In a country with democracy in power, it is necessary to make sure about the financial earnings of every individual. To ensure the same in India, we have Income Tax Return (ITR) for every individual earning throughout the financial year. ITR is the declaration of the income you have earned through the year and have made the tax for. In our country Filing, ITR is a mandatory obligation under which you are required to provide detail of your income from salary, business, or any other source like an investment and made through relief claims throughout the financial year.

In spite of being a mandatory obligation for every citizen for our country, most of us are still unaware of the ITR. In order to understand this essential financial action, we will take you through all the details. For the starters, the official due date for filling the ITR is 31st July of the assessment year, which is the year following the financial year the income has been made. However, the income tax department keeps opening the window till 31st March for the people to file ITR belatedly. But, filing the ITR after the due date or belatedly will also come with a penalty fee up to Rs.10,000.

How to file belated ITR

Filing ITR is similar to filing a return for which you need to fill up the form. All the people falling under the taxation needs to declare there all the income earned throughout the financial year and mentioned that they had paid the tax for that.

The ITR must be filed electronically by all the Taxpayers, but the Super citizens of age above 80 and the people with income less than INR 500,000 are allowed to file the ITR paper. Besides, the taxpayer who has not claimed any of the refunds in his or her return can also file the paper return.

ITR filing for FY 2017-18: Amendments and Changes you should know

Almost all the tax slab rates are the same for FY 2017-18 as they were for FY 2016-17. However, there are some important changes for the taxpayers that are important for filing the ITR.

People falling under the taxable income between Rs 250,000 (US$3,636) – Rs 500,000 (US$7,271) need to pay five percent as the tax as compared to 10 percent for FY 2016-17.

The tax relief limit which was previously Rs. 500,000 for FY 2016-2017 is now reduced to Rs.350, 000 for the FY 2017-1028. Besides, the entitled tax rebate is now reduced to Rs 2,500 (US$36) from Rs 5,000 (US$72).

One of the significant change in this years ITR is the declaration of income. For FY 2016-17 ITR form the taxpayers were required to detail only the total taxable amount. However, for this year, all the taxpayers have to mention the detailed breakdown of their income while filing the 2017-2018 ITR.

All the taxpayers need to mention their income from all bank accounts in detail while filing the ITR. Only savings account interest – to the extent of Rs 10,000 – is exempt from tax under Section 80TTA of the Income-tax Act, 1961;

For SY 2017-2018 the NRI taxpayers can also fill details of their foreign bank accounts in the form receive tax rebate where applicable;

Above all, the income tax filing must be e-verified or a printed and signed ITR 5 dispatched to the CPC in Bangalore within 120 days of filing the return online. Otherwise, your return filing is ‘invalid,’ and can also be charged with late filing penalty.

The late filing penalty has been increased to Rs, 5,000 if the ITR is filed after 31 July 2018 and Rs.10,000 for filing after 31 December 2018 till 31 March 2018.

Documents require filing ITR

PAN card Details

A Permanent Account Number (PAN) is needed by the authorities for you to file the ITR successfully.

Permanent Account Number is a ten-digit number that is issued by the income tax department of India.

According to the Supreme Courts last orders, all the taxpayers need to link their 12 digit Adhaar Card Number with PAN.

There are a number of ITR forms available depending upon the taxpaying slab you are falling into. So, find the one according to your eligibility.

Find out which tax rate is applicable for you, so you can fill the ITR accordingly.

Calculate your Income tax rate; you can use the tax calculator which available on the CBT’s website.

Retain your documents by taking the print of them and keeping them safe in case you need them in the future.

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