Income Tax Return Filing

                                                           

Bahubali: Who are suppose to file the Income tax return?

Katappa :  It is mandatory to file Income tax return in India if:-

1. Your gross total income (before allowing any deduction u/s 80C to 80U) exceed Rs.2.5 lakh.
2. You have income from Salary, income from house property (Rent Income), agriculture income, capital gains or income from other sources.
3. You are a company or a firm irrespective of whether you have income or loss during the financial year.
4. You want to claim an income tax refund
5. You want to carry forward a loss under a head of income
6. You are a resident individual & have an asset or financial interest in any entity located outside India. 

Bahubali: As it is mandatory in above circumstances, we file income tax return. But do we have any benefits as well ?

Katappa : A proof of income tax return filing is required at the time of applying for a Loan or Visa. And timely return filing helps you in avoiding penalty & interest on delay of return filing.

Bahubali: Do we have any due date for filing these income tax returns?

Katappa : Yes, the due date of filing tax return is 31st July for those assessee whose accounts are not required to be audited such as assessee having Salary income, rent income, capital gains, Income from other sources. For other categories such as companies, working partner of a firm etc whose accounts are required to be audited, the due date for filing return  is 30th September.

Bahubali : What are the consequences, if we file the return after due date?

Katappa  : If the returns are not filed within due dates then assessee has to bear the penalty and
interest.

Assessee having income up-to 5,00,000 shall be liable for a late fee penalty of Rs 1,000  whereas the assessee having income beyond 5,00,000 shall be liable for late fee penalty of 5,000 up-to December & thereafter Rs 10,000 up-to March along with interest.
Interest is levied at 1% per month of the tax amount payable by the assessee.

Bahubali : So Katappa, what should one learn from this?

Katappa  : Baahu, The assessee should wisely file their returns and pay the taxes. It not only help him to do tension free business but it also contributes in the development of the nation.

                                                                                                               CA Neha Vora