Am I required to file Income Tax Return(ITR) for FY 2017-18(AY 2018-19)?

 

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.

Let’s take few quick and easy examples of real life situations to understand it better:-

Particulars Case-1 Case-2 Case-3 Case-4 Case-5
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
Other Income 31,000 - - - -
Capital Gains - - 1,30,000 - -
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

(Refer to column 6 of your form-16 to know the taxable income from salary)
(Refer to column 4- “Gross total income” in the ITR form to know the total income)

In some special cases for residents, you have to file return compulsorily irrespective of income criteria:-

  • In case, you are a beneficial owner of any asset-Located outside india,
  • Have any financial interest in entity located outside india.
  • Beneficiary of any asset located outside india.

In simple words, if you have any foreign income connect, you have to file your ITR on or before due date.


What is the due date to file income tax return for FY 2017-18 and other relevant dates for me?

  • The Due date(or last date) of filing of your income tax return for financial year 2017-18 (Assessment year 2018-19) is 31st July, 2018.
  • The last date to revise this return (In case you have made some error in filing) is 31st March, 2019.
  • In case you have missed filing deadline of 31st July, you can still file your ITR by 31st March, 2019. (It is called a belated return i.e. late filed return (After due date)) but with the payment of late fee u/s 234F.
  • In case you have made mistake in belated or in your revised return too, you can again revise it, but until 31st March, 2019 only.

In case of belated return filing, you need to pay late fee, interest etc. as explained in the later part of this section.


  • Current Financial year is - 2017-18 (From 1st April, 2017 to 31st March, 2018) {Relevant Assessment Year 2018-19 }
  • With respect to Financial Year 2015-16 & Financial Year 2016-17 - All due dates for filing returns have been passed, It was 31st March, 2018. Now we can not do anything related to these FY’s until department itself invites us to do anything i.e. issues any notice in that relation. ( Revised return for F.Y. 2016-17 can be filed upto 31st March, 2019)
  • From F.Y 17-18 and onwards, In a case you are required to file your income tax return and didn’t file it on time i.e. before due date of 31st July, then there is a compulsory Fee that needs to be paid u/s 234F (Rs. 1,000 to Rs. 10,000) at time of filing the income tax return

What ITR form should I use for filing of 2018 ITR?

ITR form applicability on an individual for financial year 2017-18 (Assessment year 2018-19)

Form Name WHO CAN AND WHO CAN NOT
ITR-1- SAHAJ

If you have Income from,

  • Income from salary/ Pension
  • Income from ONE House property
  • Income from other sources
Who Can Not
  • If more than 1 house property
  • Income from winnings, lottery, race horse etc.
  • Income from business, profession, capital gains from sale of shares, land etc.
  • Agriculture income of > Rs. 5000
  • Loss under any head except one house property upto Rs. 2 Lakh.
  • If person have assets located outside india or having any income from outside india (Income from foreign)
  • If the total income exceeds Rs.50 Lacs in the financial year
ITR-2

All individuals and HUF can file.

Who Can Not
  • Income from business or profession
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.

  1. Where ITR form used for filing of return is ITR-1 and ITR 4, AND
  2. Where total income is less than or equal to Rs. 5,00,000 OR
  3. TDS refund is not claimed in the return of income

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.


Want to file your FY 2017-18 Income Tax Return ?

- 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.

What will be next steps for me after filing of my 2018 Income Tax Return?

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:-

  • Check all figures thoroughly in your filled ITR form or ITR-V once more for any error, mistake etc
  • Verify the Income tax return by sending physical copy to CPC bangalore or e-Verify online.
  • Once verification is done, please confirm status that it has been successfully e-Verified by checking the same on your income tax account.
  • Check the eMail id which is given in your income tax return, You shall receive communication regarding successful filing and successful e-Verification of your Income tax return, along with ITR-V copy attached (Save for your records as this is required as a qualifying document for loan, visa applications etc.)

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.


What is last date for me to verify the return of 2018 and what are various alternatives for e-verification of return filed?

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:-

  • You need to e-Verify within 120 days of filing your income tax return, else your return will be treated as invalidated which means- No such return has ever been filed at all. There are various option available to e-Verify your income tax return like Aadhar OTP, Bank EVC etc. you can find out details here.
  • Another alternative to Verify your return is by signing & sending the acknowledgement receipt i.e. ITR-V to the CPC Bangalore address, which is mentioned in the footer itself of ITR-V.
Until now, you have understood that
  • Whether you are eligible to file your income tax return or not
  • if required then which form you are required to file
  • what are various due dates, options etc and
  • how to verify your income tax return.

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.


What is the latest amendment made by law u/s 234F i.e. Fees for filing of Income tax return AFTER due date and other consequences of non filing or late filing of income tax return?

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:-

  • If return is filed before due date i.e. 31st July, 2018- No Fees
  • If return is filed after due date but before 31st Dec., 2018 - Fee of Rs. 5,000
  • In any other case- Fee of Rs. 10,000

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.


Apart from 234F, you need to pay interest under 3 sections of act on the tax amount which is unpaid :-

  • 234 A- @1% per month or Part of the month for delay in filing your income tax return
  • 234 B- @1% per month or Part of the month for non-payment or short payment of advance tax.
  • 234 [email protected]% per month or Part of the month for Non-payment or short payment of individual installment or installments of advance tax (i.e., deferment of advance tax)

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 :-)
Team Tax2win


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