Fill your Tax Return on Time avoid the Penalties!

Filing Your Tax Return” is one of the most popular booklets
among the taxpayers. These booklet mainly deals with the procedure for filing of the tax returns. Besides, it also guides the reader about filling up the relevant forms/ challans
guides the reader about filling up the relevant forms/ challans correctly. In addition, the booklet gives a brief idea about various heads of income and the allowable deductions, and also the taxability of Fringe Benefits.




It is compulsory for every company to furnish return of income.
Every person, other than a company, whose total income from all
sources of income exceeds the maximum amount which is not
chargeable to income tax in any previous year ending on 31st March is
liable to file the Income-tax Return.




Through Latest Amendments, the Central Board of Direct Taxes
(CBDT) has prescribed new return of income forms for the assessment
years 2008-09 onwards, as shown in the table below:




FORM FOR WHOM

ITR-1: Individuals having salary, pension, family pension or interest income. .



ITR-2: Individuals and Hindu undivided family (HUFs) not having income from
business or profession.




ITR-3: Individuals and HUFs who is a partner In partnership firm but does not carry
on a proprietary business or profession.




ITR-4: Individuals and HUFs carrying on a proprietory business or profession.



ITR-5: Partnership firms, Association of Persons (AoP) and Body of Individuals(BoI).




ITR-6: Companies other than companies claiming exemption under section 11.



ITR-7: Persons including companies which are charitable or religious trust, political
party, scientific research association, news agency, hospital, trade union,
university, college or other institution specified in sub-section (4A), (4B), (4C)
and (4D) of section 139 of the Act.




ITR-8: Persons not liable to file return of income but are liable to file return of
fringe benefits.




The above forms are not required to be filed in duplicate. But
where the return form is filed in paper format, acknowledgement slip
attached should be duly filled in.





Income-tax return is a legal document and it should be filed by the
assessee with due care and caution. There should be no corrections or
overwriting and it should be properly signed and verified by the person
authorized to do so under the provisions of the Income-tax Act. The
following important points may be taken care of while filling up the
return forms:




1. For timely delivery of refunds, ensure correct address and
account number on your Return of Income
All income tax refunds in Bangalore, Chennai, Delhi, Kolkata and Mumbai will be delivered by the Refund Banker directly at the communication address mentioned on the Return of Income.



2. Manner of filing the new Forms
These Forms can be submitted in the following manner:
(i) a paper form;



(ii) e-filing



(iii) a bar-coded paper return



Returns can be e-filed through the internet. E-filing of return is
mandatory for companies and firms requiring statutory audit u/s 44AB.
E-filing can be done with or without digital signaturea)
If the returns are filed using digital signature, then no further
action is required from the tax payers.



b) If the returns are filed without using digital signature, then
the tax payers have to file ITR-V with the department within
15 days of e-filing.



c) The tax payers can e-file the returns through an e-intermediary
who would e-file and assist him in filing of ITR-V within
15 days.




5. Filling out acknowledgement
Where the return is furnished in paper format, acknowledgement
slip attached with the return should be duly filled in. The new forms are
not required to be filed in duplicate.



6. Intimation of processing under section 143(1)
The acknowledgement of the return is deemed to be the intimation
of processing under section 143(1). No separate intimation will be
sent to the taxpayer unless there is a demand or refund.



7. Furnishing details of high value transactions
In the return the details of high value transactions need to be
compulsorily stated, which are ordinarily reported through the annual
information return (AIR) and these details are cross checked and
matched with the data in the AIR.




An existing assessee must file his Income-Tax Return with the
Assessing Officer who had previously assessed him or with the Assessing
Officer where his case stands transferred. A new assessee should file
the Return with the Assessing Officer having territorial jurisdiction
over the area where he resides or his principal place of business is
situated or with the Assessing Officer having special jurisdiction over
specific assessees or classes of income.




Under section 139(1A) the Board has specified a scheme for Bulk
filing of returns by employer, wherein the eligible employee at his option
may furnish a return together with documents to his employer and such
employer shall furnish returns received by him on or before the due date
on computer readable media using the authorized Bulk Return Preparation
Software (BRPS).




Section 139 D provides that the Board may make rules providing
for:
(a) the class or classes of persons who shall be required to
furnish the return in electronic form;



(b) the form and the manner in which the return in electronic
form may be furnished;



(c) the documents, statements, receipts, certificates or audited
reports which may not be furnished along with the return in
electronic form but shall be produced before the Assessing
Officer on demand;



(d) the computer resource or the electronic record to which the
return in electronic form may be transmitted.



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Filling TDS RETURN is very Easy!

Tax Deducted at Source (TDS) was introduced to facilitate the payment of Tax while receiving the income and it follows the concept Pay as you Earn. The tax deducted at source is one way of collecting the taxes by the department.


Liability of Tax Deduction:-


Persons liable to deduct TDS
a. Individual/HUF- If covered under Tax Audit u\s 44AB during the F.Y.2009-10


b. Partnership Firms


c. Limited Company


d. Local Authority


e. Association of Person


f. Body of Individual.



The liability to deduct tax on salary income payable to the employee is also to Individual and HUF. Rate of deduction is now based on the status of payee and not on the basis of type of payment.




Consequence of Failure to Deduct or pay (Penal Provisions):-
1) Failure to deduct the whole or any part of tax at source u/s 271 C is liable to penalty of sum equal to the amount of tax which he failed to deduct.



2) Failure to pay the TDS u/s 276 B is punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extent to 7 years and with fine.



3) If a person is held to delivery in due time a copy of Quarterly statement of tax payment he shall pay, by way of penalty, a sum of Rs 100 per day for the delay during which default continues.



4) In case of failure in respect of furnishing Annual Return in due time, assesses should be liable to pay penalty u/s 272 (A)(2)(C) @ Rs. 100 per day for the delay during which the default continues or amount of TDS whichever is less.



5) Failure to deduct/ pay tax at source u/s 220, person is liable to pay interest @ 13% p.a. or the amount of such tax from the date on which such tax was deductible to the date on which tax is actually paid. However such interest is required to be paid on or before due date for filing the quarterly returns (w.e.f. 1st June, 2006).



6) In case of failure to apply for allotment of TAN and failure to quote TAN in challans, certificates and statements, person is liable to pay penalty u/s 272 BB to the extend of Rs. 10,000/- of failure to deduct or pay.




Person responsible to collect tax at source:-
Every person being a seller shall collect tax from the buyer of goods specified in sec 206C (1)



Meaning of Seller: Seller means
1. The Central Government


2. A State Government or


3. any local authority or corporation or authority established by or under Central Govt. or Provincial Act,


4. Any Company, or


5. Firm, or


6. Co-operative Society


7. Individuals/ HUF (if books are audited u/s 44AB)




Meaning of Buyer: - “Buyer” means a person who obtains in any sales by way of auction, tender or any other mode, goods of the nature specified in the table or the right to receive any such goods. It however does not include the following:



• A Public Sector Company, the Central Government, a State Government, And an Embassy, a High Commission, Legation, Commission, Consulate and the trade representation, of Foreign State & a Club; or



• A buyer in retail sale of such goods purchased by him for personal consumption.
Note: If income of buyer is exempt u/s 10(26), then tax collected be collected at source.
Tax Collection Account Number U/S 20C A:-
It is obligatory for all persons responsible for collecting tax at source to quote the T.C.S No. i.e. TAN in the challans, TCS certificates & periodical returns etc


Deposit of Tax: -
Tax collected u/s 206C shall be deposited within 7 days from the last day of the month in which tax is collected to the credit of Central Government. For non payment or late payment, interest is payable @ 1% per month or part thereof.


Quarterly Statement of TCS:-
Quarterly TCS return should be submitted (w.e.f. 1st April, 2005) after the end of each quarter in Form 27EQ within 15 days from the end of each quarter. (76 days in the case of last quarter) Quarterly TCS cannot be submitted unless interest for late deposit of TCS is paid.



Issue of Certificate:-
Within the period of one month from the end of the month in which tax is collected, the person collecting tax should issue a certificate of tax collected to the buyer in Form 27D.
Where more than one certificate is required to be furnished to the buyer for TCS in respect of period ending September 30 and March 31in each financial year, the person collecting tax may (on request of buyer), issue within end of such period, a consolidated certificate in Form 27D for collected during whole of such period




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