Skip to main content

Filing I-T returns first time? What you need to know

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

The financial year is over, and we have to file our IT returns for the year gone by. Let us discuss some preliminary aspects of requirement of filing of income tax returns in this article. My discussion is restricted to the law as applicable to individuals only, and is not intended to cover any other income tax payers.

 

Who is required to file the IT returns?
One of the many questions, which individual taxpayers ask: Do I need to file my tax returns even though my employer has already deducted tax at source?

 

We see that many a salaried employees are under the impression that since their employer has already deducted income tax at source, they have discharged their liability, which is not the case. Payment of taxes and filing of income tax return are two separate obligations. Let us understand what is the legal position with regard to filing of the income tax returns.

 

As per the present provisions of Income Tax laws, an individual whose gross total income exceeds the exemption limit has to file his Income Tax return though s/he might have paid all the taxes or taxes have already been deducted from her/his income. Gross total income under the income tax laws means the total income before giving effect to deductions under chapter VI A which, for individuals generally covers deductions under various Sections like 80 C, 80 CCC, 80 CCD, 80CCG, 80D 80G and 80 GGA etc. These deductions among other things include payments of Provident Fund, Life insurance premium, Tuition fee for education for child, NSC, contribution to NPS, PPF, home loan repayment, Health insurance premium, rent paid and deductions for investments made under Rajiv Gandhi Saving Scheme etc.

 

So even in the cases where taxable income is below the exemption limit after the above deductions, you will still have to file your income tax return even when you may not have any tax liability.

 

This exemption limit presently is Rs. 2 lakhs for an ordinary individual taxpayer. For a senior citizen, this limit is Rs. 2.5 lakhs and for the senior citizens above 80 years, the basic exemption limit is Rs. 5 lacs.

 

Let us understand this with the help of an example: Suppose your taxable salary as per Form no. 16 issued by your employer is Rs. 2.80 lakhs and you have other income of Rs.10, 000 thus making your gross total income Rs. 2.90 lakhs.

 

Since you have invested an amount of Rs. 1 lakh in items eligible for deduction under Section 80 C, your taxable income comes down to Rs. 1.9 lakhs, and therefore your employer would not have deducted any tax.

 

You may be under the impression that as your net income is below the exemption limit and since no income tax has been deducted from your salary, you need not file your income tax return. This is not the correct position of law and the right impression to have, but generally people are under this impression.

 

However the legal provision is different.

 

You have to calculate your income before deduction for various deductions like life insurance premium, mediclaim insurance, housing loan repayment and school fee for your child etc.

 

In case your aggregate income before deduction for these expenses exceeds the basic exemption limit as mentioned above, you are required to file your return of income. As pointed out in the above example, you may neither have any tax liability to discharge nor any Tax Deducted at Source (TDS) to claim refund, yet you are still required to file your income tax return. However, there is one exception to the above provision. You will not have to file your income tax return if your are a salaried person, you have disclosed your all other income to your employer and your employer has deducted appropriate tax on aggregate of the salary and other income reported by you and your total income does not exceed Rs. 5 lakhs. This was applicable for the assessment year 2012-2013. For the current assessment year, the notification is yet to be issued by the Government, however you can safely assume that if you satisfy the above conditions, you will be exempt from the requirement of having to file your income tax return.

 

By when should I file my return?
In case you are required to file your income tax return as discussed above, the due date for the year just concluded is July 31, 2013.

 

What if I miss the above date of July 31, 2013?
In case you fail to file your return by the due date as prescribed by law, you can still file your return of income by March 31, 2014 for the year ended March 31, 2013 but you will not be able to revise your return of income in case you notice any mistakes or errors in the return of income filed beyond the due date of 31st July 2013. Moreover in case any amount is still payable as tax on your total income, you will have to pay penal interest on the amount of tax. till you actually file the return.

 

Moreover in case you have incurred any loss in respect of business, or any speculative business or capital gains and want the same to be carried forward for set off in subsequent year, you will have to file the return by July 31, 2013 or your claim for carry forward and set off of such loss shall be lost for ever.

 

Therefore it is advisable to file your returns by the due date.

 

Is there any penalty if I fail to file till last date?
There is no penalty if you file the return of income for the year ended March 31, 2013 by March 31, 2014. However if your income is taxable and you fail to file your IT returns by March 31, 2014, the income tax officer can levy a penalty of Rs. 5,000 after giving you a notice to explain the reasons.

 

So from the above discussion it is clear that though you may not have taxable income but you still may have to file the income tax return. Moreover in case you have taxable income it is advisable to file the return by the due date so that you can revise the return in case any mistake is noticed afterwards.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

How to Decide your asset allocation with Mutual Funds?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) How to Decide your asset allocation ? The funds that base their equity allocation on market valuation have given stable returns in the past. Pick these if you are a buy-and-forget investor. Small investors are often victims of greed and fear. When markets are rising, greed makes the small investor increase his exposure to stocks. And when stocks crash to low levels, fear makes him redeem his investments. But there are a few funds that avoid this risk by continuously changing the asset mix of their portfolios. Their allocation to equity is not based on the fund manager's outlook for the market, but on its valuations. Our top pick is the Franklin Templeton Dynamic PE Ratio Fund, a fund of funds that divides its corpus between two schemes from the same fund house-the...

Mirae Asset Healthcare Fund

Best SIP Funds to Invest Online   Mirae Asset Global Investments (India) has launched Mirae Asset Healthcare Fund. The NFO of the fund will be open from June 11, 2018 to June 25, 2018. Mirae Asset Healthcare Fund is an open-ended equity scheme investing in healthcare and allied sectors. The scheme will invest in Indian equities and equity related securities of companies that are likely to benefit either directly or indirectly from healthcare and allied sectors. The investment strategy of this scheme aims to maintain a concentrated portfolio of 30-40 stocks. Healthcare is a broad secular theme that includes pharma, hospitals, diagnostics, insurance and other allied sectors. The fund will have the flexibility to invest across markets capitalization and style in selecting investment opportunities within this theme. Neelesh Surana and Vrijesh Kasera will manage this fund. In a press release, Swarup Mohanty, CEO, Mirae Asset Global Inves...

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...

Reliance Regular Savings Fund - Debt Option

Reliance Regular Savings Fund - Invest Online     The scheme aims to generate optimal returns consistent with moderate levels of risk. It will invest atleast 65 per cent of its assets in debt instruments with maturity of more than 1 year and the rest in money market instruments (including cash or call money and reverse repo) and debentures with maturity of less than 1 year. The exposure in government securities will generally not exceed 50 percent of the assets. The fund uses a mix of relatively low portfolio duration with active investments in higher-yielding corporate bonds. It does not take aggressive duration calls but tries to improve returns by cherry-picking corporate bonds. This is reflected in the fund's returns matching the category and benchmark for five years - at 8.4 per cent - but lagging behind the category during a raging bull market in bonds in the last one year. The fund has been a consistent but not chart-topping performer in the income category. Despite its ...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now