All about Income Tax Return and deductions

Published On: Apr 9, 2019Last Updated: Oct 14, 20233.9 min read

This blog is updated as per the amendments and reforms brought by the finance minister on 20th September 2019. 

Income tax is a tax levied by the Government, on the income earned by a person. It is a direct tax to be paid directly to the government. It is calculated at specified rates for specified persons. An income tax return is a statement showing the income of a person and the tax paid on it.

The income tax slabs for FY 2018-2019

Individual and HUF (Hindu Undivided Family)

Income Tax Rate
  Age less than 60 years From 60 years to less than 80 years From 80 years and above
Up to Rs. 2,50,000/- Nil   Nil   Nil
Rs. 2,50,001/- to Rs. 3,00,000/- 5%   Nil   Nil
Rs. 3,00,001/- to Rs. 5,00,000/- 5% 5% Nil
Rs. 5,00,001/- to Rs. 10,00,000/- 20% 20% 20%
Above Rs. 10,00,000/- 30% 30% 30%

Other than Individuals

Business Structure Tax Rate(Base Rate) 
Partnership Firm/LLP 30% 
Domestic Company
Not availing any exemptions or incentives 22% 
Manufacturing companies incorporated after 1st October 2019 and not availing any incentives or exemptions 15% 
Availing any exemptions or incentives- turnover up to 400/- crore during FY 2017-18  25% 
Foreign Company 40% 
In any other case 

Surcharge and education cess is levied additionally

Who has to file an Income tax return?

  • Every person liable for paying tax
  • Every person who wants to claim a refund; even a person is not liable for paying tax
  • An Indian resident who has signing authority in a foreign account or has an asset or financial interest outside India
  • In cases of long term capital gain
  • One can also file a voluntary income tax return which will help in taking a loan or financial assistance

Due date

The Income tax return filing due date for F.Y 2018-2019

There are some consequences if the return is not filed within the due date other than the taxpayer is liable for interest at 1% and penalty as under:

Particular Penalty
Return is filed after the due date but before 31st December of A.Y and total income do not exceeds Rs. 5 Lakh Rs. 1000/-
Return is filed after the due date but before 31st December of A.Y and total income exceeds Rs. 5 Lakh Rs. 5000/-
A Return filed after 31st December of A.Y Rs. 10,000/-

Mode of filing an Income tax return

A taxpayer has to file ITR electronically. There are some exemptions as under.

  • An individual above the age of 80 years
  • An individual with income less than Rs. 5 Lakh and has no refund to be claimed

Revised Income Tax Return

  • Income Tax department allows to revise the ITR if the original ITR includes omission or wrong statement unintentionally
  • A taxpayer can file the revised return up to the end of A.Y (for F.Y 2018-2019, 31st March 2020) or before the completion of assessment whichever is earlier
  •  Revised ITR can be filed for any number of times with genuine case

Benefits of filing income tax return

  • To claim the tax refund
  • To carry forward losses
  • To file an application for government tenders
  • To avail loan
  • To avoid scrutiny from the income tax department
  • It helps in processing visa

List of some major deductions allowed to an Individual

Type of deduction Maximum limit
Under section 80C, 80CCC, 80CCD for insurance policies, LIC, PF, Rs.150,000/-
Interest on saving bank account Rs. 10,000/-
Equity saving scheme 50% of the total amount invested but maximum Rs. 25000/-
Medical Insurance Premium under 80D (including senior citizen parents) Up to Rs. 75000/-*
Medical Insurance Premium under 80D for senior citizen (including senior citizen parents) Up to Rs. 100,000/-*
Interest on loan from financial institutions for higher education Interest- maximum for 8 years subject to conditions
Interest on loan from financial institutions for the acquisition of residential property Rs. 50,000/-
Interest received from savings bank account Rs. 10,000/-
Investment in long term infrastructure bond notified by government Rs. 20,000/-
Donation to trust/charitable institutions under 80G Depends on the type of donation

*It is not the exclusive list of deductions.

Documents required

There is no need to attach any documents while filing ITR. But the following documents must be to ease the filing.

  • PAN and Aadhaar card
  • Form 16, Form 26AS
  • Bank Statement
  • TDS certificate
  • Receipts for investment to claim deduction under various sections such as PPF, LIC, donation receipts etc


The reporting period starts as soon as the current financial year ends. It is mandatory to report the income and expense statement not only to the Income Tax department, but to other Ministries also. Fulfill all your compliance’s within due date to avoid penalties.

File your Income Tax Return through LW Experts
File your ITR

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CS Shivani Vyas
About the Author

CS Shivani Vyas

Shivani is a Company Secretary at with an endowment towards content writing. She has proficiency in the stream of Company Law and IPR. In addition to that she holds degree of bachelors of Law and Masters of commerce.