The income tax return has gained immense importance in the last decade or so in the country. The awareness of the income tax return is more in case of individuals mainly due to following facts:

• Serves as stand income proof;
• Ensures smooth loan processing;
• Ensures early processing of Tax Refund;
• Claim for Losses;
• Proof of Financial Standing;
• Avoiding Penalty and Prosecution;

Further, the filing of income tax return is mandatory under the provisions of the income tax where the total of an individual exceeds the basic exemption limit. There are penal and other consequence for not furnishing the return of income and or not filing the return within due date: (a) Interest for default in furnishing the return within time The assessee is liable to pay interest in the following cases, (i) Where the return of income is furnished after the due date as specified, or (ii) Where the return of income is not furnished by the assessee. Interest shall be charged @1% per month or part of the month for the period in delay. The interest is chargeable on the amount of tax determined as reduced by the advance tax & TDS. (b) Penalty The assessee fails to furnish the return before the end of the assessment year (that is for FY 2009-10, tax year ended march 2010, last date is March 2011); he shall be liable to a penalty of Rs. 5,000.  If the return is filed after the due date but before the end of the assessment year, no penalty is leviable but interest shall be payable if there is any tax due. (c) Prosecution Willful failure to furnish the return of income may also attract prosecution under the provisions of the income tax. We at Taxmantra.com have the expertise to guide you in lowering your tax outgo and thus enhancing your total take away.  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. Do contact us; we are here to help you in solving your tax issues. Alok Patnia Founder and Director at Taxmantra.com