Mandatory Filing of Income Tax Return is governed by section 139(1) of Income Tax Act, And in a case where your total income is more than 2,50,000, you have to file an Income Tax Return.
Here, Total income means- Total of incomes from all sources (Salary, house, rent, capital gains etc. AND this will be before allowing the benefits of Deduction under chapter VI-A like 80C,80D etc.) In other words, it is your Gross Total Income.
|Income from salary||2,90,000||2,71,000||8,92,000||4,98,000||1,90,000|
|HRA, Medical and other allowances- EXEMPT||8,000||74,000||2,43,000||1,00,000||0|
|Net taxable salary||2,82,000||1,97,000||6,49,000||3,98,000||1,90,000|
|Gross Total Income||3,13,000||1,97,000||5,19,000||3,98,000||1,90,000|
|Deductions (80C,80D etc.)||45,000||-||1,90,000||1,50,000||-|
|Total Income Taxable||2,68,000||1,97,000||3,29,000||2,48,000||1,90,000|
|ITR filing required||Yes||NO||Yes||Yes||NO|
In some special cases for residents, you have to file return compulsorily irrespective of income criteria:-
In simple words, if you have any foreign income connect, you have to file your ITR on or before due date.
In case of belated return filing, you need to pay late fee, interest etc. as explained in the later part of this section.
ITR form applicability on an individual for financial year 2017-18 (Assessment year 2018-19)
|Form Name||WHO CAN AND WHO CAN NOT|
If you have Income from,
All individuals and HUF can file.Who Can Not
|ITR-3||All Individuals and HUF having income from business or profession.|
|ITR-4||If you are running a small business or trade and filing return of income on Presumptive income basis|
|ITR-5,6 & 7||These forms are used by Firms, LLPs, companies, AOP etc. and not relevant for the Individuals.|
Note:- Electronic (e-Filing) vs. Paper form filing of income tax return
You can file paper-form based return for below mentioned cases and for all other remaining cases only electronic filing of returns has to be done.
Bonus point:- There is a special exemption provided to the persons with age 80 years or more, they can file paper return irrespective of any condition or form.
- Tax2win has expertise in filing the Income Tax Return considering all the applicable provisions of law.
- Our experts would help you to avoid any legal consequences and filing your return accurately.
The post filing procedures are same as before and there are no major changes this year, once you have filed your income tax return, you must:-
Once the return has been successfully e-Verified- the return filing procedure ends here and now your job is done. In case you have refund in your tax return you shall receive in your bank accounts in within 45 days and you can also keep checking the refund status here.
Note:- Verification/e-Verification of an Income tax return AFTER its filing is a crucial step and your return filing process is not completed. Until you have e-Verified the same, your income tax return shall be “Invalidated” and considered as null and void which means, No Income Tax Return has been filed, It’s like an undelivered parcel which is ordered-packed-dispatched-shipped to doorstep but it’s still undelivered.
In the endless world on internet where even your bank account is not 100% secure, one can hack your income tax account and file your income tax return with any ‘x’ or ‘y’ amount. Imagine of Mr. Paur Sharma with bank balance of Rs.90,120 as on 31st March, 2018 and ITR filed on 31st July, 2018 showing income of some Rs.21.89 Crores.
Hence, after filing of your income tax return, the department wants to ensure via physical or electronic verification that it’s you only who has filed the income tax return and no one else misused the account. For this an acknowledgement is generated which is commonly termed as ITR-V and you are required to verify the same by either signing it manually or electronically, as under:-
One major mile stone of filing your income tax return is achieved as soon as you have done with verification/ e-Verification of return filed.
The tax journey probably ends here for a normal salaried person, provided he has furnished accurate details, paid taxes and filed timely his Income tax return. But in case of any discrepancy there are penalties, prosecutions etc. etc. Let’s go through the relevant laws and provisions in the next part of this story.
With a view of improvising tax compliance and effective utilization of information in tax administration, it is important that returns are filed with the due dates. Keeping this view the finance act 2017 imposes certain fees u/s 234F in case the returns are not filed on time, as under:-
NOTE:- In case your Total Income is upto Rs. 5,00,000 then maximum fee will be Rs. 1,000 only instead of Rs. 5,000 or 10,000/-.
Further, provisions related to fees for delayed filing of income tax returns are applicable from Financial year 2017-18 (Assessment year 2018-19) onwards only.
Note: In case total income is upto 5 Lacs then amount of penalty will be Rs. 1,000 in all cases irrespective of timing of filing of your return.
Refer to detailed guide on 234A, 234BC, 234C interest to know more about these sections and how these may impact you. Click Here
In this blog, We have tried to cover almost all relevant subject matters and amendments which you should be aware of while filing your income tax return for Financial year 2017-18.
An important piece of advise that we would like to pass on to all our readers is that:- The Income tax department and tax laws in country have become more strict in recent times and it will be more compliant & strict with time passing by, but when we will look back again to this time down the line 4-5 years, we will find this(current) period to be still soft and lenient. :-)
Hence without any delay start making your Income Tax files clean and stronger from 2018 year itself. File accurate, strong and clean income tax returns; And if you do need any help or assistance in filing of strong and clean Income Tax Returns.
Take assistance of our experts and 5 star service rated team of chartered accountants.
Please send your queries, feedback and suggestions to [email protected]
Happy Filing :-)