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Why file income tax?


Posted on : 05/Apr/2019 17:14:01

Are you a tax payer? If you are earning a sum and liable for tax payment, you need to make a note of these dates in your calendar in order to make prompt payments. Whether you are self-employed or working in a company as a salaried employee, you ought to plan out your tax liabilities and get ITR filed on time.

With this income tax calendar, you will be able to track down the important dates. However, prior to getting into the topic, you need to understand the main difference between assessment year and financial year.

Financial year is the time between 1st April and 31st March. In case of the time between 2018-19, the financial year is between 1st April 2018 and 31st March 2019. So, the Income Tax Return filing should be filed before 31st of July 2019.

Assessment year is the year next to financial year. This is when you assess all your taxable income and pay out the tax pertaining to the previous year. So, during the assessment year 2019-20, tax filing should be done for all the income generated during the financial year 2018-19.

Coming on to the original topic of tax calendar now, you need to strategically plan your tax investments as the financial year has begun. This may be in the form of tax saving FD, savings schemes linked to Fixed Deposits, PPF, etc. It is good that you do it earlier than to rush at the year end. The very important date to remember in a financial year is 31st July.

July 31

This is the last date to file Income Tax Returns.

The last date for income tax pertaining to financial year end 31st March will be 31st July during the same year. When the total income before deducting is Rs 2.5 lakh, you ought to pay your returns.

What is basically tax return? It is nothing but a declaration to the income tax department about your total sum of income in the previous financial year along with the taxes that are paid as TDS. In case you have paid more of tax, you will be eligible for claim.

Who need not pay tax by 31st July? Tax is not to be paid for those non-corporate assesse who has got book of accounts whose files get audited as per income tax provisions.

And those whose accounts are audited according to the income tax provisions.

As per section 92E, the tax payer must compulsorily furnish reports.