Income Tax Return Filing (I.T)

INTRODUCTION:

It is an acknowledgement regarding the payment of income tax made by the assesse to the department.It is to be filed by the assesse in the Asessment  Year i.e The year subsequent to the Financial Yearin which the income is accrued or received .              

ADVANTAGES:

  1. IT acts as an evidence in the court of Law that the person has not defaulted in filing the return.
  2. An assesse can take the advantage of carrying forward the losses suffered in financial year in upcoming years under Sec .72 of the Income Tax Act 1961.
  3. An assesse can claim refund of excessive tax paid only if the return of income is timely files as per the due date.

It helps the assesse to avoid penalties for non filing of returns and also interest thereon.             

Due date of filing returns for AY 2018-19

Sr NoType of assesseDue Date
1Company30/9/18
2LLP31/7/18
3Partnership Firm31/7/18
4Proprietor31/7/18
5Individual31/7/18

Points to consider:

1.  Any assesse who exceeds the basic exemption limit of income before availing exemption is liable for filing Income Tax return   

2. Mandatory

Any assesse who exceeds the basic exemption limit of income before availing any exemption is liable to file IT return mandatorily.

3.Voluntary

If the assesee is willing to file the return of the income even if his income is below basic exemption limitthen it is allowed as it enables the person filing it to easily avail loan facility.

4.Late Filing (Belated Return)  Sec.139(4)

If return is not filed within due date then last date for filing the return return shall be 1 year from completion of assessment year  or the date on which Asessment order is passed whichever is earlier.

5.Revised return 139(5)

If a return is filed under section 139(1) or 139(4) and if the assesee discovers any omission or any defect /error is  discovered  by the assesse on his own than he may file a revised return under  Sec.139(5) within 1 year from end of relevant Assesment Year or Completion of assessment whichever is earlier.

6.Defective return 139(9)

If the assesse does not file all the details required for validating the return or does meet the requirements specified  in the Act ,it is termed as defective return.ITO gives 15 days time period to rectify the defect found by him to  assesse .ITO shall condone the delay if  he is satisfied with reasons given by assesse.If assesse fails to rectify the defect then the return  shall be treated as  Invalid return.

6.PENALTY

> For filing return under Sec .139(4) assese is liable to pay penalty under Sec.234 A .

> Assesse is also liable to pay late fees for filing delayed returns under Sec.234F of 10000 if return is not filed within due date.

>If assesse files the return after due date but before 31st December of the relevant  Assessment year and income does not exceed 500000 then penalty is 1000

>If assesse files return after 31st December of AY and income exceeds 500000 then penalty will be 10000.However if income is upto 500000 then penalty is 1000.

Advance Payment of Income Tax

The payment of income tax is required to be made on estimated basis during the financial year itself. The legal provisions of payment of the advance tax are mandatory in case the tax payable is more than Rs. 10,000/- in a financial

year.

Concept of Advance Tax

  • Liability for payment of Advance Tax:

Sec 207 (1): Tax shall be payable in Advance during the F Y in accordance with the provision of sec 208-219 in respect of the total income of the assessee which would be chargeable to tax. Sec 207 (2): w.e.f 01.04.2012 the above subsection is not applicable to an individual resident in India who:

a). Does not have any income chargeable under the head “Profits and gains of business or profession”

b). Is of the age of sixty years or more at any time during the previous year.

  1. When the advance tax liability arise:

Advance tax liability arises when the projected total income of an assessee exceeds the emption limit and tax liability exceeds Rs.10, 000.

  1. Due dates and Installments of advance tax:

Interest on deferment of advance tax

If the advance tax is not paid within its due date then apart from the interest for late payment, the taxpayer is also required to pay another interest @1% for deferment of tax for each month of delay or a part thereof

For Individuals

Salary or House Rent Income (PLAN A)

Rs. 7,99

ONE TIME FEE

Salary

House Property

Withdrawal from PF & Bank Deposits

Donations

Capital Gains Income (PLAN B)

Rs. 1,699

ONE TIME FEE

Everything in Plan A

Capital Gains from sale of stocks, mutual funds property

Gains from Lottery, Gaming or Awards

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Foreign Income (PLAN C)

Rs. 2,599

ONE TIME FEE

Everything in Plan B

Income earned outside India

Income earned in India for NRE, NRO A/c

DTAA guidance

For Self Employed and Professionals

For Traders

Rs. 4,990


ONE TIME FEE

Profit/loss from F&O or Intraday Trading

Preparation of Account Summary, P&L and balance sheet

Also covers salary, other incomes and capital gains

Audit fee and DSC not included

For Professionals and Freelancers

Rs. 2,499

ONE TIME FEE

Income for professionals (like Freelancers, Doctors) small businesses

Applicable Annual Turnover < Rs. 2 cr for businesses or Gross Receipt < Rs. 50 Lacs for Professionals

Also covers salary, other incomes and capital gains

Donations

For Business

Rs. 4,990

ONE TIME FEE

Business income from business having upto 200 transactions

Preparation of Account Summary, P&L and balance shee

Also covers salary, other incomes and capital gains

Audit Fee and DSC not included

For Self Employed and Professionals

Services Covered

Rs. 9,99


ONE TIME FEE

Covers notices under Sections 139(9),143(1)

Validate Notice using ClearTax software

Expert Advisory on notice response

Documented Follow-up

Business hours -CA support

Revised Return Filing for notice received under Sections 139(9), 143(1)

Tax Audit u/s 44AB/44AD/44DA

Rs. 14,990

ONE TIME FEE

Depending On Quantam Of Work

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Frequently Ask Questions

ITR stands for Income Tax Return​.  It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.​Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.

Under the Income-tax Law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms). The forms of return prescribed under the Income-tax Law for filing of return of income for the assessment year 2018-19 (i.e., financial year 2017-18) are as follows:

Return Form

Brief Description

ITR – 1

Also known as SAHAJ is applicable to an individual having salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses, income taxable under section 115BBDA or income reffered in section 115BBDA).

ITR – 2

It is applicable to an individual or an Hindu Undivided Family who is not eligible to file Sahaj ITR-1 and whose income chargeable to income-tax under the head “Profits or gains of business or profession” is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.

ITR – 3

It is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietory business or profession.

ITR – 4

Also known as SUGAM is applicable to individuals or Hindu Undivided Family or partnership firm (other than limited liability partnership firm) who have opted for the presumptive taxation scheme of section 44AD/ 44ADA/44AE.​

ITR – 5

This Form can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), co-operative society and local authority. However, a person who is required to file the return of income under section 139(4A) or139(4B) or 139(4C) or 139(4D) or section 139(4E) or section 139(4F) shall not use this form (i.e., trusts, political parties, institutions, colleges, investment fund etc.)

ITR – 6

It is applicable to a company, other than a company claiming exemption under section 11 (exemption under section 11 can be claimed by charitable/religious trust).

ITR – 7

It is applicable to a persons including companies who are required to furnish return under section 139(4A) or 139(4B) or139(4C) or 139(4D) or section 139(4E) or section 139(4F) (i.e., trusts, political parties, institutions, colleges, investment fund, etc.).

​ITR – V

It is the acknowledgement of filing the return of income.

 Return Form can be filed with the Income-tax Department in any of the following ways, –

  (i) by furnishing the return in a paper form subject to certain circumstances**;

 (ii) by furnishing the return electronically under digital signature;

(iii) by transmitting the data in the return electronically under electronic verification code;

(iv) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V

** Only following persons have the option to file the return in paper form

  1. An individual at the age of 80 years or more at any time during the previous year
  2. An individual or HUF whose income does not exceed Rs 5 lakhs and who has not claimed any refund in the return of income

For offline ,the return is furnished in a physical paper form.The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.

No, you cannot avail the deductions under the section 80C to section 80U if the only component of your gross total income is long term gains. However, if you’re a resident individual you can count your long-term capital gains as included in the basic exemption limit of income chargeable to tax. NRI cannot avail this adjustment. 

Filing returns or not has never been a choice – it’s a legal obligation and must be fulfilled by everyone who falls under the prescribed category. Apart from legal obligation, filing tax returns is helpful in the following situations:

  • To get a home or personal loan
  • For visa and immigration processing
  • As a proof of income/ net worth certificate
  • To claiming excess tax paid via refund
  • Apply for a higher insurance cover
  • And last and most important is, peace of mind

Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:​​

a)In case of all the assessees (other than the eligible assessees as referred to in section 44AD) :

i)Up to 15 per cent – On or before 15th June

ii)Up to 45 per cent – On or before 15th  September

iii)Up to 75 per cent – On or before 15th December​

iv)Up to 100 per cent –On or before 15th March

b) In case of eligible assessee as referred to in Section 44AD:

Up to 100 per cent – On or before 15th March