If all your documents are in place, you can now e-file your tax returns, as all the income-tax return (ITR) forms for assessment year (AY) 2017-18 are available online at the income tax department’s e-filing website http://www.inometaxefiling.gov.in.
The income tax department has been uploading the various forms since 1 April.
Note that the number of ITR forms has been reduced to seven for this assessment year, compared to nine forms in the previous year.
In place of three ITR forms—ITR-2, ITR-2A and ITR-3—a single ITR-2 has been notified. Consequently, ITR-4 has been renumbered as ITR-3 and ITR-4S (Sugam) as ITR-4 (Sugam).
Some more changes have been made in the design and format of the notified forms for the current assessment year.
For instance, a one-page simplified ITR Form-1 (Sahaj) can be used to file returns by individuals having income of up to Rs50 lakh a year who are receiving income from salary and one house property or “other income”. According to CBDT, “Various parts of ITR Form-1 (Sahaj) viz. parts relating to tax computation and deductions have been rationalized and simplified for easy compliance. This will reduce the compliance burden to a significant extent on the individual taxpayer. This initiative will benefit more than 2 crore taxpayers who will be eligible to file their return of income in this simplified form.”
How to do it
Steps in filing your Income Tax Return
Collect your TDS certificates, which have to be mandatorily in TRACES format, from all deductors. In case of digitally signed TDS certificates ensure that there is a check mark on the digital signature indicating it has been verified. Non-verified certificates will have a question mark over the digital signature. Cross check the TDS figure on the certificate with that shown as deducted from your income e.g. TDS figure on salary slip with the figure on the TDS certificate. Check whether deductor has deducted and deposited the tax with the government. TDS certificates are in Form 16 for salaried employees and Form 16A for other deductors.
Download your tax credit statement (Form 26AS) from TRACES and cross-check the amount of tax deducted with that mentioned in TDS certificates. You should be getting certificates for all TDS reflecting in your Form26AS and all the TDS from your income should reflect in Form26AS. You need to log into your e-filing account on the income tax e-filing website to download your Form26AS. You can also download it via net-banking wherever the bank provides for this.
Checklist of documents and pre-requisites
- A copy of last year’s tax return
- Bank Statement
- TDS certificates
- Savings certificates/Deductions
- Interest statement showing interest paid to you throughout the year.
- Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.
Manner of filing this Return Form
This Return Form can be filed with the Income Tax Department in any of the following ways,
(i) by furnishing the return electronically under digital signature;
(ii) by transmitting the data in the return electronically under electronic verification code;
(iii) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return
Check this link for details: File Income Tax Return
Link Aadhaar with PAN
From hereon, it is mandatory to link a person’s Aadhaar with the Permanent Account Number (PAN) for filing I-T returns. The Income Tax department has launched a new e-facility in this regard. The department’s e-filing website — incometaxindiaefiling.gov.in/ — has created a new link on its homepage making it “easy” to link the two unique identities of an individual.
The due date for filing ITRs for AY2017-18 is 31 July 2017. In case you file it after 1 July, you will have to quote your Aadhaar number or the enrolment ID of Aadhaar application form. This was mandated by finance minister Arun Jaitley in the Finance Act, 2017, although this move has been challenged in the Supreme Court.
Penalty on Late Filing of Income Tax Return – Section 234F
New penalty for late filing of Income Tax Return is introduced in Budget 2017.
For person with Total Income of more than Rs. 5,00,000
If ITR is filed on or before 31st December following the last date – Rs. 5,000
If ITR is filed after 31st December – Rs. 10,000
For person with Total Income of less than Rs. 5,00,000 – Rs. 1,000
Due date for filing return for person required to gets accounts audited under Section 44AB – 30th September
Benefits of filing ITR
Claim a refund: Suppose your tax is deducted and you want to claim a tax refund. You can claim refund only after filing an ITR. So, if you want a refund for TDS on rent payments or TDS deduction by banks on your fixed deposits, then you have to file an ITR.
Carry forward losses: It is important to file an ITR, if you want to carry forward a loss under heads of income from your business, capital gains and income from any other sources. But you cannot carry forward your loss from house property.
Unpaid tax liability: In case of unpaid tax liability, there would be penal interest at the rate of 1% per month from the due date of filing the return till the actual date of filing.
Revise the return: If you file your income tax return after the due date you cannot file a revised return later. The mistakes made in the original return cannot be revised later. Only people who filed their original return before the due date can file for revision.
Apply for a loan: Banks generally ask for your ITR copy before giving you a loan. So, filing an ITR increases the chances of getting loan easily.
Sources: Livemint, Business standard