Assessment year is the year following the financial year, in which your income is assessed. This also lasts from 1 April to 31 March and is the year in which you file your income tax returns for the taxes paid in the relevant
financial year. The deadline to file an income tax return (ITR) for the financial year 2018-19 has been extended to August 31. Although you have more time, filing your return before the deadline comes with certain benefits such as carry forward of losses, you will also avoid paying late filing fees. If you file your ITR after the deadline you will have to pay late filing fees of up to Rs 10,000.

  1. Collect required documents such as TDS certificates (Form16/16A),
    capital gains statement The first step is to collect all the documents you will need to file your ITR such as Form 16, salary slips, and interest certificates. The documents will help you compute your gross taxable income and will provide you the details of tax deducted at source (TDS) from your income in FY 2018-19.
  2. Download and check Form 26AS Form 26AS is your tax passbook which consists of all the details of the tax that has been deducted from your income during the FY 2018-19 and deposited against your PAN. You must cross-check your TDS certificates with Form 26AS to ensure that tax deducted from your incomes such as salary, interest etc is deposited with the government and against your PAN.
  3. Rectify the errors in Form 26AS, if any If the amounts shown in the TDS certificates (Form-16, Form-16A etc.) and Form 26AS do not match, then you must take up the matter with your deductor to get the errors rectified. The deductor can be your employer, bank
    or others and request him to correct the details.
  4. Compute total income for the financial year Once you have collected all the documents needed and verified all the taxes that are deducted from your income, you are required to compute the total income chargeable to tax. Total income is computed by adding incomes from five different heads and claiming all the relevant deductions allowed under the Income-Tax Act and setting off losses, if any.

Now, everyone has to file ITRs digitally except for super senior citizens (that is those aged 80 years and above) who are allowed to file their ITR in paper
format. To file ITR electronically, one must be registered on the e-filing website of the income tax department. To register on the e-filing website of the income tax department Once you have registered yourself on the e-filing website, here is a step-by-step guide on how to e-file your ITR.

Also, read What is P/E ratioNRI Tax BenefitWhat is Financial Management and Tax slabs in india

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