Imperatives of having Income Tax file and filing of return of income/ tax returns

Individuals are required to file their income tax return if the income before allowing deductions under chapter VIA and exemption u/s 10A, 10B or 10BA exceeds the exemption limit. The due date for filing of return of income for Financial Year 2010-11 (March 2011) is 31st July 2011.  Even when an assessee is not required to mandatorily file an income tax return, it is advisable to have an Income Tax (I.T) file considering the following: 1.    Salaried employees, at the time of retirement, their saving is accumulated and when they acquire any property or make investment, the Income Tax Department may ask to explain the same, which becomes quite difficult as by that time the accumulated funds may be to the tune of several lakhs. 2.    Ladies get some gifts in cash and kind on marriage as well as on other occasions. Such money is generally invested and in course of years, it is multiplied. At a later stage, when the accumulated amount will become considerable, the Assessing Officer (A.O.) may be reluctant in admitting the same and may raise many queries. 3.    The parties to whom a person may advance money by way of loan or deposit may also insist for income – tax PAN to avoid inconvenience in their assessment. 4.    It has been made obligatory to mention PAN in respect of various monetary transactions, the scope of which has been enlarged vide various Notifications. 5.    While making application for shares and debentures, as also investments above a certain amount, one is also required to mention the PAN. 6.    Some tax might have been deducted at source from rent, interest, commission or any other income. In case it is refundable, one has to file the return. Moreover, specifically provides that every deductee shall furnish his PAN to the deductor to avoid higher rate of TDS. It further, provides that both the deductor and deductee shall indicates their PAN in all the correspondence, bills, vouchers and other documents which are sent to each other. 7.    A lady can become a partner in a firm in which her husband is also a partner and the share of profit will no longer be added in the file of her husband. However, in case of a lady becomes partner in a firm, the source of capital should not be from her husband, father-in-law or mother-in-law, otherwise interest on capital may attract clubbing provisions. 8.    If, one wants to travel abroad it is helpful if he/she is having an I.T file. 9.    In case of somebody desires to plan his tax-affairs properly, the tax burden on the family can be reduced as per the permissible limit in law. In case of separate file, each individual including a female (except minors) is also eligible to exemption limit as well as other deductions and rebate from tax. 10.    It helps in the long run if all income and investments are properly disclosed in I.T file of concerned family members. It may be noted that now a days the department is able to collect various information about various specified financial transactions of the assessee through Annual Information Report (AIR) by other parties. is here to solve all your tax worries, be it relating to Tax Returns, Tax Support or Tax Planning. Just contact us; we are here to relieve you from all your tax worries. provides most hassle free tax return filing/ online return filing experience. Once you have collected, your salary certificate and other documents, we request you to please log in to or you can also directly mail at to submit the details. Upon receiving the documents, we would contact you to file your return of income.

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