Income Tax Return
Income Tax Return is a document or form through which every person residing in India furnishes his income and tax details to the government of India.Every person residing in India need to file an income tax return if his/her income is above the basic income tax exemption limits. Filing of tax return is mandatory above such limits.This includes a salaried person, without other sources of income, and for whom tax has been deducted at source.
Who shall furnish Income Tax Return?
Every Person residing in India and who
· 1) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or
· 2) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or
· 3) is a subscriber to a cellular telephone not being a wireless in local loop telephone; or
· 3) has incurred expenditure for himself or any other person on travel to any foreign country; or
· 4) is the holder of a credit card, not being an “add-on” card, issued by any bank or institution; or
· 5) is a member of a club where entrance fee charged is twenty-five thousand rupees or more,
shall furnish a return of income, of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.
No document need to be attached with Income Tax Return. However, all documents used for calculating income-tax return, such as Form 16, bank statements and advance tax receipts are to be preserved , Maybe the Income Tax Officer call for these later, to check the co-relation of details in the form.
Mandatory disclosures in Income Tax Return:
The following mandatory disclosures shall be made in the Income Tax Return:
· Investments made in bank deposits, mutual funds, shares or even property in the year 2006-07, above certain threshold, needs to be disclosed as under:
· Deposits up to Rs 10 lakh, in any single bank, during the year.
· Payments made via a single credit card, aggregating Rs 2 lakh.
· Purchase of units of a mutual fund aggregating Rs 2 lakh.
· Acquisition of bonds or debentures issued by a company for Rs 5 lakh. or more
· Investment in RBI bonds, for Rs 5 lakh or more.
· Acquisition of shares of a company, for Rs 1 lakh or more.
· Purchase or sale of an immovable property for Rs 30 lakh or more.
Where and how to file Income Tax Return?
As the process has been centralized, filing of IT returns can be done anywhere in the country, at IT offices and even post-offices. If a person has relocated, just the change of address needs to be intimated and the filing can be done at the new location. you can also file returns electronically.Individuals can file returns through authorized intermediaries who digitize the data and send it to the IT Department. It is however mandatory, for all those filing an Income Tax Return, to apply and get a pan card.
What are the Penalties for late filing of Income Tax Return?
If there are no balance taxes to be paid, no interest can be levied. However, a penalty of Rs 5,000 can be imposed by the Tax Department. In case there are tax arrears, 1 per cent per month as interest on the taxes due will be levied as penalty.