Bhubaneswar, July 20: It is that time of the year when we have to file our income tax return based on the earning during the previous financial year.
India follows the April to March financial year and hence the process of filing the return and payment of any tax dues this year is being filed for the earnings between 1 April 2018 and 31 March 2019.
The Income Tax rules mandate that citizens compute their taxable income and pay income tax as per the rate applicable to the central government.
Following are nine important points that every Odisha taxpayer should take care of before filing the Income Tax Return (ITR).
1. Income Tax Return or ITR is the tax form which is used by taxpayer to file information with respect to the sources of income, personal details, income details and tax liability.
2. There are seven different types of ITR forms that need to be selected based on the sources of income, amount of income and the category of the tax payer. The ITR form of an individual assesse is different from a corporate assesse. For salary income you can choose ITR 1 or ITR 2.
3. The taxpayer has to assess his income correctly and club all income earned from various sources, including income from salary, rental income, earnings from business and professional services, capital gain and interest on bank deposit.
4. Collect TDS certificate or Form 16 from organisations and individuals who have deducted tax before making a payment to you, including your employer and match it with your 26AS available on the income tax site after you log in.
In case of any variation immediately contact the one who has made tax deduction.
5. Individual taxpayers are eligible to get rebate in Income Tax base on certain investment, expenses and payment of insurance premium U/s 80C, U/s 80D etc. Collect your documents and report correctly to avail the maximum benefit.
6. Small business man and professional can avail the advantages of presumptive taxation scheme under section 44AD and 44ADA respectively.
7. Report all your exempted income like the dividend.
8. After submitting the Income Tax return, the taxpayer has to e-verify the return through OTP delivered on mobile linked to the Aadhar Account or other mode. The other option is to sign the printed ITR-V and send it to CPC Bangalore.
9. File your return before the due date to avoid penalties and interest. Due date for Individual taxpayer whose accounts are not subject to audit is 31 July 2019, while the date for individual tax payer whose accounts are subject to audit is 30 Sept 2019.
*Sitaram Beria is a Bhubaneswar based chartered accountant. He can be reached at email@example.com .The views expressed are his own.