INCOME TAX RETURNS
Income Tax Return is a proof of income earned by a person or business. It is a process through which one declares the income earned in the year . It is a form in which all the income, sources of income allowances and exemption claimed are reported.
PERSONS LIABLE TO FILE RETURNS
In case of individuals if the income before any deductions exceeds the exemption limit i.e 2,50,000 , the person is liable to file income tax returns.
(In case of senior citizen the exemption limit is 3,00,000 and for super senior citizen it is 5,00,000)
It is not mandatory to file returns for all the assessee but filing one would definitely bring lot of advantages.
DUE DATES FOR FILING RETURNS
In case of salaried assesses and assesses whose income is below audit limit the due date for filing returns is 31st July of the Assessment Year.
For assesses whose accounts are liable to get audited the due date is 30th September of the Assessment Year.
In case of working partners of the firm the due date is 30th September of the Assessment Year.
IMPORTANCE OF RETURN FILING
One can enter into any financial transaction.
Registration of immovable properties is easy if income tax return is filed.
Easy availability of credit cards.
VISA is available only if you have your income tax returns filed.
Return filing facilitates easy loan availability (Even a NIL return is important to get easy and quick loans)
CONSEQUENCES OF NON FILING OF RETURNS
Carry forward of business losses an capital losses is not allowed if returns are not filed
Revised return cannot be filed if original return is not filed.
Penalty of Rupees 5000 may be levied on the assesses by the Income Tax Department.
Interest may also be charged @ 1% u/s 234A .
INCOME TAX RETURNS
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