Filing income tax returns (ITR) 2019? How to calculate income tax liability
New Delhi: If you haven’t filed income tax returns (ITR) for the financial year 2018-2019 in March this year, then July 31, 2019, is the last date to file income tax returns. People who have already filed advance tax returns can claim the income tax refunds if the returns filed exceed the total income tax liability for the respective financial year. In order to file income tax returns, an individual is required to collate all the income from different sources and adjust it with the tax breaks allowed by the government under various sections of the Income Tax Act.
The income tax liability can be easily calculated by using the income tax calculator provided by the Income Tax Department. The income tax calculator is available at the Income Tax Department website under ‘tax calculator’ section or by visiting the direct income tax calculator page at https://www.incometaxindia.gov.in/pages/tools/tax-calculator.aspx.
For calculating the income tax liability, a person is required to select the assessment year, taxpayer category, citizenship status (male/female/senior citizen) and residential status from resident India, non-resident Indian (NRI), not ordinary resident Indian.
The Income Tax Department’s income tax calculator is meant for enabling quick and easy access to basic tax calculation to the public and which does not purport to give correct tax calculation in all circumstances. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, rules etc, suggests Income Tax Department.
The other detail which is required to be filled in the income tax calculator includes net taxable income. The fields such as income tax after relief u/s 87A, surcharge, education cess, secondary and higher education cess and the total income tax liability will be filled automatically.
Meanwhile, in the Budget 2019-20, the Union Finance Minister Nirmala Sitharaman has hiked the surcharge for super-rich people. FM Sitharaman has proposed to raise the surcharge for taxpayers having an annual income of more than Rs 2 crore. The surcharge on individuals having taxable income from Rs 2 crore to Rs 5 crore and Rs 5 crore and above have been hiked by 3 per cent and 7 per cent, respectively. “In view of rising income levels, those in the highest income bracket need to contribute more to the Nation’s development,” Nirmala Sitharaman said clarifying the rationale behind the increase in the surcharge.