INCOME TAX RETURN MUST EVEN IF NO TAX DUE

Simple Tax india


1) The Income Tax Act has placed an obligation on Taxpayer to file the Income Tax Return if the Gross Total Income of Taxpayer is more than maximum exemption limit, even if Taxpayer has no tax due. 


Gross Total Income Means Income Before deduction under chapter VI (Section 80C to 80U).


Suppose: A male person below 60 years age having Gross Total Income of  Rs 270000/- In  Fy 2011-12 and  saving u/s 80C of  Rs 100000/- then his Total Income =Rs 170000. In this given case Income tax return filing is mandatory even tax due is nil as Gross total income( Rs 270000/-) is more than maximum exemption Limit applicable to male below 60 years i.e Rs 180000/- 


Exception: Exception to this rule is for salaried person .If Salaried person fulfills few conditions then exemption from return filing up to five lakh Total taxable Income.


Read :Exemption from Income tax return filing to salaried person up to 5 lakh Income including 10,000 saving bank Interest. 
So you have to file your Income tax return in following case even there is no tax due (Except salary case  up to 5 lakh with many conditions as link given above)


Gross total Income more than maximum exemption Limit though total income after deduction is less than exemption limit.
Tax is payable but has already been deducted by the employer.
If Indian resident have Bank account in foreign or interest (share) in assets(movable or immovable outside India.
Return in case of Refund is also compulsory if person wish to claim refund.


2) As per Income Tax Act, for AY12-13, the maximum exemption limits are: 
· Rs. 1.80 lacs for Men below the age of 60, 
· Rs. 1.90 lacs for Women, below the age of 60, 
· Rs. 2.50 lacs for Senior Citizens, whose age is between 60 years to 80 years, 
· Rs. 5.00 lacs for Super Senior Citizens, of the age of 80 years or more, 


Income tax rate , slabs ,Deduction set off carry forward , deduction in capital gain at glance Fy 2011-12


3) e-filing is compulsory for the A.Y. 2012-13 onwards, for an individual or a Hindu Undivided Family if the total income exceeded Rs. 10 lakh. However, digital signature is not mandatory. Taxpayers, can also transmit the data in the return electronically, and thereafter submit verification of the return in Form ITR-V. 


Read compulsory e filing for HUF and Individual having income more than 10 lakh Notification in detail here 


4) Filing of Income Tax returns electronically under Digital Signature is mandatory for all company required to furnish the return in Form ITR-6 or for a firm, an individual or HUF, whose accounts are required to be audited. 


5) Now ITR e-Filing with Digital Signature is mandatory for Individual, HUF and Firms also to whom Audit provision u/s 44AB is applicable. 


6) For the Assessment 2012-13, it is mandatory to file your Income Tax Return if  resident Taxpayer has any foreign assets. Even though taxpayer may not have any taxable Income. 


7) The processing of e-filed Income Tax return is faster, and taxpayers get their refunds, if due, quickly. 


8) Do not forget to send you Income Tax Verification form (ITR-V) to “Income Tax Department-CPC, Post Bag No. 1, Electronic City Post office, Bengaluru,  560100 ”, by post, if you have filed your Income Tax return electronically. 


9) Filing of ITR-V is necessary for e-Return filed without Digital Signature. 


Read more about ITR-V 


10) Please visit “ITR-V Receipt status” on https://incometaxindiaefiling.gov.in to check receipt status for your ITR-V at CPC. If not received at CPC, then login to e-filing website, go to ‘My Account’ à ’My Returns’ and download ITR-V, Print it, Sign it and Post it to CPC, Bengaluru by Post. 


11) The due date for submission of ITR-V is 120 days from the date of upload of e-return. Otherwise, e-return uploaded will not be treated as return filed.

File Your I-T Returns In Spite Of Relief From Return Filing Up To 5 Lakh

Source :Simpletaxindia:july 29.2011



With just two days left to file income tax returns, taxpayers falling in the Rs 5-lakh bracket and earning less than the Rs 10,000 limit, have the option of not filing their returns.


 However, there are a number of reasons why you should file.If you covered under exemption for return filing as your salary is less than 5 lakh then  you can file return return up to 31.03.2012


An Income Tax Return (ITR) receipt is an important document because it is more elaborate than Form 16 — the other important document for salaried individuals. Reason: Form 16 shows salary from only one employer and the tax deducted by it. Whereas, ITR also shows income from other sources also, including investments, which one might not have disclosed to the employer. In effect, is a more realistic depiction of the individual's monetary position.


If you have decided not to file returns on or before July 31, here’s why you should revisit your decision:


Borrowing: While applying for a home loan, many banks make do with your Form 16. But, according to industry experts, if you aren’t getting a loan or not as much as you want, then handing over the last three years of ITR receipts will help. The ITR gives a sense of the borrower’s total income and his/her ability to support the loan repayment.


Nihar Jambusaria, National Head – Tax Advisory Services, BDO India, says: “Home loans can get rejected if banks think your income cannot support it. Here, ITR can help, as your total income is stated there (Form 16 only has income from one employer).”


International travel: “When travelling abroad, consulates ask you to furnish ITR receipt of the last couple of years at the time of the visa interview,” says Homi Mistry, tax partner, Deloitte, Haskins and Sells.


Some embassies may ask for the last three years of ITR, while others may ask for the most recent certificate.


Experts suggest when travelling abroad, whether on a business trip or on a holiday, income-related proofs should be carried along, such as salary slip, Form 16 and ITR receipt. Consulates specify these requirements in most cases.


Government tender: Jambusaria says if you plan to start a business and you need to fill government tender for the same, you will need to show your tax return receipts of the previous five years.


However, this is not a law. This may vary according to the internal rules of the government department and the number of ITRs required may also vary. This again, is to show your financial status and whether you can support the payment obligation or not.


Self-employed: Businessmen, consultants and partners of firms do not get Form 16. And, hence, ITR becomes a must for such individuals, if their income exceeds the basic exemption limit of Rs 1.60 lakh. For any financial transactions, ITR will be their only proof of income and tax payment.


Last, if you have a refund due from the Income Tax Department, you will have to file returns, without which you will forgo the amount.