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Income Tax Filings by Individuals

Income tax filing is a proof that one has paid the income tax of that financial year. It contains the details about your annual income and the amount of tax one has paid. Each and every individual who is a resident of India must and should file the income tax. Regular income tax filings will enhance your credibility. Paying the income tax on time will help you to be in the good books of the financial institutions like banks. It is very useful when an individual applies for a loan since one need to submit a copy of the IT returns when applying for loans.

Tax is a central element that generates revenue to the Government. Among the various types of taxes present in the system, income tax is the one that deals with the taxation of the earning of every individual, firm or an organization.

IT filing in India is applicable to any individual who is earning some form of income or the other. The source can be by the way of salary, rental income, income from a business or profession, income from capital gains etc.

History of taxation:-

It is a general belief that taxes on income and wealth are of recent origin. But sufficient evidence shows that taxes on income existed even in ancient times. The origin of the word “Tax” literally means an estimate. Nearly 2000 years back, there went out a decree from Ceaser Augustus saying that the entire world should be taxed. In Greece, Germany and Roman Empires, taxes were also levied sometimes on the basis of the turnover and sometimes on occupation. Revenue from taxes went to the Monarch for many centuries. Taxes were levied on land and on movable property in Northern England.

In India, the system of taxation has been in existence in one way or the other even from ancient times. There are instances in Manu Smriti and Arthasashtra to a variety of tax measures. An ancient sage by name Manu said that the king can levy taxes according to the Sashtras. The sage also mentioned that the king should arrange for the collection of taxes in such a manner that the subjects and his people did not feel the pinch of paying the taxes. In ancient times, taxes were paid by way of gold coins, cattle’s, grains etc.

The changes that have taken place during the last few decades reflect the history of socio-economic thinking in India. Computerization of the Income Tax department started in the year 1981 in the metropolitan cities. Now with the Government going for ‘Digital India’ initiative, every nook and corner of the country has been computerized. So one can proceed with the income tax filings through online which is simple and hassle-free. Don’t you think so?

Benefits of filing income tax return on time:-

  • Citizens can forgo the penalties which vary for the taxpayers. For example, in the current financial year, the government has fixed a penalty of Rs.5000/- for late filing of IT returns from 1st August 2018 to 31st December 2018. Individuals filing their returns after 31st December 2018 to 31st March 2019, has to pay a penalty of Rs. 10,000/-.
  • Individuals can earn an interest of 0.5% if they claim for a refund on the excess of tax paid in case the income tax department delays in the payment of the refund.
  • By filing an income tax return on time, one can avoid the burden of being charged with interest for late filing.

The chart given below shows the income tax slabs rates for individuals and companies.

Tax slab rates for individuals (less than 60 years old) for FY- 2018-19

Income tax slabsTax rateHealth and education cess
Income up to Rs. 2,50,000No tax
Income from Rs. 2,50,000 to Rs. 5,00,0005%4% of income tax
Income from Rs. 5,00,000 to Rs. 10,00,00020%4% of income tax
Income more than Rs. 10,00,00030%4% of income tax


Tax slab rates for senior citizens (Above 60 years but less than 80 years) for FY – 2018-19.

Income tax slabsTax rateHealth and education cess
Income up to Rs. 3,00,000No tax
Income from Rs.3,00,000 to Rs.5,00,0005%4% of income tax
Income from Rs.5,00,000 to Rs.10,00,00020%4% of income tax
Income more than Rs. 10,00,00030%4% of income tax


Tax slabs rates for senior citizens (80 years and above) for FY- 2018-19.

Income tax slabsTax rateHealth and education cess
Income up to Rs. 5,00,000No tax
Income from Rs. 5,00,000 to Rs.10,00,00020%4% of income tax
Income more than Rs. 10,00,00030%4% of income tax


Tax slabs for domestic companies for FY – 2018-19.

Turnover ParticularsTax Rate
Gross turnover up to Rs. 250 crore in the previous year25%
Gross turnover exceeding Rs. 250 crore in the previous year29%


Documents that one needs to produce to file the income tax returns:

Listed below are the documents that are needed to file your income tax returns.

  • Form 16
  • Statement 26AS
  • Capital Gain Tax
  • Home Loan Statement
  • Income Tax login details
  • Aadhaar Card
  • PAN card
  • Details of savings bank account

Keeping these documents handy will make it easier for you to file your income tax returns.

How to check the status of your income tax returns?

After filing the returns and duly verified by the authorities, one can check the status of the IT filing online. Your account with the IT department will show ‘ITR Processed’ once it has been processed. Get yourself familiarized with some of the terminologies with regard to Income tax filings.

  • Successfully e-verified – This means that your returns were submitted on time and they have been duly verified by the IT department.
  • Processed – This means after your IT returns are e-verified, the department has successfully processed them after finding no discrepancies.
  • Defective – This means there are some discrepancies in your returns and the same has to be rectified within 15 days from when you receive the notice.
  • Case transferred to Assessing Officer – This means that your returns have been transferred to the jurisdictional assessing officer for processing. Till then one has to wait for a communication from the officer and then explain the discrepancy.

Income Tax Returns – Explanation on the Forms:

Get to know the various forms that are available for the purpose of income tax filing.

  • ITR-1 Also known as SAHAJ deals with the income of an individual with salary or pension, income from house property, any other sources excluding income from lotteries and race horses.
  • ITR-2 Applicable for individuals or Hindu Undivided Family (HUF) having any other income other than profits and gains of business or profession.
  • ITR-3 Applicable for individuals or Hindu Undivided Family (HUF) having income sources from profits and gains of business or profession.
  • ITR -4S Also known as SUGAM, it is applicable to individuals and HUF’s opting for presumptive taxation scheme under Section 44AD and 44AE.
  • ITR-4 Applicable for an individual or a HUF carrying out a proprietary business or a profession.
  • ITR-5 This form is applicable for Limited Liability Partnership, Association of Persons, Body of Individuals, artificial juridical person, co-operative society and local authority. This, however, does not include trusts, institutions, and political parties. They are required to file the return of income under Section139 (4A) and 139(4B).
  • ITR -6 This form is applicable to companies other than the ones which claim a deduction under Section 11.
  • ITR-7 Applicable to all entities who should furnish a return of income under Section 139 (4A), 139 (4B), and 139 (4C).
  • ITR – V This is an acknowledgment form of filing a return of income.

IT filings in India has witnessed robust growth in recent times. About 75 lakh new tax filers have been added to the income tax payers list in the country. The Indian economy is growing at a rapid pace. Taking into consideration the increased economic activities both in organized as well as unorganized sectors, the scope is wider when it comes to income tax filings.

So if you have not filed your IT returns, it’s high time you do it at the earliest without any further delay. Stay relaxed if you have already filed your IT returns else, be prepared to face the consequences.


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