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  • Filing I-T return on time has benefits

    Publish Date : 01 Aug 2017

    The time for filing income tax returns is once again upon us. Most people regard this task as a burden. But filing returns will in the future help you account for certain incomes that may not be subjected to tax – stocks investments of over one year, for example. Many are not even aware that those earning income above a certain threshold, compulsorily need to file returns, even though their taxes are paid via tax deduction at source or TDS. Every year, the income tax department takes steps to make the process of filing return simpler and to encourage more people to participate in this annual exercise. Some of the measures it has already taken include simplified tax return forms, allowing paperless filing of returns, providing pre-filled tax return forms, and so on.

    Simplified forms

    The authorities have introduced a one-page ITR Form-1 (Sahaj). It’s meant for individuals with income up to Rs 50 lakh and owningone house property. Assets and liabilities section has been eliminated from the ITR-1 (Sahaj), as an individual with income over Rs 50 lakh cannot use it. ITR forms like ITR-2, ITR-2A and ITR-3 have been merged into a single ITR-2. ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam), respectively. From this year onwards, it is mandatory to provide the 12-digit Aadhaar number. If the assessee doesn’t have an Aadhaar card, then he needs to provide the enrolment ID. Also, an individual needs to disclose the cash deposited during demonetisation (between November 9 and December 30 last year) if the total amount was more than Rs 2 lakh.

    Mandatory for many

    According to income tax laws, filing return is mandatory for an individual who earns above the basic exemption limit. Also, a person who qualifies as ordinarily resident in India under income tax laws and fulfils any of the following two conditions must file his income tax return. One, he holds an asset, either as a beneficial owner or otherwise, including a financial interest in any entity located outside India, or has signing authority in any account located outside India. Two, he is a beneficiary of an asset, including any financial interest, in any entity located outside India. Besides the above, an individual will also be required to file return of income if he or she fulfils any of these three conditions.

    One, he wishes to carry forward a loss or wants to claim a refund. Two, he has long-term capital gains (which are exempt from taxation) from the sale of equity shares of a company, or sale of units of equity-oriented mutual funds, or sale of units of a business trust. Three, he has received income derived from property held under trust, wholly or partly for charitable or religious purposes. - www.business-standard.com[01-08-2017]

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