12. How to pay tax?

Online income tax return allows to pay taxes at any time and from anywhere through the net-banking account without being in the long queue at the Bank.

13. Who Is Liable To Pay Income Tax?

Any Individual or group of Individual or artificial bodies who have earned income during the previous years are required to pay Income tax on it. These are Individuals, Hindu Undivided Family [HUF], Association of Persons [AOP], Body of individuals [BOI], Firms, Companies, Local authority, Artificial juridical person.

14. What Is The Due Date Of Filing The Return?

15. What if there is loss in any financial year?

The loss sustained shall be eligible for carry forward to subsequent years and set off against profit earned in subsequent years only if, a loss return is filed before due date.

16. What are the consequences if a return is not filed within due date?

Interest on tax due shall be paid. If the return is not filed up to the end of the assessment year, in addition to interest, a penalty of Rs. 5,000 shall be levied under section 271F.

17. Any provision to file return after due date?

There is an option to file Belated Return. It shall be filed within a period of one year from the end of the assessment year or before completion of the assessment, whichever is earlier. It is to be noted that Belated Return can be filed but interest and penalty shall be levied.

18. What penalties are imposed if return is not filed at all if there is taxable income?

Interest and penalty is followed by prosecution if, tax not paid. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).

19. Is there any provision to revise the return already filed?

Revision of return filed is possible if, original return is filed within due date and Department has not completed the assessment relevant to that year. Mistake shall be genuine and bona fide and shall not be any deliberate mistake.

20. What is Advance Tax?

If the income tax liability in any financial year is more than Rs. 10000 then, advance tax shall be paid in installments during the year itself.

21. What are due dates for Advance Tax?

For assessee other than Companies

For Companies

22. What if advance tax is not paid within due date?

If advance tax is not paid or paid less the mandate amount then, interest shall be paid @ 1 per cent simple interest per month on the defaulted amount.

23. Is filing of return is mandatory even if income is below exemption limit?

If the income is below exemption limit then it is not mandatory to file the return but you may file the return as you cannot file the return for past years once the due date lapses. In addition, ITR is valid document for bank credit, housing loan etc.

24. What are the consequences of not filing of return or non-payment of tax?

It is mandatory to file your income tax return if your income is above the maximum exemption limit. Non-filing of income tax return attracts penalty of Rs 5000 and interest u/s 234A, 234B, and 234C accordingly. Further, if the original return not filed within the due date then an individual cannot file a revise return u/s 139(5) of the IT act. In addition, losses such as business loss, capital loss and loss in owning and maintenance of racehorse cannot be carried forward as per section 80 of the IT act.

25. Is filing of return is mandatory even if employer already deducted TDS from salary?

Mere deduction of TDS does not give you exemption from filing of IT return. Even if your employer has deducted TDS from your income, you must file your return. To claim the TDS amount,filing of IT return is mandatory.

26. What if tax deducted i.e., TDS is more than the actual tax liability?

Refund can be claimed only by filing the income tax return timely. The amount of refund will be deposited in the Bank Account provided by you while filing your return of income. The refund amount will be processed by IT department once the return is processed and 143(1) Intimation is received by you.

27. Is Digital Signature mandatory for filing return?

The e-filing portal has 2 options of filing the return with DSC and without DSC. If you opt for filing return without DSC then you must also physically submit the printed copy of ITRV Acknowledgment by speed Post or Normal Post to CPC Bangalore. But for certain entities/individuals, e-filing of return is mandatory with DSC:

• Companies need to e-file their returns using digital signatures
• Individuals/firms whose accounts are to be audited u/s 44 AB of the Income Tax Act 1961 e-file their returns using digital signature.