The tax filing season has begun. Taxpayers are required to file their income tax returns on or before the due date of 31 July 2019 for AY 2019-20.
Taxpayers need to declare income from different sources, deductions, and tax payments. Taxpayers may be nervous about the tax filing process given the number of details required to file the income tax return.
However, the tax filing process is easy and quick once a taxpayer becomes aware of the necessary documents and the procedure for filing.
Individuals have to report income from salary, rental income from house property, business income, capital gains, and other income. Taxpayers also need to declare their investments for claiming deductions and claim credit for tax payments, i.e., TDS and advance tax.
When is a taxpayer required to file an income tax return?
Individuals with a total gross income above Rs 2,50,000 for FY 2018-19 are required to file income tax returns. This limit is Rs 3,00,000 for senior citizens (60 years and above) and Rs 5,00,000 for citizens who are 80 years and above.
Things taxpayers should know for filing the income tax return:
- Tax slabs.
- Documents necessary for filing, for example, Form 16, TDS certificates, and bank statements.
- The relevant income tax form/ITR form.
- Linking Aadhaar number with their PAN.
The documents required for filing income tax return include TDS certificates, Form 16, housing loan statement, rental income statement, Form 26AS, advance tax challans, and investments proofs/statements.
Taxpayers should also reconcile their TDS certificates and Form 16 with Form 26AS and other documents such as interest certificates from banks to correctly collate the details of income earned during the financial year. Also, individuals should assemble the investment proofs to claim correct deductions in the income tax return.
Also Read: Key Changes to ITR-1 & ITR-2 for FY 2018-19
For AY 2019-20, for instance, ITR-1 can be used for filing return by individuals who are:
- Resident and ordinarily resident.
- Have a total income not exceeding Rs 50 lakh.
- Consisting of income from salary, one house property, and interest income.
- Have no claim for brought forward or carry forward losses or relief under Section 90 and 91.
- Not directors in a company.
- Not invested in any unlisted equity shares.
- Do not have any assets or signing authority in an account from any source outside India.
Taxpayers can collate the documents and information for the filing of the income tax return and correctly file their income tax return. The tax authorities have been emphasising on the accuracy of income tax returns by the taxpayers.
A correct reporting of income, deductions, and tax payments will facilitate a taxpayer in avoiding additional notices from tax authorities. Also, the excess TDS/advance tax will be refunded as per the income tax return filed.
A failure to observe the due date, i.e., July 31 will have an interest and penal consequences for a taxpayer.
I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.