An assessee needs to file the Income tax return as per Income Tax Act, 1961. Whatever he earns in a year needs to declare the entire details to the government in the applicable Income Tax return form (issued by the CBDT). Every year in a budget Ministry of Finance provides the Tax Slab rate on the Income for the year.
Accordingly an Assessee calculates his Income and pay the Tax accordingly to the Government of India.
There are various forms under which Income Tax return can be filled. Forms of ITR are named as ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7.
Important thing is that there are five (5) heads under which Income can be treated and Income Tax form can be selected for filling of Return. These are written as following.
- Income from Salary
- Income from House Property
- Income from Capital Gain
- Income from Business and Profession
- Income from Other Sources
Every Assessee needs to check the Residential Status as well to select the appropriate option in the Income Tax Return.
Some Important issues are discussed in details.
What is Income Tax Return?
Income Tax Return is a declaration about your Income earned in a year (called as Previous Year) in prescribed form give by the Central Board of Direct Taxes on yearly basis.
Every time while filling Income Tax return do I need to pay tax?
This is very general question, which I heard too many times. But the answer is No. Tax is payable only when the Income earned is taxable as per the Income Tax Act, 1961.
Under the Income Tax Act, 1961 Tax may be chargeable on the Income as per given slabs or by the special rates.
Why I do need to file Income Tax Return?
As I am residing in India and earning in India then I need to file my ITR and pay taxes accordingly.
It’s a mandatory compliance as well and we have other benefits as well which are written as following.
- It helps us to get the Home Loan
- It helps us to get the CAR / Vehicle Loan
- It helps us to get other financial help i.e. Personal Loan, Business Loan etc.
Most importantly we get away from penal provisions and we can use our money without any hassle.
What are the penal provisions for Non-filling of Income Tax Return?
As per the Income Tax Act, 1961 every assessee who is liable to pay tax needs to pay tax and file the return as per following written dates.
|S. No.||Particulars||Last Date to file Income Tax Return||Penal Provisions|
|01.||Individuals (non business) / business without audit||31-07-2018||1000/5000.00/10000.00|
|02.||Individuals (business) Audit||30-09-2018||150,000.00 on Audit & 1000/5000.00/10000.00 in ITR|
|03.||Partnership Firms / LLP’s (without Tax Audit)||31-07-2018||1000/5000.00/10000.00|
|04.||Partnership Firms / LLP’s (required Tax Audit)||30-09-2018||150,000.00 on Audit & 5000.00/10000.00 in ITR|
|05.||Companies||30-09-2018||150,000.00 on Audit & 5000.00/10000.00 in ITR|
Is there any interest on nonpayment of Tax Payment?
Yes, there is Interest on Tax @ 1% per month on late payment of Income Tax.
What is Assessment Year?
Assessment year means the next year of previous year. Previous Year means in which we do work and earn the Income but we declare the entire details to Income Tax Authority in the next year. Let understand the same with an example.
Mr. Aakash is working in a company and withdrawing Salary of INR 100,000.00 per month. He worked in a company for the period April 2017 to March 2018. In this Case Previous Year is 2017-2018 and Assessment Year is 2018-2019.
For further any queries or details you may write to us or call us on following written details
Nitin Grover & Co.
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