Deadline for filing IT return ends this week

The last day for filing Income tax returns for the financial year 2018-19 is Saturday, August 31, 2019, which is this weekend. If you are yet to file your returns, read on to know more.

Individuals with income exceeding Rs. 2.5 lakh (more than Rs. 3 lakh for Senior Citizens) have to mandatorily file their IT returns for the FY2018-19 on or before August 31, 2019. Government had extended the due date for filing returns has some employers had trouble issuing Form 16 to employees.

Individual taxpayers have to fill up correct ITR form to avoid any complications and penalties. With most of the tax filing process getting being digitalised by the government, IT department can easily detect any incorrect data filed by a taxpayer. So not knowing tax rules can turn out to be dangerous as it may be considered as an act of concealing income.

If you are yet to file your returns, here are a few pointers to help file your returns well before the deadline.

Keep all financial documents handy:

Download your Form 16, Form 26AS and bank statements. You will need your capital gains data for investment in equity shares and equity-oriented funds. A few additional information are to be disclosed while filing online returns for FY2018-19, this includes filling in the ownership percentage of your housing property, if you are availing tax exemption benefit for a home loan. In case of sale of immovable property, the taxpayer has to disclose the name of buyer, PAN and address of the said property. Individuals who hold unlisted equity shares in their portfolio are required to disclose the name of the company, its PAN and cost of acquisition.

Select correct ITR Form:

It is necessary to choose the correct ITR Form to make sure that the return filed are valid. The tax department has issued four different forms for individual taxpayers for FY2018-19 (Assessment year 2019-20). The forms are ITR 1 for resident individuals, salaried or pensioners with one house property and income from other sources less than Rs. 50 lakhs; ITR 2 for non-resident individuals and Hindu Undivided Families with income of over Rs. 50 lakh, more than one house, capital gains, investment in unlisted shares and foreign income or holding assets in foreign lands; ITR 3 and ITR 4 are for taxpayers with income above Rs. 50 lakh or taxpayers who have businesses or are professional or have partnership in firms.

Double-check your information:

Form 16 and Form 26AS are two vital documents that give taxpayers almost all the information that they need to file their returns. It is very easy to cross-check information using these documents. Every incident of TDS cut has to be linked to an income source. Apart from their regular salary, a taxpayer could be earning other incomes from financial investments and rental income, dividend, capital gain, even savings account interest need to be accounted for in ITR.

You might have disclosed most of the deductions that you have claimed to your employee and the same will be reflected in your Form 16. Check for deductions made under 80C, 80CCC, 80CCD, 80D, 80E and others. If you have made any additional investments under these sections but could not inform your employer, you can claim these deductions in ITR.

Try to be as transparent as possible and when in doubt consult a qualified tax expert and ensure filing the correct information. Happy Filing!