Penalty on late filing of Income Tax Return Starting from April 1, if you file your ITR post the deadline of July 31, 2018 (unless the tax department extends it), you will be liable to pay a maximum penalty of Rs 10,000.

By on 13-11-2018

ITR 2018-19: WHY SHOULD YOU FILE YOUR RETURN BEFORE DUE DATE

Penalty on late filing of Income Tax Return Starting from April 1, if you file your ITR post the deadline of July 31, 2018 (unless the tax department extends it), you will be liable to pay a maximum penalty of Rs 10,000.

 As per the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date but before December 31 of that year and Rs 10,000 post December 31. However, as relief to small taxpayers, if your income is not more than Rs 5 lakh, the maximum penalty levied will be Rs 1,000.

Reduction in the time limit to revise your ITR Apart from penalty on late filing of ITR, if you make a mistake while filing for FY2017-18, then you would have time till 31 March, 2019 to file your revised return.

Medical reimbursement and transport allowance to become taxableIf your salary includes medical reimbursement and transport allowance, then these two items will become fully taxable in your hands from April 1. The proposal was announced in Budget 2018.

 Until and including FY 2017-18, income tax laws allowed transport allowance up to Rs 19,200 and medical reimbursement up to Rs 15,000 in a year to be claimed exempt from tax. Medical reimbursement was tax-exempt only if the actual bills were submitted to the employer but transport allowance did not require submission of bills.

 However, in lieu of the above allowances, standard deduction of Rs 40,000 from salary and pension will be available. You can claim this deduction next year for FY 2018-19 (assessment year 2019-20) at the time of filing ITR.

 GENERAL DOCUMENTS REQUIRED FOR FILING ITR :

• Pan card No.
• Date of Birth
• Fathers Name
• Form 16/16A Copy
• All Bank account details with Branch & IFSC Code
• Summarized Bank Statement
• Interest received in Saving Bank Accounts
• Share Trading/Mutual Fund Redemption Gain statements.
• Exempted Income details like PPF Interest, Dividend, etc
• Proofs of Deduction under Sec 80C, 80D,etc
• Mobile No.
• Email Address
• Postal Address