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What you need to know before filing your Income Tax

What you need to know before filing your Income Tax

Tax & Auditing

Taranpreet Singh

Taranpreet Singh

7 days ago — 3 min read

Summary: It is prudent to be armed with all the facts when going about your taxes. Tax expert, Taranpreet Singh tells you all you need to know about the new ITR-1 Form which needs to be filled and submitted by 31 July, 2018.

 

The ITR forms have been amended for AY 2018-19 tax return filing which is due by 31 July 2018 without any penalty.  ITR Form No. 1 which is most commonly used and applicable for salaried employees has undergone significant changes and therefore shall require some extra efforts to be filled in. Unlike earlier years, from this year, this form is applicable only for resident individuals. The new ITR Form No. 1 can broadly be structured into 6 sections.

 

Structure of ITR-1 Form

  • Part A - General Information

  • Part B - Gross Total Income

  • Part C -Deductions and taxable income

  • Part D - Computation of Tax Payable

  • Part E - Other Information

  • Detail of Advance Tax and Self-Assessment Tax payments and TDS

 

One of the key changes applicable to the new form is that it requires salaried employees with more detailed and specific information/ declaration. For instance, there is a requirement to furnish a break-up of salary income such as detail about the value of perquisites, non-exempt allowance and so on. Until last year, salary details as per Form 16 was required to be filled and there was no requirement to disclose the breakup of salary in ITR forms. Similarly, there is a requirement to provide detail breakup of income from house property, interest paid on housing loan etc.

 

In view of the same, it is very important for employees to ensure that they have proper documentation such as rent receipts, tax saving proofs etc basis which tax has been deducted by the employer.  Any mismatch in the tax declaration provided to the employer/ Form 16 viz a viz ITR form shall trigger verification/ questioning by the tax officials. With the introduction of new forms, it seems that the tax authorities shall try to verify and check any bogus HRA claims,  LTA exemptions and other deductions claimed by the employees and therefore one needs to be careful while filling new ITR forms as the information submitted shall have long-term consequences.

 

Another important change with AY 2018-19 is the introduction of the late filing fee where tax returns are not filed within the stipulated time limit of 31 July. This fee needs to be paid as a self-assessment tax prior to filing return beyond the prescribed time limited.

 

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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker. 

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