TAX FILLING

Q1. Do I need to file Income tax return under the Income tax Act, 1961?

A Yes; Filing of Income tax returns is compulsory if your taxable income exceeds the basic limit without claiming deductions under sections 10A, 10B, 10BA, 80C to 80U, even if the tax payable is nil. Currently individuals and HUF with income below Rupees. One lakh and fifty thousand need not pay any income tax and so need not file tax returns. Senior citizens and women have income limits which are higher and above which they need to file taxes.

Q2. What is the last date for filing my returns?

A. Last date for filling the returns for an individual is 31 st July of every year.

Q3. What is Form 16?

A. It is a certificate issued to you by your employer stating the details of the salary you have earned and the tax deducted on your behalf and paid to the government. If you are an employee of the company (which means you are on the company's payroll), you should receive your Form 16 by April 30 every year. If you are a consultant or a professional, you should receive Form 16A, which gives you the details of the professional fees and tax deducted at source thereon.

Q4. I don’t have a PAN. Can I file my returns?

A. No; you can not file for returns in case you do not have a pan card. It is mandatory to quote PAN on return of income & all correspondence with any income tax authority.

Q5. What are the various forms used for filling returns?

A. Different forms need to be used depending upon your profession & sources of income
• ITR1 – For individuals having income from salary, pension, interest
• ITR2- For individuals and HUFs not having business/ professional income
• ITR3- For Individuals/ HUFs being partners in firms and not carrying out business or profession under any proprietorship
• ITR4- For Individuals and HUFs having income from proprietary business or profession.

Q6. I am Non Resident Indian (NRI), Do I need to file tax?

A. Yes, Under Section 139(1) of the Income-tax Act, an NRI, like any other tax-payer, is required to voluntarily file his income tax return in Form No. 2 or Form No. 3, as the case may be, on or before 31st July.

Q7. I have heard a lot about e-filling of returns, what is it?

A. Under the Electronic furnishing of Return of income scheme, eligible assesses can file their returns of income electronically through authorized persons to act as e-return intermediaries on or before the due date. The intermediaries digitize the data of such returns and transmit the same electronically to the e-filing server of Income tax department under their digital signatures.

Q8. What is meant by 'revised return'? When can a revised return be filed?

A. If a person has already submitted his return of income and subsequently he discovers any omission or wrong statement therein, he may furnish a revised return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment.

Q9. When can I claim refund?

A. If the tax already deducted under various heads of income is more than the tax payable for the year, you are eligible to get a refund of the excess amount by filing your tax return on or before the due date.

Q10. Can I avoid TDS from interest on securities? If yes what documents are required to be provided for the same?

A. You can avoid TDS by presenting Form 15G or 15H, which is only possible in case you do not have a taxable income. In other cases, the recipient is required to submit Form-13 to obtain certificate from his/her Income tax officer authorizing the payer deduct low/Nil TDS while making various incomes.

Q11. If my bank deducts tax at source, how should I claim the benefit?

A. You can furnish the TDS certificate with the return filed and the tax payable would reduce accordingly. If additional tax has been paid, then the excess amount will be refunded to you by tax authorities.

Q12. If I can not manage to file my returns by due date, what will be the penalty?

A. Under the current law, if you file a belated return, you would be liable for penal interest under Section 234A of Income tax Act, 1961 on the amount of tax payable less TDS/ Advance tax paid earlier.