There’s no escaping the taxman. If you haven’t already filed your taxes, here are 10 points to keep in mind before the deadline to file your returns expires.
Here’s a quick update for those of you who haven’t yet filed your tax returns for the assessment year 2018-2019.
If you were scrambling to get things done before the July 31st deadline, well, it’s time to breathe a sigh of relief. The government has decided to extend the due date for filing your returns to August 31st, 2018.
However, this doesn’t mean that you can take things easy. The Central Board of Direct Taxes cautioned that failure to file returns before the deadline from this assessment year onwards would face varying penalties of Rs. 1,000, Rs. 5,000 and Rs. 10,000. The severity of the penalty levied would depend on when the returns were filed post the completion of the deadline. However, the fine for late filing for taxpayers with an income below Rs. 5 lakhs will remain at Rs. 1,000.
As the saying goes, ‘Nothing can be said to be certain except death and taxes’. But then again, Benjamin Franklin probably never had to wallow through the complex tapestry of taxation rules and regulations prevalent today.
That’s probably why people still pine for the good old days of the 18th century when all you had to worry about was rodents gnawing at your sacks of rice instead of running about helter-skelter in search of tax advisors.
Additional Reading: Here’s All You Need To Know About Calculating Your Taxable Income
However, since we’re in the here and now, there really is no escaping the taxman. After all, he just wants his pound of flesh every year, regardless of whether you’ve worked your fingers down to the bone night in and night out.
For those of you who haven’t filed your returns for the FY 2016-17 and 2015-16, the deadline of March 31st, 2018 is just around the corner, so you better get cracking.
Additional Reading: How To File Tax Returns Online!
In any case, here are 10 points to keep in mind before the deadline to file your returns expires:
- There’s no arguing with the Income Tax department. They specifically state on their official website that any exemptions, income or any other deductions that you presently claim in your return must match the details or information found in your Form 16 or Form 16A.
- The Income Tax Department also warns that anyone who hasn’t yet filed their tax returns should do so without further delay and not scramble to get it all done at the nth hour. To reiterate, the deadline to file your returns for FY 2016-17 and 2015-16 was 31st March 2018 and for FY2017-18, it was 31st July 2018 (which has been extended to 31st August 2018).
- Did you know you can file your returns from the comfort of your own home? Yup, that’s right! If you have your Form 16, all you need to do is head on over to the Income Tax Department’s official website and do it yourself. You don’t need to step out of your house or ask someone else to do it for you.
Additional Reading: Six Annoyingly Simple Questions On Form 16 Answered
- In order to file your Income Tax Return online, remember to register (if you haven’t already) and log in using your user ID and password. Only then can you view and file your IT returns on the Income Tax Department’s website.
- Remember to submit all details pertaining to your taxable income as well as all the exemptions that you’re looking to claim. This will help you accurately determine your tax liability.
- After submitting all relevant income details online, the site will show you your tax liability should you have any, or your IT returns, should you have any.
- Remember that you can use the Income Tax Department’s official website to not only calculate and file your income tax returns but also to update your PAN details, link your Aadhaar to your PAN and much more.
- Make sure you check Form 26AS to check the tax that has been deducted at source (TDS). This form also mentions all parties that have deducted tax at source and deposited the tax with the IT department and their tax deduction account numbers. It is a ready reckoner for getting the amount of TDS deposited with the tax authorities.
- If you own any kind of property, any income that you receive via renting it out should be also be taken into consideration when calculating your tax liability.
- If you own single or multiple Savings Accounts, the interest accumulated on all accounts will be taxable should it exceed Rs. 10,000 in total. It is Rs. 50,000 for senior citizens from FY2018-19.
Additional Reading: 5 Common Mistakes People Make While Filing Income Tax Returns
The clock is ticking. Time to knuckle down and file your returns like the fine, upstanding citizen that you are. If you need help calculating your income tax, you can make use of our nifty Income Tax Calculator. All the best!