for selecting the form – firstly, the nature of income earned and the other being the total income threshold.
Report incomes from all sources
As a responsible taxpaying citizen, it is crucial that you declare all your income during the financial year to the Income Tax Department. Additionally, income from any overseas source also needs to be declared in the filing. Such income includes income from foreign assets such as a bank account, a retirement account, shareholding, or any other asset owned.
Ensure you have Form 16, if you are salaried
The Form 16 is issued by employers and contains the details of the TDS deducted by the employer from the salary paid. It has details of PAN, TAN, address, salary earned and tax deducted, which is required to be reported in your ITR. In case an individual has worked with more than one employer in a financial year, the Form 16 from both the employers must be submitted.
Keep proof of all the deductions
It is important to ensure that all payment receipts and proofs of tax saving investments made, deductions claimed, rent paid, and all other tax benefits claimed must be filed properly for record. Because, if the Income Tax Department feels there is any discrepancy in the filing, they may ask for proof to support the declarations.
While these steps are to be kept in mind at the time of filing Income Tax returns, one must ensure they file the returns in time as missing the deadline would attract a penalty.