Some of you might wonder that you haven’t received your Form 16 yet and, also, there is ample time for income tax filing for FY2017-18, then why to start getting prepared for the same at this point of time? Here are the reasons.
This is the ideal time of the year to get started for filing your income tax return (ITR) for the Financial Year 2017-18 or the Assessment Year 2018-19 for a smooth tax filing experience. Some of you might wonder that you haven’t received your Form 16 yet and, also, there is ample time for income tax filing (31st July 2018 is the due date), then why to start getting prepared for the same at this point of time?
Well, “the reason is the introduction of a new Section 234F, w.e.f. FY17-18. If you miss the deadline of filing the ITR, then you would have shell out late filing fees u/s 234F. Hence, in order to avoid the late filing fee as well as the panic at the last moment, let’s get prepared for filing the ITR well in advance,” says CA Abhishek Soni, Founder, tax2win.in.
Moreover, the Income Tax Department has also warned salaried taxpayers that they should not use any illegal means – like under reporting of income or making excessive / false claims of deductions from their salary income – while filing their tax returns. This means that you are now required to be extra careful.
Which documents to collect?
It is true that you will be receiving your Form 16 for the FY2017-18 latest by 15th June 2018 and the due date for filing income tax return for FY2017-18 is 31st July, 2018. However, in order to avoid any inconvenience at that time, it is important to collect and compile all the documents and information.
Firstly, start with the compilation of your income from sources other than salary as for that you will get your Form 16. If you have income from house property, then calculate the exact amount of rent received during the year. “Further, if you have invested in shares and earned any capital gain during 2017-18, then ask your broker for the summary statement. If you have income from other sources, then estimate the exact amount of that income,” says Soni.
Then you must collect all the proofs of investment made during the year 2017-18. Otherwise it may consume a lot of time at the time of ITR filing. If you are a salaried person, then you must have already submitted the investment proofs to your employer which would reflect in your Form 16. But it is possible that you might have forgotten to submit some proofs to your employer. In that case compile them and keep them safe at this time for future use. Further, if you are a self-employed person, then prepare a folder containing all such proofs so that you don’t have to rush here and there while filing your ITR.
“The various investment proofs can be your Home Loan Certificate, Interest certificate from bank for FD, LIC Premium Receipt, PPF Statement, ELSS Statement, NSC Certificate, Medical Premium receipt, Donation receipt etc. Also, if you have forgotten to give the proof of any allowance, which is a part of your CTC, to your employer, then keep that ready. Like rent receipts for HRA, travelling bills for LTA etc,” informs Soni.
After that, it is significant to estimate your tax liability before hand so that you could set aside the fund which is required to be paid as tax for FY17-18. It would help you to avoid any last-minute shortage of funds.
Thus, keeping in view the introduction of Section 234F in the Budget 2017 as well as the I-T Department’s advice to salaried taxpayers, it has become more important to file your Income Tax Returns carefully and before the due date to avoid any last-minute rush as well as the wrath of the taxmen. Following the above-mentioned steps, you can keep yourself ready for filing your ITR on time and without any struggle. So, as soon as you receive your Form 16, file your return for FY2017-18 and become a tax-compliant citizen.