Income Tax Return Filing: If you are planning to file your income tax return (ITR) for Financial Year (FY) 2018-19 then hurry up as the last date to file the ITR is July 31. Those who won’t file their ITR within the deadline will have to pay Rs 10,000 as the late filing fees. If you are looking forward to filing your ITR then you must be aware of the fact that it has to be done digitally. Thus, one must register himself on the e-filing website of the income tax department. After being registered, these are the steps you need to follow to file your ITR.
Collect required documents — TDS certificates (Form 16/16A), capital gains statements
One of the foremost steps is to collect all the documents required to file ITR, including Form 16, salary slips, and interest certificates. With the help of these documents, you can calculate the details of tax deducted at source (TDS) from your income in FY 2018-19.
While Form 16 is a TDS certificate given by employer on deduction from salary income, the Form-16A is issued by the bank on TDS deducted on interest paid to you on fixed deposits. Those filing the ITR should keep in mind that all the TDS certificates received from all the deductors are in the TRACES format.
Download and check Form 26AS
The Forms 26AS is more like a tax passbook. It carries all the details of tax that has been deducted from your income during the FY 2018-19 and deposited against your PAN. To download, the Form 26AS, visit the TRACES website.
To download it:
- Click on My Account tab
- Select View Form 26 AS
- After being redirected to the TRACES website, you can view and download the same
Rectify errors in Form 26AS, if any
In case there is a difference between the amount shown in Form 26 As and TDS certificates then you need to consult your deductor to get your errors rectified. You can also claim a credit on that tax if the error is not rectified.
Compute total income for the financial year
Now, you are required to compute the total income chargeable to your tax.
Calculate your tax liability
Now, if you have collected your total income, you have to examine whether there is any tax liability by applying the tax rates in force for FY 2018-19 as per your income slab.
Calculate tax payable, if any
After computing your tax liability deducts, the taxes that have been already paid by you through TDS, TCS and Advance Tax during the year. This will show you whether you have paid all the taxes or if you have paid any excess taxes and if a refund is due to you.
File income tax return after all taxes are paid
After all the taxes have been paid then you can file your ITR. ITR is important if you want to claim any refund from the tax department. Do not forget to file the ITR with correct ITR form else your ITR will be termed as a defective return and you have to file it again.
Verification of ITR
There are 5 ways to verify tout ITR filing electronically and one is physical verification. A person has 120 days to verify the ITR filing and in case one doesn’t, it would be considered as you have not filed the ITR.
In case of electronic verification, the tax department will immediately send you a confirmation of your ITR. In case, the person sends ITR-V via post, then an email will be sent to the mail address registered in the e-filing account on the IT e-filling website.
IT department will process a return after verification
The income tax department will start processing your tax returns soon after the returns are verified. In case of any discrepancies, the I-T department will ask you to correct the mistakes or provide an explanation for it.