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Due date of filing income tax return For the asst year 2015-16
Due date of filing income tax return For the asst year 2015-16

What one should know about filing income tax return in India

The government is yet to release the software utility for filing Income Tax return for the financial year ending 31st March 2015 (FY 2014-15). Considering the delay in its release, the due for filing the return is extended to 31st August 2015. (Earlier, it was 31st July 2015).

Though there is sufficient time to file the return, we suggest the tax payers to file it as soon as the online facility is made available. In this connection, we thought of listing out the most commonly asked questions/problems posed to us by the taxpayers. Hope this helps.

  1. Assessment Year and Previous Year – Income Tax Return (ITR) form has columns about Assessment Year (AY) and Previous Year (PY). While filing the information, choose it correctly. Year starting from1st April 2014 to 31st March 2015 is called Financial Year 2014-15 or Previous Year (PY) and the year subsequent to the financial year i.e., 1st April 2015 to 31st March 2016 is called Assessment Year (AY 2015-16). So, don’t get confused, when you fill the Challan. Use AY and FY years correctly.
  1. What are the consequences of late or delayed filing of IT return? You are expected to file income tax return for FY 2014-15, on or before 31st August 2015. Suppose, you fail to file the return within the due date (a) you will lose the opportunity of revising the return at a later date (b) if there are any losses reported (other than house property loss), you can’t carry forward the same for future years (c) If there any taxes to be paid, an additional interest u/s 234A to be paid (d) If the delay in filing goes beyond one year from the end of FY, you will have to pay a penalty of Rs.5000. Though the consequences appear quite insignificant, it will surely matter if you have to revise the return. So, it is always suggestible to file the returns on or before the due dates.
  1. Can I file Income Tax Return by myself? Do I need to hire tax consultant for filing tax return? Now the returns can be filed electronically. So, the taxpayer can file his return himself. Self-service can save cost (fee payable to tax consultant) but the flipside is that the taxpayer may spend more time in filing returns, may make errors in filling the columns and information. Hiring a consultant would be a good choice. The fee for filing is relatively less compared to the potential problems which may arise on account of wrong filing or errors in filling the information. You can also use the services of a consultant for tax planning.
  1. Importance of information in Form 26AS (TDS) while preparing ITR form: As per our experience, most of the income tax demand notices are issued due to mismatch in TDS data appearing in Form 26AS and IT Return filing by the taxpayer. So, while filing IT return, it is advisable to import the data in Form 26AS directly to ITR.
  1. What shall I do if the tax (TDS) deducted by my employer is not reflecting in Form 26AS? TDS done from salary has to be deposited to your account by the employer and the same should get reflected in Form 26AS. However, sometimes, you may find the variance in tax credits. This may be due to three reasons (a) the employer would not have deposited the tax deducted from your salary (b) deposited but eTDS return not filed. (c) Deposited, e-return filed but quoting wrong PAN. In such a case the employee has to approach the employer and request him to take the necessary steps to rectify the errors. If you have to do so, you would need sufficient time, agree? So, kindly file your returns without waiting for the last dates of filing!
  1. What if I ignore TDS on bank interest appearing in Form 26AS while filing returns? One has to declare all taxable income to the department while filing the return. Interest earned on bank deposits and bank accounts are taxable. The banker deducts tax (TDS) at the rate of 10% on deposit interest. It is mandatory to offer such interest for tax and pay appropriate taxes on it. In case you ignore to offer such income for tax, you can expect a ‘brown envelope’ (demand notice) from tax department! (Read: The day you get brown colour envelope) So, we suggest you to pay taxes on interest income.
  1. Email ID, mobile number, address and bank Information – There is no point in giving wrong information to the department. In fact, giving wrong information may invite more trouble than not giving any information! While filing the return, ensure that the correct email id, mobile number, present address, bank account number, IFSC Code, MICR etc., are filled.

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About CA Prakash Chartered Accountant Bangalore

CA Prakash Chartered Accountant Bangalore
CA Prakash is a practicing chartered accountant and partner in Bangalore -based CA Firm. For further information or query, please email it to [email protected]