The government has notified the new income tax return (ITR) forms for FY2018-19.But before you sit to file your return, there is one thing you need to ensure – pick the right form. If you file your come exploitation the incorrect type, then it will be considered defective.
The basic ITR type for many salaried folks is ITR-1. The new ITR-1 type is applicable for salaried people with total income up to Rs 50 lakh from earnings, one house property, and other sources such as interest income, etc. But did you know that not all resident salaried individuals are eligible to file ITR 1? That is right.
There are sure things where ITR-1 will not be applicable to salaried individuals for the financial year 2018-19 or assessment year 2019-20.
Here are those scenarios.
1. If your total income is over Rs 50 lakh;
2. If any income arises from more than one house property;
3. If your agricultural financial gain exceeds Rs five,000 per year;
4. If you are a director of a company;
5. If you have control any unlisted equity shares at any time during the financial year;
6. If you want to claim a deduction against “income from different sources” (other than family pension).
This can include the activity of owning and maintaining race horses, or winning a lottery;
7. If any resident and ordinarily resident of India has assets (including financial interest in any entity) outside India or signing authority in any account located outside India. Basically, having income from any source outside India.
8. If you have received dividend financial gain taxable at special rates (example extraordinary Rs ten hundred thousand each year from Indian companies);
9. If you’ve got received financial gain from capital gains (short-term and long-term);
10. If you’ve got claimed relief of foreign tax paid or double taxation relief below section ninety and/or section 91;
11. If you’ve got attained financial gain below the pinnacle business and profession;
12. Residents not ordinarily residents and non-residents cannot file returns using ITR -1.
What should individuals do in such a scenario?
A resident salaried individual with financial gain solely from earnings but Rs fifty hundred thousand a year are eligible to file ITR -1. However, if the salaried individual, to boot received financial gain from any capital gains and/or has received financial gain from agricultural sources, then he/she is not eligible to file ITR-1 for FY 2018-19. Instead, these salaried people have to be compelled to file victimization another ITR type.
Suppose, if you’re a salaried individual and have further financial gain solely from agricultural sources that is over Rs 5,000 throughout the fiscal year 2018-19 then, in such a case, you would like to file ITR-2 rather than ITR-1.However, the person would need to meet different eligibility conditions of filing ITR-2.
If you’ve got created capital gains throughout the year, you must use ITR-2.Those who have financial gain from over one house property also will need to use ITR-2.And if you’ve got created any style of business financial gain, then you should use ITR-3.”However, in any condition, you cannot file two ITR forms.
Points to note:
You must understand that the last date of filing income tax return for the fiscal year 2018-19 is July 31, 2019.This date is applicable for individuals, Hindu Undivided Families, and those individual taxpayers whose accounts are not required to be audited.
However, if you miss the last date of filing ITR, then you can file belated ITR for FY 2018-19, the deadline for which is March 31, 2020. Do note that if you file a late come, then you will need to pay a penalty for late filing.