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How to File Income Tax Return for Previous Year

Income Tax is an annual tax which every earning individual, corporate firms, local authority and company has to pay. And the tax depends on the annual income of a person or entity where the cycle starts from 1st April in a year and ends on 31st March of the next year.

And every individual, firm or a company should file their income tax returns for a financial year on or before the 31st of July of the next financial year. Under section 139 (1), the normal due dates for filing of income tax return is:

Particulars Due Date
Where the taxpayer is

1.     Company

2.     Any person mandatorily required to get his tax audit done

3.     A working partner of a firm whose accounts are required to be audited

30th September of the Assessment Year
In case of any other category of taxpayer i.e. Salaried / self-employer who are not required to get their tax audit done 31st July of the Assessment Year

However, if you have missed your due date for filing your income tax return, you can do so belatedly under section 139 (4).

Belated Return of Income Tax

As discussed if a taxpayer fail to file income tax returns on or before above-mentioned date under section 139 (1) can still pay it belatedly, or

If the taxpayer receives any notice under section 142 (1) from the income tax officer in case income tax return is not filed stating to file the required tax within the time specified in the notice and he has missed the due date of the notice as well can still file the income tax return. Such income tax returns which are filed after the due date are called “Belated Return”.

And one can file the belated return at any time of their convenience before the end of the relevant assessment year.

Also, ponder upon following points regarding Belated Return:

  • Considerable Assessment date means the due date on which the order of assessment is passed and not on which the taxpayer has received the order
  • If the return is filed after the assessment which gets cancelled, the return would still be considered as valid
  • Belated return of loss from business/profession is not applicable after the normal due date
  • Under the Finance Act 2016, Belated Returns filed under section 139 (4) can be revised, which is applicable from Assessment Year 2017 – 18 onwards.
  • The taxpayers are required to pay interest of 1% (simple interest) per month along with tax under section 234 A in case the return is filed after the income tax due date.

What are the penalties for late filing Income Tax Return?

Late filing income tax return is subjected to penalty i.e. penalty of Rs. 5000. Although this penalty has to be paid once the taxpayer receives a notice from the income tax officer, else the penalty is not automatically levied. Hence this penalty depends on the assessment officer.

Check Income Tax Refund Status Online in 5 minutes

An Income Tax Refund is a refund which is issued to the taxpayer by the Income Tax Authorities when his tax liability is less than the actual taxes he/she paid. The Income Tax Department offers an online facility to check the Income Tax Refund Status.

The taxpayers can see their Income Tax Refund Status after 10 days the refund has been sent. You just need your PAN Number and then select the desired Assessment Year for which you want to check.

Check Income Tax Refund Status

Income Tax Refund Status
Income Tax Refund Status
  • Login using the details: PAN, Password, Date of Birth and Captcha Code.

Income Tax Refund Status

  • Go to “My Account” and click on “View Returns/Forms”.

Income Tax Refund Status

  • Select the “Income Tax Returns” and choose the relevant assessment year for which you want to check the refund status.
  • Click on the acknowledgement number which is a hyperlink.
  • A pop-up appears on the screen which displays the timeline of the filling of return activities. This includes the date and time when your ITR was filed and verified, date of completion and processing, date of issue and refund etc.
  • It will also show the details of the assessment year, status, reason for failure, mode of payment.

Eligibility for Income Tax Refund

The different criteria’s for the eligibility of the Income Tax Refund is as follows:

  • If the taxpayer has paid more tax as the self-assessment but should have paid less for the regular assessment.
  • If the TDS deducted by the bank or the employer of the taxpayer is more than the latter’s tax liability through a regular assessment.
  • If the same income of a taxpayer has been taxed in a foreign country (with which the Government of India has an agreement to avoid double taxation) and in India as well.
  • If the taxpayers have not declared some of the investments which provided the tax benefits to him.

FAQs

  1. What if you have e-Filed an Income Tax Return but have not received the refund yet?

If you haven’t received your refund to date, then there could be three possible reasons:

  • Your Income Tax has not been processed yet.
  • Your Income Tax Return has been processed but the Income Tax Department has determined no refund.
  • Your Income Tax Return has been processed and a refund has been determined but the Cheque/ECS credit could not reach you.
  1. What if you have checked the status of the IT Return and it is displayed as “Refund Returned”. How can we apply it again?

Visit the official e-filling website and go to “My Account” section. From the drop-down menu of “My Account” select “Refund Re-Issue Request”. Select the mode of re-receiving the refund. ECS or Cheque. Provide the bank account number, if in case you have changed and provide the address details.

This same process goes for all the other cases such as the following:

  • If in case your Bank Account Number has changed and you want to change the bank account number.
  • If in case you have changed your address.

Income Tax Return Filing | How to e-File Your Income Tax Return Online

The Income Tax is a tax that levied to the taxpayers on their personal income. It is imposed on every individuals or entity that varies with their respective income or profits. As per the section 139 (1) of the Income Tax Act 1961 in the country, if a person’s total income exceeds the maximum amount which is not chargeable to tax has to file an ITR (Income Tax Return).

The process of filing an Income Tax Return electronically is called as e-filing. For filing an ITR, you can either ask for professional help or file your returns just by registering yourself on the Income Tax Department websites or other websites. The last date for filing the tax returns was July 31st.

Who should e-File an Income- Tax Return

The e-filing is done completely online and is performed by most of the individuals.

  • The Individuals who have a total income of Rs 5 Lakhs and above.
  • The Individual/ HUF residents along with the family who is located outside India.
  • An individual has to furnish a report of an audit specified under the sections 10 (23C) (IV), 10 (23C) (v), 10 (23C) (VI), 10 (23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 11JB of the Act.
  • The individual also has to give a Notice under the Section 11 (2) (a) to the assessing officer.
  • A firm (that does not come under the provisions of Section 44 AB), AOP, BOI, Artificial Juridical Person, Co-operative Society and Local Authority (ITR-5).
  • An individual required to furnish returns U/S 139 (4B) (ITR-7).
  • A resident who has the signing authority in any account located outside India.
  • A person who claims relief under sections 90 and 90A or deductions under section 91.
  • All companies.

Types of e-Filing

  • Using a Digital Signature Certificate (DSC) to e-file. It is mandatory to file the IT Forms using the Digital Signature Certificate by a chartered accountant.
  • If you are filing an ITR Form without DSC, then you have to generate an ITR-V Form. This form has to be printed, signed and submitted to the CPC, Bangalore through an ordinary post or speed post within 120 days from the date of e-filing.
  • You can also file an e-file IT Returns through an E-Return Intermediary (ERI) with or without DSC.

Checklist for e-Filing IT Returns

There are a few prerequisites to file your taxes in smoother and easier way. Below are the major points that have been highlighted below:

  • How to choose a right form to file your taxes electronically.
  • It can be a bit confusion to choose which type of form one should use to file the taxes online. The different categories of Income Tax Return (ITR) forms are:

ITR 1 (SAHAJ)

Individuals with income from salary and interest

ITR 2

Individuals and Hindu Undivided Families not having income from business and profession.

ITR 3

Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship.

ITR 4

Individuals and HUFs having an income from proprietary business or profession.

ITR 4S (SUGAM)

Individuals/ HUF having income from presumptive business.

ITR 5

Firms, AOPs, BOIs and LLP

ITR 6

Companies other than the companies claiming exemption under Section 11.

ITR 7

Persons including the companies required to furnish return under the section 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D)

  • Check your Tax Credit- Form 26AS Vs Form 16

The Form 26 AS can be checked before filing the tax returns. Form 26 AS shows the amount of tax that is deducted from your salary and deposited by the IT Department by your employer. Make sure that the tax deducted from your income should match with the amount that you have entered in Form 26 AS. If your form does not consist of any errors then you will receive a notice from the IT Department.

  • Claim 80 G, Savings Certificates and Other Deductions:

You can claim extra deductions in case if you have to claim them. Similarly, you can also claim deductions under 80 G on donations made to charitable institutions.

  • Interest Statement- Interest on Savings Accounts and Fixed Deposits.

A Deduction up to Rs 10, 000 is allowed on the interest earned on the savings accounts. The interest that is earned on the bank deposits, form a part of your taxable income and is taxable to the applicable income tax slab rates.

  • Including other documents: [Last Year’s Tax Returns, Bank Statements, Tax Deducted at Source (TDS) Certificates, Profit and Loss account Statements, Balance Sheet and Audit Reports, if applicable.
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List of the Documents that are required while e-Filing an ITR

The Document check-list for e-filing an ITR are as follows:

General Details

  • Bank account details
  • PAN Details

Reporting Salary Income

  • Rent receipts for claiming HRA
  • Form 16
  • Pay Slips

Reporting House Property Income

  • Address of the house property
  • Details of the co-owners including their share in the mentioned property and PAN Details.
  • Certificate for Home Loan Interest.
  • Date when the construction was completed, in case under construction property was purchased.
  • Name of the tenant and the rental income, in case he property is rented.

Reporting Capital Gains

  • Stock trading statement is required along with purchase details if there are a capital gains from selling the shares.
  • In case a house or a property is sold, you must sought sale price, purchase price, details of registration and capital gain details.
  • Details of the mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs.

Reporting Other Income

  • The income from the interest is also reported. If the interest is accumulated in the savings account then you need to have your bank statements as well.
  • The interest income from the tax saving bonds and corporate bonds must be reported.
  • The income details are earned from the Post Office and must be reported.

Income Tax Slab Rates

The Income Tax Slab Rates for the Financial Year 2017-18 and for an Assessment Year 2018-19

(As Declared in the New Budget)

For the Individuals and the Hindu Undivided Family (whose age is less than 60 years):

Income Tax Slab

Tax Rate

Up to Rs 2, 50, 000

NIL

Above Rs 2,50, 000 and up to Rs 5, 00, 000

5%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

For the Individuals and HUF (whose age is 60 years and more and less than 80 years:

Income Tax Slab

Tax Rate

Up to Rs 3, 00, 000

NIL

Above Rs 3, 00, 000 and up to Rs 5, 00, 000

5%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

For Super Senior Citizens (Age- 80 years and more):

Income Tax Slab

Tax Rate

Up to Rs 5, 00, 000

NIL

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above Rs 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

Income Tax Slab rates for Year 2016-2017

For Individuals and HUF (Age- Less than 60 years):

Income Tax Slab

Tax Rate

Up to Rs 2, 50, 000

NIL

Above Rs 2,50, 000 and up to Rs 5, 00, 000

10%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

12% Surcharge is imposed in case of the total income above Rs 1 Crore.

For the Senior Citizens (Age- 60 years and above, but less than 80 years):

Income Tax Slab

Tax Rate

Up to Rs 3, 00, 000

NIL

Above Rs 3, 00, 000 and up to Rs 5, 00, 000

10%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

12% surcharge is imposed in case the total income is above Rs 1 Crore.

For Super Senior Citizens (80 years and above):

Income Tax Slab

Tax Rate

Up to Rs 5, 00, 000

NIL

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above Rs 10, 00, 000

30%

12% of surcharge is imposed if in case the total income is above Rs 1 Crore.

Income Tax Return Due Date

The due date of the ITR Filing for the Hindu Undivided Family (HUF), Individuals, AOP (Association of Persons), BOI (Body of Individuals) is usually 31st July of the next Financial Year.

Like for an Example: The ITR Due Date for the Financial Year 2017-18 will be 31st July 2018.

How to File e-Returns

  • Fill in the Income Tax Returns Offline and upload it in the XML Format on the Official website: IncomeTaxIndiaeFiling.gov.in
  • Prepare and Submit the ITR Online.

Steps to Follow While Filing an Income Tax Return

Filing for an Income Tax Return online is not a tuff task. Just follow the below steps and file your ITR Online:

  • Firstly log in to the IncomeTaxIndiaeFiling.gov.in and register yourself.
  • Note: Your Permanent Account Number (PAN Number) is your User ID.
  • You can view your tax credit statement on Form 26 AS. The TDS as mentioned in the Form 16 must be tallied with the figures in Form 26AS.
  • Click on the Income Tax Returns Forms and select on the Financial Year.
  • Download the ITR Form that is applicable to you. If the exempt income exceeds Rs 5000, then the required form id ITR-2. (If the applicable form is ITR-1 or ITR- 4S you can complete the process on the portal itself by using the “Quick e-file ITR” link.
  • Open the Excel Utility- it is a downloaded return preparation software. Fill in the details using the Form 16.
  • Check the tax payable amount by clicking the “Calculate Tax” tab.
  • Pay the tax (if required/applicable) and fill in the Challan Details.
  • Confirm all the data that is provided in the worksheet by clicking the “Validate Tab”.
  • Generate the XML File and save it on your Desktop.
  • Go to the “upload return” on the Portal’s panel and upload the saved XML File
  • A pop-up is displayed asking you to “Digitally Sign the File”. if in case you already have a digital signature select the “Yes” option and if you do not have a digital signature then select the option “No”.
  • An acknowledgement form, ITR Verification (ITR-V) is generated which you can easily download.
  • Take a printout of the form ITR-V and sign it in Blue Ink.
  • Send the form by ordinary or speed post to the Income-Tax Department-CPC, Post Bag, Bangalore 560 010, Karnataka within 120 days of filing your returns online.

Steps to File ITR-1 and ITR-4S Online

Steps to prepare and Submit ITR-1 and ITR-4S (Sugam) online:

You have the option to submit ITR-1/ITR 4S forms by uploading in XML Format or by online submission.

  • Login the e-filing application.
  • Go to the “e-File prepare” and submit ITR Online
  • Select the Income Tax Return Form ITR-1/ITR-4S and the assessment year.
  • Fill in the details and click on the submit button and choose DSC (Digital Signature Certificate) (if available). Then click on the submit option.
  • After the submission, the acknowledgement details are displayed.
  • Click on the below link to view and generate a printout of the acknowledgement/ ITR-V Form.

For using a DSC, you need to register in the e-filling application. You can do it by logging in on the e-filling website of the IT Department and update the profile section. Under the Profile settings, you have to select the register digital signature certificate ad download the ITD e-Filing DSC Management Utility. This utility can be used to generate the DSC File.

Use of the Private Portals

You can also make use of the other websites to file your Income Tax Returns Online. These portals charge fees around (Rs 250-300) depending upon the kind of the services they provide.

Things to Keep in Mind While e-Filing

  • If the same mobile number is used by more than four tax payers, then you cannot file returns on the website unless the required change is done. Like for an example: in some instance, there are more than five returns that may be filed- yours, wife’s, mother-in law and the Hindu-Undivided Family (HUF) of which you are the Karta the executor of the will.
  • If your name is mentioned in the bank documents or the Official statements is a slight different from the name entered in the PAN Card, then the Portal will consider as a different individual. In some cases, the individual gives his/her father’s name as their middle name in their PAN Card but is not used in the Bank Accounts.
  • If you are a non-Indian Resident and need to file the Income Tax Returns, then you will require an India Number and a Foreign Number.

Income Tax Rates for Finance Year 2017-2018

Income Tax is a type of tax that is levied by the Government. The income tax is imposed on the individuals or the entities (taxpayers) that varies with their respective income or profits. The tax money is collected by the Government is used to improve the economy and the infrastructure of the country. The income tax s counted as the stable source of income for the Government to facilitate a wide range of services for the people of the nation. The income tax is used for paying the Government employees their salary.

How is the Income Tax Calculated

The Income tax is calculated on the basis of the income or the salary earned by every individual. It is also calculated on the basis of the age factor. To calculate the income tax from the salary, the individual has to declare the total amount of earning and the total amount of the deductions. The Government allows the individual to draw exemption on particular types of the investment. The following income tax slabs will help you to get an idea in calculating your taxable income for all types of income slabs.

Budget 2017 Highlights for the Common Man

  • 5% of Tax is applicable for the income between Rs 2.5 Lakhs and 5 lakhs.
  • No tax is applicable for the income up to 3 lakhs due to Rs 2500 rebate.
  • Tax benefits of Rs 12,500 are applicable for the income over Rs 5 Lakhs.
  • No cash transactions are applicable above Rs 3 Lakhs.
  • No scrutiny for the first time taxpayers, unless special circumstances are involved.

Income Tax Slabs

  • Tax Applicable to the Individuals Below 60 years: (for both Men and Women)

 

Annual Income

 

Tax Rates

 

Education Cess

Secondary and Higher Education Cess
Up to Rs 2, 50, 000 Nil Nil Nil
Rs 2, 50, 001- Rs 5, 00,000  

5%

 

2% of the income tax

 

1% income tax

Rs 5, 00, 001- Rs 10,00, 000  

Rs 12, 500 + 20%

 

2% of the income tax

 

1% of the income tax

Above Rs 10,00, 000 Rs 1, 12, 500 + 30% 2% of the income tax 1% of the income tax
  • Tax Applicable to the Individuals Over 60 years and under 80 years: (for both men and women)

 

Annual Income

 

Tax Rates

 

Education Cess

Secondary and Higher Education Cess
Up to Rs 3, 00, 000 Nil Nil Nil
Rs 3,00, 001 –Rs 5, 00, 000  

5%

 

2% of the income tax

 

1% of the income tax

Rs 5, 00, 001- Rs 10, 00, 000  

Rs 10, 000 +20%

 

2% of the income tax

 

1% of the income tax

Above Rs 10, 00, 000 Rs 1, 10, 000 + 30% 2% of the income tax 1% of the income tax
  • Tax Applicable to the Individuals Over 80 years and above: (for both men and women)

Annual Income Tax Rates Education Cess Secondary and Higher Education Cess
Up to Rs 5, 00, 000 Nil Nil Nil
Rs 5, 00, 001- Rs 10, 00, 000  

20%

 

2% of the income tax

 

1% of the income tax

Above Rs 10, 00, 000 Rs 1, 00, 000+ 30% 2% of the income tax 1% of the income tax

 The TDS is deducted at applicable rates along with the surcharge and the Education Cess.

Income Tax Slabs for Domestic Companies

For the domestic companies, whose total turnover does not exceed Rs 5 Crores their income tax rate has been reduced to 29% (plus applicable surcharge and educational Cess).

  1. In case you have a manufacturing company, then the income tax rate of 25% for the domestic companies is applied. If the company has been set up and registered after 1st March 2016, it does not claim any tax incentives.
  2. In other cases, the tax rates remain unchanged at 30% (plus applicable surcharge and education Cess)

Different Tax Rates under the Domestic Companies

 

 

Particulars

 

Turnover/Gross receipts less than Rs 5 crores Turnover/Gross receipts more than Rs 5 crore
Taxable income less than Rs 1 crore Taxable income more than Rs 1 crore Taxable income less than Rs 1 crore Taxable income more than Rs 1 crore but less than Rs 10 crores Taxable income more than Rs 10 crores
Corporate tax 29% 29% 30% 30% 30%
Surcharge 0 7% 0 7% 12%
Corporate tax + surcharge 29% 31% 30% 32.10% 33.60%
Education cess 3% 3% 3% 3% 3%
Effective tax rate 29.87% 31.96% 30.90% 33.06% 34.61%

Special Rates Taxation on some Income

Though the total income is taxable at income tax slab rates, there are some incomes that are taxed at special rates:

Nature Tax Rate
Short-term capital gains from assets (Other than shares & mutual funds)  

The Income Tax Slab rates mentioned above

Long-term capital gains from assets (Other than shares & mutual funds)  

20%

Short-term capital gains on shares and equity mutual funds  

15%

Long-term capital gains on shares and equity mutual funds  

NIL

Short-term capital gains on debt mutual funds Income Slab Rates mentioned above
Long-term capital gains on debt mutual funds 20%

The Income Tax Slabs are proposed in the Union Budget this year. Upon the implementation, a taxpayer is expected to file their income and deductions. The taxpayer also files their Income Tax Return in order to receive the refund for the excess tax paid to the Government. Recently, the Income Tax Department has observed an increment in the number of people filling their taxes on time.

Income Tax Calculator

The Income Tax Calculator is an online tool which enables the individuals to have a quick and easy access to the basic tax calculation. The benefits of the Income Tax Calculator is that it gives you the accurate calculation of tax that should be calculated for a particular Financial Year. This tool is available on the Official website of the Income Tax Department.

How to use the Income Tax Calculator

The Step by Step procedure to calculate the Income Tax Calculator is as follows:

  • Visit the official page of the Income Tax Department.
  • Click on the following link provided here- https://www.incometaxindia.gov.in/Pages/tools/tax-calculator.aspx
  • Now enter the assessment year for which you want to calculate.
  • Mention the category of the Taxpayer.
  • Select the Gender option, Residential Status.
  • Then enter the net taxable income
  • Enter the Income Tax after relief u/s 87A
  • Enter the Surcharge and Education Cess and Secondary and Higher Education Cess
  • Then at the end enter the total tax liability.
  • After entering all the details now click on submit to get the output.

The Tax calculator gives the information within minutes. Thus, paying Income Tax is mandatory. It is a responsibility that every citizen should do.

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