Thursday, 19 July 2018

Quick guide to tax returns by Sanjay Vijayakumar; Source - The Hindu



Verification of return after submission is as important

The last date for filing income tax returns for the financial year 2017-18 is July 31, 2018 for individuals and businesses (where audit is not required). Archit Gupta, founder-CEO, ClearTax takes us through the important points in the process:

Different income tax return (ITR) forms applicable to salaried people

Typically, the following are the two main forms which are applicable to the salaried class.

ITR 1 (Sahaj) — for those who have source of income from salary, pension, single house property, other sources and agricultural income under ₹5,000 and the total income is less than ₹50 lakh.

ITR2 is for those who have income from sources mentioned in ITR 1 and where total income exceeds ₹50 lakh. Those getting income from capital gains, more than one house property, agricultural income of more than ₹5,000 and casual income such as lottery or horse racing also need to file ITR 2.

Key details to be furnished in the forms

The salaried class must file returns using Form 16. Other important documents are — Form 26AS (tax credit statement), proof of all deductions claimed and home loan interest certificate.

Even though these are not required to be submitted, they must be kept safely by the taxpayer.

Make sure you include all incomes on which TDS has been deducted — this can be seen from Form 26AS. Unless related income is included, TDS credit cannot be claimed.

Make sure you include interest income from the savings account even though it is exempt up to ₹10,000 under section 80TTA. This exemption must be claimed via return. For residents who own foreign assets abroad, it is mandatory to file returns even if their total income is below the taxable limit (₹2.5 lakh). The most important step is the verification of your tax return once it has been submitted.

The best and fastest way is to e-verify your tax return, this way the return is processed quickly.

Key Highlights

Those who earn more than ₹5 lakh must file their returns online. All those who are seeking a refund
must also file online even if their total income is less than ₹5 lakh. One must file their return by July 31 or else a penalty of ₹5,000 may apply.

If the return is filed after December 31, penalty goes up to ₹10,000 (penalty is restricted to ₹1,000 if the total income does not exceed ₹5 lakh).



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