Remember Scarlett O'Hara's immortal words in the novel 'Gone with the Wind? "....After all, tomorrow is another day…" With the financial year (FY) 2010-11 behind us, one would probably be muttering these words while looking forward to FY12.
While planning for FY12, one should remember that though FY11 is over, the return filing compliances required for the year are far from over. Compliance for FY11 can be laid to rest only after the due filing of income-tax returns (ITR) for the year is done, as required under the law.
There would be numerous questions with respect to tax filing by individual taxpayers; some of which have been addressed below.
WHO SHOULD FILE AN ITR?:
Every individual, whose total income exceeds the prescribed exemption limit (which is . 160,000 for male assesses, . 190,000 for female assesses and . 240,000 for those above 65 years of age [i.e. senior citizens]), is required to file an ITR with the Indian revenue authorities on or before the prescribed due date. If you have agriculture income as well as non-agriculture income and your non-agriculture income is less than the minimum threshold limit, you will not be obliged to file an ITR. In case of a deceased person, his executor, administrator or other legal representative would be required to file an ITR for the deceased.
WHAT IS THE DUE DATE?:
The prescribed due date is September 30, 2011 for FY11, if the individual, being a sole proprietor, has his accounts subjected to tax audit or is a partner of a partnership firm whose accounts are subject to tax audit. In all other cases, the due date is July 31, 2011.
WHICH FORM TO FILL?:
It may sound strange, but the fact is that the ITR form for FY11 is yet to be prescribed. So, the filing would have to wait till it is prescribed.
WHO SHOULD SIGN THE ITR?:
The ITR is required to be signed by the individual himself or herself. However, in case the individual is not physically present in India to sign the ITR or in case of a nonresident, a power of attorney holder could sign the ITR. In case of deceased assesses, the executor, administrator or other legal representative would be required to sign the ITR. A word of caution: An unsigned return is not a valid return.
CAN YOU FILE ITR ELECTRONICALLY?:
Well, yes an ITR can be filed electronically with the income-tax department website (www.incometaxindia.gov.in) with or without a digital signature. In case an ITR is filed online without the digital signature, the acknowledgement generated is required to be signed and sent to the Central Processing Centre (till last year, only in Bengaluru, Karnataka).
ARE ANY DOCUMENTS NEEDED?:
Currently, no documents can be submitted along with the ITR. However, the tax authorities sometimes ask for a copy of the PAN card or acknowledgement of previous ITR filed, to verify the tax jurisdiction.
In case the ITR is signed by a legal representative, copy of the power of attorney is required to be filed.
WHAT IF YOU MISS THE DUE DATE?:
If the ITR is not filed before the prescribed due date and also if the taxes due are not deposited before the said date, the individual would be subject to penal interest at the rate of 1% per month of such taxes due, for the duration of the non-compliance. In addition, a penalty of Rs 5,000 could be levied by the authorities if the ITR is not filed before the end of the assessment year (i.e. March 31 following the year for which the tax return pertains).
CAN YOU FILE IT LATER?:
An ITR can be filed after the prescribed due date but before the end of one year from the end of assessment year. So for FY11, ITR can be filed by March 31, 2013. But you should be aware of the fact that the belated return so filed cannot be revised under any circumstances.
Also, if you have business loss and capital loss during the financial year, it cannot be carried forward to subsequent financial year, impacting your next year's planning.
