Thursday, 12 July 2012

Tax Return Filing for F.Y. 2011-12 (A.Y. 2012-13) – Few Pointers


Due dates of Filing Income Tax Return for F.Y. 2011-12 (A.Y. 2012-13) are as follows –
There always lies a confusion regarding due date of income tax return filing 31st July is only for salaried individual, but it is not true, as it is clarified below -
<!--[if !supportLists]-->·         <!--[endif]-->In Case of Assessees not covered by Audit – 31st July 2012
Salaried Individual, Business with less than 60 Lakhs Turnover, Assessees with income such as Rent, Capital Gains, Other Sources.
<!--[if !supportLists]-->·         <!--[endif]-->In Case of Assessees covered by Audit – 30th September 2012
Business with turnover of 60 Lakhs and more, Business who have disclosed profit less than 8% of the turnover and Companies are covered under this category.
If the Tax Return Filing is not made till 31st July 2012 then the assessee should must be aware of the consequences owing to delay in filing income tax return-
Interest u/s 234A - The taxpayer would be liable to pay interest u/s 234A if he fails to file income tax return
within the stipulated time. The interest is chargeable on the amount of tax determined as reduced by the Advance Tax & Tax deducted at Source (TDS) @1% per month or part of the month from the due date of income tax filing till the date of furnishing the return.
Set off and carry forward of Losses - Taxpayers filing belated return cannot carry forward business loss (Speculation or otherwise), capital loss (short term or long term) and loss due to owning and maintaining of race horses.
Return cannot be Revised - The revised return facility cannot be availed by the belated return filers. As per the Income Tax Act, if an assessee file income tax return and discovers any omission or any wrong statement in the return filed, he may file a revised return, subject to the condition that, the original return was filed within due date.  So, even you discover any error on belated return filed you have no option to revise return.
Exemptions not available - If the income tax return is not filed within due date, then exemption u/s 10A or 10B or deduction u/s 80IA, 80IB, 80IC, 80ID & 80IE are not allowed. In case the assessee is eligible for refund of tax, then he looses interest on the said refund u/s 244A owing to delay ITR filing, from the due date of tax return filing till the date of furnishing the return.


File ITR when having two Forms 16 -
The employee should provide all the details of income and TDS deducted thereon by the previous employer to his/her current employer. As if the details have not been provided then both the employers provide separate maximum exemption limit to the employee and then deduct tax at source on the taxable income. Thus less TDS is deducted and the person is liable to pay more tax. In addition to this the person is also liable to pay interest u/s 234(B) & 234(C) for the less payment of total tax liability of tax as TDS or Advance Tax.  Thus, after considering the details provided previous employer and current income, the current employer will calculate tax liability on the aggregate income and will deduct TDS accordingly. Moreover, if required, the person can also make advance payment of tax to escape from interest on tax liability.

Employee can avail deductions for the Investments made but not declared to his Employer-
Every salaried individual needs to declare all the investments eligible for the deduction, to his employer like Life insurance Premium, school fees of his children, contribution to PPF, Investment in bonds, donations, medical insurance, housing loan, etc. who is liable to deduct TDS before the due date of filing TDS Return. But if he forgot to declare these investments to his employer, he can still claim the deductions / exemptions and can also claim the excess tax deducted by the employer as refund by ITR Filing for the same financial year. It is important to keep the records of all the investments made thereon. Employee can also claim refunds for the extra TDS deducted by his Employer by Filing Income Tax Return in the same financial year till 31st July.

Online Tax Return Filing without Digital Signature –
Any assessee who is filing online tax returns without digital signature, an ITR V form will be generated and the assessee is required to submit the signed copy of the same to the CPC Bangalore. After getting ITRV following steps should be made –
<!--[if !supportLists]-->·         <!--[endif]-->Print two copies of form ITR V
<!--[if !supportLists]-->·         <!--[endif]-->One copy of such ITR V, duly signed has to be sent in A-4 size envelope by ordinary post to CPC Bangalore (Income Tax Department CPC, Post Bag No.1, Electronic City Office, Bengaluru – 560100, Karnataka.)
<!--[if !supportLists]-->·         <!--[endif]-->Keep the other copy for own record
<!--[if !supportLists]-->·         <!--[endif]-->The ITR V should be mailed within 120 days of e-filing.
<!--[if !supportLists]-->·         <!--[endif]-->Upon the receipt of ITR V, Income Tax Department will send an e-mail acknowledging the receipt of signed copy of ITR V. This is your acknowledgement.
Duly Signed copy of ITR V has to be submitted to the Income Tax Department and it will complete the process of online return filing as the department needs to verify the authenticity of income tax return when filed online without using a digital signature.

Online Tax Return Filing with Digital Signature –
For the following assesses Online ITR Filing with digital signature is compulsory:
<!--[if !supportLists]-->·         <!--[endif]-->An Individual, Firms, HUF who are required to get their books of accounts audited u/s 44AB.
<!--[if !supportLists]-->·         <!--[endif]-->A company who is required to file in Form ITR -6.
Before the process of Online Return Filing Taxpayer has to first register it’s DSC on the e-filing website (in my account menu option) after entering into the system using login id and password. Once DSC is registered, taxpayer has to use the same DSC while uploading the return on the e-filing website.  DSC should be of Class II or III only, issued by CCA approved certifying agencies in India.
While, Filing Online Tax Returns using digital signature you do not have to submit a physical copy of the return to Income Tax Department CPC, Post Bag No.1, Electronic City Office, Bengaluru – 560100, Karnataka.
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