All You Need to Know About ITR for Financial Year 2018-19

Moneyम्जी, how to know if I need to file my ITR for Financial Year 2018-19?

Moneyम्जी: Good question, buddy! Let me tell you a bit about it.
If you are an Individual or HUF, and your gross total income i.e. income from all sources without reducing any deductions crosses the basic exemption limit for the respective assessment year, you need to file an ITR for Financial Year 2018-19.

Basic Exemption Limit (For FY 2018-19)
₹ 2,50,000 – For individuals up to 60 years of age
₹ 3,00,000 – For individuals between 60 – 80 years of age (Senior Citizens)
₹ 5,00,000 – For individuals above 80 years of age (Super Senior Citizens)

Hence, if your total income crosses the basic exemption limit for an FY, you will have to file your income tax return.
Other than this, if you meet any of the conditions listed below, you have to compulsorily file an income tax return even if your total income is less than the basic exemption limit –

1. A company or a firm (even if having losses or nil income),
2. A resident having any asset (including financial interest in any entity) located outside India, or
3. A resident and signing authority in a foreign bank account, or
4. If you have exempt long-term capital gains from the sale of equity shares in a company or sale of a unit of equity oriented mutual funds, or sale of a unit of a business trust, of more than Rs 2.5 lakhs in a financial year.
5. If you have received any income from sale of a property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust,
6. A foreign company taking treaty benefit on any transaction made in India.

Ok Moneyम्जी, understood. When do I need to file my ITR?

Buddy, last date to file your ITR for FY 2018-19 without late fees is 31st July 2019.
However, if you require a tax audit under section 44AB of the Income Tax Act, 1961, you need to file the income tax return for the financial year 2018-19 before 30th September.

Moneyम्जी, I am a freelancer and clients have deducted my TDS. Can I claim a refund of that?

Yes, if your TDS is deducted, and more TDS has been deducted than your tax liability, you can claim refund only if your ITR is filed.

Moneyम्जी, my employer has deducted TDS from my salary. Should I still file ITR?

Yes, if your total income (income from salary + any interest or rent income) etc. is more than the basic exemption limit, you have to compulsorily file ITR even if your employer has already deducted TDS. If the employer has deducted more TDS as compared to your final tax liability, you can claim the refund only if you file your ITR.

Ok, Moneyम्जी, got it! But, I want to know if there are there any benefits of voluntary income tax return filing?

Yes, definitely there are benefits of filing voluntary ITR. If you want to apply for Visa or loan in the future, it helps in maintaining a track record of your income. Visa authorities, Banks and other financial institutions ask for the ITRs generally for 3 years to assess your income and loan repayment capability. It comes handy when you have a track record of filing ITR.
In a nutshell, whether compulsory or not, you should file your income tax returns every year since it increases your financial credibility.
If it is compulsory and you don’t file, even Moneyम्जी will not be able to save you from penalties and litigations.
But, Moneyम्जी can definitely help you in filing ITR smoothly before due dates. Moneyम्जी is available for you at [email protected] or on 9711730497.