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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:

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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.

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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. 

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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.

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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. 

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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.