31st July is the due date for filing income tax return

Filing income tax return is fairly a simple topic to write. The topic becomes complicated when we discuss about the due date for filing the return, basic exemption limit, whether a  non-resident has to file the return etc.

Let me try to make the topic as simple as possible.

If you have earned income more than Rs.2,00,000 (such as salary, rent, commission, pension or business income etc) between 1^st April, 2013 and 31^st March, 2014, you have to file Income Tax return. Senior citizens (those who are 60 years and above) have to file the return if the income exceeds Rs.2,50,000/- and Very Senior citizens (those who are 80 years and above) have to file the return if the income exceeds Rs.5,00,000.

Who is required to file the return on or before 31^st July, 2014

• Salaried employees
• Retired persons drawing pension
• Landlords earning Rental Income
• Earnings from Interest on deposits
• Directors of companies
• Partnership firms or proprietary concerns having turnover (Sales) of less than Rs.1 Crore during the previous year (1th April, 2013 to 31^st March, 2014). Net Profit/Loss (Sales less expense) to be considered as Income in case of business.
• Professionals (such as doctors, engineers, advocates, architects etc.) having income of less than Rs.25 Lakhs during the previous year. Net Income/Loss (Revenue Less the Expenses) to be considered as Income in case of profession.

Is it mandatory to file the return of Income?

Yes. Those who have earned income over basic exemption limit of Rs.2,00,000 (or such increased amount to Senior Citizens) have to mandatorily file the return.

Benefits of filing the return within the due date:

• The return can be revised later only if you file the return within the due date.  
• If there is a business/capital gain Loss, you can carry forward the loss to subsequent years and adjust against the income of next year.
• If the return is delayed beyond 31^st March, 2015, a penalty of Rs.5000/- is payable

Keeping all aspects mentioned above, we advise people (for those where applicable) to file their Income tax return on or before 31^st July 2014

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