The Article contains simplified and brief discussion of the following:-
1. Meaning of Income Tax Return
2. Who is required to file Income Tax Return
3. Due dates for Income Tax Return
4. Late Fees for belated filing of Income Tax Return
5. Consequences of non-filing of Income Tax Return
WHAT IS ITR?
CONSEQUENCES OF NON-FILING/FILING OF ITR
IS FILING ITR COMPULSORY?
ITR is not required to be filed by every person who earns income, only following persons are required to compulsory file ITR.
1) If one wants to claim refund of income tax paid in excess.
2) The gross annual income exceeds the basic exemption limit (i.e. Rs. 2,50,000 for taxpayers upto 60 years of age, 3,00,000 for taxpayers above 60 years upto 80 years of age, 5,00,000 for taxpayers more than 80 years of age.)
3) If person has more than one source of income like house property, capital gains etc.
4) If one has earned from or has invested in foreign assets.
5) If taxpayer is a company or a firm, irrespective of profit or loss.
6) If taxpayer wants to carry forward loss.
7) Income is derived from property under charitable trust, religious purposes, research or for a political party, medical institution, hospital or any other institution.
8) Taxpayer is a foreign company taking treaty benefit on a transaction in India.
9) Taxpayers is claiming relief of double taxation under section 90, 90A or 91
10) If one wish to apply for visa or a loan.
DUE DATES FOR FILING ITR
|Type of Taxpayer/Assesssee||Due Date|
|Taxpayer who is not subject to Tax Audit (including salaried employee)||31st July|
|Taxpayer who is subject to Tax Audit
Working partner of a firm whose accounts are subject to tax
|Taxpayer who is required to furnish Report of Transfer Pricing under Section 92E of Income Tax Act, 1962||30th November|
Note: If accounts are audited under any other law, taxpayer need not get his accounts audited again for income tax purposes.
LATE FEES FOR FILING OF ITR AFTER DUE DATE
|TOTAL INCOME||LATE FEES|
|Upto Rs. 5,00,000||Rs. 1000|
|Exceeding Rs. 5,00,000||Rs. 5000 – ITR furnished upto 31st December
Rs. 10,000 – ITR furnished after 31st December
♦ The author may be contacted at e-Mail: [email protected] and 9675899911.