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Tax-Filing Deadline: 10 Points to Consider’
by Reena More
Posted: Aug 26, 2018
Posted: Aug 26, 2018
Income Tax - one thing that we all have to file every financial year. Recently, the government has decided to extend the due date for e-filing your income tax return to August 31st, 2018. We bring you an exclusive list of pointers to consider while e-filing your income tax return:
- Form 16 & 16A - Always ensure that when you’re e-filing for income tax return, the information that you present for the purpose of investment declaration are accurate as per your Form 16 and 16A. The following forms are available at the official website of the Income Tax department of India - incometaxindia.gov.in.
- Do not Delay - It is advisable to file your income tax returns in advance as keeping it delayed will make things more complicated. Remember, the deadline for e-filing your income tax return for FY 2016-17 and 2015-16 was 31st March 2018 and for FY 2017-18, it was 31st July 2018 (which has been extended to 31st August 2018).
- E-Filing - The government has enabled online processing of income tax returns. Now you can file your taxes online from the official website of the income tax department of India - incometaxindiaefiling.gov.in/home.
- Penalties - If you fail to file your taxes on time, you will attract a penalty of INR. 1000 for late payment. This is applicable for taxpayers with an income of INR 5,00,000 and below. The Central Board of Direct Taxes can further impose a heavier penalty ranging between INR. 1,000 to 10,000 if you have delayed in paying taxes post the last due date. The more you delay, the heavier the fine.
- Online Filing (E-Filing) - If you intend to file your taxes online from the official website of the income tax department, you will have to create a login id and password. This is a mandatory process for registration. Post registration, you can download your form 16 and begin with the process of e-filing your income tax return.
- The website not only lets you file your taxes but also assists you in the process. It will guide you in determining your tax liability. All aspects of your investment declaration, deductions and exemptions, are listed in the website.
- Once you fill all your details correctly, the website will show your taxable amount, if any. Simply click on submit and your ITR has been successfully filed.
- The official website of the income tax department provides other essential services as well. To name a few, you can update your Permanent Account Number (PAN) details or link your Aadhaar card to PAN.
- Form 26AS - In order to check if your tax has been deducted at source (TDS), you will require form 26AS. This form is essential as it states that your employer has deducted tax at source and deposited the same with the income tax department along with their tax deduction account numbers.
- Income received in the form of rent has to be reported while calculating your tax. If the interest earned from different savings account is more than INR. 10,000, it is eligible for tax filing. This amount has been revised to INR. 50,000 for senior citizens.
Importance of Tax Filing
- Filing your income tax return regularly irrespective of your tax liability shows that you are a responsible law abiding citizen of India. Also, the government has clear records of your finances, which is again a good sign in case you wish to apply for subsidies under the Aadhaar Act.
- It is mandatory for citizens (who come under the income tax slab) to file taxes. Individuals with no income tax can also file for returns on a voluntary basis. Filing returns makes it easier to register the transaction.
- If you intend to apply for a loan in the near future, it is better to file your returns as financial institutions require this information during loan application.
- If you want to claim adjustment against past losses, filing of an ITR is necessary. You can only claim an exemption against losses mentioned on your profit and loss statement if you have filed your returns on a regular basis.
Under the Income Tax Act, non-filing of returns can attract a penalty of Rs 5,000. Therefore, don’t forget to file your taxes regularly.