File Your Income Tax Return for FY 2017-18 Immediately, Know Why

Income Tax Return E-filling for financial year 2017-18 has begun already in India. Let’s understand whether you should and why should you e-file your income tax return for A.Y. 2018-19 immediately.

Who should file Income Tax Return in India?

Any of the following scenario requires income tax return e-filling:

• Your gross annual income for financial year 2017-18 exceeds 2,50,000 (before any tax saving deductions). The limit will be Rs. 3,00,000 if your age exceeds 60 years and Rs. 5,00,000 if your age exceeds 80 years. NRI must also follow the same logic as the income accrued in India is taxable in India.
• If you are an individual and you want to claim refund of Income Tax.
• If you are not an individual i.e. a company or a firm irrespective of your income or loss incurred during the financial year.
• If you have long term (LTCG) or short term capital gain/loss where sale consideration in total exceeds Rs. 2,50,000.
• If you are a foreign company having beneficial transactions in India.

Due Date and Penalties for Income Tax Return from FY 2017-18

Due date of filling income tax return for financial year 2017-18 is 31st July 2018 therefore you do not have much time left.

• Starting this year there is a penalty provision of Rs. 5000 if the return is filed after due date but before 31st December 2018
• Penalty of Rs. 10,000 if the return is filed after 31st December 2018 but before 31st March 2018.

For individuals earning income less than Rs. 5,00,000 the penalty amount is subject to maximum of Rs. 1000. The due dates and penalties on non filling of return are different for assesses subject to income tax audit.

The relevant e-filling forms have already been notified by the income tax department. Since less than 2 months left, you should not wait for the last hour or any date extension notification. Calculate your income tax after all the exemptions and e-file your income tax return.

Further, check the income tax slab for FY 2018-19 and do not forget to deposit the 1st installment of Advance tax by 15th June, 2018. Post demonetization, there has been an unprecedented increase in income tax return filling as the people have understood the importance of filling returns and reporting income to the government on timely basis.