Income Tax Return For Salary Employees

Income Tax Return for salary peoples to fill the Income-tax file. An Income Tax Return is a receipt of salary income earned to calculate tax liability and payment or refund of taxes. Thus, the intent of filing the return is to report our income and taxes paid thereon to the government.

APPLICABLE TO

A person who will get income exceeds the basic exemption limit as specified. To get to know the basic exemption scheme refer to the Income Tax Act,1961, and the applicant is required to file an Income Tax. Now, the primary exemption limit alters by every year. At present the limit is Rs. 2.5 lakhs for individuals with an age limit of less than 60 years, Rs. 3 lakhs for individuals with an age limit of 60-80 years, and Rs. 5 lakhs for individuals for more than 80 years. It is mandatory to file an income tax return if any of the condition is applicable to you.

Income Tax Filling Process

Who is required to file ITR?

As per section 139(1) of the Income Tax Act, 1961, any individual whose total income in the financial year exceeds income tax exemption limit (Rs. 2.5 lakh for FY 19) is liable to file the income tax return. Apart from that any private or public company based out of India or doing business in India, firms, Hindu Undivided Family (HUFs), Association of Persons (AOP), Body of Individual (BOI), etc. are also liable to declare net profits/losses of the year and pay their tax liability by filing ITR.

The Income Tax Department of India has made it compulsory for individuals to file income tax returns. Individuals that need to file income tax returns are as follows:

  • A person with an age lesser than 60 years has an annual income greater than Rs.2.5 lakh.
  • A person with an age between 60 years and 80 years and has an annual income of Rs. 3 lakh or more.
  • A person who is above the age of 80 years and has an annual income of more than Rs. 10 lakh.
  • A company or an organization is bound to file for an income tax return no matter if the company is in loss or profit.
  •  There is a loss that you want to carry forward under the head of income.
  • In a resident Indian has an asset or any financial interest in an entity situated outside the geographic territory of the country.
  • If an individual applies for a loan or a visa, proof of filing tax returns might be required.
  • An individual receives income from property that is held under any kind of trust for charitable purposes or any research association, educational center or any medical center, trade union or any non-profit university.

If a non-resident Indian has his/her income sources from India, then he/she is also liable to pay the taxes and also to file Income Tax Returns.

What are income tax slabs for FY 2018-19?

Income tax slabs for individuals and HUF (less than 60 years old) for FY 2018-19.

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge

Income Tax Slab Rate for Senior Citizens (Age 60 years or more but less than 80 years)

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge

Income Tax Slab Rate for super Senior Citizens (Age 80 years or more)

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge

Partnership Firms

Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at a rate of 30%.

Plus:

  • Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
  • Health & Education cess: 4% of tax plus surcharge

Local Authorities

Local Authorities are to be taxed at the rate of 30%.

Plus:

  • Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
  • Health & Education cess: 4% of tax plus surcharge

Domestic Companies

Domestic Companies are to be taxed at a rate of 30%. However, the tax rate will be 25% if turnover or gross receipt of the company does not exceed Rs. 250 crores.

Plus:

  • Surcharge: 7% of tax where total income exceeds Rs. 1 Crore
  • 12% of tax where total income exceeds Rs. 10 Crore

Health & Education cess:  4% of tax plus surcharge

Income Tax Slab Rate of Co-operative Societies

Plus:

Surcharge: 12% of tax where total income exceeds Rs. 1 Crore

Health & Education cess: 4% of tax plus surcharge

Is it mandatory to file ITR online?

Taxpayers belonging to any of the following class are mandatorily required to file their income tax return only through e-filing mode:

  • Individuals or HUFs having a total income of more than Rs. 5 lakh or having a tax refund claim is mandated to file ITR electronically. However, super senior citizens ( Individuals with 80 or more years of age) filing ITR 1 or 4 have the option to file the ITR manually or electronically.
  • Every company is required to file ITR electronically under digital signature.
  • A firm or individual or HUF whose books of account are to be audited under section 44AB are mandated to e-file the ITR.
  • A person who is required to file ITR-5 or who are claiming tax relief under section 90, 90A or 91 of the Income Tax Act, 1961 are required to file a tax return electronically.
  • A resident taxpayer having assets located outside India are required to submit tax return  electronically

Important Income Tax Return Filing Due Dates for FY 2018-19 (AY 2019-20)

The income tax due dates for the categories of taxpayers are specified below:

Note Central Board of Direct Taxes (CBDT): All the Taxpayers who could not file their Income Tax return the Penalty Levied For late Filing is as follows.

Documents Required for ITR Filing

  • PAN card
  • Aadhar Card
  • Valid Mobile Number & Mail ID
  • Bank statement
  • Interest certificates from banks or post offices
  • Proof of tax-saving investments
  • Form 16 (for salaried individuals)
  • TDS certificate
  • Form 16A/16B/16C

List of documents needs to preserved for claiming deductions: 

A.List of Investments u/s 80C-

  1. Life Insurance Premium receipts
  2. Deferred Annuity receipts
  3. Provident Fund contrition receipts
  4.  Term Deposit for 5 years or more with a scheduled bank -Receipt
  5. Public Provident Fund contribution – Receipt
  6. Senior citizen saving scheme deposit – Receipt
  7. The contribution made to a superannuation fund – Receipt
  8. Tuition Fees – Receipt
  9. Investment in Debentures / Shares of Companies as approved by CBDT – Receipt
  10.  Time Deposit for 5 years with Post Office -Receipt
  11.  Subscription towards Mutual Fund units -Receipt
  12. Principal Repayment of housing Loan/Stamp duty, registration fees & Brokerage for purchase of such house property – Receipt
  13. Others relevant receipts

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