Some facts about Income Tax Return Filing in India

In India, every person whose annual income exceeds prescribed limit has to compulsorily do Income tax return filing with Income Tax Department. Further, as a lay man lots of questions comes in mind relating to filing of tax returns. In this regard, we have prepared an FAQ of the common question which comes in mind of every person relating to efiling Income Tax Return.

Income Tax Return filing

  • Who are required to file Income tax return in India?

In India, following categories of person has to file Income Tax Return:

  1. All those assesses whose Gross Total Income is more than basic exemption limit i.e. Rs 2.5 lac for persons below 60 years of age; Rs 3 lac for person between 60 years to 80 years and Rs 5 lac for persons above 80 years have to do Income tax return filing.
  2. All NRIs having taxable income has to file Income Tax return except those covered under some prescribed sections.
  3. All Companies, Partnership Firms, LLPs has to file tax return even if there is loss or no income
  4. Trusts, AOPs, Political Parties (whose income prior to claim of exemptions exceeds the minimum chargeable to tax)
  5. Even businessmen who has loss in business or capital loss needs to do Income tax return filing.
  6. In case assesse have refund, then tax filing has to be done in order to claim refund.
  7. Resident assesse having signing authority in any bank account which is located outside India
  8. Any assesse who wants to claim relief under sections 90 or 90A or deductions under section 91
  9. Any person can voluntarily file tax return even if gross total income does not exceed basic exemption limit.
  • What are the Advantages of filing tax returns?
  1. First and foremost, if you file tax return, you would be considered as responsible citizen.
  2. Tax returns are required in case you want to apply any type of loans like personal loan, home loan, business loan or want to apply for credit or debit card.
  3. Tax returns are also required in case you want to apply for visa as country issuing visa wants to evaluate your financial position before granting approval for visa application.
  4. Tax returns are compulsory in case you want to adjust past losses against current profit.
  5. Unless return is filed, it cannot be revised.
  • Can Income tax returns be filed online?

Yes, now you can file online Income Tax Return. This has made the entire procedure easier, fast and less time consuming. The government has prescribed different types of forms for different types of assesses and efiling Income tax can be done at comfort of home. Further, in case of companies, firms, assesses whose Total income is more than Rs 5 lac and assesses subjected to tax audit, efiling Income tax return is compulsory.

  • Can Income tax returns once filed be revised later on?

Yes, Income tax returns filed once can also be revised. However, returns which are late filed cannot be revised. Further, returns cannot be revised after 1 year of assessment year in which tax return was filed or after completion of assessment whichever is earlier. Accordingly, revised returns for A.Y. 2016-17 (with interest, if any, for late filing) cannot be filed after 31st March, 2018

  • What are the due dates for filing tax returns?

The due date for filing tax returns in case of Individual, HUF and LLPs are 31st July 2018

Due date for filing tax return in case of companies, Firms and assesses subject to tax audit are 30th September 2018

Due date for filing Income Tax return in case of assesse subject to Transfer Pricing Audit is 30th November 2018

Further, it may be noted that as per latest amendment in budget, Income Tax Returns for A.Y. 2016-17 and 2017-18 cannot be filed after 31st March 2018.

  • What will happen if tax returns are not filed?

In case, tax returns are not filed or not filed within time or incorrectly filed, same will result in interest, penalty and in some case even prosecution. In this regard, it may be noted that Income Tax Department has complete knowledge of all those assesse who has done high value transaction but did not file their Income tax return through Annual Information Report submitted to tax department by outside agencies, therefore, in case any person has entered into any such transaction, shall file their tax returns on time with tax department.

  • What is requirement of linking of Aadhar with PAN?

It is mandatory for every assesse to link His/Her PAN with aadhar card no. Now, linking can also be done by login into Income tax department website. This has been done to ensure that every assesse has only one PAN and only one Aadhar card which will reduce the evasion of taxes. This will also allow quick filing of Income tax return as after linking there is not requirement to submit ITR acknowledgement copy to CPC Bangalore which will save time and cost

In last, needless to say that it is social duty of every responsible Indian to file their tax return on time as doing otherwise, will cause them lot of trouble in terms of interest, penalty and even prosecution in some cases.

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Author: Anil Agrawal
EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or
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