As the income tax return filing period is almost near, the taxpayers really need to know the accurate procedure of ITR filing. There are many individuals who have inappropriate knowledge of ITR and apparently, they wait for the last minute to file their return which should be totally avoided.
However, the taxation department has announced the last date for ITR filing that is 31st July 2019. And like every year, this time the income tax department may not extend the deadline due to a strict compliance rules enforced by the taxation authority. Meanwhile, for individuals, this is the right time to accumulate their documents that will be required while filing ITR.
Here are things that you should keep in mind before filing Income Tax Return-
Who can file Income Tax Returns?
ITR filing can be done by the individuals/HUF/Companies etc. who may fall under the following conditions as per the Income Tax act:
- Earn gross annual income more than-
Individuals below 60 years- Rs 2.5 Lakhs
Individuals above 60 years but below 80 year- Rs 3.0 Lakhs
Individuals above 80 years- Rs 5.0 Lakhs
- Earn income other than salary like house property, etc
- Want to claim an income tax refund from the department
- Earn from or have invested in foreign assets
- Wish to apply for visa or loan applications
- Company or a firm, irrespective of profit or loss
What is E-Filing?
E-Filing is one of the simplest ways to file your income tax return electronically. Earlier, for most of the people filing an income tax return was a daunting task. But after the tax authority has facilitated the E-filing process online, it has become popularized because it is easier to handle where you don’t need to print any documents or visit the Income Tax Department’s office to physically file the returns.
Income Tax Calculator-
The income Tax calculator is one of the simplified tools where any individuals can calculate the reliable income tax for the current assessment year 2019-2020 on the income earned during the financial year 2018-19. Although there are many online portals that provide free online tax calculator. It facilitates you with the facility to compute the taxable amount from the income earned from all sources like salary, allowances, house property, capital gains, agriculture income, income from other sources, etc.
What happens if miss tax deadline?
If you file ITR post 31 July but before December of this year i.e. 2019, a penalty of Rs 5000 will be levied. For returns filed after December 2019, the penalty limit will be extended to Rs 10,000. However, as a comfort to small taxpayers, the income tax department has declared that if your total income is not more than Rs 5 lakh, the maximum penalty levied for delay will only be Rs 1000.
A Guide to Taxation and Its Processes
If you are a beginner and seeking for any support, you can connect with All India ITR. We provide excellent services & tax expert advice for online income tax return filing solutions for individuals and businesses.