Even if your income doesn’t exceed the tax limit, make sure you file your ITR. Why? An ITA helps boost your credit score and buttress loan sanctioning in future (if needed).
Here is the exemption limit for those having gross taxable income above the following levels:
2.5 lakh – General tax payers
3 lakh – Senior citizens (above 60 years of age)
5 lakh – Super Senior citizens (above 80 years of age)
Gross taxable income is the income before allowing deductions but after treating exemptions like house rent, conveyance and other allowances.
What does an ITR cost?
An ITR filing costs you nothing more than contacting a certified CA who has had atleast 2-3 years of experience. The CA may charge you anywhere between Rs 500-3000 for filing an ITR.
Note: If you befriend a CA, he could give you a good deal. It is because services demand their own price and can be altered as pricing for service is a subjective concept. Try if you want.
Money deposited after demonetisation
The money deposited after demonetisation has to be separately included in the tax return. If you deposited more than Rs 2.5 lakh (the exempt limit for general taxpayers), your return must have a special mention of the amount deposited after November 8.
Note: The income tax department is already having full stock of your bank transactions. If your ITR doesn’t match their data, you might land up in troubled waters.
Penalty: The penalty, however, for under-reporting has been pegged at 20-60% of the unaccounted income.
Levy Surcharge if Income exceeds Rs 50 lakhs
If your yearly income is above Rs 50 lakhs, you will be charged a 15% surcharge over the ascertained tax limit. If you are a female, make sure you get a final rebate of Rs 2000 which will be shown in your Income tax report. Also, the rebate is given after calculating the surcharge.
Aadhar and PAN to be linked with ITR
Do not forget to link your Aadhar with the tax return. It is now a compulsion for all ITR filing individuals to link their ITR with Aadhar cards. In case you have not got your Aadhar card made already, do some before its too late. If you have an Aadhar, link it with your PAN card instantly to avoid any future notices.
However, those not having an aadhar card shall be exempt from adhering to this. But why take risks? Get yourself an aadhar today.
Disclose all assets if earning above Rs 50 lakh
Those having a yearly income of over Rs 50 lakh are required to disclose all their assets in the Balance sheet. Be it land or printers or investments like stocks, etc.
If you are desirous of filing your own Income tax return for past years, you can do so! However, you will only be able to file return prior to the end of one year from the end of the relevant assessment year. Assessment year is the year in which tax return is being filed. E.G: If you are filing tax return in July 2017, assessment year for you shall be 2016-2017. As for the retrospective effect, you can still file returns for the assessment year 2015-16.
