Income Tax Filing is the process of declaring your taxable income, deductions, and tax payments for the applicable FY. The last date for filing ITR is usually 31st July of the applicable AY. However, it was extended till 31st August for AY 2019-20, i.e. for FY 2018-19. Filing ITR is an annual affair, but most of us postpone it till the last date sometimes with less than desirable consequences.
But don’t worry, we got you covered! In the following sections we will provide a short last-minute checklist to ensure an error-free ITR filing experience.
- Select the relevant ITR Form
Possibly the most common error when filing your Income Tax Return is choosing the wrong ITR form. The following are some pointers to help you choose the right one –
| ITR Form | For whom | Total annual income | Sources of income | Sources of income should not include | Not applicable for |
| ITR-1/ Sahaj | Individuals | Less than Rs. 50 lakh | Salary/pension, 1 (single) house property, other sources, including interest, dividend | Windfall sources (lottery and gambling), capital assets. Agricultural income cannot exceed Rs. 5000. | Company directors, HUFs and individuals with unlisted equity share investments. |
| ITR-2 | Individuals and HUFs | Both less thab and More than 50 lakh | Salary/pension, 2 or more house properties, capital gains, foreign assets, windfall sources (lottery and gambling). Agricultural income can exceed Rs. 5000 | Business/ profession | Those who are eligible to file ITR-1 and those with income from gains/profits from business. |
| ITR-3 | Individuals and HUFs with income form business/ profession | More than Rs. 50 lakh | Profits/gains from Business/ profession of the partnership firm (including LLP), capital gains, salary/ pension, house property, windfall sources (lottery and gambling). | Proprietorship firm | Those who are eligible to fill ITR-1, ITR-2 or ITR-4. |
| ITR-4/ Sugam | Individuals, HUFs, professional consultants and firms (except LLPs) with income from business/ profession | Less than Rs. 50 lakh | Business/ profession, salary/ pension, 1 house property | Unlisted equity shares, windfall sources (lottery and gambling) | Company director |
2. Organize the required documents
Make sure that the following documents are readily available at the time of ITR e-filing:
- Permanent Account Number (PAN)
- Aadhaar
- Form 16 from your employer. You can have multiple Form 16-s (tax statements) for the financial year owing to job change within the applicable FY.
- Interest statements showing interest earned on savings bank account and fixed deposits
- TDS certificates
- Proof of tax saving investments/expenses (80C to 80U)
- Other investment documents, such as statement of interest paid on education/ house loans, etc.
- Profit and loss statement (if self employed).
3. Link your PAN and Aadhaar
PAN and Aadhaar must be linked on or before filing ITR for FY 2018-19. This can be easily done through ITR filing portal of the income tax department. As per central government’s notification dated March 31st, 2019, PAN will become invalid if not linked with Aadhaar by the deadline in AY 2019-20.
4. Match your tax details with Form 26AS
Form 26AS is an annual integrated tax statement reflecting details of taxable income and tax deductions made by various deductors such as your employer, bank, etc. You can easily download Form 26AS from the TRACES website. Please note that the amount mentioned in TDS certificate must match with the entries made in Form 26AS to ensure that the tax deducted is also deposited with the government.
5. Verify your return
It is important to verify your return otherwise your ITR filing will be invalidated. You can opt for either physical verification or e-verification.
- For physical verification you need to print a copy of ITR-V (Income Tax Return Verification form) that should be signed in blue ink, and the physical copy sent to the Centralized Processing Centre (CPC) Bengaluru via ordinary post within 120 days of filing ITR.
- Alternatively, you can complete e-verification within 120 days of ITR filing through several modes, including Internet banking, bank ATM, bank account number, Demat account number, and aadhaar OTP.