Income Tax Return is an important part of Income Tax. It is the way by which an assessee process for paying his tax to Income Tax Department. As per the provisions of Income Tax Act, 1961, filing of Income Tax return is a legal obligation of every Individual whose income exceeds the maximum limit of non-taxable income for the full financial year i.e. from 01 April to March 31 of the following year, for example for the year 2007-2008 (which is also called the Assessment Year) the period is 01 April 2007 to 31 March 2008. In case of salaried class assessee the information about the income in the particular financial year supported with the form 16 (the certificate for tax deducted at source), which is issued by the employer at the end of the financial year.
Transforming itself with the changing times, the Income Tax Department of India has launched an easy to use online facility for filing Income Tax Returns using the Internet. The filing of Income Tax Returns Online offers great convenience, fast in processing and hassle-free option to the assessees. Income Tax Return has several part or phases which we follow for paying tax. To know Income Tax Return in an easy way, it is divided into the following sub sections:
What Is Income Tax Return ?
"Income Tax Return" is a term which is often used when we talk about income tax. It is a way by which we pay this tax. When total annual income of a person, including all sources, is more than maximum unchargeable limitation ( At present it is Rs. 1,50,000/-) then that person is liable to pay income
Any person not filing the return within the time mentioned is allowed to file a late return at any time before the expiryof one year from the end of the relevant assessment year or before the completion of the assessment year, whichever is earlier.
Penalty for delay filing of return is calculated as a percentage of the shortfall of tax. In case where tax has been deducted at source, or advance tax has been duly paid, no penalty is leviable.
If the return of income furnished by the assessee is defective according to assessing officer, it is intimated to the assessee and given an opportunity to rectify the defect within 15 days from the date of such intimation or within such further period as may be allowed by the assessing officer on the request of the assessee. If this is not rectified by the assessee within the aforesaid period then the return shall be deemed invalid and further it shall be deemed that the assessee had failed to furnish the return.
Under section 139(1) of the Income Tax Act, there are additional six conditions, which forces a person to file his income tax return. These condition are:-
Owner of a Motor vehicle
Owner of immovable property
Person who does foreign-travel
Subscribers of a telephone
Holder of a credit card
Incurs expenses on himself
Income Tax Return Forms
Forms Used In Filling of Income Tax Return Are As Given Below:
For those who have their own business income and claiming exemption u/s 11 of the I.T. Act, 1961
For those whose income source is neither business nor profession and income is not more than Rs. 2 lakhs
Return of Income for the block period like search & seizure cases
For those who ambit of one out of six scheme
This is also known as Saral Form. It is for non Corporate Assessees other than persons who claims exemption under Sec. 11
Nay Saral Form- For resident individual/Hindu undivided family not having income from business/profession/capital gains/agricultural income
For those who is not a company and those deriving income from property held for charitable and religious purposes claiming exemption under section 11 and whose total income does not include "profits and gains of business or profession
For assessees including companies claming exemption under section 11
Certificate for tax deducted at source from income chargeable under the head "Salaries" - cum - Return of income
For allotment of Permanent Account Number under section of 139A of Income Tax Act
It is a declaration required to be filled by those persons who have neither a PAN nor a General Index Number (GIR) number & making payments in cash with respect to transactions in clauses (i) to (vii) of rule 114B, as given below:
Sale and purchase of vehicle
Time deposit of amount more than Rs. 50000/- to any banking institutions
Contracts for sale or purchase of securities of amount more than Rs. 10,00,000
Sale & purchase of property worth Rs. 5,00,000/- or more
Open an account (which is not a time deposit) with a banking institutions
Application for connection of phone (including cell phones)
Payment of hotel/ restaurants bills more than Rs. 25,000/- at a time
For those whose source of income is agriculture and not any other, chargeable tax mentioned under clauses mentioned above
Income tax return must be signed by the authorized person. Under section 140 of the Income Tax Act,1961 the Return form must be signed & verified by the authorized person according to the following chart:-
Case I - Individual
If individual is not in India at the time of filing then by the person duly authorized by him on his behalf.
If individual is lacking mentally to fill it, then it must be signed by his/her parent/guardian or any person who is adequate for it on his/her behalf.
If due to any other reason, individual is not in condition to do it, then it must be signed by a person duly authorized by him/her.
Case II - Company
By Managing Director of the company. Due to any reason if the managing director is not available then any of directors can sign on the return form
If company is a non-resident company, then it must be signed by that person who holds Power of Attorney for it
If company is on wind up, then by should be signed by liquidator
If Government undertaking company, then it should be signed by the officer authorized by the government for this
Case III - Firm
By authorized managing partner. Due to any reason if he is not available, then by any partners
Case IV - Local Authority
By its authorized head officer
Case V - Political Party
Chief Executive Officer or Secretary
Case VI - Association
Chief executive officer of the association or any member of association
Note: All the income tax returns which are not filled completely or signed by an unauthorized person will be rejected. Return file will be approved only if it follows all the rule regulation of Income Tax Act 1961. Any type of wrong information may be the cause of rejection of return filing
Income Tax Return Filing
There are following steps that must be followed for income tax return filing: -
See the Heads of Income and decide which type of assessee you are
Select return form according to the type of assessee from the list
Before filing form pls. read the form carefully
Use black ball pen or other as instructed in form
There should not be any overwriting on the form
Fill name, fathers name, date of birth as mentioned in your educational certificates
Put signature of authorized person (pls. see the list of authorised signatory) on the form at right place
Use your own PAN/TAN/GIR number for filing the income tax return
Use correct options/code to show your status in the income tax return form
Assessment year must be mentioned on return form clearly. Assessment year is the last financial year for which tax has to pay
Mention your all source of income with income amount clearly and correctly
Calculate your taxable amount including surcharges and deducting rebate from your income
Attached all required documents for getting deduction/ rebate or exemption in tax
After filling form pls. recheck that all the information given by you is correct and on proper place
Dont give any wrong information in the form
Go to income tax department and submit the form to concerning income tax assessing officer
File your income tax return before the last date of return filing. Last date for an individual having only salary income is 30th June as well as last date for individual having business income (if auditing not required) is 31st august.
If you have any query please feel free to contact us.