Can ITR filing ever be a breeze?? Well surely it can be, if, we start preparing for it timely. So, the next ques arises, what is the good time to start preparations? There is no fundamental law which can notify such time. However, for the sake of understanding we can presume earlier is better.
The due date of Income tax return filing for FY 2017-18; AY 2018-19 is 31st July 2018, for non audited cases. But, it will be wise to start arranging for information and documents now onwards to have a hassle free tax filing experience.
What are the benefit of pre arranging such information when filing date is too far?
Collecting and sorting all relevant information well in advance will ensures the following benefits:
- Saving late filing fee u/s 234F
From FY 2017-18, returns filed after due date i.e. 31st July 2018 will attract fee under section 234F. Fees will be levied at following rates :-
- If return is filed after 31st July but on or before 31st Dec = Rs 5,000/-
- If return is filed after 31st Dec till 31st March = Rs 10,000/-
- But, in case your total income is upto Rs 5 lakhs, fee shall not exceed Rs 1,000/-
- Error Free Filing
Arranging for documents beforehand will give you sufficient time to scrutinize and look after deficiencies in the information. Which will ultimately result in error free filing thereby saving time and cost.
- Saves Last Minute Rush
Haphazard last minute rush to arrange for documents is a common activity witnessed in India. Pre arrangement can save from such panics.
- Easy Filing
If you have all documents ready before filing ITR, it will ensure easy and quick filing.
- Reduced time limit for Belated Return
You might be well aware that since FY 2016-17 the time limit to file belated returns has been reduced. But, now returns can be filed only upto the end of assessment year. Which means return for AY 2018-19 can be filed only till 31st March 2019
How can we arrange for information now??
A doubt must have arisen in your minds how can we arrange for information so much in advance. Well your thought is quite legitimate because you will receive form 16 by mid June approximately, also your last quarter’s TDS deducted will not be reflected in your 26AS so soon etc. But, still there are numerous informations which you can start arranging just after finish reading this blog. Some of which are explained underneath :
Income from other sources
You can always make concrete tracking of salary income through your Form 16 or salary slip. But doing so for income earned from other sources is a difficult activity. Obviously, at the nick of time while filing ITR it will even be more tedious task. So, it is advisable to calculate all your income arising from other sources like side activities such as coaching, boutique, consultancy, interest income etc beforehanded.
If you have a flair of dealing in shares or securities market. Pre arrangement of documents is specially a vital thing. Dealing in shares attracts implication of capital gain taxes. So arrange for the summary statement from broker or your contract notes, either hand it over to your tax expert timely or if you feel comfortable with self filing of taxes start making computations now. Starting now will allow you to make best use of applicable provisions.
If you are paying rent for dwellings. And, in case you have not already submitted rent receipts to your employer. Get them now to avail the benefits while filing return for the FY 2017-18. If you do not get rent receipts from landlord. Try generating some with our free tool.
Calculate Rent Received
Quite possible that you might have rented out one of your house property. The rent so received shall be added in your taxable income earned during the year. It would be favourable to add up all such income inflows earned during the year today it self. This will result in less clerical errors and accurate results.
TDS for Previous Quarters
Yes, your last quarter TDS deducted will not yet be reflected in 26AS at this point of time. Still, you can cross check the TDS deducted and corresponding incomes for previous quarters well in advance.
If you have either availed housing or education loan during FY 2017-18, arrange for their statements. Arranging for statements in itself is a time consuming activity. After making sure, the availability of these statements you can proceed with calculation of amount which can be claimed as deduction respectively.
Proof of Investments made
We tend to make tax saving investments throughout the year. Collecting proof of all such investments now onwards will assist you determine the exact amount invested and the deductions admissible against them. Examples of such investment proofs are LIC premiums paid, amount deposited in PPF etc which are eligible for deduction under chapter VIA.
Estimate your tax liability
Calculate if you still have any tax liabilities payable. Estimating the amounts now will help you manage your funds better. Crash crunch situations or situations relating to not claiming of any eligible allowances and deductions can be avoided by estimating your tax liabilities before the due date. Also, the add on advantage to this being you can take the experts help if necessary.
Details of tax deductible expenses
Check the income tax deductible expenses which you have incurred during the year. Such expenses might include amount paid for Children’s tuition fee added to threshold exemption of section 80C , expenses made on preventive health check ups eligible for deduction up to Rs 5000/- u/s 80D etc.
Ascertain whether donation made by you are eligible donations or not . Not all donations are allowed as deduction under section 80G. Only those donations which are notified are allowed to be made claim of. For claiming the donation, you need to quote PAN of the donee. So ask for donation receipts if you have not got them saved earlier.
Confirm your exempt incomes earned during the year. These incomes may include saving bank account interest earned, or other exempt interest accrued like PPF interest etc.
Keeping in view the above illustrative actions it would be apt to say that, pre managing your tax filing is a secured and comfy route to be followed. Adhering to such parameters will ensure timely and accurate compliances of law. You can too avoid levy of fee u/s 234F and filing ITR timely through these prearrangements. So don’t waste time and start preparing for your taxes now. For any further assistance on this matter or help with computation or filing your taxes, Contact our team of experts now!!