The last date to Income Tax Return filing is just 26 days away. Collect all the necessary documents and file your ITR in time in order to avoid fee and penalty.
The due date for filing your income tax return is fast approaching. For individuals, Hindu Undivided Family (HUF), an association of person (AOP) or a body of individual (BOI), it is July 31st, 2018. In case the books of accounts of your business need to be audited, then the due date for the same is September 30th, 2018. For business requiring transfer pricing report, the due date is November 30th, 2018.
Under Section 234F of the Income-Tax Act, if a person required to furnish a return of income by July 31 fails to do so, then a fee of Rs 5000 shall be levied if the return is furnished before 31st December. However, the fee shall be Rs 10,000 if it is filed after 31st December. Moreover, if the total income of the person doesn’t exceed Rs 5 lakh, then the fee payable will not exceed Rs 1000.
It is mandatory to file income tax return if the gross total income of an assessee, be it an individual, Hindu Undivided Family, an association of person (AOP) or a Body of individual (BOI), exceeds the maximum amount not chargeable to tax. Gross total income of a person is the income without considering any exemptions and deductions. The minimum exemption limit for the current year 2018-19 is Rs 2.5 lakh for an individual below 60 years. It is Rs 3 lakh for an individual between 61 and 80 years of age and Rs 5 lakh in case of individuals who are above 80 years of age.
For example, suppose you are a 25-year old person and earned Rs 4 lakh during the last financial year 2017-18. Also, you invested Rs 1.5 lakh during the year in various instruments like Public Provident Fund, equity-linked savings schemes and life insurance which qualify for deductions under Section 80C of the Income Tax Act, 1961. Even if your income after deduction is Rs 2.5 lakh or lesser, you are required to file your return.
However, for a company or a firm, it is mandatory to file a return irrespective of income or loss. Also, in some cases, even if the income of an individual is less than the taxable income, he/she might have to file ITR. For instance, if an assessee has a bank account or any asset or any financial interest in any entity located abroad, then she/he must file their returns and also furnish details of such accounts, assets and financial interest in their tax returns.