The followings are the important steps/points/precautions to be kept in mind while filing the return of income (Income Tax Return) for the previous year 2018-19 i.e Assessment Year 2019-20:

1. Identify the suitable Income Tax Return (ITR) form

The first step would be to identify the tax return form applicable for an individual taxpayer, as below:

  • ITR-1 (SAHAJ): resident and ordinarily resident (ROR) individuals having total income of up to ₹50 lakh, having income from salaries, one house property, income from other sources and agricultural income up to ₹5,000.

Non-residents cannot file ITR-1, irrespective of their source or quantum of income.

  • ITR-2: Individuals not having income from profits and gains of business or profession (who cannot use ITR-1).
  • ITR-3: Individuals having income from profits and gains of business or profession.
  • ITR-4 (SUGAM): Individuals, and firms (other than LLPs), being a resident, having total income up to ₹50 lakh and having income from business and profession computed under the presumptive taxation scheme.

2. The foremost precaution is to file the return of income on or before the due date. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income/ Loss (other than house property loss):

a. Losses cannot be carried forward.

b. Levy of interest under section 234A.

e. Late filing fees under section 234F

Late filing fees under section 234F is levied for return filed from A.Y 2018-19 onwards. Late filing fee of Rs. 5,000 shall be payable if return furnished after due date but before 31st December of the assessment year. In other cases, late filing fees of Rs. 10,000 is payable. However amount of late filing fees to be paid cannot exceed Rs. 1,000, if total income does not exceed Rs. 5 Lakh.

d. Exemptions under section 10A​, section 10B, are not available.

e. Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, are not available.

f. Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available. (From A.Y 2018-19)

g. Belated return cannot be revised under section 139(5) till A.Y 2016-17. However, from A.Y 2017-18, even a belated can be revised by the taxpayer.

3. Taxpayer should download Form 26AS and should confirm actual TDS/TCS/Tax paid. If any discrepancy is observed then suitable action should be taken to reconcile it.

4. Compile and carefully study the documents to be used while filing the return of income like bank statement/passbook, interest certificate, investment proofs for which deductions is to be claimed, books of account and balance sheet and P&L A/c (if applicable), etc.

5. No documents are to be attached along with the return of income. The taxpayer should identify the correct return form applicable in his case. Carefully provide all the information in the return form. Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.

6. Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.

7. After filling all the details in the return of income and after confirmation of all the details, one can proceed with filing the return of income. In case return is filed electronically without digital signature and without electronic verification code do not forget to post the acknowledgement of filing the return of income at CPC Bangalore within 120 days of filing return of income.

For further clarification and professional assistance, feel free to contact at sandeeprawatca@gmail.com

(Mr. Sandeep Rawat has vast experience & knowledge in dealing with Direct and Indirect Taxation.  He can be reached at  sandeeprawatca@gmail.com)

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Mr. Sandeep Rawat brings more than 5 years of broad and progressive experience as a strategic business partner in addition to being an expert in taxation.he has vast experience in conducting financial audits and tax planning of government corporations, private industries, foreign companies, NGOs, ba View Full Profile

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