Here's how to report income from investmentsby Sophie Grace What New When You Have Forgot to File Tax Return?
When you prepare for income tax return filing, form 16 is one of the most imperative documents which is issued by the employer of the company. Many of us contemplate Form 16 as the only vital document which is actually may not be enough, thus, there are other sources of income as well that you have to submit while filing ITR such as the income from capital assets, house property and interest on deposits need to be disclosed in your ITR Form.
Meanwhile, in case you missed any of the documents then there is a chance that you may receive the notice from the income tax department. Therefore,taxpayers should know which incomes are taxable. Moreover, they cannot even find a way to avoid misreport of any income. However, in this financial year 2018-19, the tax officials have already hardened the knot around tax offenders, now individuals are not permitted to avoid the legal notices from IT department.
So, it has to be kept in mind, every tax assesses must disclose the gains whether the income from investments is tax-free or not, it has to be declared in the ITR. Here is how you can calculate capital gainsfrom different assets and how to disclose them while ITR filing-
Disclose Capital Gains-
If you have earned profit or gains from capital assets such as property, gold, shares and bonds are considered as income from capital gains and taxed under the income head of capital gains. These gains are of two types- short term and long term. The capital gains are calculated by deducting the cost of acquiring the asset from its sale value.
Report Gains from property-
Taxpayers have to report capital gains in schedule Capital Gains of the ITR forms. Taxpayers who do not have a taxable income but have booked long term capital gains (LTCG) over the basic exemption limit must file income tax return.
Report stocks and funds-
From this year onwards, if LTCG exceeds the limit of Rs 1 lakh on sale of equity investments will be taxed.
Reporting Rent Income-
As per income tax guidelines, income from rent from house property aside from self-occupied house has to be considered under income from house property head. In case the second house is not occupied, it is declared as ‘deemed to be let out’ and you will have to disclose rent in your ITR returns.
Thus, the pressure is already high on the taxpayers as the due date for filing tax return is almost approaching, just a few days left for the ITR filing. If you e-file ITR after the deadline, thenyou will be responsible for the consequences. For more information related to income tax efiling, visit us at www.allindiaitr.com .
Created on Jul 17th 2019 00:57. Viewed 144 times.