Have you filed your income tax returns yet: 5 key things to remember

Jul 17, 2018, 04:58 PM IST

Income tax returns (ITR) filing: Income tax returns filing process is complex. Add to it the fear factor of getting something wrong and the issue becomes a fraught one. There are chances that you unintentionally commit an error, and it costs you dearly. So be careful. Take a look at the following key points about how to file your income tax returns:


Income tax returns filing: Difference between Financial Year and Assessment Year: Financial Year is the year in which you earned the income and an assessment year is a year in which your income gets taxed. For example, July 31 is the deadline for filing ITR for the financial year 2017-2018 and the assessment year 2018-2019.


Income tax returns filing: Choose the correct IT form: The income tax department has introduced some changes in the ITR forms this financial year on. There are seven kinds of ITR forms. Go through the applicability and non-applicability of various ITR forms. 


Income tax returns filing: Compute your capital gains: If you invest in mutual funds or equities, your brokerage firm will give a detailed statement on capital gains during the year. Get hold of it before filing ITR.


Income tax slabs: There is no tax for individuals with income less than Rs 2,50,000. 5 per cent tax there is for income above Rs 2.5 lakh but less than 5 lakh. For income between Rs 5lakh and 10 lakh there is 20 per cent tax. Above Rs 10 lakh there is tax rate of 30 per cent. 


Income tax cess and rebates: The maximum amount of rebate allowed is Rs 2,500. A surcharge of 10 per cent is applicable if income lies between Rs 50 lakh to Rs 1 crore, but if it exceeds Rs 1 crore then the surcharge will be payable at 15 per cent. Education Cess of 3 per cent is also levied along with surcharge.