Are you earning salary income?
Then you must have thought, at least once in your career, that since TDS is already deducted so I don’t have to file income tax return.
This is a very common notion among-st salaried individuals like you & me.
And because of this, many of us do not file income tax return.
The result knocks on our doorstep in the form of penalty notice from the income tax department.
Income Tax Act states that if total income before deductions exceed basic exemption limit. Then IT return is required to be filed compulsorily.
The basic exemption limit for an individual below 60 years of age to file return is ₹2,50,000. For 60 years or more but below 80 years it is ₹3,00,000 & for 80 years or more it is ₹5,00,000.
Actually, it doesn’t matter whether your employer has deducted tds on salary 2018-19 or not.
If your total income exceeds basic exemption limit then you need to file ITR.
Now you must be thinking, this will make you pay tax twice!
Here income tax Form 16 online comes to your rescue. It is TDS certificate issued by your employer.
Form 16 is an acknowledgement of the tax deducted from your salary & deposited with the government.
Using Form 16, you can reduce total tax liability up to the amount of tax deduction by employer.
If not Form 16, you can also refer to Form 26AS.
Although Form 16 is specific to salaried individuals, for all incomes on which TDS is deducted you can see Form 26AS.
What if I still do not file ITR?
Well, we Indians are famous for being curious & to look into negative aspect of everything.
In case you do not file ITR, which you are compulsorily required to, then be ready to receive notices from assessing officer.
Penalty notice u/s 234F will welcome you first. 234F is a new insertion due to recent amendment in income tax. This will make you liable for late filing fee up to ₹10,000 depending upon your total income as per income tax act. You surely don’t want such dent in your bank account. Refer to our guide for more details.
Sec 276CC will knock your door next. If amount of tax evasion exceed ₹25 lacs then you can be imprisoned for minimum 6 months & up to 7 years alongwith fine. In other case, imprisonment period will be minimum of 3 months & up to 2 years with fine.
Do you still want to take the risk?
We highly recommend you to file ITR well before time & avoid any penalty or prosecution.
To know which ITR becomes applicable on you, refer to our guide.
Also, even if you are not crossing the basic exemption limit. Filing income tax return will prove very beneficial for you.
You don’t believe us? Read this blog & we bet you’ll file ITR within no time.
We at Tax2Win provide online tax filing services to make your tax life simple & easy. Just get in touch with our eCAs to file your ITR now.
For more such e filing tips, keep following our blog & social media pages. Happy Filing 🙂