FAQ’s on Income Tax Return Filing

For the financial 01.04.2009 to 31.03.2010, the last date of filing of income tax return was 31st July, 2010. However the return of income can still be filed till 31.03.2011, with a very nominal interest. If you are new to the field of taxation and income tax return filing and otherwise also, there are some very basic questions which may be running at the back of your mind. Let’s discuss  frequently asked questions on Income Tax Return Filing. What is Income Tax Return? Income Tax return is a statement/document, in which a person declares the information about his income and the tax liability thereon, for a particular year, to the tax authorities. Who is liable to file his return of Income? Income Tax returns can be filed with the tax authorities voluntarily, and in various cases it is mandatory on the part of the person to file his return of income. When is it compulsory to file an Income Tax Return? For an Individual, filing of return of income is compulsory in the following circumstances:

  • When the Total Income of the Individual for the year, exceeds the exemption limit. Exemption. Currently the exemption limit for the financial year 01.04.2010 to 31.03.2011 is Rs. 1, 60, 000 for male individuals below 65 years, Rs. 1, 90, 000 for female individuals below 65 years and Rs. 2 40,000 for senior citizens above 65 years of age.
  • A person residing at an area specified by the government and consuming electricity worth Rs. 50, 000/- or more in a year.
  • Occupying immovable property exceeding the specified floor area, by way of ownership or tenancy.
  • Owner or lessee of a motor vehicle, other than a two wheeled motor vehicle.
  • Has incurred any expenditure on himself or any other person for travel to a foreign country.
  • Is holder of a credit card, not being an “add-on card”.
  • Is a member of a club where entrance fee charged is 25, 000 rupees or more.

How and when can we file our Income Tax Return? Income Tax Returns can be filed either electronically, i.e. online returns, or manually with the officer of the income tax department under whose jurisdiction one falls. The Income Tax Department has notified various forms for filing income tax returns by different types of persons having income under various heads. What is P.A.N.? Is it compulsory to have PAN for return filing? PAN stands for Permanent Account Number. It is a unique alphanumeric identity number, issued to every person who is liable to file a ROI or intends to do so. Yes, it is compulsory for every individual filing his ROI to have a PAN. However, having PAN does not mean that the person must file is ROI. Compulsion of filing return arises only when the conditions in question number 3 above is satisfied. Can we file our Income Tax Return Online? Yes, you can file your return online. Contact Taxmantra.com for hassle free and simple online return filing for just Rs. 249/-. No standing in Q’s, no rushing to the consultant. Filing your return of Income is just clicks away with Taxmantra.com. Will I have to file my Return of Income even if my employer deducts tax (TDS) on my salary? Yes. Deduction of tax by an employer or any other person making payment to you does not free you from the liability of filing your income tax return. If conditioned specified in point number 3 above is satisfied, the individual is liable to file his ROI. Deducting Tax at Source (TDS) is the liability of your employer/ payer, and is a type of advance tax being paid to the exchequer by your employer/payer on behalf of you. Can I get refund of TDS amount? If yes, how? Yes, If you file your income tax return and the tax liability arising on your total income is less than the amount of TDS that has already been paid to the exchequer on your behalf, you shall be entitled to get refund of the difference amount. However, in case the tax liability is more, the difference shall have to be paid by the individual. Will I also have to undergo Audit? As per the provisions of section 44AB of the Income Tax Act, 1961, a person shall have to undergo tax audit only when: (i) In case of business, the total sales, gross receipts exceeds Rs. 60, 00, 000, or (ii) In case of profession, the gross receipt exceeds Rs. 15, 00, 000/- What if I don’t file my Return of Income? The Income Tax Department imposes heavy penalty and interest if the person liable to file his return of income, fails to do so. We at Taxmantra.com aim to free you from all tax worries so that you can concentrate fully on your core expertise and optimise your career potential. We at Taxmantra.com provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning. Please join us now in pursuit of simplifying individual taxation! Alok Patnia Founder and Director at Taxmantra.com

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