The last date for filing the annual income tax return (ITR) for the financial year 2018-19 or assessment year 2018-19 was extended by a month to August 31. The only exception for this is Kerala, where the due date has been further extended to September 15 in wake of the severe floods that created havoc in the state.
Here is all you need to know on how to file IT returns and the penalty that you will face in case you don’t do it by the due date.
Who can file income tax returns?
Any person whose annual income exceeds Rs 2,50,000 is liable to pay income tax. If you are an Indian resident and have assets or investments outside the country, it is mandatory for you to file returns even if your income is not taxable. The limit is Rs 3,00,000 for senior citizens (over 60 years old, but less than 80 years old) and Rs 5,00,000 for super-senior citizens (over 80 years old).
When is the last date to file IT-return?
While the Income Tax department had announced July 31 as the last date, it was later extended to August 31, 2018. In flood-hit Kerala, the taxpayers can pay their tax by September 15. “In view of the disruption caused due to severe floods in Kerala, the Central Board of Direct Taxes (CBDT) hereby further extends the due date for furnishing Income Tax Returns from August 31, 2018 to September 15, 2018 for all Income Tax assesses in the state of Kerala, who were liable to file their Income Tax Returns by August 31, 2018,” a notification from the ministry of finance stated.
As per the present tax laws, you have to verify your return within 120 days of filing it.
What happens in case you don’t file ITR by August 31?
If you miss the Income Tax deadline, you will have a tax liability and will have to file belated returns and pay your taxes along with a simple interest of 1 per cent per month on the outstanding due, calculated from the August 31 deadline. Filing the income tax return after the due date (August 31) could attract a penalty up to Rs. 10,000, depending on the degree of delay, according to the existing income tax laws. If your income is under Rs. 5 lakh, the penalty for late filing is fixed at Rs. 1000.
What are the documents required to file the taxes?
You will require basic documents like PAN card, Aadhaar card (not mandatory) and bank account details before filing the returns. Also keep in handy details regarding Income from any source, such as property, salary, a breakup of salary, last year’s tax returns, bank statements, TDS (Tax Deducted at Source) certificates and Profit and Loss (P&L) account statement, balance sheet and audit reports, if applicable.
Why should you file the returns even if your income is not taxable?
There is a misconception that people without taxable income do not need to file their tax returns. Even if your salary does not fall in any of the tax brackets, you may have other incomes such as income from tax-free bonds, or other non-taxable sources, which amount to over Rs. 2.5 lakh. Read more
Where to file online IT returns?
The Income Tax returns filing process has become largely online. There are two ways to file the form online. One is by manually entering all details and submitting the return online. The other is by uploading XML files through offline methods.
Taxpayers can now file their returns from the comfort of their home by registering not only on the income tax department website i.e., http://www.incometaxindiaefiling.gov.in. but other agent websites as well.
Mistakes one can avoid while filing IT returns online
Filing incorrect or incomplete income sources, mismatching form 16 and form 26AS or choosing the wrong ITR form are some of the common mistakes observed during the filing of income tax returns. If after filing your tax return you realise that you have not reported certain incomes, or made any errors, it is possible to file a revised return. Read more about the common mistakes to avoid, here