The income tax return (ITR) 2019 filing deadline is almost the corner. If you haven’t filed your tax return yet, remember that you must file it till 31 August 2019 to avoid penalty.
Firstly, Choose the right ITR Form to file your ITR. If your income from salary is up to 50 lakh pa, you own a house property and also have interest income, you must file returns in ITR-1 Form.
If you have got income from capital gains along with salaried income, you need to prefer ITR-2.
This task has been made easy by filing your ITR through online platforms that automatically choose the Form suitable to your income and help you to overcome from this critical aspect of filing tax returns.
The next step is gathering the information that a salaried taxpayer must report. Below are the essential details you need to provide :
# Salary Breakup: You need to provide a detailed salary breakup in the ITR form such as gross salary, allowances, and deductions u/s 16. You can get these details in Part B of your Form 16.
# Type of House Property: If you own a house property, then only you are required to enter the details under this section and have let it out on rent. You must fill in the gross rent received during the year, the tax paid to the local authorities, interest paid on house loan taken to purchase the property, and the arrears in rent received during the year if any.
# Interest Income: If you have an interest income paid by banks/financial institutions on your savings account/fixed deposits, you require to provide the interest details that you have earned and the tax deducted on this income in the Form.
Check if the bank has deducted taxes from your income by looking it up in your Form 26AS. If the interest you earn is more than10,000 per annum in Financial Year 2018-19, then only tax must be deducted.
It should be noted that interest from the savings account and interest income from Fixed Deposits both must be notified in your ITR.
# Deductions: You must specify the deductions that you have availed under various sections such as Section 80C, 80CCC, 80CCD, 80D, 80E, and others.
A deduction of up to1.5 lakh is available under Section 80C where you can spend on the life insurance premium, provident funds, children’s tuition fees, and equity savings schemes.
Similarly, under Section 80D, you can claim the expenditure made on precautionary health checkups and health insurance premiums. Rent paid, donations contributed to charities and political parties under section 80G, interest paid on loan taken for residential house property purchase, and interest paid on loan for higher education Section 80EE can also be claimed as deduction here.
If you had revealed these to your employer, you can look it up from your Form 16.
If you made the associated investments but could not inform your employer, you can still claim these deductions in your ITR if the related expenses/ investments were made by 31 March 2019.
# Tax Deducted at Source (TDS): Double-check the tax deducted details from your salary, the salary amount credited to you, your employer’s TAN, and so on appearing in your Form 26AS with TDS in your ITR.
# Capital Gains: If you have sold any shares, debentures or mutual fund units during the financial year or transferred any property, you have to provide a complete figure of the capital gains earned during the year in the ITR form.
Take care to understand the limits under each deduction provision before recording the details in the Form.
If your expenditure exceeds the limit, you will not receive any deduction for the difference amount. Make sure to keep all the necessary documents such as Form 16, payslips, updated bank passbook, house property loan documents, and documents related to capital gains with you while filing returns to quote the exact amount.
If you have multiple Form 16s due to job change, you report the salary earned from both the employers in your ITR.
Don’t forget to file your return before the due date, i.e., 31 August 2019.