It is always wise to complete all your tasks well before time and filing ITR is one such event that falls due every year and if you want to avoid last-minute hassle, the time is just right to get it done. But remember the changes listed below before arriving at your taxes for the financial year-2017-18 (AY-2018-19) and file your ITRs accordingly:
1. For the salaried concern, the slab rate for individuals in the income bracket of Rs. 2.5-5 lakh has been reduced from 10%-5%. For all other slabs, the rate of income tax stands unchanged.
2. The tax-rebate amount as well as the limit has been reduced from the earlier Rs. 5 lakh to current Rs. 3.5 lakh mark. Also the amount of rebate stands reduced at Rs. 2,500 as against Rs. 5000 earlier.
3. For income above Rs. 50 lakh in a year, ITR 2 has to be filed with more disclosures.
4. In case, the taxable income exceeds Rs. 50 lakh bracket but falls below Rs. 1 crore then a surcharge @ 10% is applicable. In case the income is over Rs. 1 crore then surcharge levy is @ 15%.
5. Also, beginning this AY, a restriction now applies when it comes to setting-off losses on the rented property or a deemed to be let-out property as now such loss can be adjusted only to the tune of Rs. 2,00,000 against other income in the same financial year. Any loss over and above this value can be carried forward for set-off against income from house property over the course of following 8 years.
6. In case of long term capital gains from immovable property, a relaxation has been made in respect of the holding period from 3 to 2 years for the purpose of computing long term capital gains. Also, in case of LTCG on property, the change in base year for the purpose of indexation has been notified which now is April 1, 2001. Also in respect of the same, cost inflation indexes or CII are also notified.
7. If you miss the current deadline of filing ITR then an amount of Rs. 5000 will be levied if return is filed by December 31, 2018 and if it is filed even after that then the penalty amount will be Rs. 10,000. Taxpayers with total taxable income of upto Rs. 5 lakh will have to dole out a penalty charge of Rs. 1000 in case they miss the tax filing deadline.
Also remember, tax filing forms have gone through a make over for this year and taxpayers will be scrutinised in an in-depth way as they need to give in more disclosures on a number of front and instead of net values need to now report gross income together with other alllowances and perks.