Budget 2018: 4 things a taxpayer shouldn’t miss

budget image Budget 2018: 4 things a taxpayer shouldn’t miss

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Here are four things that you should keep in mind before filing your I-T returns this year:

1. Your employer deducts TDS from your salary and also issues Form 16 but this does not absolve you of your responsibility to file your I-T return.

2. If you have missed the I-T return filing deadline of July 31, you can still file a belated return within a year. For instance, belated return for the financial year (FY) 2017-18 can be filed by March 31, 2019.

3. Interest in your saving bank account is taxable if the aggregate interest from all such accounts is more than 10,000. If interest is less than 10,000, you still need to report this in your return. If you are a senior citizen, interest up to 50,000 is not taxable from FY 2018-19.

4. Tenants who pay rent of over 50,000 per month must deduct TDS at 5%. But your landlord will get credit for the TDS; you cannot set it off with your tax liability.

Got a notice from the tax department? Before panicking, find out exactly why the notice has been sent to you:

1. Figure out the type of notice received

Complete v/s limited scrutiny notice: In case of complete scrutiny, the I-T officer may request for any information or documents in connection with your tax return. As the words denote, in a limited scrutiny, the I-T officer raises a few questions

Intimation for processing of I-T return: Check whether all income and taxes mentioned in the intimation match with the return filed and whether any balance tax is payable or a refund is due to you

Adjustment of refund against demand of prior years: Check the reason for which a demand has been raised.

2. Check time limit

Generally, a scrutiny notice is served within 6 months from the end of the FY in which return is filed.

3. Identify the type of response required

The notice will specify whether you can file your response online — on the e-filing portal under ‘E-proceedings’ — or via email. You need to file the response within the time limit set in the notice or else you may need to pay a penalty of 10,000.

 

 

Source by:- economictimes

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