Tax Return must be filed, even if the tax due is ZERO
1) The Income Tax Act has placed an obligation on Taxpayer to file the Income Tax Return if the Gross Total Income of Taxpayer is more than maximum exemption limit, even if Taxpayer has no tax due.2) Gross Total Income Means Income Before deduction under chapter VI (Section 80C to 80U). Suppose: A male person below 60 years age having Gross Total Income of Rs 270000/- In Fy 2011-12 and saving u/s 80C of Rs 100000/- then his Total Income =Rs 170000. In this given case Income Tax Return filing is mandatory even tax due is nil as Gross total income( Rs 270000/-) is more than maximum exemption Limit applicable to male below 60 years i.e Rs 180000/-
So you have to file your Income tax return in following case even there is no tax due(Except salary case up to 5 lakh with many conditions prescribed in the IT rules)
- Gross total Income more than maximum exemption Limit though total income after deduction is less than exemption limit
- Tax is payable but has already been deducted by the employer.
- IfIndianresident have Bank account inforeignor interest (share) in assets(movableorimmovableoutside India.
- Return in case of Refund is also compulsory if person wish to claim refund.
- · Rs. 1.80 lacs for Men below the age of 60,
- · Rs. 1.90 lacs for Women, below the age of 60,
- · Rs. 2.50 lacs for Senior Citizens, whose age is between 60 years to 80 years,
- · Rs. 5.00 lacs for Super Senior Citizens, of the age of 80 years or more,
3) e-filing is compulsory for the A.Y. 2012-13onwards, for an individual or a Hindu Undivided Family if the total income exceeded Rs. 10 lakh. However, digital signature is not mandatory. Taxpayers, can also transmit the data in the return electronically, and thereafter submit verification of the return in Form ITR-V.
4) Filing of Income Tax Returns electronically under Digital Signature is mandatory for all company required to furnish the return in Form ITR-6 or for a firm, an individual or HUF, whose accounts are required to be audited.
5) Now ITR e-Filing with Digital Signature is mandatory for Individual, HUF and Firms also to whom Audit Provision u/s 44AB is applicable.
7) The processing of e-filed Income Tax return is faster, and taxpayers get their refunds, if due, quickly.
8) Do not forget to send you Income Tax Verification form (ITR-V) to "Income Tax Department-CPC, Post Bag No. 1, Electronic City Post office, Bengaluru, 560010", by post, if you have filed your Income Tax return electronically.
9) Filing of ITR-V is necessary for e-Return filed without Digital Signature.
10) Please visit "ITR-V Receipt status" on https://incometaxindiaefiling.gov.in to check receipt status for your ITR-V at CPC. If not received at CPC, then login to e-filing website, go to 'My Account' à 'My Returns' and download ITR-V, Print it, Sign it and Post it to CPC, Bengaluru by Post.
11) The due date for submission of ITR-V is 120 days from the date of upload of e-return. Otherwise, e-return uploaded will not be treated as return filed.
As per the IT rules as mentioned earlier it's not mandatory to file tax returns in case your taxable income is below the prescribed limit. Also, even where your income is below the taxable limit but taxes have been deducted from certain receipts of income earned by you, it is necessary to file Return of Income for claiming the refund of such taxes deducted. If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against its positive income, you must make a claim of loss by filing your return before the due date of filing of Return of Income. Failure to file Return of Income may result in loss of availability of carry forward of losses to subsequent years.It is never too late to start honoring your constitutional obligations for payment of tax. The department may ask you to file return of income for earlier years if it finds that you had taxable income in those years and there is tax payable by you. On the contrary by not filing your return in spite of having taxable income, you will be laying yourself open to the penal and prosecution provisions under the Income Tax Law. This may take the form of interest if the return is not filed before the end of the assessment year. If the return is not filed even after the end of the assessment year, penalty upto Rs. 5,000/- may also be levied.
Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 6 months to 7 years and fine.Best Regards
Prakash NairNote : In case you need any further clarification or guidance, please contact your Chartered Accountant or a Tax Consultant
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