Income tax return filing for FY 2018-19
Who can File Income Tax Returns(ITR)
Individuals having Income from Capital Gains (mutual funds & stocks), House Property, FD, Interest etc.
Individuals who only have Salary income can file with or without Form-16.
Individuals who have switched jobs during the financial year can file (Multiple Form-16).
Individuals having Foreign Income (Onsite deputation), Foreign Assets, NRI.
Benefits of filing Income Tax Returns
Avoid IT Scrutiny
Avoid legal repercussions If cash deposited during the demonetization period is greater than Rs 2 lakh in your bank account.
Avoid Tax Notices
Taxpayers often get served notices from the IT department for delayed & missed return submissions.
Build Financial Documentation
Your Tax Return documents are proof of your financial investments and will be useful when you apply for a loan or a visa.
Carry Forward your losses
You can carry forward losses against house property and depreciation.
You can claim tax refund; earlier your file sooner you get the refund.
Quick Visa processing
Most embassies and consulates require you to submit IT returns for the last 3 years.
Workshop-Seminar Terms & Condition
- Penalty for Late Filing of Income Tax Return – FY 2018 -19
- The last date to file your ITR for the FY 2017-18 was 31 August 2018. Not filing your ITR on time can lead to a penalty, but there are also other consequences and inconveniences attached to the delay. Let us understand these in detail below.
- Penalty for Late Filing u/s 234F
- Reduced Time for Revising Your Return
- Payment of Interest
- Carry Forward of Losses is Not Permitted
- Delay in Receiving Refunds
- 1. Penalty for Late Filing u/s 234F
- As per the changed rules notified under section 234F of the Income tax Act which came into effect from April 1, 2017, filing your ITR post the deadline of August 31, 2018, can make you liable to pay a maximum penalty of Rs 10,000.
- To break this down; if you file post 31st August but before December of this year (i.e. 2018), a penalty of Rs 5,000 will be levied. For returns filed after December 2018, penalty limit will be increased to Rs 10,000. However, as a relief to small taxpayers, the IT department has stated that if your total income is not more than Rs 5 lakh, the maximum penalty levied for delay will only be Rs 1,000.
- Late Filing Fee Details
- E- Filing Date Total income Below Rs 5,00,000 Total income Above Rs 5,00,000
- 31st August 2018 Rs 0 Rs 0
- Between 1st Sep 18 to 31 st Dec 18 Rs 1,000 Rs 5,000
- Between 1st Jan 19 to 31st March 19 Rs 1,000 Rs 10,000
- 2. Reduced Time for Revising Your Return
- Let’s say you are filing your ITR and you end up making a mistake. Under the changed rules, you only have time till March 2019 to make the change (for ITRs for FY 2017-18). Earlier, taxpayers had a 2-year long window to revise and resubmit an erroneous ITR, which has now been decreased to one year from the end of the financial year. Therefore, the earlier you file, the longer would be the window available with you for revising your returns to rectify errors if any.
- 3. Payment of Interest
- If you do not file the income tax return on or before the due date, you would be required to pay interest at the rate of 1% for every month, or part of a month, on the amount of tax remaining unpaid as per section 234A. It’s very important to note that one’s ITR cannot be filed if one hasn’t paid the taxes. The calculation of penalty will start from the date immediately after the due date i.e. 31st July (For current year i.e FY 2017-18, it was 31st August). So, the longer you wait the more you will have to pay.
- 4. Carry Forward of Losses is Not Permitted
- If you have incurred any losses during the year say a loss under the head Capital Gains or any loss in your business, make sure you file your return within the due date. Not doing so will deprive you of carrying forward these losses to the next years for set off against income in future years. Here, do note that this rule would not apply to losses from house property. Accordingly, if you have a loss under the head house property, even if you do not file your return within the due date, you can still carry forward these losses to future years.
- 5. Delay in Receiving Refunds
- In case you’re entitled to receiving a refund from the government for excess taxes you have paid, you must file your return before the due date to receive the refund at the earliest.