If you wait till the last minute to file your returns, you may commit mistakes in a hurry and will have to file a revised return. There are several amendments for the AY19. To be on the right side of the norms, take a look at some important changes to ensure an error-free filing well within the July 31 deadline
Change in tax slabs | The income tax slab rates have changed for the AY19. For individuals with taxable income between Rs 2.5 lakh and Rs 5 lakh, 5 percent rate would apply. The tax slab of 20 percent remains the same for individuals earning Rs. 5 lakh to Rs 10 lakh, and 30 percent for income above Rs 10 lakh.
Amendments in House Property | For individuals with more than one house property, the deduction under Section 24B on interest paid on the home loan has been restricted to Rs 2 lakh, compared to previous AY where the entire amount was allowed as deduction. Also, setting-off loss from house property has been restricted to Rs 2 lakh in a financial year and the remaining loss can get carried forward for the next eight years. Earlier, the complete loss from house property was allowed to be set-off without a ceiling.
Amendments in Capital Gains | Earlier, the holding period to claim long-term capital gain tax on immovable property was three years, but from AY19 the holding period has been reduced to two years. Also, the base year for indexation for ascertaining LTCG has been revised to 2001 from 1981.
Computation of Total Income | From AY19 a 10 percent surcharge will be applicable if the total income exceeds Rs 50 lakh up to Rs 1 crore. If the income exceeds Rs 1 crore, a surcharge of 15 percent will be applicable. Also, Section 87A earlier provided a rebate up to Rs 5,000, but the same has been slashed to Rs 2,500.
Changes in ITR forms | Sahaj or ITR-1 form will now require additional details related to salary break-up such as details of perquisites, allowances etc. It would also require detail of income from the property including rental income, tax given to local authority, etc. Also, in the new ITR form details of the exemption under section such as Sec 54, 54 B, 54 EC, 54 GB, etc have to mentioned separately in relevant columns. ITR 4 has also changed, as it would now need additional details such as secured/unsecured loan details, fixed assets, capital account, etc.
GST declaration | From AY19, taxpayers have to specify the exact turnover details mentioned while filing Goods & Services Tax. Taxpayers also need to mention the GST detail in ITR.
Other important things to keep in mind | While filing your returns, you would also require time to verify your tax deducted at source details in Form 26AS. Any mismatch should be brought to the notice of your employer. Keep all important documents handy while filing returns to save time and to keep errors away. Claim all tax benefits and deductions properly -even the ones you forgot to mention in your tax declaration. Take note of important details like interest earned from recurring deposits and fixed deposits, which are fully taxable at the applicable slab rates. Interest earned up to Rs 10,000 from savings bank account is exempt under Section 80TTA.
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